Business excellence via advanced manufacturing technology and lean-agile manufacturing

Purpose - The purpose of this paper is to contribute to the existing knowledge about the relationships between advanced manufacturing technology (AMT), lean manufacturing (LM), agile manufacturing (AM), and business performance. Design/methodology/approach - A questionnaire-based survey was performed to collect data from 189 Iranian automobile part manufacturers. Statistical analysis of hypothesized relationships was conducted via partial least squares structural equation modeling. Findings - AMT significantly contributes to the development of both LM and AM. These manufacturing systems can co-exist in one system, and LM is a precursor to AM. LM contributes to operational performance whereas AM improves marketing performance and financial performance. Research limitations/implications - Relying on the cross-sectional data of this research, and lack of generalizability of findings are key limitations. An interesting direction for future research would be to empirically offer a hybrid lean-agile approach and further map the mechanism through which this hybrid approach can be achieved in practice. Practical implications - Both LM and AM are information-intensive and highly supported by AMT. They contribute to different aspects of business performance. Pursuing both cost-leadership strategy and product mix flexibility is viable via hybridizing the lean and agile systems. Originality/value - This study is among the first to address issues related to the lean-AM relationship among developing countries. This study is unique in the sense it shows the mechanism through which the value of AMT is truly transformed to performance improvement.