People-Centered Lean Manufacturing: Drivers of Operational Performance in Saudi Arabian Industries

This study addresses a critical gap in understanding how Lean Manufacturing (LM) practices, particularly people-centered approaches, can enhance operational performance within the unique industrial context of Saudi Arabia’s Vision 2030 economic transformation. The concept of Lean Manufacturing involves a systematic approach and principles aimed at enhancing efficiency, minimizing inefficiencies, and boosting output in manufacturing operations. While LM principles are well-established globally, their application in Gulf Cooperation Council (GCC) economies remains understudied, particularly regarding the central role of workforce engagement in successful implementation. The main objective of the study is to investigate the implications of LM on the productivity of the industry sector. Specifically, this research examines how the integration of people-centered practices with traditional LM constructs (Just-in-Time, Jidoka, Stability and Standardization) influences operational outcomes in Saudi manufacturing firms. A survey was conducted among specific private and public enterprises to collect data, yielding a 55.8% response rate and 67 valuable responses from a pool of 120 contacted companies. The sample encompassed small, medium, and large enterprises across seven manufacturing sectors. SmartPLS 3 and SPSS were used to assess the structural and measurement models. Common method bias was evaluated using Harman’s single-factor test. The findings demonstrate that implementing the recommended LM structural model significantly enhances operational performance. Notably, people integration exhibited the strongest influence on operational performance (β = 0.361), suggesting that human-centered approaches may be particularly salient in the Saudi context. These findings offer practical guidance for manufacturing firms seeking to align lean initiatives with Vision 2030 objectives.