Abstract
One of the key drivers for a firm’s productivity growth is management. One management practice considered cost effective is Kaizen. Originally from Japan, the Kaizen basic concept is continuous improvement with the involvement of the full workforce. Using firm-level dataset from Brazil’s innovation and manufacturing surveys, this paper evaluates quantitatively whether Kaizen has impacted the performance of domestic firms. Our initial results suggest a productivity premium on Kaizen adopters, yet when it materializes is not detectable in the short-term. Moreover, impact on innovation is observable after Kaizen implementation. Understanding these outcomes with a qualitative approach, our analysis highlights the importance of Kaizen on innovation, especially by improving worker’s time at production line as well as the long-term vision of Kaizen on productivity.
Presenters
Filipe Lage De SousaSenior Economist, Research Department, BNDES, Rio de Janeiro, Brazil
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
Organizations as Knowledge Makers
KEYWORDS
Management; Productivity; Innovation; Impact evaluation
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