Executive Summary

This research examines the effectiveness of lean agile competencies and hybrid lean agile in mediating the relationships between lean manufacturing, agile manufacturing and operational performance. The partial least squares method was used in the form of variance-based structural equation modelling (PLS-SEM). Findings showed that hybrid lean agile had a weak effect (f² ≤ 0.15; p<0.05) and that it did not fulfil the requirement of a mediator, while lean agile competencies variable had a strong effect (f² ≥ 0.35; p>0.05) as a significant mediator. Hybrid lean agile implementation model should integrate lean agile competencies as a mediator for lean agile competencies activities.

Executive Summary

This research is driven by the inability of many manufacturing companies to enhance their operational performance (OP) through the adoption of a hybrid lean agile (HLA) approach. The primary challenges identified include inefficient management organization, a lack of experience in technology adoption, and an imbalance between lean manufacturing (LM), which prioritizes efficiency, and agile manufacturing (AM), which emphasizes flexibility. Furthermore, the fragmented and incomplete implementation of the HLA model contributes to the low effectiveness of this strategy. To address these issues, this study developed a strategic model using structural equation modelling (SEM) and introduced leagility competencies as a new mediating variable. Leagility competencies aim to integrate the efficiency principles of LM, focused on waste elimination, with the flexibility of AM to better respond to dynamic changes. The research involved approximately 140 manufacturing companies in Indonesia. Principal component analysis (PCA) was used to determine the variable indicators, and the effects of these variables were tested through SEM based on the partial least squares (PLS) approach.

The results revealed that the conventional HLA model did not function as a significant mediator. In contrast, leagility competencies showed a strong effect and became the primary mediator in strengthening the relationship between LM, AM and OP. The inclusion of leagility competencies enhanced the synergy between the efficiency and flexibility approaches, addressing the misalignment often seen in HLA implementations. These findings emphasize the critical role of leagility competencies in overcoming the challenges of fragmented HLA implementation. By integrating these competencies, companies can better balance the efficiency of LM with the flexibility of AM, ensuring that the HLA strategy leads to significant improvements in OP. This study provides a framework for redesigning HLA strategies, positioning leagility competencies as a key factor for achieving sustainable success in the manufacturing sector.

Search results

Leagility Competencies as Mediator Hybrid Lean Agile and Operational Performance