| Summary: | — Lean practices are expected to eliminate wastes and consequently increase the bottom line profit of an organization. The benefits not only go to
the organization, but also to the customers as well.The government-linked companies (GLCs) are always known for their big-sized establishment. Hence, managing the resources of the GLCs is very
challenging. Therefore, investigating the leanness of Malaysian GLCs, and how lean practices affect the organizational performance are important. This
paper would examine the relationship of lean and
performance of the GLCs in Malaysia.A total of 281 managers in the GLCs were surveyed.The direct
relationship and mediation effects were analysed
using the Partial Least Square (PLS) structural
equation modelling. The findings showed that the
level of leanness was relatively high among the GLCs, while the lean management practice was significantly related to the organizational performance.The quality leadership partially mediates the relationship between lean practices and organizational performance.The findings suggest that lean practices are critical for the GLCs performance, while quality leadership is significant in order these companies to have better performance. The findings can also be
applied to other organizations as well.
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