Determinants of lean research and development success in Malaysia

Abstract

Lean principle has been adapted widely across the management of manufacturing and services industries, however it is still a new concept within the scope of Research and development (R&D) environment. Empirical research found that prior studies on Lean tends to focus on exploring and confirming the application of Lean tools and techniques (T&T) as well as determinants for Lean for manufacturing and services setting. Hence, the concept of Lean for R&D domain remains ambiguous because there is no standard set of Lean T&T and determinants available for R&D. Thus, the purpose of this study is to categorize Lean T&T based on R&D setting and to identify the determinants of Lean R&D toward R&D performance. This study advances the discussion in Lean by integrating R&D process with Theory of Constraint, Resource-based View Theory and System Theory. As such Lean T&T are categorized into Design, Development and Product Testing Phase T&T based on the nature of R&D process. In addition, the study views Lean R&D determinants from Lean hard practice determinant’s and soft practices determinant’s perspectives, with hard R&D tools as a mediator between soft R&D and R&D based organization performance. This study targeted the R&D based organizations that implemented Lean principles in manufacturing industry within Malaysia. A total of five Lean and R&D experts were involved in the semi structured interview, and out of the total of 232 targeted respondents, 102 responded via structured questionnaire which represents a response rate 43.97%. Qualitative content data analysis was used for the analysis of semi-structured finding, while descriptive data analysis and Structural Equation Modelling were the data analysis method used for quantitative data. Findings of the study revealed that 5S, Value Stream Mapping, A3 Report, Standardized Work and Visual Management are the most common tools used across the three phases (design, development and testing) of R&D process. Findings of the study also suggest that three out of the seven Lean R&D soft practices determinant have the impact on R&D performance - managerial; employee skills and expertise; and supplier involvement. In addition, Lean R&D tools and techniques have a mediating effect on the Lean R&D soft practices determinant toward R&D performance. The findings from this study not only revealed the determinants of R&D performance but extend the knowledge of Lean through understanding the mediating effect of Lean R&D tools and techniques in organization that is based on R&D performance. Therefore, this study makes contribution in extending existing models of Lean principle and understanding beyond manufacturing and services domain hence it overcomes the weakness of the current Lean frameworks. As practical contribution, the findings of the study could deliver a usefulness message for policy makers and R&D companies to place an emphasis on in order to improve the R&D performance. In addition, this study also delivers a Lean R&D determinants framework which could be replicated to the other segments of research and development environment in Malaysia. Areas for further research were highlighted, including the need for a larger study to explore Lean implementation across the multi-national company and small medium enterprise.