Human-centred lean management practices, employee involvement and innovative performance in SMEs: evidence from an emerging economy

Purpose This paper aims to evaluate how small- and medium-sized enterprises (SMEs) in developing economies continue to face pressure to innovate due to intense competition, changing customer expectations and resource constraints. Although lean management practices are widely adopted to improve operational efficiency, their role in enhancing innovative performance remains insufficiently understood, particularly in SMEs where human and organisational factors are often overlooked. This study examines the relationships between human-centred lean management practices (HLMPs) and innovative performance and the mediating role of employee involvement among employees in Nigerian SMEs. Design/methodology/approach Cross-sectional survey data were collected from 314 employees across 45 SMEs and analysed using partial least squares structural equation modelling. Findings Customer focus, employee training and small group problem solving are significantly and positively associated with innovative performance, whereas top management leadership shows no significant direct association with innovative performance. All four HLMPs are significantly associated with employee involvement, with employee involvement mediating the relationships between top management leadership and small group problem solving with innovative performance. Practical implications The findings suggest that SMEs seeking to strengthen innovation should complement lean efficiency efforts with practices that enable employee participation, particularly small group problem solving and meaningful involvement in improvement activities. Originality/value The study contributes to lean management and innovation literature by showing that human-centred lean practices do not have a uniform relationship with innovative performance. Instead, employee involvement provides an important link between selected lean practices and innovative performance, offering evidence from SMEs in an emerging economy.