Interrelationships among Lean HRM Practices and their Impact on Firm Performance: A Comparison between the Jordanian and German Models

Abstract

Lean management (LM) is one of the contemporary management systems that firms have adopted to boost their performance. Human resource management (HRM) is one of the most important areas with which LM can be integrated to develop the new concept of lean human resource management (LHRM). However, the LHRM-performance paradigm is still under-explored in the literature. Hence, this study aims to examine the interrelationships among LHRM practices and their impact on firm performance (FP). Using two equal samples (n = 250 each) drawn from manufacturing firms in Jordan and Germany, the current study proposes two structural equation models (i.e., Jordanian and German) that depict the interrelationships among LHRM practices and their impacts on FP. After testing these models, a comparison between them is conducted and theoretical and practical implications are revealed. The main findings indicate that the average implementation level of LHRM practices for German manufacturing firms is higher than those among Jordanian companies. The findings also support the proposed interrelationships among LHRM practices and their impacts on FP for both the Jordanian and German models. This study is the first to highlight the proposed relationships, in general, and in the context of developed and developing countries at the same time, in particular. It offers important implications for manufacturing managers to benefit from implementing LHRM practices to enhance firm performance in different contexts. These findings provide valuable information for human resource managers and decision-makers and open several avenues for future research.