Achieving sustainability through the integration of lean, agile, and innovative systems: implications for Indian micro small medium enterprises (MSMEs)

Abstract

Purpose The purpose of this study is to learn how the incorporation and use of leanness, agility and innovation in Indian manufacturing micro, small and medium enterprises (MSMEs) affect their bottom lines and how much these factors contribute to the MSMEs’ ability to meet their long-term sustainability goals. Design/methodology/approach The suggested model was subjected to data validation and additional empirical validation using a sample of 411 Indian manufacturing MSMEs. The analysis of construct measures is conducted through the utilization of confirmatory factor analysis, a statistical technique that is grounded in the theoretical framework of structural equation modeling (SEM). In addition, path model analysis was applied for the purpose to validate the assumptions that were included in the structural models. Findings Consistent with the proposed model, the findings of this study demonstrate that leanness, agility and innovation have a substantial favorable impact on the sustainability of a company’s performance. These findings may be helpful in gaining professionals, academics and policymakers to acknowledge the significance of leanness, agility and innovation in enhancing the long-term sustainability of MSMEs and enhancing the overall performance of a particular company. This research excluded the service industries-based research papers. Research limitations/implications Many research in the field of manufacturing industries that have adopted leanness, agility, innovativeness and sustainability as individual approaches or as a collective methodology of two or more were considered in the current study. This research excluded the service industries-based research papers. Practical implications This literature review has recognized and analyzed various dimensions and roles of leanness, agility, innovativeness and sustainability that are prevalent in manufacturing industries that include the positive and negative effects on the performance of the industries. The research enlightens the path and shows future directions for research to develop efficient, effective and sustainable manufacturing industries. Social implications By promoting the concept of focusing on the “human factor”, namely, stakeholder perspectives, the MSME sector is propagating a strategy that moves away from an excessive focus on technology and toward a more humane one. Through the application of the three key concepts of leanness, agility and innovation, this work aims to create a framework for measuring the sustainability performance of micro-, small- and medium-sized enterprises (MSMEs), with the ultimate goal of assisting the country in achieving the Sustainable Development Goals in the fields of industry, innovation and infrastructure by supporting environmentally friendly and resource-conserving businesses that give back to society and the natural environment. Originality/value The objective of this research is to assess the importance and effectiveness of integrating various approaches such as leanness, agility, innovativeness and sustainability within the framework of manufacturing micro, small, and medium enterprises (MSMEs). The authors hope that by going further into these concepts, they will be able to broaden their understanding and get a more comprehensive insight into the role that these concepts play and how they might be successfully used within this environment.

MSME Development Strategy in Pekarungan village

“…These traders are not only women or men and not only adults but also students and students. Rempeyek is a type of snack that is very crunchy and has a salty taste (Amrita dkk., 2022;Babber & Mittal, 2023;Latianingsih dkk., 2022). Another name for peanut brittle is peyek, this is a type of complementary food.…”

Agility and Artificial Intelligence Adoption: Small vs. Large Enterprises

“…While small enterprises may acknowledge the importance of agility and AI, they frequently encounter difficulties in allocating the necessary resources and overcoming operational hurdles to fully adopt these transformative practices (Hansen & Bøgh, 2021;Papadopoulos et al, 2020). Babber and Mittal (2023) in their research on 411 Indian manufacturing micro, small, and medium enterprises (MSMEs) found out that leanness, agility, and innovation significantly and positively influence the sustainability and overall performance of MSMEs. There are various factors to which companies respond differently when deciding to transition to an agile approach to business.…”