Driving Changes: Analyzing the Factors Influencing Lean Manufacturing Adoption in Tanzania Through Structural Equation Modeling (SEM)

ABSTRACT With growing competition among manufacturing industries in Tanzania, there is a need to adopt lean manufacturing (LM). The adoption of LM in Tanzania and other developing countries is low. This study identifies drivers for LM implementation in the country. Survey and purposive sampling were used to collect responses from 243 manufacturing industries in Tanzania. Partial least squares—structural equation modeling (PLS‐SEM) and relative importance index (RII) were used to determine and rank the drivers for LM. PLS‐SEM involved the development of a measurement and structural model for drivers of LM adoption using Smart PLS 4. Model fit indices on the effects of drivers on the adoption of LM, such as the normed fit index (NFI), were ≥ 0.7, demonstrating the model was good. External and policy drivers positively impact the adoption of LM in Tanzania. The drivers are to increase capacity to fulfill demands, establish standard operating procedures, balance workload on different workstations, reduce lead time, and improve process control. Identifying the drivers enhances competition among local industries, which, in turn, improves the sector's contribution to the country's gross domestic product. Furthermore, it assists policymakers in setting appropriate policies and strategies for promoting industrial growth in Tanzania.