Conceptualizing Dynamic Capabilities in Lean Production: What are They and How Do They Develop?

AbstractThis article addresses the need for developing long-term learning abilities in Lean production: dynamic capabilities. Despite Lean’s remarkable popularity, implementation efforts often emphasize short-term efficiency over developing dynamic capabilities necessary for long-term success. This article advances the understanding of dynamic capabilities in Lean based on a longitudinal in-depth case study at a manufacturing facility. The article shows that dynamic capabilities develop through the development of an organizational setting for improvement activities, termed the improvement system. The improvement system’s effectiveness is characterized by the coherence between participants, technology, management, and organization, and between the improvement system and the work system.