Impact of Organizational Structure on Lean Implementation in Small and Medium Manufacturing Enterprises: A Mixed-Methods Approach

Abstract

The present study examines the impact of organizational structures (functional, divisional, matrix and flat) within small and medium-sized manufacturing enterprises (SMEs) on the implementation of lean manufacturing practices. The research combines qualitative analysis from detailed case studies of five distinct companies with quantitative data from surveys and performance metrics. The qualitative study included semi-structured interviews, focus groups, and document reviews to determine the challenges and strategies associated with implementing lean in each organizational environment. Metrics measuring employee satisfaction, financial performance, and operational effectiveness were utilized as quantitative data to evaluate lean outcomes. The results show strong relationships between organizational structure and lean initiative performance, underlining critical elements that either support or hinder lean implementation. This study offers practical recommendations for SME managers on navigating their organizational structures to enhance lean manufacturing effectiveness. The stakeholders need to realize that organizational structure plays a critical role in the implementation of continuous improvement projects and practices, and SMEs must consider it before implementing them for long-term success.