Lean production, market
share and value creation in the
agricultural machinery
sector in Brazil
Paul L. Forrester
Birmingham Business School, The University of Birmingham,
Birmingham, UK
Ullisses Kazumi Shimizu
Mackenzie Presbyterian University, Sa
˜
o Paulo, Brazil
Horacio Soriano-Meier
Northampton Business School, The University of Northampton,
Northampton, UK
Jose Arturo Garza-Reyes
School of Technology, The University of Derby, Derby, UK, and
Leonardo Fernando Cruz Basso
Business School-Graduate Department, Mackenzie Presbyterian University,
Sa
˜
o Paulo, Brazil
Abstract
Purpose – The “resource-based view” (RBV) of firms considers that major operational and
organisational advantages are created in the internal environment of a firm. The implementation of
lean manufacturing represents the potential for strategic advantage over competitors, especially in
craft-based industries in developing regions of the world. The purpose of this paper is to investigate
the relationship between the adoption of lean manufacturing and market share and value creation of
companies in the agricultural machinery and implements sector in Brazil.
Design/methodology/approach – The paper is based on data collected in a survey conducted
across 37 firms in the agricultural machinery and implements industry in Brazil. The data were used
within a model for assessing the degree of leanness to test three hypotheses using correlation,
regression, analysis of variance and cluster statistical methods.
Findings – Brazilian firms and managers in this sector that have supported a transition towards the
adoption (and adaptation) of lean manufacturing practices have shown a significant improvement in
their business performance.
Originality/value – The paper presents an empirical study where lean manufacturing is investigated
and tested from a “RBV” perspective. It demonstrates the application of an emergent model for
measuring the degree of leanness and the extent of business improvement. The study and the model are
applied to smaller, craft-based industries and so is applicable in developing countries and regions, in
comparison with most literature on lean production in advanced economies. It provides a useful
perspective for firms to corroborate and understand the potential benefits that lean manufacturing can
bring if adopted.
Keywords Lean production, Craft production, Brazil, Resource management, Market share
Paper type Research paper
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Lean production
in Brazil
853
Received July 2009
Revised February 2010
Accepted March 2010
Journal of Manufacturing Technology
Management
Vol. 21 No. 7, 2010
pp. 853-871
q Emerald Group Publishing Limited
1741-038X
DOI 10.1108/17410381011077955