Interrelationships among lean HRM practices and their impact on firm performance: a comparison between the Jordanian and German models

Purpose Lean management is a contemporary management system that firms adopt to boost their performance. Lean management can be integrated with human resources management to develop a new concept of lean human resources management (LHRM). This entails the implementation of several practices. However, the LHRM–performance paradigm remains underexplored in the literature. Hence, this study aims to examine the interrelationships between LHRM practices and the impacts of those practices on firm performance (FP). Design/methodology/approach Using two equal-sized samples (n = 250 each) of manufacturing firms in Jordan and Germany, this study proposes two structural equation models (i.e. a Jordanian and a German models) depicting the interrelationships between LHRM practices and the impacts of those practices on FP. After testing these models, a comparison between them is conducted, producing findings with theoretical and practical implications. Findings The main findings of this study indicate that the average implementation of LHRM practices among German manufacturing firms is at a higher level than the average implementation among Jordanian firms. The findings also support the proposed interrelationships between LHRM practices and the impact of those practices on FP for both the Jordanian and German models. Originality/value To the best of the authors’ knowledge, this study is among the first to highlight the proposed relationships, both in general and in the context of comparing developed and developing countries. Its findings have important implications that can enable manufacturing managers to benefit from the implementation of LHRM practices to enhance FP in different contexts. These findings provide valuable insights for human resource managers and decision-makers and open several avenues for future research.

[1]  Omar M. Bwaliez,et al.  The direct and indirect impacts of transformational leadership on employee change-oriented organizational citizenship behavior , 2022, Corporate Ownership and Control.

[2]  B. Gardi,et al.  The Role of Training and Development on Organizational Effectiveness , 2021, International Journal of Engineering, Business and Management.

[3]  Ayman Bahjat Abdallah,et al.  Impact of social and technical lean management on operational performance in manufacturing SMEs: the roles of process and management innovations , 2021, Bus. Process. Manag. J..

[4]  Omar M. Bwaliez,et al.  Employee’s Attitude and Organizational Sustainability Performance: An Evidence From Jordan’s Banking Sector , 2021 .

[5]  Nabaz Nawzad Abdullah,et al.  The Impact of Human Resource Management Practice on Organizational Performance , 2021, International Journal of Engineering, Business and Management.

[6]  Omar M. Bwaliez,et al.  Board policy of humanitarian organizations towards creating and maintaining their employer brand during the COVID-19 pandemic , 2021, Corporate Board role duties and composition.

[7]  Omar M. Bwaliez,et al.  COVID-19 organizational support and employee voice: Insights of pharmaceutical stakeholders in Jordan , 2021 .

[8]  Abdel-Aziz Ahmad Sharabati,et al.  IMPROVING SUSTAINABLE DEVELOPMENT THROUGH SUPPLY CHAIN INTEGRATION: AN EVIDENCE FROM JORDANIAN PHOSPHATE FERTILIZERS MANUFACTURING COMPANIES , 2020 .

[9]  B. Kuvaas,et al.  Human resource management systems, employee well‐being, and firm performance from the mutual gains and critical perspectives: The well‐being paradox , 2020, Human Resource Management.

[10]  Doordarshi Singh,et al.  Impact of implementing lean practices on firm performance: a study of Northern India SMEs , 2020 .

[11]  Rasha Zuhair Alkhaldi,et al.  Lean management and operational performance in health care , 2019, International Journal of Productivity and Performance Management.

[12]  Omar M. Bwaliez,et al.  Integrating the SRM and Lean Paradigms: The Constructs and Measurements , 2019, Theoretical Economics Letters.

[13]  Katerina Gotzamani,et al.  The relationship between EFQM enablers and business performance , 2019, Journal of Manufacturing Technology Management.

[14]  Yash Dave,et al.  Improving productivity through Lean practices in central India-based manufacturing industries , 2019, International Journal of Lean Six Sigma.

[15]  S. Fosså,et al.  Limited evidence of non-response bias despite modest response rate in a nationwide survey of long-term cancer survivors—results from the NOR-CAYACS study , 2019, Journal of Cancer Survivorship.

[16]  Gulshan Chauhan,et al.  A phase-wise approach to implement lean manufacturing , 2019, International Journal of Lean Six Sigma.

[17]  Abdel-Aziz Ahmad Sharabati,et al.  Lean Six Sigma effect on Jordanian pharmaceutical industry’s performance , 2019, International Journal of Lean Six Sigma.

[18]  Barbara Resta,et al.  Exploring the role of human factors in lean management , 2019, International Journal of Lean Six Sigma.

[19]  Vicente Roca-Puig,et al.  The empowerment–organizational performance link in local governments , 2019, Personnel Review.

[20]  S. Yusof,et al.  Blue ocean leadership activities improve firm performance , 2018, International Journal of Lean Six Sigma.

[21]  Sudhir Yadav,et al.  Lean production practices and bundles: a comparative analysis , 2018, International Journal of Lean Six Sigma.

[22]  Maurizio Filippone,et al.  A comparative evaluation of outlier detection algorithms: Experiments and analyses , 2018, Pattern Recognit..

[23]  Kuldip Singh Sangwan,et al.  Development of an integrated performance measurement framework for lean organizations , 2018 .

[24]  Kevin Watson,et al.  Workplace safety events and firm performance , 2018 .

[25]  Muhammad Shaukat Malik,et al.  Impact of human resource (HR) practices on organizational performance: Moderating role of Islamic principles , 2017 .

[26]  A. Boerhannoeddin,et al.  The effect of soft skills and training methodology on employee performance , 2017 .

[27]  Vathsala Wickramasinghe,et al.  Implementation of lean production practices and manufacturing performance: The role of lean duration , 2017 .

[28]  S. K. Horwitz,et al.  The effects of organizational commitment and structural empowerment on patient safety culture. , 2017, Journal of health organization and management.

[29]  G. Stock,et al.  Improving service operations: linking safety culture to hospital performance , 2017 .

[30]  J. Kottner,et al.  Occupational Injuries in Germany: Population-Wide National Survey Data Emphasize the Importance of Work-Related Factors , 2016, PloS one.

[31]  Mohammad D. Al-Tahat,et al.  Lean-based workforce management in Jordanian manufacturing firms , 2015 .

[32]  H. Bruch,et al.  How to empower employees: using training to enhance work units’ collective empowerment , 2015 .

[33]  Anabela Carvalho Alves,et al.  Workplace ergonomics in lean production environments: A literature review. , 2015, Work.

[34]  Stefano Tonchia,et al.  An Instrument for Measuring the Degree of Lean Implementation in Manufacturing , 2014 .

[35]  Ruth Ballardie,et al.  Human resource management, Lean processes and outcomes for employees: towards a research agenda , 2014, The International Journal of Human Resource Management.

[36]  Rhian Silvestro,et al.  Performance topology mapping: understanding the drivers of performance , 2014 .

[37]  A. Sabry,et al.  Factors critical to the success of Six-Sigma quality program and their influence on performance indicators in some of Lebanese hospitals , 2014 .

[38]  Jose Arturo Garza-Reyes,et al.  The impact of lean methods and tools on the operational performance of manufacturing organisations , 2014 .

[39]  K. Napompech,et al.  Model of Leadership and the Effect of Lean Manufacturing Practices on Firm Performance in Thailand's Auto Parts Industry , 2014 .

[40]  Carmen Pa ca.  HUMAN RESOURCES IN THE PUBLIC SECTOR , 2014 .

[41]  Essam Shehab,et al.  A conceptual model for evaluating product-service systems leanness in UK manufacturing companies , 2014 .

[42]  Valerij Dermol,et al.  The influence of training and training transfer factors on organisational learning and performance , 2013 .

[43]  Imtiaz Ahmed,et al.  Employee performance evaluation: a fuzzy approach , 2013 .

[44]  V. Brinia,et al.  The business training in the automotive industry in Greece: the example of Opel , 2013 .

[45]  Sanjay Bhasin,et al.  Analysis of whether Lean is viewed as an ideology by British organizations , 2013 .

[46]  Siti Norezam Othman,et al.  Impact of lean practices on operations performance and business performance , 2013 .

[47]  Iain Cameron,et al.  An analysis of safety advisor roles and site safety performance , 2013 .

[48]  S. Baggio,et al.  Examining non-response bias in substance use research--are late respondents proxies for non-respondents? , 2013, Drug and alcohol dependence.

[49]  William H. Glick,et al.  PERSPECTIVE - The Myth of Firm Performance , 2013, Organ. Sci..

[50]  Hao Tan,et al.  Determinants of quality management practices: An empirical study of New Zealand manufacturing firms , 2013 .

[51]  Marion Festing,et al.  Strategic Human Resource Management in Germany: Evidence of Convergence to the U.S. Model, the European Model, or a Distinctive National Model? , 2012 .

[52]  Venkatraman Narayan,et al.  Business performance and maintenance , 2012 .

[53]  Juan A. Marin-Garcia,et al.  Integrating human resource management into lean production and their impact on organizational performance , 2011 .

[54]  Iain Cameron,et al.  Site manager safety training , 2011 .

[55]  Cary L. Cooper,et al.  Building a high‐commitment lean culture , 2011 .

[56]  Shahram Taj,et al.  The impact of lean operations on the Chinese manufacturing performance , 2011 .

[57]  Ma Ga Yang,et al.  Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms , 2011 .

[58]  Roald Pool.  Training for results: innovative synergy between learning and business performance , 2011 .

[59]  D. M. Sezhiyan,et al.  Development of Scale to Measure Supplier Selection, Supply Effort Management and Organizational Performance , 2010 .

[60]  Robert S. Kaplan,et al.  Conceptual Foundations of the Balanced Scorecard , 2010 .

[61]  Jörn-Henrik Thun,et al.  Empowering Kanban through TPS-principles – an empirical analysis of the Toyota Production System , 2010 .

[62]  Pierre J. Richard,et al.  Measuring Organizational Performance: Towards Methodological Best Practice , 2009 .

[63]  Peter Lynn,et al.  The potential of a multi-mode data collection design to reduce non response bias. The case of a survey of employers , 2009 .

[64]  Tyson R. Browning,et al.  RECONCEPTUALIZING THE EFFECTS OF LEAN ON PRODUCTION COSTS WITH EVIDENCE FROM THE F-22 PROGRAM , 2009 .

[65]  Pornpimol Kongtip,et al.  Occupational health and safety management in small and medium-sized enterprises: An overview of the situation in Thailand , 2008 .

[66]  Jordi Olivella,et al.  Work organisation practices for lean production , 2008 .

[67]  Jens J. Dahlgaard,et al.  Measuring and diagnosing innovation excellence – simple contra advanced approaches: a Danish study , 2007 .

[68]  David J. Ketchen,et al.  The value of human resource management for organizational performance , 2007 .

[69]  Rachna Shah,et al.  Defining and developing measures of lean production , 2007 .

[70]  Richard J. Schonberger,et al.  Japanese production management: An evolution—With mixed success , 2007 .

[71]  Beatriz Fernández-Muñiz,et al.  Safety culture: analysis of the causal relationships between its key dimensions. , 2007, Journal of safety research.

[72]  Cary L. Cooper,et al.  The effects of lean production on worker job stress , 2006 .

[73]  James G. Combs,et al.  HOW MUCH DO HIGH-PERFORMANCE WORK PRACTICES MATTER? A META-ANALYSIS OF THEIR EFFECTS ON ORGANIZATIONAL PERFORMANCE , 2006 .

[74]  Stephen Wood,et al.  The reality of flexible work systems in Britain , 2006 .

[75]  Kathleen E. McKone-Sweet,et al.  Improving Performance through an Integrated Manufacturing Program , 2006 .

[76]  J. Antonakis,et al.  Could lean production job design be intrinsically motivating? Contextual, configurational, and levels-of-analysis issues , 2006 .

[77]  G. Dietz,et al.  Commonalities and contradictions in HRM and performance research , 2005 .

[78]  S. A. Silva,et al.  OSCI: an organisational and safety climate inventory , 2004 .

[79]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[80]  Annabelle Beckwith,et al.  Improving business performance – the potential of arts in training , 2003 .

[81]  Peter T. Ward,et al.  Lean manufacturing: context, practice bundles, and performance , 2003 .

[82]  Alison G Vredenburgh,et al.  Organizational safety: which management practices are most effective in reducing employee injury rates? , 2002, Journal of safety research.

[83]  A. Sánchez,et al.  Lean indicators and manufacturing strategies , 2001 .

[84]  A. Sánchez,et al.  Lean production and supplier relations: a survey of practices in the Aragonese automotive industry , 2000 .

[85]  Deborah Walker,et al.  Motivating the Workforce: The Value of External Health and Safety Awards , 2000 .

[86]  Amrik S. Sohal,et al.  Human resource management strategies and practices in Just-In-Time environments: Australian case study evidence , 2000 .

[87]  Gregory E. Prussia,et al.  Predicting safe employee behavior in the steel industry: Development and test of a sociotechnical model , 2000 .

[88]  Ravi Kathuria,et al.  Work force management practices for manufacturing flexibility , 1999 .

[89]  John Bessant,et al.  Developing strategic continuous improvement capability , 1999 .

[90]  M. Muller.  Human Resource Management under Institutional Constraints: The Case of Germany† , 1999 .

[91]  P. Bentler,et al.  Cutoff criteria for fit indexes in covariance structure analysis : Conventional criteria versus new alternatives , 1999 .

[92]  E. Molleman,et al.  Empowerment and rewards: a case study , 1996 .

[93]  John Paul Macduffie,et al.  The Adoption of High‐Involvement Work Practices , 1996 .

[94]  Karen A. Brown,et al.  Workplace safety: A call for research , 1996 .

[95]  Cipriano Forza,et al.  Work organization in lean production and traditional plants , 1996 .

[96]  John Paul Macduffie.  Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry , 1995 .

[97]  P. Osterman.  How Common is Workplace Transformation and Who Adopts it? , 1994 .

[98]  Jean M. Hiltrop,et al.  Just-in-time manufacturing: Implications for the management of human resources , 1992 .

[99]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[100]  W. Grunwald,et al.  Change of Leadership Style in German Enterprises: From Authoritative to Participative Leadership? , 1981 .

[101]  C. Fornell,et al.  Evaluating Structural Equation Models with Unobservable Variables and Measurement Error , 1981 .