Introducing the Hoshin Kanri strategic management system in manufacturing SMEs

CITATION

Melander, A., Löfving, M., Andersson, D. Elgh, F. & Thulin, M. (2016) Introducing the Hoshin Kanri strategic management system in manufacturing SMEs, Management Decision, 15(10), 2507-2533

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ABSTRACT
Purpose – The purpose of this paper is to explore the basic principles and introduction of the Hoshin
Kanri (HK) strategic management system, as related to the management practices in manufacturing
small- and medium-sized enterprises (SMEs).
Design/methodology/approach – This paper reports the findings from the introduction of HK to
four manufacturing SMEs by following an assistance support-based research approach where teams of
coaches and researchers observed and learned from the introduction phase. The overall design of the
project is theory building and learning oriented.
Findings – It is suggested that the successful introduction of a strategic management system
in manufacturing SMEs has to balance the inherent level of formalization therein, with the
individual company’s management practices. Based on HK as the strategic management system,
pDCA is proposed as an alternative approach to the introduction, matching differences in
management practices.
Research limitations/implications – The explorative nature of this research provides room for
subsequent studies by elaborating the knowledge on the introduction of strategic management
systems in SMEs.
Practical implications – Awareness of the existing managerial practices is essential when
introducing a new strategic management system in manufacturing SMEs. Such awareness is the
starting point of customizing the introduction, so that proper levels of engagement and flexibility can
be balanced with increasing systematic formalization, and optimized adequacy.
Originality/value – Following an assistance support-based research approach the result of this
research project is summarized in the iterative pDCA model emphasizing engagement and flexibility
when incrementally introducing strategic management systems in SMEs. This model addresses a
hitherto under-researched topic in strategic management.


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