Table 6

Regression results for the influence of lean thinking

Hypotheses 1 and 2: Effect of internal and external determinants on value addition and waste reduction
Value-addition modelWaste reduction model
Constant0.510*0.508*
Maturity−0.076−0.061
No of Staff−0.121−0.145
Internal Determinants0.308***0.444***
Internal Determinant t stat3.1394.231
External Determinants0.415***0.432***
External Determinants t stat4.0823.961
Observations9494
Std. Error ID0.0980.105
Std. Error ED0.1010.108
R20.5520.610
Adj R20.5320.592
F-stat27.38834.771
prob(0.000)(0.000)
Normality Test
JB-stat2.5023.910
prob(0.286)(0.142)
Heteroskedasticity Tests
Breusch-Pagan-Godfrey
F-stat5.7234.737
prob(0.000)(0.002)
Harvey
F-stat1.8491.902
prob(0.127)(0.117)
White
F-stat3.0113.187
prob(0.001)(0.017)

Note(s): Internal Determinants is an aggregate variable made up of five management commitment-related lean practices (H1MC1, H1MC2, H1MC3, H1MC4, H1MC5), five teamwork-related lean practices (H2TW1, H2TW2, H2TW3, H2TW4, H2TW5) and four adaptabilities to change related lean practices (H3AC1, H3AC2, H3AC3, H3AC4). The external determinant is an aggregate variable made up of five community incorporation-related lean practices (H4CO1, H4CO2, H4CO3, H4CO4, H4CO5), five government support-related lean practices (H5GV1, H5GV2, H5GV3, H5GV4, H5GV5) and four other philanthropic organisations related lean practices (H6OP1, H6OP2, H6OP3, H6OP4)

*** Denotes significance at 1% level

* Denotes significance at 10% level

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