The integration of human resource and operation management practices and its link with performance: A longitudinal latent class study

This paper reviews the literature on the association between lean production and performance. From this, propositions on the integration and evolution of operation and human resource management practices associated with the lean production concept are developed. Using 24 years of data on the use of seven core OM and HRM practices in British manufacturing firms, the potential link between integration in the use of practices and productivity is tested. In each year, three latent clusters are identified via ordered restricted latent class models; the cluster that consistently makes a more integrated use of practices outperforms the others. Furthermore, the longitudinal nature of the data permits modeling the growth curves of each practice in the sample, recognizing any similarity in growth and investigating whether or not an early integration in adoption of practices is associated with higher final productivity. The results show that pioneers are more productive, thus suggesting that the head start in integrating core OM and HRM practices associated with the lean production concept has paid off. 2010 Elsevier B.V. All rights reserved. * Corresponding author. Tel.: +44 2070408359; fax: +44 2070408328. E-mail address: [email protected] (L.M. de Menezes). 1 Institute of Work Psychology, University of Sheffield, Sheffield, UK. 2 Garry Gelade was a research fellow at Cass Business School, City University London, 2007–2009.