Research On The Effect Of Environmental Dynamics On Lean Production And Firm Performance

With the rapid development of market economy,theories of enterprise production and management are constantly evolving,lean management came into being in the 1990s.Lean production is recognized as one of the most ideal operating system by the manufacturing industry in the world.It simplifies all the unnecessary work and implements quality assurance system of the entire production process to achieve zero inventory,zero waste and flexible production,thereby enhancing the core competitiveness to achieve the maximization of corporate value.Especially in the 21st century,with the deepening of economic globalization and increasingly fierce market competition,the environment that enterprises facing are showing a more dynamic and severe situation,so the implementation of lean production,timely and appropriate production,low cost development have become the inevitable choice for most businesses.But in the actual production and operation,some enterprises adopt lean production,its performance has not been significantly improved.Therefore,how much investment in lean production will bring performance improvement is the key problem for enterprise.Based on this,the paper takes lean production as the starting point to study the moderating effect of environmental dynamics on lean production and thus affect firm performance.First,the paper reviews the definition and classification of lean production,as well as the connotation and evaluation of firm performance,then reviews the relevant research on lean production and firm performance from the aspect of different classification of lean production and the different evaluation indexes of firm performance.At the same time,the theory and research of environmental dynamics are reviewed.Later,the paper puts forward the research ideas on the basis of existing research.In order to evaluate the relationship between them,the paper selects the unbalanced panel data of Chinese manufacturing listed companies in 2011-2015 as the sample,building a substitution variable ELI(Empirical Leanness Indicator)to evaluate the degree of lean production,selecting the return on equity(ROE)which reflects the profitability of the enterprise and net profit growth(NPG)that represents the enterprise development ability to measure the firm performance,and from the multi-dimension to describe the environmental dynamic to specifically study the moderating effect of industry innovation intensity,industry growth and industry competitive intensity on the relationship of lean production and firm performance.Through the second-hand data to test the relationship between them,so as to explore the true meaning of lean production to the enterprise.The empirical results show that there is a significant inverted U-shaped relationship between lean production and business profitability as well as development capacity.Industry innovation intensity has a significant positive moderating effect on the relationship between lean production and business profitability as well as development capacity,while industry growth exerts a significant negative role and the moderating effect of industry competitive intensity does not pass the significance test.Finally,the paper puts forward some suggestions on lean production from raising the awareness and focusing on the industry environmental dynamics two aspects,so as to achieve the maximization of corporate value.