Lean-excellence business management for small and medium-sized manufacturing companies in Kurdistan region of Iraq

Abstract

To survive in the twenty-first century’s business environment, many Small and Medium Enterprises (SMEs) depend on Lean Manufacturing (LM) techniques as their industrial strategies to enable them to reduce waste, time, effort, enhance quality and increase customer satisfaction constantly. However, many SMEs, especially in developing countries, fail to engage in lean programmes successfully. In this research, a strategic framework to support LM practices within manufacturing SMEs in the Kurdistan Region of Iraq (KRI) has been developed. Based on a comprehensive review of the literature, the research develops Lean-Excellence business management (LEBM), a conceptual framework resulting from the integration of lean tools with the criteria of the Malcolm Baldrige National Quality Award (MBNQA) excellence model. The framework assists lean practices through eight variables, namely lean leadership, strategic planning, customer relationship, continuous improvement, process management, human resource development, organisational learning and business results. The research applied mixed-method techniques, including a questionnaire administered to 207 SMEs, three case studies and an interview with nine experts to validate the framework. The findings indicate that lean practices in the KRI-SMEs are not matured. However, partial lean practices still positively influence business performance. Many factors impede the adoption of LM, including language barriers, outdated management style, substandard attitudes of employees, poor technological infrastructure, and lack of government support. The findings from this research could be a good driver to introducing LM to manufacturing SMEs within developing countries. However, external issues such as government support, national culture and workers’ personal values were excluded in this research, which can address critical gaps for further research.