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This study tests the hypothesis that lean manufacturing improves thesocial performance of manufacturers in emerging markets. We analyze an interventionby Nike Inc. to promote the adoption of lean manufacturing in its apparel supply chainacross eleven developing countries. Using difference-in-differences estimates from apanel of over three hundred factories, we find that lean adoption was associated witha 15 percentage point reduction in noncompliance with labor standards that primarilyreflect factory wage and work hour practices. However, we find a null effect on factoryhealth and safety standards. This pattern is consistent with a causal mechanism thatlinks lean to improved social performance through changes in labor relations, ratherthan improved management systems. These findings offer evidence that capabilitybuildinginterventions may reduce social harm in global supply chains

Does Lean Improve Labor Standards? Management and Social Performance in the Nike Supply Chain