Lean production and business performance: influences of leadership styles

Abstract

Current global economy creates intense competitive environment among businesses to ensure their survival in the present challenging market. Strategic view and formulation is crucial to enhance efficiencies and effectiveness of the businesses performance. Prior research however found lack of leader’s intervention can lead to failures in lean production implementation. Hence, this study aims to examine the influence of leadership style in the implementation of lean production. Data were gathered from randomly selected Malaysian manufacturing firms. Findings reveal a positive relationship between lean production and business performance. Specifically, democratic leadership style was identified to moderate the relationship between lean production and business performance.

Keywords: lean production; business performance; leadership styles; autocratic; democratic; laissez-faire