From waste to worth: a mediation analysis of lean manufacturing and operational performance in developing country

Purpose Lean Manufacturing Systems (LMS) gained popularity among manufacturers globally. However, their efficacy in developing and least-developed countries remained noticeably understudied. Motivated by this research gap, the researchers of this study designed a quantitative study with a structured survey technique to investigate its context-specific impact on the apparel industry of a developing country. Hence, this study aimed to examine the relationship between LMS and elimination of waste (EOW) and operational performance (OP) and comprehend how the EOW mediates the relationship between an LMS and OP within the apparel industry of a developing economy. Design/methodology/approach The researchers collected data from 227 garment companies in Bangladesh. These organization-level data were then analyzed using the structural equation modeling approach with AMOS 20.0 software to examine the direct and indirect effects among EOW, LMS and OP. Findings The findings of this study suggest that EOW has a direct and significant effect on OP. This research also revealed that EOW has a partial mediating effect on the relationship between LMS and OP. Research limitations/implications This research focused on a single industry administering self-reported data and cross-sectional design, limiting generalizability and causal inference. Practical implications LMS and directing efforts towards EOW can significantly improve the operational performance of apparel companies by reducing lead times and costs, improving quality and increasing productivity. Originality/value These findings can provide useful insight to managers, practitioners and future researchers to understand the relationship between EOW, LMS and OP to optimize their production processes and improve OP in the apparel industry.