1 | INTRODUCTION

The forces of globalisation, largely driven by enterprises in developed countries, have a profound effect on how the global value chain is structured and managed. Nonetheless, rather than succumbing, developing countries such as Ghana, dominated by Micro and Small-sized Enterprises (MSEs), can take advantage of sustainable improvement initiatives to compete favourably in the global value chain (Taglioni & Winkler, 2016). Hosono (2020) suggests that MSEs' prospects in the global market will increase by implementing Kaizen, a sustainable improvement project that stresses little, gradual adjustments that add up to major gains in operational efficiency, productivity, and quality.

Kaizen, is a philosophy of sustainable improvement initiative that originated from Japan and was later popularised in the United States and beyond. Toyota Motor Company was the first company to implement Kaizen (Imai, 1986), and since then, it has gained widespread recognition for its significant positive effects on operational performance especially in the garments industry (Hagos, 2016; Mahir et al., 2023; Van Pham, Le, & Tu, 2022). While its relevance to sustainability, efficiency, and adaptability, among others, is well-documented, most empirical evidence comes from studies conducted in Western contexts (Kazancoglu et al., 2024). Thus, its adaptability to various socio-cultural contexts outside the Japanese context is been questioned (Shimada, 2023), particularly among MSEs in developing countries due to different working ethics and socio-cultural and environmental factors (Zvidzayi, 2021). On the contrary, the Kaizen initiative primarily emphasises improvement, teamwork and flexibility in the workplace; its adoption and implementation can be diverse irrespective of geographical location around the globe (Hosono, Page, & Shimada, 2020; Spasojević Brkić et al., 2023).

In Ghana, Kaizen was initiated and implemented in collaboration with the Japan International Cooperation Agency (JICA) between 2012 and 2017 among manufacturing enterprises as part of the government’s efforts to improve productivity, competitiveness and sustainability in the manufacturing sector of the economy. Atta-Ankomah et al. (2022) opined that implementing the initiative had a significant impact on the methods, practices and techniques associated with manufacturing enterprises in Ghana, in the long run impacting positively on operational performance. Therefore, it is imperative to increase the application of the initiative across a broad spectrum of both production and manufacturing enterprises in the country (Atta-Ankomah et al., 2022). Although the Kaizen initiative is being adopted in the garment industry in Ghana, its impact and critical success factors remain understudied, limiting our understanding of its effectiveness and scalability. This scarcity of empirical research on Kaizen highlights the need to draw from parallel continuous improvement initiatives that have demonstrated success in other sectors of the country such as healthcare, water services, and the financial sector (Agyepong et al., 2001; Fisher et al., 2020; Srofenyoh et al., 2012) Therefore, providing valuable insights into how continuous improvement approaches can be applied in other sectors.

Given the diverse nature of garment production, where workers' capacities, waste reduction, and product quality are critical, implementing Kaizen as a continuous improvement initiative offers significant benefits. Additionally, for the initiative to remain successful over time, it must be adaptable to evolving industry needs and challenges. Hence the need to examine key performance indicators (KPIs) that influence it adoption as recommended by Georgise and Mindaye (2020), and as well prioritise context-specific critical success factors (CSFs) on how to better sustain the initiative. However, few studies focus specifically on KPIs that drives Kaizen implementation, empirical literature primarily highlights broader continuous improvement initiatives, such as Lean, Total Quality Management (TQM), and Six Sigma (Dora, Kumar, & Gellynck, 2016; Martinez-Jurado & Moyano-Fuentes, 2014; Sahu, Padhy, & Dhir, 2022). Therefore, presenting a gap in understanding unique KPIs that motivate Kaizen adoption, particularly in garment-producing MSEs.

Furthermore, unlike large organisations, MSEs often lack the resources, such as time, manpower, budget, and expert knowledge, needed to implement and manage numerous CSFs. This limitation makes it essential for MSEs to prioritise CSFs strategically for successful Kaizen adoption, as emphasised by Belhadi, Touriki and Elfezazi (2018) and Dombrowski, Crespo and Zahn (2010). It is in light of this background that the study aims to contribute to improving the Kaizen implementation index in Ghana’s garments industry, drawing on the proven success of other continuous improvement initiatives to address the gap in existing literature. By focusing on CSFs, the study will provide empirical results from the Ghanaian context as it tailors factors that will suit the peculiar opportunities and constraints of garment producers in MSEs in achieving a culture for continuous improvement in production practices. Purposively, the following objectives guided the study:

1. examine key performance indicators that motivate garment producers to adopt Kaizen in their production practices.
2. asses challenges garment producers encounter during the adoption of Kaizen in production practices.
3. prioritise critical success factors for improved implementation of Kaizen in garments producing MSEs in Ghana.

 

1.1 |  Overview of the Kaizen Philosophy

Literally translated from two Japanese terms, "zen" which means for the better and "kai" for change (Hosono, Page, & Shimada, 2020; Shimada, 2024; Suárez-Barraza, 2023). Thus making change for the better that involves everybody in a community, an organisation or a family in the long term. Although there are various definitions of Kaizen to reflect its core principles, this study operationalises and defines Kaizen as an incremental and participatory approach that seeks to enhance operational efficiency and quality (Al-Hyari et al., 2019; Brunet & New, 2003; Mwenda & Gasper, 2022). Kaizen's fundamental ideas of eliminating waste, streamlining procedures, and organising the workplace boost output while simultaneously enhancing worker safety and morale. Over time, this initiative has proven to be adaptable and successful, having found applications in a range of industries, including production, healthcare, services, and education, beyond its manufacturing roots (Attar, 2021; Shatrov et al., 2021; Suárez-Barraza, 2023). Chotaliya and Mehta (2022) claim that kaizen is applied through a variety of practices, which are sometimes referred to as methods or techniques that are included in the Kaizen concept. According to Chiarini, Baccarani, and Mascherpa (2018), they consist of but are not restricted to Plan-Do-Check-Act (PDCA), Standardise-Do-Check-Act, 5S, Kaizen events, 5 Whys, Total Preventive Maintenance (TPM), and Just-In-Time. Occupational Safety, Health, and Environmental Management (OSHEM), Visual Management, Kaizen Costing, Quality Circle (QC), Employee Development, Enterprise Diagnosis, Toyota Production System (TPS), Kanban System, and Seven Wastes are additional methods (Al-Hyari et al., 2019; Alvarado-Ramírez et al., 2018).

According to Otsuka, Jin and Sonobe (2018), Kaizen methods, when implemented, should be supported and promoted by all employees, regardless of their position in the company or enterprise, as in the case of successful Japanese companies. However, this is in contrast to traditional companies or enterprises in developing countries, where Kaizen practices are usually undertaken by specific employees who are often considered of lower status. This suggests a shift to a more inclusive strategy in which all workers, regardless of status, should participate in order to promote a culture of shared accountability and ongoing development at all organisational levels. For Kaizen to be successfully implemented in developing countries like Ghana, this strategy is required. Productivity has increased across East Asia, Europe, and North America as a result of the high adoption of Kaizen. This approach has been effective in promoting industrial growth in developing nations, where it has acquired popularity. Although some African countries, such as Ghana, South Africa, and Tanzania, among others, have adopted this philosophy in their industrial policies, the popularity of Kaizen is not widespread among many workers, managers and owners of enterprises unfamiliar with the concept (Otsuka, Jin, & Sonobe, 2018). Furthermore, the application of Kaizen has enhanced product quality, making manufactured goods more competitive in international marketplaces. By small and incremental improvement, some economies have moved from an agrarian foundation to an industrial one as a result of adopting the principles of Kaizen. When given the necessary commitment and resources, Kaizen lowers production costs, reduces accident rates, machine malfunctions, and delivery delays, and promotes the maintenance and expansion of market share and competitiveness (Goyal et al., 2019; Ichdan, 2024; Pereira de Carvalho et al., 2023).

1.2 |  Garment producers in Micro and Small Enterprises in Ghana

Particularly in developing and underdeveloped countries, MSEs are critical to the adaptability, flexibility, and economic development of both smaller communities and countries at large (Adjabeng & Osei, 2022). Accordingly, the Ghana Enterprises Agency uses the "fixed asset and number of employees" criterion to define MSEs (Ghana Enterprises Agency, 2020). A company that employs no more than ten people and has plant and machinery valued at no more than ten million Ghanaian Cedis, excluding land, buildings, and cars is considered an MSE, according to GEA (2020). Therefore, because MSEs in the Central Region's apparel industry can be readily identified by the number of apprentices or employees working there, the study adheres to the employee concept of definition. This is contrary to the process of valuing fixed assets, which likely poses problems because the mode of accounting system used by these MSEs varies from one another.

The majority of garment producers in Ghana’s MSEs mostly engage in the following economic activities: manufacturing clothing, selling haberdashers, and reinventing clothing items to extend their lifespan and promote sustainable consumption (Nyarko, 2022). The Ghanaian garment production industry is largely informal, dominated by women with varying degrees of education. As a result, they make far more contributions to Ghana's apprenticeship and dressmaking systems than males do (Bakker-Edoh, 2018; Sarpong et al., 2023; Senayah, 2018). As the globe moves toward sustainability and increasing possibilities for both developed and developing nations, these advancements help to reduce poverty (SDG 1) and promote economic growth and decent work (SDG 8).

1.3 |  Key Performance Indicators (KPIs) that motivate Kaizen adoption among Garment Producing MSEs

Competition to meet changing consumer preferences for garment styles is constantly evolving, making it essential for garment producers to prioritise key performance indicators of quality, cost, flexibility, delivery lead time, competitiveness and performance of their products. Consequently, the adoption of continuous improvement initiatives, such as the Kaizen concept, is often proposed to meet such organisational goals (Potkany et al., 2022). Additionally, McDermott et al. (2022) and Chiarini, Baccarani, and Mascherpa (2018) proposed that four important performance indicators—cost, productivity, time/speed, operations flexibility, and quality, are what define production operations management. Long-term success and competitive advantage are fuelled by additional measures of creativity, innovation, and customer satisfaction. These dimensions collectively form the foundation for achieving operational excellence and sustaining growth in an increasingly competitive and dynamic garment-producing industry. Hence, it is fundamental for garment producers to identify lacking KPIs that align with operational needs to necessitate the adoption of Kaizen.

To this end, KPIs advanced in literature have been clustered into internal and external factors (Bewoor & Pawar, 2010; Sahu, Padhy, & Dhir, 2022; Sternad, Krenn, & Schmid, 2019). Internal factors primarily include waste reduction, reducing rework, product and service quality improvement, planning procedures and organisational performance, among others. In addition, the necessity of creating an all-encompassing improvement strategy framework for enterprises usually motivates Kaizen adoption, as posited by Berhe, Gebremichael, & Beyene (2023). External factors such as responding to customer and competitive pressure, projecting a positive and lasting company brand image, aligning with the company’s expectation, improving lead time practices and innovativeness were highlighted by (Lewis, 2000; Okpala, Nwamekwe, & Ezeanyim, 2024; Tezel, Koskela, & Aziz, 2018).

In Tanzania, the drive to boost productivity and quality led to the implementation of the Kaizen philosophy (Gasper & Mwenda, 2023). Similarly, the implementation of the Kaizen concept was motivated by the need for a considerable improvement in a Zambian industry's productivity, reduction in cost and quality (Sichinsambwe et al., 2023). Small-scale enterprises in India were focused on minimising production costs by eliminating non-value-added activities (Muda), improving work systems, promoting employee development, and optimising practices through structured improvements and cross-functional collaboration and consequently adopted Kaizen techniques (Kumar, Dhingra, & Singh, 2018). The lack of key performance indicators for regulatory compliance, customer demand requirements, and the improvement of owners’ entrepreneurial capacity led to the adoption of Kaizen among SMEs in the Philippines (Raneses et al., 2020). According to Raneses et al. (2020), small and medium-sized businesses (SMEs) were adopting Lean-Kaizen because they wanted to increase organisational efficiency, address problems through small-scale process changes, cut waste, and incorporate the Kaizen concept into management practices. Ultimately, this leads to higher customer value and better long-term performance. Furthermore, the adoption of the Kaizen concept in textile and clothing SMEs was driven by the need for waste reduction, improved workplace organisation and standardisation in manufacturing processes. This approach not only enhanced production efficiency but also addressed issues like order fulfilment and equipment breakdowns, eventually reducing operational losses (Heredia-Mercado et al., 2021). Quality, delivery, cost, flexibility, and innovativeness were used as key performance indicators by Cua, McKone, and Schroeder (2001) to assess the results of an integrated model of several related Kaizen techniques, including TQM and JIT.

Addressing the aforementioned findings underscores the multifaceted nature of key performance criteria driving Kaizen adoption in SMEs, which aligns with the resource-based view (RBV) theory. This theory suggests that firms with a proactive approach to continuous improvement are better positioned to leverage their internal capabilities for competitive advantage (Barney, 1991). While existing studies identify these motivations, there is a lack of focused research on the specific factors that drive Kaizen adoption in the unique context of local market conditions, competition and government interventions that characterise Ghana’s garments production industry (Appiadu, Senayah, & Biney-Aidoo, 2022).

1.4 |  Challenges Encountered During the Implementation of Kaizen

Despite its potential to drive continuous improvement, many MSEs struggle to achieve successful outcomes. This is because, according to Garcia and Oropesa (2017), the challenges of managing Kaizen strategies are often more complex than anticipated, requiring significant adjustments in organisational processes, culture, and leadership. Furthermore, the failure of Kaizen initiatives impacts the overall performance of enterprises in the long term (Antony et al., 2022). Among the many difficulties, Minh and Quyen (2024) found that SMEs frequently have non-functional organisations, insufficient resources, and a lack of experience and competence, all of which make continuous improvement initiatives difficult. Pesotskiy and Grigoreva (2023) emphasised that small businesses may encounter challenges, including poor cost control, heightened financial instability, low profitability, and inadequate responses to market changes if the Kaizen strategy is not planned out properly, ultimately limiting their sustainability and expansion potential.

In the context of Ghana's garment production industry, Table 1 lists the identified challenges that were taken into consideration in the study to empirically analyse the potential challenges that could hamper the successful adoption of continuous improvement (CI) approaches.

Table 1: List of identified challenges associated with the implementation of continuous improvement initiatives

Identified Challenges

Findings from Previous Research

1

2

3

4

5

6

7

8

9

10

11

12

13

14

1

Limited awareness of continuous improvement methods

*

*

*

*

*

*

*

*

2

Failure to motivate employees to participate

*

*

*

*

*

*

*

*

*

*

*

3

Abandonment of the Kaizen implementation plan

*

*

*

4

Employee resistance to change

*

*

*

*

*

*

*

*

*

5

Scarcity of time and financial resources

*

*

*

*

*

*

6

Lack of leadership and management support

*

*

*

*

*

*

*

*

*

*

*

7

Insufficient employee training

*

*

*

*

*

*

*

*

*

*

*

8

Inconsistent usage of Kaizen tools

*

*

9

Difficulties in managing continuous improvement

*

*

*

10

Lack of modern technologies

*

*

*

11

Poor follow-up systems, e.g. Communication

*

*

*

*

12

Non-recognition of hardworking employees

*

*

13

Poor project selection and prioritization

*

14

Cost of investment

*

15

Resistance to change existing production floor

*

Authors: Alsaadi (2024), 2. Baier (2024), 3. Mahir et al. (2023), 4. Dinka (2021), 5. Salma, Anas and Mohammed (2021), 6. Georgise and Mindaye (2020), 7. Abebe and Singh (2019), 8. Janjić, Bogićević and Krstić (2019), 9. Rathi and Khanduja (2019), 10. Ramadas and Satish (2018), 11. Bwemelo (2017), 12. Tiwari (2017), 13. Dora, Kumar and Gellynck (2016), 14. Maarof and Mahmud (2016).
Source: Researchers’ construct (2025)

1.5 |  Critical Success Factors for Kaizen Implementation in MSEs

Critical success factors (CSFs) are those essential elements that have a major impact on the accomplishment of various organisational initiatives, projects or operations. They serve as focal points for organisational efforts, ensuring alignment and collaboration among teams (Al Kurdi et al., 2022; Pinto & Pinto, 2021). Thus, the lack of any crucial success factor during the planning and execution stages of an organisational project may make the difference between a successful implementation and a loss of resources, time, money, and effort (Antony & Banuelas, 2002). An extensive literature review from academic databases resulted in a list of 17 CSFs for improving Kaizen implementation in MSEs. The CSFs were then grouped into four categories (organisational, financial resources, socio-technical, and operations) based on their meanings and similarities, as shown in Table 2. The study takes into account these identified CSFs to empirically explore the possible CSFs that could enhance adoption practices in the context of Ghana's garment production sector.

Table 2: List of CSFs for Kaizen implementation

No.	Category of CSFs	Critical Success Factors	Findings from Previous Research
			1	2	3	4	5	6	7	8	9	10	11	12	13