Designing a Framework for Lean Start-Up Conformance

Document Type : Research Paper

Authors

1 Department of Management, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran.

2 Department of Management, Faculty of Economics, Management and Social Sciences, Shiraz University

Abstract

Objective: The concept of "Lean start-up" is intriguing but vague in its implementation. To the best of our knowledge, measuring the level of leanness of a start-up is not possible yet. However, there are some models for lean assessment in mature companies. This research aims to determine the criteria and design a framework for conforming to lean start-up criteria. The goal is to create a valuable guide for evaluating the degree of leanness of start-up businesses and pave the way for their leanness.
Method: This research follows an applied and analytical approach conducted in two phases. We developed a framework for lean start-up conformance in the first phase through five steps. Initially, papers on "lean measurement" and "lean start-up" were searched and reviewed, resulting in 187 unique criteria. In the next step, the Content Validity Ratio (CVR) reduced the number of criteria to 52. Subsequently, the CREAM method (acronym for "Clear," "Relevant," "Economic," "Adequate," and "Monitorable") was used to assess the quality of the remaining criteria. Only 38 criteria could pass the CREAM requirement and were qualified for remaining as final criteria. Hierarchical cluster analysis, conducted using MATLAB software, categorized the remaining criteria into 7 dimensions. Finally, the group best-worst method (G-BWM) was used to weight the criteria and dimensions. These steps were conducted through 35 rounds of expert opinion collection through 4 questionnaires and yielded in a lean start-up conformance framework. In the second phase, the created framework was applied to 35 start-up businesses in Fars Science and Technology Park, and the output data was analyzed using the one-sample t-test in SPSS software.
Finding: This research developed a framework of 7 dimensions and 38 criteria to measure the degree of leanness in start-up businesses. The framework dimensions, namely "customer analysis," "quality of product manufacturing," "improvement of production system," "management and personnel," "Muda," "internal processes," and "market analysis," have been assigned respective weights of 0.256, 0.149, 0.149, 0.089, 0.076, 0.120, and 0.188. Also, applying the framework to the start-up businesses of Fars Science and Technology Park revealed the extent of their leanness and uncovered the gap to the ideal state of leanness. The average score of leanness in the investigated businesses was found to be 80 percent.
 Results: The designed framework is a useful guide for measuring and enhancing the degree of leanness in start-up businesses. Notably, the "customer analysis" dimension emerged with the highest weight among the dimensions, while "identifying customer needs" exhibited the highest weight among the criteria in the framework. Applying the framework highlighted the need for start-up businesses in Fars Science and Technology Park to focus on enhancing "internal processes," "Muda," and "market analysis." Future research endeavors could explore extensions of the framework using Fuzzy or gray logic or customize it according to the lifecycle of start-ups.

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References

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Journal of Entrepreneurship Development
Volume 16, Issue 3 - Serial Number 61
December 2023
Pages 138-153

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