The Impact of Technology Changes in the Relationship between Lean Manufacturing and Performance of Manufacturing Firms

Abstract

Manufacturing industries are one of the most prosperous industries in the 21st century. No economy can continue its life without manufacturing industries. Therefore, evaluation the performance of firms is one of the most important issues of investors, creditors, governments and managers. In this regard, the main purpose of this study is to investigate the impact of technology changes in the relationship between lean manufacturing and the performance of manufacturing firms in Terengganu province. The research method is correlation and statistical population is all active companies in industrial towns of Terengganu province. The sampling method is convenience non-probability sampling. The sample includes 209 manufacturing firms. After collecting data by standard questionnaires, structural equation modeling technique with partial least squares approach was used to evaluate the relationships between variables. Totally data were analyzed by SPSS and PLS software. The result of the research hypotheses indicates the positive impact of cooperating with supplier and customer relationship management on the performance of firm's lean manufacturing. The positive impact of performance of lean manufacturing on the financial and non-financial performance of the firm was confirmed. The moderating role of technology changes in the relationship between the performance of lean manufacturing and firm's financial performance was confirmed. In addition, the moderating of technology changes in the relationship between the performance of lean manufacturing and non-financial performance of the firm was confirmed.