An extension of IDT in examining the relationship between electronic-enabled supply chain integration and the adoption of lean production

Abstract

Lean production is proved to be an effective tool for companies to improve continuously and is widely studied from both practical and theoretical perspectives. However, most previous studies of lean production are limited to internal operations of a company. The research in this paper aims to explain the relationship between electronic-enabled supply chain integration and the adoption of lean production. A theoretical model with six hypotheses was proposed based on the innovation diffusion theory (IDT). The model was empirically tested with data from 558 manufacturers. The results show that: (1) IDT can explain lean production adoption; and (2) electronic-enabled supply chain integration positively influences the perceived relative advantage of lean production and consequently leads to its long-term adoption. This study uses IDT to explain lean production adoption with the influence of electronic-enabled manufacturing supply chain (EMSC). The study also has a practical implication that may change the supply policy in future practices, as companies may require their suppliers to implement EMSC as part of the lean production requirements.

Keywords:

• EMSC
• JIT
• manufacturing supply chain
• kanban
• lean production

Acknowledgement

The research reported in this paper was supported by a General Research Fund (CityU 148808) offered by the Hong Kong SAR Government.