The impact of management style and supply chain coordination on the lean projects implementation to increase the operational performance

Abstract

The Indonesian manufacturing industry contributes significantly to economic growth in the globalization era. The capability of company leaders to manage excellently determines manufacturing's competitiveness and sustainable performance to survive in current conditions. This study examines the impact of management style and supply chain coordination on operational performance through lean project adoption. The research surveyed manufacturing companies in Indonesia by distributing questionnaires with Google form links to industry practitioners. The survey obtained 172 manufacturing companies with purposive sampling, which is at least the staff level in the company and permanent employees. Data processing is carried out by structural equation modeling and meets the goodness of fitness. The processing results showed that management style influenced internal supply chain coordination by 0.729, external supply chain coordination by 0.221, and lean project manufacture by 0.152. The company's internal supply chain coordination impacts increased external supply chain coordination by 0.512, lean project manufacture by 0.375, and operational performance by 0.405. External supply chain coordination impacted the increase in lean project manufacturing by 0.396. and operational performance of 0.234. Lean project manufacturing in the company impacts operational performance by 0.172. The practical contribution of the research provides insight into supervisors and managers always to be consistent and committed to lean manufacturing practices and build strong internal and external coordination. The theoretical contribution of research can enrich the theory of a resource-based view with sustainable supply chain and leadership transformation.