Volume: 22, Issue: 1

Page: 53-70
International Journal of Science and Business
2023
Journal homepage: ijsab.com/ijsb

A study of Lean Production and Quality

Management on Production Performance:
The Evidence in High-tech Manufacturing
Companies in China
HUANG XUELIANG
Abstract
Based on the relevant studies of lean production, production technology
improvement, quality management and production performance, the relationship
model of lean production, production technology improvement, quality
management and production performance of high-tech manufacturing companies is
constructed, and the influence mechanism of lean production and production
technology improvement on production performance of high-tech manufacturing
companies is revealed. Specifically, by systematically reviewing relevant theories
and existing research results, this paper proposes a logical idea of "lean production, IJSB
Accepted 07 April 2023
production technology improvement -- quality management -- production Published 09 April 2023
performance", discusses and proposes relevant research hypotheses according to DOI: 10.58970/IJSB.2095

the relationship between variables in the theoretical model, and sends out
questionnaires to Chinese high-tech manufacturing companies on a large scale, and
recovers 425 questionnaires. The incomplete or invalid questionnaires with obvious
errors were eliminated, and 411 valid questionnaires were finally obtained. The
statistical analysis software SPSS 24.0 and AMOS 24.0 were used for reliability
analysis, validity analysis, exploratory factor analysis, typical correlation analysis of
the collected data, multiple linear regression analysis model and mediation effect
model was established. Test the theoretical paper. In this paper, a total of 7 research
hypotheses are proposed, among which 7 hypotheses are supported by the survey
data. Combining qualitative analysis and quantitative analysis, this paper draws the
following conclusions: (1) Lean production has a significant positive impact on the
production performance of high-tech manufacturing companies; (2) The
improvement of production technology has a significant positive effect on the
production performance of high-tech manufacturing companies; (3) Quality
management has a significant positive effect on the production performance of high- ISSN: 2520-4750 (Online) 2521-3040 (Print)

tech manufacturing companies; (4) Quality management has a partial mediating

effect between lean production and production performance of high-tech
manufacturing companies; (5) Quality management plays a partial mediating role Papers published by IJSAB International are
licensed under a Creative Commons Attribution-
between production technology improvement and production performance of high- NonCommercial 4.0 International License.

tech manufacturing companies.

Keywords: High-tech Manufacturing Company, Lean Production, Production Technology

Improvement, Quality Management, Production Performance.

About Author (s)

HUANG XUELIANG, Asia Metropolitan University, Malaysia.

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Introduction
The development of high-tech manufacturing companies has had an important impact on
China's economy, military, and people's livelihoods, and has become a key driving force for
driving China's economic growth. Chinese high-tech manufacturing companies have
experienced a rapid growth stage after the reform and opening up, gradually narrowing the gap
with the high-tech manufacturing companies of developed countries such as Europe, America,
and Japan. Low labor cost has always been a big advantage for Chinese high-tech manufacturing
companies to participate in international competition. In recent years, the demographic
dividend is gradually disappearing, so China's high-tech manufacturing companies need to
optimize and perfect the production mode, production technology, management mode, and
production performance. By changing production modes, improving production technology,
reducing production costs, and enhancing corporate management level, the competitiveness
and production performance of the company can be improved. At the same time, high-tech
manufacturing companies have high intelligence, high earnings, high risk, high integration, and
other characteristics, so they face high research and development risks and fierce market
competition, resulting in high operation risk. How to enhance the overall strength of high-tech
manufacturing companies and improve their production performance is of great significance
for promoting China's economic growth. (Xiao et al., 2022; Wang, 2020). This study takes
Chinese high-tech manufacturing companies as the research object and investigates the
mechanism of the role of lean production and production technology improvement on the
production performance of high-tech manufacturing companies through an empirical analysis
method. Firstly, the independent variable (lean production, production technology
improvement), the mediator (quality management) and the dependent variable (production
performance) are identified by the method of literature research, which lays a foundation for
the establishment of the theoretical model and framework of this study, then the theoretical
hypotheses are put forward for the relationship between the variables. Secondly, using the 411
valid sample data obtained from the questionnaire survey, the statistical analysis methods of
reliability analysis, validity analysis, canonical correlation analysis, exploratory factor analysis,
and multiple regression are used to empirically test the theoretical hypotheses. The research
results show that lean production has a significant positive impact on the production
performance of high-tech manufacturing companies, therefore, high-tech manufacturing
companies should adopt a lean production model to improve the company's production
performance. Production technology improvements also have a significant positive effect on
the production performance of high-tech manufacturing companies, so high-tech
manufacturing companies should improve production technology to improve their production
performance. Quality management plays a partial mediating role in the relationship between
lean production, production technology improvement, and company production performance.
Therefore, in practice, high-tech manufacturing companies should employ lean production
models, pay attention to cultivating and improving the enterprise's production technology
improvement ability, provide funds support for production technology improvement by
increasing R&D input intensity, provide talent reserve for production technology improvement
by introducing high-quality innovative talents, and make use of synergy effect through
cooperation with other high-tech manufacturing companies, universities and scientific
research institutes. Next, high-tech manufacturing companies should pay attention to the
cooperation of quality management. The key to quality management lies in the senior
management of high-tech manufacturing companies, and the innovation and experience of the
management personnel are the guarantees for the company to carry out quality management.
Therefore, it is necessary to strengthen the training of senior managers in high-tech
manufacturing companies, analyze and learn the experience of other enterprises in
management innovation through the exchange and cooperation between enterprises,

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selectively absorb and apply it in combination with the enterprise's own situation, and pay
attention to the construction of a good enterprise culture and atmosphere. Furthermore, high-
tech manufacturing companies should also pay attention to the coordinated development of
lean production and production technology improvement, improve quality management, thus
promoting the improvement of the performance of the company’s production. (Xiao et al.,
2022)

Problem Statement
If high-tech manufacturing companies want to gain competitive advantages, they should first
truly evaluate the production performance of the company, find out the path to improve the
production performance, and formulate the correct development strategy for the company. So,
it is particularly important to discuss how to improve the production performance of high-tech
manufacturing companies. Based on this, this paper respectively discusses the influence
mechanism and promotion paths of lean production and production technology improvement
on production performance; secondly, it studies the mediating role of quality management in
the relationship between lean production, production technology improvement, and
production performance; on the basis of the research conclusions, the paper builds the lean
production, production technology improvement and quality management mechanism of high-
tech manufacturing companies, and puts forward corresponding countermeasures for the
government and decision-makers and managers of high-tech manufacturing companies
respectively. The research results of this paper can provide some theoretical and practical
references for relevant parties (Al-Ettayyem et al., 2015; Xiao et al., 2022).

Research Questions
Based on the above research background analysis, it is known that China's manufacturing
industry occupies a very important position in the world, but in stark contrast, there is
relatively little research on the relationship between lean production, production technology
improvement, and production performance of Chinese high-tech manufacturing companies,
and the relevant research is still in the primary stage. It is known from the problem statement
of this paper that lean production and production technology improvement are one of the
competitive advantages relied upon by high-tech manufacturing companies and are important
factors affecting the production performance of high-tech manufacturing companies. Quality
management is the use of new management ideas and management models to achieve more
effective resource allocation, and effectively utilize the achievements of lean production and
production technology improvement in the production process. Under the guidance of lean
production thinking and innovation-driven strategies, more and more high-tech manufacturing
companies have become aware of the importance of lean production and production
technology improvements. Research indicates that lean production and production technology
improvements have a significant positive effect on a company's production performance, but
there are a few studies that claim lean production and production technology improvements
have no direct effect on production performance. Through the above questions’ exposition and
analysis, as well as the sorting out and evaluation of relevant theories, this research, based on
the research results of theories such as lean production, production technology improvement,
quality management, and production performance, takes Chinese high-tech manufacturing
companies as its research object and explores the improvement of the company's production
performance from the perspective of background variables- production model (lean
production), production technology (production technology improvement), and management
model (quality management). This paper focuses on the basic question of how lean production
and production technology improvement affect the production performance of a company
directly or indirectly through quality management, and analyzes the inner mechanism of the

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four elements along the logical line of "lean production- production technology improvement -
quality management - production performance", and conducts a series of theoretical and
empirical studies to address the following three questions:
1. What is the relationship between lean production and production performance of high-tech
manufacturing companies? At present, many scholars at home and abroad have conducted
academic studies on lean production, but most of them focus on the development status and
specific implementation and application of lean production, or macro-analysis at the strategic
level. Very few people pay attention to and verify the correlation and causal relationship
between lean production and corporate production performance. So, establishing a causal
relationship between lean production and company production performance, using multiple
regression analysis to evaluate the impact of lean production on company production
performance to help the company improve production performance is necessary. Analyzing
whether the implementation of lean production can improve a company's production
performance and what kind of lean production method is the best strategy when the company
faces a dynamic market environment will help company managers to be aware of lean
production issues and keep abreast of manufacturing industry dynamics, thus further
improving the company's production performance. This paper divides lean production into
three dimensions: company culture, employee participation, and production environment. The
relationship between lean production and production performance is quantified using a
multiple linear regression model to verify the relationship and mechanism between lean
production and production performance, and to explore what is the best strategy for high-tech
manufacturing companies to adopt lean production, thus proposing corresponding
countermeasures to the idea and promotion of lean production. It is hoped that this will be
useful for the in-depth discussion of lean production theory in high-tech manufacturing
companies and production practice in the practical world.
2. What is the relationship between production technology improvement and production
performance of high-tech manufacturing companies? Taking new energy vehicles as an
example, in addition to implementing lean production and controlling costs, production
technology should be actively improved to enhance the production performance of the
company. In 2013, the official launch of Tesla electric cars has made people generally optimistic
about the leading position of electric energy in the future clean energy market. There is a clear
distinction between electric cars and traditional cars, for example, traditional cars use fuel
tanks as a component for storing fuel, whereas electric cars rely on electricity as their energy
source and use battery packs for storage. Due to the long driving range requirement for electric
vehicles, high-energy battery packs must be used. The battery packs consist of hundreds to
thousands of high-energy lithium-powered cells. For a long time, high-capacity lithium
batteries have been widely used in digital product fields. However, in the field of power
batteries, lithium batteries have unavoidable shortcomings, such as the capacity has
approached its theoretical limit, and its high temperature resistance and collision resistance
performance are limited, making it difficult to meet the requirements of volume and safety
performance of vehicles. The lithium battery industry has developed several new types of
cathode materials in order to solve many of the problems that lithium batteries face in the field
of power. However, new materials have put forward extremely high requirements for
production technology level. Since the production technology level of Chinese high-tech
manufacturing companies is generally lagging behind that of developed countries such as the
US, Japan and South Korea in battery manufacturing, when facing the emerging markets that
will be opened soon, the products provided by China's high-tech manufacturing companies can
only concentrate on the middle and low end, and they have never been able to open the
international market in the field of advanced cathode materials. At present, China's domestic
high-tech manufacturing companies are investing large amounts of research and development

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funds, transforming and upgrading production equipment, drawing closer to developed

countries such as Europe and America in terms of hardware, and actively improving production
technology. In this paper, production technology improvement is divided into four dimensions:
production design technology improvement, production site technology improvement,
production line technology improvement, and production waste identification technology
improvement; production performance is divided into three dimensions: financial
performance, competitive performance and customer satisfaction, and the relationship
between production technology improvement and company production performance is
verified by using multiple linear regression model to test the impact relationship and
mechanism between production technology improvement and company production
performance.

Significance of Research
In the context of globalization, competition in the international manufacturing market is
becoming increasingly fierce. The sudden outbreak of the Covid 19 epidemic in 2020 has
brought huge challenges to Chinese high-tech manufacturing companies. In order to enhance
the core competitiveness and production performance of Chinese high-tech manufacturing
companies, the Chinese government has repeatedly emphasized the importance of high-quality
development for high-tech manufacturing companies. For a long time, the research on the
production performance of a company through lean production and production technology
improvement has been a hot topic, receiving attention from both academic circles and the
industry. However, the production models, production technology levels, and management
capabilities of Chinese high-tech manufacturing companies vary, and there are no clear
definitions of the impact of using lean manufacturing, production technology improvement,
and quality management on the production performance of high-tech manufacturing
companies in particular, and no more complete theoretical explanations and implementation
recommendations have been developed. Therefore, it is particularly necessary to understand
the functioning mechanism. This study takes the relationship between lean production,
production technology improvement and the performance of high-tech manufacturing
companies in a high-tech background as an entry point, by combing classic theories and
relevant literature to explore the basic ideas to solve the problem, constructing a theoretical
model to identify the relationship between lean production, production technology
improvement, quality management and high-tech manufacturing performance, and proposing
research hypotheses. It is of great theoretical and practical significance to test the paper by
means of questionnaire survey and empirical analysis, and to explore the influence mechanism
of lean production and production technology improvement on the production performance of
high-tech manufacturing companies under the background of high technology. Below are
explanations of the research significance of this paper from both theoretical and practical
perspectives.

Literature Review
First of all, the theory of lean production theory, quality management theory, innovation theory,
and management by objectives are systematically expounded; second, the key concepts
involved in the research, such as lean production, production technology improvement, quality
management, and production performance, are systematically sorted out; finally, based on the
above theoretical foundation, the theoretical paper of this study is proposed, and the theoretical
model and research framework of this study are constructed to provide the theoretical basis
for the later empirical analysis.

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Dependent Variables: Production Performance

How to improve the production performance of high-tech manufacturing companies has been
a hot issue of concern by academia and industry. In today's dynamic, complex, and
unpredictable global economy, achieving good production performance has gradually become
the key to improving the competitiveness and production performance of high-tech
manufacturing companies. Therefore, the performance of high-tech manufacturing companies
in production has become a forefront issue in current research. Among them, the path to
achieve production performance, i.e., how to improve the firm's production performance, and
other related topics are the focus of existing research (Huang & Chen, 2010; Xiao et al., 2022).
Ruekert, Walker, and Roering (1985) argued that company production performance consists of
three components such as effectiveness, efficiency, and adaptability of the firm. Foreign
scholars' views on the definition of company production performance can be divided into three
categories:(1) performance is not a result, but a behavior;(2) performance is a result;(3)
performance is a combination of behavior and result. Some domestic scholars have discussed
the concept of company production performance, as shown in Table 2-1.

Table 2-1 The Concept of Company Production Performance

Years Scholars Related Discussions
It is believed that the company's performance in terms of production mainly includes
both financial performance and growth performance. The company's effectiveness or
performance is the company's production performance, which can be used as an
2010 Yuan
indicator to measure the degree to which the company's strategic objectives have been
achieved, reflecting the company's efficiency and operational efficiency in a certain
period of time.
The effects of the company in terms of financial value, operational efficiency, strategic
2017 Liu implementation and customer value during its operations are the company's
production performance.
The economic result of the sales profits obtained during the business activities is the
2019 Chen
company's production performance.
Using AHP method, construct unicorn company's production performance evaluation
2020 Wang
index: profit ability, risk management ability and financial ability, etc.

Independent Variable: Lean Production

The lean production philosophy originated from Toyota Motor Corporation in Japan. Lean
production is recognized by high-tech manufacturing companies from developed countries
such as the USA, Europe, and Japan as the best production model, which focuses on eliminating
all the non-valuable wastes during product production, reducing the associated cost and
expenses during the product production and operational process, and pursues the highest
quality products and a production of "zero waste", thus meeting customer demand and
achieving customer satisfaction. The essence of lean production is to promote continuous
optimization of quality management, improve the company's quality management level,
achieve zero waste and flexibility in the company's production, and reduce unnecessary waste
in the production-related links, to achieve pull on-time production and maximize the
company's production performance. Liu (2020) took X hi-tech manufacturing company as the
research object, and compared and analyzed the situation before and after the implementation
of lean production of X company, and found that after the implementation of lean production,
X company optimized the production process, reduced waste, reduced production costs, and
improved production efficiency and employee work enthusiasm. Scholars from both domestic
and abroad have researched the connotation of lean production from different perspectives,
such as Ocak and Zeynep (2011) who studied it from the perspective of value waste and pointed
out that lean production can prevent companies from having irrelevant operational behaviors,
and perfect their production and management; Creese. Robert C (2000), Wang (2003), Ning
(2013), Monroy C R and Nasiri A (2014), Mantas Vilkas (2015), and Wu (2016) studied the

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connotation of lean production based on the perspective of cost control and found that by
applying lean production methods, companies can reduce their operating costs and production
costs and improve the company's production performance; Daryl Powell (2013), Anonymous
(2015) and Wang (2021) studied the connotation of lean production based on the perspective
of production efficiency and found that lean production can improve the company's production
efficiency; Tobias Wagner and Christoph Herrmann (2017) argued that with the advent of the
Industry 4.0 era, the model, connotation and concept of lean production are increasingly
aligned with the development philosophy of high-tech manufacturing companies, and provided
a new elaboration and interpretation of lean production systems and lean production concepts.
Womack and Jones (2011) have summarized the lean production thought into five aspects
based on existing scholars' research as well as their own practice and research: (1) accurately
defining the value of products; (2) distinguishing the value stream of various products; (3)
making the value stream flow; (4) creating value by pulling; (5) striving for perfection. This
study believes that these five criteria reflect the essence and nature of lean production.

Independent Variable: Production Technology Improvement

In the face of increasingly fierce market competition, production technology improvement has
become an important factor for high-tech manufacturing enterprises to improve production
performance, and is the basis of the core competitiveness of companies, moreover, it is the
biggest capital to participate in international competition, and is also the key to improve the
quality management capability of high-tech manufacturing companies. Production technology
is the foundation for the survival and development of high-tech manufacturing companies, and
it is critical to the company's operation. Currently, production technology has developed into a
very modern technology due to the influence of computer and information technology, far
different from the early manual production methods. Since the idea of production technology
improvement was first proposed by the United States in the late 1980s, production technology
improvement has always been an important goal for high-tech manufacturing companies.
Through the analysis of the existing domestic and foreign literature, it is found that the
definition of production technology improvement by foreign scholars is based on the
perspective of process, that is, production technology improvement starts from the formation
of new thinking and new ideas, and through repeatedly solving various problems in the
transformation of ideas to practice, finally, the valuable new technologies and ideas can be
successfully promoted and implemented. And domestic scholars mainly based on the specific
path of production technology improvement. For example, Feng and Liu (1995) argued that the
main reason for high-tech manufacturing firms to improve their production technologies is to
enhance their competitiveness, and continuous optimization and innovation of production
technology is the improvement of production technology. He believed that production
technology improvement is not a static and absolute concept, but rather a dynamic and relative
concept. It is a general term for the production technology that high-tech manufacturing
companies absorb the achievements of machinery, electronics, information, materials, energy
and modern management, and apply them comprehensively to the whole process of
manufacturing to achieve high-quality, high-efficiency, low-consumption, clean and flexible
production and improve the company's production performance. Zhang (1995), based on the
findings of the existing research, studied the connotation of production technology
improvement based on an overall perspective, and believed that production technology
improvement should include different production methods and take into account the
development requirements of different periods, and the combination of management
technology, production technology, automation technology and information technology is
production technology improvement. Wan et al. (2020) categorized production technology
improvement into the tendencies in technological improvement, input of resources capability,

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research and development capability, and manufacturing capability. On the basis of reference
to the existing literature, this paper argues that the improvement of production technology is
not an automation or informatization of single manufacturing technology or process, but an
advanced technology of constantly integrating emerging production technologies such as
information technology and new materials organically into the product life cycle based on the
continuous development of traditional production technology. It involves comprehensive
factors such as people, technology, and organization. From a macro perspective, production
technology improvement is a production system formed under the premise of rapid
development of economy and science and technology, which will be continuously improved
with its development (Wang, 2021).

Methodology
Research Design
This study adopts literature research method, questionnaire survey method, and empirical
analysis method to explore the impact mechanism of lean production and production
technology improvement under the background of high-tech technology on the production
performance of high-tech manufacturing enterprises. First, this study provides theoretical
guidelines for the construction of the research framework by systematically reviewing
existing theories and related literature; second, the four main variables involved in this study
- lean production, production technology improvement, quality management, and
production performance - are "unobservable" variables that are not supported by data in the
operations of high-tech manufacturing firms. Therefore, this study uses a questionnaire to
collect data of high-tech manufacturing companies; Third, this paper collects the
corresponding theoretical evidence on the problems of lean production, production
technology improvement, quality management, and company production performance. The
main research contents and possible future research directions of relevant theories are
clarified, the collected data are sorted, and the different views put forward by various
scholars are analyzed and studied, to further discuss the current research directions,
research contents and research progress in the impact mechanism of lean production,
production technology improvement, quality management on the production performance
of high-tech manufacturing enterprises in China. Focus of Study: What is the effect
mechanism of lean production, production technology improvement and quality
management? Does quality management play a mediating role between lean production,
production technology improvement, and the company's production performance? What is
the effect mechanism of lean production and production technology improvement on
company production performance? To construct the overall research framework of this
paper: the theoretical model of the impact of lean production and production technology
improvement of high-tech manufacturing enterprises in China on corporate production
performance, which lays a solid theoretical foundation for this research. In terms of access to
information, it mainly includes networks and libraries, in which network information mainly
comes from CNKI (China National Knowledge Infrastructure), Baidu Academic, Google
Academic, and other network databases.

Questionnaire survey
Based on the relevant channels, materials and information available to this paper, the survey
subjects of this study are high-tech manufacturing companies in the more technologically
advanced regions of China to understand the basic situation of these high-tech
manufacturing companies in the process of globalization opportunities and anti-
globalization challenges. Due to the epidemic situation, the distribution and collection of
questionnaires were mainly completed online. The URL of the online questionnaire was

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directly sent to the relevant High-tech manufacturing enterprises, the respondents could
directly fill in the online questionnaire, and the results are directly saved on the server.

Empirical research method

The empirical analysis method is based on the data obtained from the questionnaire survey.
First, the reliability analysis of the data is used to confirm the stability and consistency of the
survey data, and then the validity analysis of the data is used to confirm that the survey data
can get the desired conclusion. Then, the correlation between variables is studied by using
the canonical correlation analysis. Multiple linear regression analysis is used to verify the
validity of the previous conceptual model and theoretical paper. This paper constructs a
theoretical research framework by sorting out the relevant literature and collects data
through a large-scale questionnaire distribution to high-tech manufacturing enterprises in
the more technologically developed regions of China. According to the results of the survey,
the internal relationship and the mechanism of lean production and production technology
improvement affecting production performance in high-tech manufacturing enterprises are
analyzed. Statistical analysis software such as SPSS 24.0 and Amos24.0 is used to test the
reliability and validity of the sample data. Through the descriptive statistical analysis,
correlation analysis of variables, and multiple linear regression analysis, corresponding
analysis and paper verification are carried out to test whether each paper is supported,
explain the research results, and finally draw corresponding conclusions. The quantitative
research method of empirical test further deepens the theoretical model by testing the
research hypotheses and helps to improve the accuracy and reliability of the research
conclusions.

Population/Sampling/Unit of Analysis
This study obtained the required sample data through questionnaire survey, mainly selecting
high-tech manufacturing enterprises in Fujian, Jiangsu, Guangdong, Zhejiang and Shanghai as
the research objects. These regions belong to the provinces and cities with relatively advanced
science and technology in China, which can better reflect the relationship between lean
production, production technology improvement, quality management and production
performance under the background of high technology. For this survey, 425 original data
samples were obtained by online distribution, excluding invalid questionnaires with
incomplete or obvious errors, 411 questionnaires were valid, with a completion rate of 96.71%.
The survey involved high-tech manufacturing enterprises in 12 provinces and municipalities
directly under the central government of China, including state-owned high-tech
manufacturing enterprises, private high-tech manufacturing enterprises and foreign-funded
high-tech manufacturing enterprises, and the years of establishment of the companies ranged
from half a year to more than 5 years.

Instrumentation
This study mainly investigates the relationship between lean production, production
technology improvement, quality management and production performance in high-tech
manufacturing enterprises, as well as the mediating role of quality management in a high-tech
context. Among which, the independent variable is lean production and production technology
improvement, the dependent variable is the production performance of a high-tech
manufacturing enterprise, and the mediator is quality management. First, scale development is
carried out for variables (production technology improvement) that lack mature scales. Based
on existing theories and related research, this research provides operational definitions of
variables, combines case materials to further explore the dimensions of production technology
improvement, and compiles an item pool. After consulting the opinions of experts and scholars

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in the manufacturing field, business managers, and members of the research team, the scale
was improved many times, and the measurement items were modified and perfected through
the questionnaire pre-test, and finally, a scale that meets the requirements of reliability and
validity was obtained. Second, on the basis of the maturity scale with high academic citation
rate and recognition, according to the research object, research content and research situation,
the scale of lean production and quality management was modified to form a variable
measurement scale. Finally, the production performance measurement scale of high-tech
manufacturing enterprises originates from mature measurement items adopted by a number
of research institutes. Based on previous measurement items of company production
performance, this paper selects items consistent with the content of this study to measure the
production performance of high-tech manufacturing enterprises. All the scales used in this
study were 5-point Likert scale, which was divided into five levels:" Strongly disagree","
Disagree"," Neither agree nor disagree", "Agree" and " Strongly agree". According to the design
of the scale, this paper uniformly uses LP, PT, QM, and PP to represent lean production,
production technology improvement, quality management, and production performance,
respectively. Among them, LP1, LP2, and LP3 respectively represent company culture,
employee participation, and production environment; PT1, PT2, PT3, and PT4 respectively
represent production design technology improvement, production site technology
improvement, production line technology improvement, and production waste identification
technology improvement; QM1 and QM2 respectively represent quality management basic
dimension and quality management core dimension; PP1, PP2, and PP3 respectively represent
financial performance, competitive performance, and customer satisfaction.

Table 3-2 Lean Production (LP) Measurement Items Table

Item Basis or source
Dimensions Items
number
The top management of the company firmly implements
A1
lean production methods.
A2 A full trust between the company and employees.
The company actively adopts reasonable suggestions put
Company A3
forth by employees.
Culture (LP1)
The company actively improves traditional production
A4
techniques.
The company views lean production as strategic
A5
engineering.
The company views its employees as the most valuable Hall and Mark (1992), Faisal
A6 Badi Al-khateeb (1999),
resource within the company.
Zimmer (2000), Simchi-Levi et
There are different types of collaborative teams in the
A7 al. (2000), Gary Andrew O’Dell
company.
(2003), M.Barad and D.Even
Employee The company encourages employees to make reasonable
A8 Spair (2003), Jeffrey L.Kelley
Participation suggestions.
(2004), Susan E. Koole (2005),
(LP2) A9 The company develops career plans for key personnel.
Conti et al. (2006), Shah (2007),
The company provides a healthy and safe working Zhang (2010), Liang (2010),
A10
environment for its employees. Zhou (2011), Hou (2022).
The company provides corresponding training to
A11
employees in different positions.
A12 The company has the ability to meet market demands.
The company has an effective communication channel
A13
between the company and its customers.
Production
The company has established a strategic partnership
Environment A14
with the supplier.
(LP3)
The company produces without damaging the
A15
environment.
A16 The company shares its values with the community.

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Table 3-3 Production Technology Improvement (TP) Measurement Item Table

Item
Dimensions Items Basis or source
number
The selection of the new factory should consider the logistics
B1
Production Design costs and the delivery of raw materials.
Technology B2 The device layout should use group technique.
Improvement B3 Product design using concurrent engineering.
(TP1) During the process design phase, consideration should be given
B4
to one-piece flow and U-shaped production lines.
Complete and strict implementation of standard operating
B5
practices.
B6 5S is strictly implemented.
B7 Color management applications should be encouraged.
Production Site Fully utilize visual technology applications such as andon and
B8
Technology bulletin boards. Kincaid (1986),
Improvement B9 Proactively apply the error-proofing technique. Burgess and Gules
(TP2) B10 All personnel participate in equipment maintenance. (1998), Swamidass
B11 Materials are distributed timely and in good quality. and Kotha (1998),
B12 The goods are delivered in a mixed parcel. Tracey et al. (1999),
The workshop is equipped with high-level working position Boyer and Pagell
B13
apparatus to increase materials activity. (2000), Zimmer
B14 Production pulled by orders. (2000), Pavnaskar
B15 The products are produced in a balanced manner. (2003), Li et al.
Use SMED technology to enable production to have strong (2004), Isao Endo
B16 (2007), Lander
flexibility.
Production Line Using computer technology to increase the flexibility of (2007), James
B17 P.Womack et al.
Technical manufacturing.
Improvement B18 The company has a high degree of automation in production. (2015), and Chen
(TP3) B19 Try to minimize the batch size of the product. and Ruan (2020)
A real-time process control system has been applied in the
B20
production system.
Information processing capabilities in the manufacturing
B21
system are at the leading level in the industry.
The company is making full use of value stream analysis
B22
Production Waste technology.
Identification The company appropriately employs human-machine
B23
Technology operation analysis.
Improvement B24 The company reasonably utilizes task analysis.
(TP4) The company uses computer simulation technology to analyze
B25
waste in the process.

Reliability Test
In the process of using questionnaire survey data, reliability is one of the most frequently used
indexes. The main use of reliability is to check whether the survey data is stable and consistent,
and to measure the authenticity and reliability of the test results. Generally the larger the
reliability value, the more reliable the questionnaire and survey data. Cronbach's alpha
coefficient method is commonly used in questionnaire survey reliability analysis, where
k  k

Cronbach's alpha coefficient =  1 −
k − 1  i =1
 SSi SS p  , k is the number of questions in the

questionnaire, SSi is the variance of the i question, SS p is the total variance, when the
variance between individuals is relatively small, it means that the survey data have consistency
and stability, that is the survey data are more credible. According to the formula of Cronbach's
alpha coefficient, it is known that Cronbach's alpha coefficient is larger at this time. The
reliability of the data is reflected by measuring Cronbach's alpha coefficient, and the
relationship between Cronbach's alpha coefficient and the reliability of the survey data is
shown in Table 3-5.

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Table 3-4 Table of Reliability Test

Serial number Range of Cronbach's Alpha values Credibility
1 0.60-0.65 Survey data are not used
2 0.65-0.70 Survey data is acceptable
3 0.70-0.80 Good quality of survey data
4 Above 0.80 Excellent quality of survey data

1. Reliability analysis of lean production

As shown in Table 3-6, the Corrected Item-Total Correlation (CITC) of the 16 questions
measuring lean production is greater than 0.7, indicating that the 16 questions on the lean
production scale are highly related to the survey objectives; Cronbach's alpha coefficient for
lean production is 0.965, indicating high internal consistency and stability of the 16 questions
on lean production, that is, the data quality of the lean production survey questionnaire is very
good; after the items removed, the Cronbach's alpha is greater than 0.9 and less than 0.965,
indicating good discrimination of the 16 questions measuring lean production, and any of the
16 question items removed will lead to a decrease in the data survey reliability coefficient. The
test results indicate that the reliability test results of this survey questionnaire about lean
production are very good. The empirical analysis using the data from this survey on lean
production shows that the empirical results are highly reliable in terms of statistical
significance.
Table 3-5 Lean Production Reliability Test
Corrected Item-Total
Items Cronbach's Alpha if Item Deleted Cronbach's alpha coefficient
Correlation
A1 0.718 0.964
A2 0.767 0.963
A3 0.815 0.963
A4 0.799 0.963
A5 0.816 0.962
A6 0.830 0.962
A7 0.632 0.964
A8 0.808 0.963
0.965
A9 0.821 0.962
A10 0.822 0.963
A11 0.800 0.963
A12 0.823 0.963
A13 0.804 0.963
A14 0.813 0.963
A15 0.714 0.964
A16 0.780 0.963

2. Reliability analysis of production technology improvement

As shown in Table 3-7, the Corrected Item-Total Correlation(CITC) of 25 questions on
measuring production technology improvement is almost all greater than 0.7, and only the 19th
question with a CITC of 0.696, indicating that the 25 questions of production technology
improvement are highly related to the survey objectives; the Cronbach's alpha coefficient for
production technology improvement is 0.979, indicating that the internal consistency and
stability of the 25 questions for production technology improvement are high, and the quality
of data for the survey questionnaire is very good; after the items removed, the Cronbach's alpha
coefficient is all greater than 0.9 and less than 0.979, which indicates that the 25 questions on
measuring lean production have good discriminability, and any one of the 25 question items
removed will lead to a decrease in the quality of survey data. The test results show that the
reliability test results of the production technology improvement questionnaire are very good.
The empirical analysis using the data from this survey on production technology improvement
shows that the empirical results are highly reliable in terms of statistical significance.

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Findings
Profile of Respondents
The respondents of this questionnaire survey are mainly production technicians and
management personnel of high-tech manufacturing enterprises, and the sample companies
mainly focus on high-tech manufacturing companies in Fujian, Beijing, Guangdong, Jiangsu,
Zhejiang and Shanghai with relatively developed science and technology. Additionally, the
backgrounds of the surveyed respondents such as the years of work experience, educational
background, position and department at the surveyed high-tech manufacturing enterprises, as
well as the backgrounds of the high-tech manufacturing enterprises such as the size of the
company, nature of the company and operating years of the company, are used as control
variables in the empirical model, respectively, which can improve the overall goodness-of-fit of
the model in the following multiple linear regression analysis.

Description of the Basic Situation of the Sample

1. From the sample survey data, it can be seen that this questionnaire survey received a total
of 425 questionnaires from 13 provinces (municipalities) in China. In this paper,
questionnaires that were incompletely filled out or had outliers were eliminated as invalid
questionnaires, and finally, 411 valid questionnaires were obtained, among which Zhejiang,
Jiangsu, Shanghai, Beijing and Fujian ranked in the top five, accounting for a total of 96.71%,
and these regions are all Chinese more developed regions in science and technology (as
shown in Table 4-1).
Table 4-6 Source of Respondents
Source Number of samples Proportion
Zhejiang 193 46.96%
Jiangsu 86 20.92%
Shanghai 46 11.19%
Beijing 34 8.27%
Fujian 27 6.57%
Other 25 6.08%
Total 411 100.00%

2. This survey covers senior managers, middle-level managers, grassroots managers, and
frontline staff of high-tech manufacturing enterprises. Among the surveyed, 33.6% were
senior managers, who represented the highest proportion of all respondents; 19.5% were
middle-level managers, 29.7% were grassroots managers and 17.3% were frontline staff,
who had the lowest proportion in all the respondents. As shown in Table 4-2, the proportions
of senior managers, middle-level managers, grassroots managers, and front-line staff are
similar, covering people from all levels and departments of high-tech manufacturing
companies.

Descriptive Statistical Analysis of Variables

Before making hypotheses test on the survey data, it is necessary to carry out descriptive
statistical analysis on each variable and its dimension data. The following is a descriptive
statistical analysis of sample data from 411 valid questionnaires for four variables: lean
production, production technology improvement, quality management, and production
performance. It should be noted that the dimensions of lean production, production technology
improvement, quality management, and production performance and their sub-dimensions are
obtained by the exploratory factor model, and the exploratory factor analysis model normalizes
the obtained factors, so that the means of these dimensions and their sub-dimensions are 0 and
the standard deviations are 1, as shown in Table 4-7.

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Table 4-7 Descriptive Statistical Analysis of Sample Data for Each Variable
Number of Minimal Maximum Standard
Variables Dimension Mean
samples value value deviation
Company Culture 411 -4.40406 1.18227 0.000 1.000
Lean Production Employee Participation 411 -4.23546 3.64097 0.000 1.000
Production environment 411 -3.81785 3.19844 0.000 1.000
Production design 411 -4.18143 1.27094 0.000 1.000
technology improvement
Production site technology 411 -3.69976 3.83139 0.000 1.000
Production improvement
technology Production line technology 411 -4.48871 3.66761 0.000 1.000
improvement improvement
Production waste 411 -5.01602 6.36199 0.000 1.000
identification technology
improvement
Top-level design 411 -4.37238 1.15078 0.000 1.000
Customer Orientation 411 -7.32150 3.56562 0.000 1.000
Employee Management 411 -4.73910 3.40157 0.000 1.000
Quality
Supplier Management 411 -5.31291 5.29876 0.000 1.000
Management
Process Management 411 -4.18660 5.37227 0.000 1.000
Information Analysis 411 -6.44801 3.12251 0.000 1.000
Product Design 411 -5.51186 3.44952 0.000 1.000
Financial Performance 411 -4.16550 1.30952 0.000 1.000
Production
Competitive Performance 411 -6.35482 3.75803 0.000 1.000
Performance
Customer Satisfaction 411 -3.14055 5.75573 0.000 1.000

Research Objective 1 (R.O.1): Impact of Lean Production on the Production Performance

of High-tech Manufacturing Enterprises
This section discusses the empirical relationship model between lean production and the
production performance of high-tech manufacturing enterprises based on empirical analysis,
existing literature, and related lean production and production performance theories. This
section analyzes the correlation between lean production, its sub-dimensions and production
performance of high-tech manufacturing firms and its sub-dimensions using data from a valid
sample of 411 questionnaires; the role of lean production in influencing production
performance of high-tech manufacturing firms; and the causal relationship between lean
production and production performance of high-tech manufacturing firms based on the results
of the empirical analysis.

Analysis
In the third chapter of this study, exploratory factor analysis model is used to subdivide
independent variables of lean production into three dimensions: company culture, employee
orientation, and production environment. With 411 valid sample data from questionnaires, this
paper uses a canonical correlation analysis model to empirically study the correlation between
lean production and its sub-dimensions and production performance and its sub-dimensions
of high-tech manufacturing enterprises. As shown in Table 4-8. The correlation coefficient
between lean production and production performance of high-tech manufacturing companies
reaches 0.843 and is significantly positive at the 1% significance level, i.e., they move in the
same direction, either increasing together or decreasing together; The correlation coefficients
between lean production and the three dimensions of financial performance, competitive
performance and customer satisfaction are 0.735, 0.823 and 0.824, respectively, and are
significantly and positively correlated at the 1% significance level, i.e., all the sub-dimensions
of lean production and production performance show significant positive correlations with
each other; The correlation coefficients between company culture and production
performance, financial performance, competitive performance and customer satisfaction are
0.782, 0.636, 0.766 and 0.753, respectively, and all of them are significantly positive at 1%

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significance level, i.e., there is a significant positive correlation between company culture and
production performance and its sub-dimensions; The correlation coefficients between
employee participation and production performance, financial performance, competitive
performance and customer satisfaction are 0.800, 0.679, 0.770 and 0.778, respectively, and all
of them are significantly positive at 1% significance level, i.e., there is a significant positive
correlation between employee participation and production performance and its sub-
dimensions; The correlation coefficients between production environment and production
performance, financial performance, competitive performance and customer satisfaction are
0.812, 0.700, 0.791 and 0.792, respectively, and all of them are significantly and positively
correlated at 1% significance level, i.e., there is a significant positive correlation between
production environment and production performance and its sub-dimensions. The study of
correlation analysis is mainly to portray the closeness of linear correlation between two types
of variables. From the results of the above analysis, it is clear that the linear relationship
between lean production as well as its sub-dimensions and production performance as well as
its sub-dimensions are both very close, but canonical correlation analysis can only study the
correlation between variables but not the causality between variables, while multiple linear
regression analysis can reveal the magnitude of the effect of lean production as well as its sub-
dimensions on production performance as well as its sub-dimensions. Therefore, in order to
examine the causal relationship between lean production as well as its sub-dimensions and
production performance as well as its sub-dimensions, further multiple linear regression
analysis needs to be done.

Table 4-8 Correlation Analysis Results between Lean Production and High-Tech
Manufacturing Enterprise's Production Performance
LP LP1 LP2 LP3 PP PP1 PP2 PP3
LP 1
LP1 - 1
LP2 - - 1
LP3 - - - 1
PP 0.843*** 0.782*** 0.800*** 0.812*** 1
PP1 0.735*** 0.636*** 0.679*** 0.700*** - 1
PP2 0.823*** 0.766*** 0.770*** 0.791*** - - 1
PP3 0.824*** 0.753*** 0.778*** 0.792*** - - - 1
Note: *** means p<0.01; ** means p<0.05; * means p<0.1.

Research Objective 2 (R.O.2): Impact of Production Technology Improvements on

Production Performance of High-Tech Manufacturing Enterprises
This section discusses the empirical relationship between production technology improvement
and the production performance of high-tech manufacturing enterprises based on previous
research conclusions, existing research literature, and related production technology
improvement and production performance theories. This section analyzes the correlation
between production technology improvement, its sub-dimensions and production
performance of high-tech manufacturing firms and its sub-dimensions using data from a valid
sample of 411 questionnaires; the role of production technology improvement in influencing
production performance of high-tech manufacturing firms; and the causal relationship
between production technology improvement and production performance of high-tech
manufacturing firms based on the results of the empirical analysis.

Analysis
This study subdivides production technology improvement (TP) into four dimensions:
production design technology improvement (TP1), production site technology improvement
(TP2), production line technology improvement (TP3), and production waste identification

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technology improvement (TP4), and subdivides company production performance (PP) into
three dimensions: financial performance (PP1), competitive performance (PP2), and customer
satisfaction (PP3), and empirically investigates the relationship between production
technology improvement and production performance of high-tech manufacturing companies
using valid sample data from 411 survey questionnaires. According to the results of the
correlation analysis shown in Table 4-10, the canonical correlation coefficient between
production technology improvement and production performance reaches 0.891, and the
significance level is less than 0.01, that is, there is a significant positive correlation between
production technology improvement and the production performance of high-tech
manufacturing enterprises at the 1% significance level; the canonical correlation coefficients
between production technology improvement and the three sub-dimensions of production
performance: financial performance, competitive performance and customer satisfaction are
0.781, 0.882 and 0.858, respectively, and the significance level is all less than 0.01, that is, there
is a significant positive correlation between production technology improvement and the three
sub-dimensions of production performance: financial performance, competitive performance
and customer satisfaction at the 1% significance level; the canonical correlation coefficients
between production design technology improvement and production performance, financial
performance, competitive performance and customer satisfaction are 0.783, 0.665, 0.772,
0.754, respectively, and the significance level is all less than 0.01, that is, there is a significant
positive correlation between production design technology improvement and production
performance, financial performance, competitive performance and customer satisfaction at the
1% significance level; the canonical correlation coefficients between production site
technology improvement and production performance, financial performance, competitive
performance and customer satisfaction are 0.855, 0.734, 0.845, 0.811, respectively, and the
significance level is all less than 0.01, that is, there is a significant positive correlation between
production site technology improvement and production performance, financial performance,
competitive performance and customer satisfaction at the 1% significance level; the correlation
coefficients between production line technology improvement and production performance,
financial performance, competitive performance and customer satisfaction are 0.855, 0.746,
0.841, 0.822, respectively, and the significance level is all less than 0.01, that is, there is a
significant positive correlation between production line technology improvement and
production performance, financial performance, competitive performance and customer
satisfaction at the 1% significance level; the correlation coefficients between production waste
identification technology improvement and production performance, financial performance,
competitive performance and customer satisfaction are 0.856, 0.703, 0.831, 0.828, respectively,
and the significance level is all less than 0.01, that is, there is a significant positive correlation
between production waste identification technology improvement and production
performance, financial performance, competitive performance and customer satisfaction at the
1% significance level.

Table 4-9 Correlation Analysis Results between Production Technology Improvement

and Production Performance of High-Tech Enterprises
TP TP1 TP2 TP3 TP4 PP PP1 PP2 PP3
TP 1
TP1 - 1
TP2 - - 1
TP3 - - - 1
TP4 - - - - 1
PP 0.891*** 0.783*** 0.855*** 0.855*** 0.856*** 1
PP1 0.781*** 0.665*** 0.734*** 0.746*** 0.703*** - 1
PP2 0.882*** 0.772*** 0.845*** 0.841*** 0.831*** - - 1
PP3 0.858*** 0.754*** 0.811*** 0.822*** 0.828*** - - - 1
Note: *** means p<0.01; ** means p<0.05; * means p<0.1.

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The research of canonical correlation analysis mainly aims to depict the closeness of linear
correlation between two variables, while regression analysis can reveal the magnitude of the
effect of the independent variable on the dependent variable. Therefore, in order to examine
the magnitude and causality of the relationship between production technology improvement
and production performance, further multivariate regression analysis is needed.

Conclusion
This study takes Chinese high-tech manufacturing companies in a high-tech context as the
research object (Xiao et al. 2021; Yang et al. 2022; Wang 2021; Huang, 2013; Kanagi et al., 2017;
Mo, 2015; )ivided into three dimensions: company culture, employee participation and
production environment; production technology improvement is divided into four dimensions:
production design technology improvement, production site technology improvement,
production line technology improvement and production waste identification technology
improvement; quality management is divided into basic and core dimensions, with basic
dimensions including top-level design, customer orientation, employee management and
supplier management; core dimensions include process management, information technology
and product design; and production performance is divided into financial performance,
competitive performance and customer satisfaction (Yang & Yuan, 2022; Wang 2020; Talib et
al., 2013; Wu, 2014). This paper takes quality management as a mediator variable and
constructs a theoretical model of "lean production-production technology improvement-
quality management-production performance". Using the data obtained from 411 valid
questionnaires as a research sample, exploratory factor analysis, canonical correlation analysis
and multiple regression analysis are used to empirically analyze the influence between lean
production, production technology improvement, quality management and enterprise
production performance, as well as the mediating role of quality management between lean
production, production technology improvement and enterprise production performance. It
provides a theoretical and practical basis for the path design of implementing lean production
and production technology improvement in high-tech manufacturing enterprises. (Xiao et al.
2021; Al-Ettayyem et al. 2015; Bums & Stalker, 1961; Cai et al., 2018; Cao 2020; Edwards et al.,
2007; Garcia et al., 2019; Ning 2013; Qi & Chen 2016; Qian 2017).

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Cite this article:

HUANG XUELIANG (2023). A study of Lean Production and Quality Management on

Production Performance: The Evidence in High-tech Manufacturing Companies in China.
International Journal of Science and Business, 22(1), 53-70. doi:
https://doi.org/10.58970/IJSB.2095

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