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The purpose of this study is to investigate the effects of lean philosophy on a firm's financial performance. Although a large number of studies provide evidence about the benefits of implementing lean management, there is very little systematic and rigorous research investigating financial benefits derived from lean management. The study analyzes horizontal performance comparing lean firms' performance with the industry average and formulates ordinary least squares (OLS) to test the benefit of adopting lean management. The results of the study suggest that lean management can improve financial performance significantly. These findings will encourage managers of non-lean firms to think about implementing lean management. These findings will also work as a guide for lean firms as although lean management can improve the financial performance significantly, but, to perform at or beyond the industry averages, they need to focus on efficient and effective uses of lean management. [ABSTRACT FROM AUTHOR]

The purpose of this study is to investigate the effects of lean philosophy on a firm's financial performance. Although a large number of studies provide evidence about the benefits of implementing lean management, there is very little systematic and rigorous research investigating financial benefits derived from lean management. The study analyzes horizontal performance comparing lean firms' performance with the industry average and formulates ordinary least squares (OLS) to test the benefit of adopting lean management. The results of the study suggest that lean management can improve financial performance significantly. These findings will encourage managers of nonlean firms to think about implementing lean management. These findings will also work as a guide for lean firms as although lean management can improve the financial performance significantly, but to perform at or beyond the industry averages, they need to focus on efficient and effective uses of lean management. [ABSTRACT FROM AUTHOR]