An investigation on lean–green performance of Indian manufacturing SMEs

Abstract

Purpose Improved performance in operational (lean) and environmental (green) dimensions has been extremely critical to the global competitiveness of organizations. As the performance of small- and medium-sized enterprises (SMEs) is influenced by various external and internal factors, the purpose of this paper is to analyze the lean–green performance of Indian manufacturing SMEs by investigating the influential relationships of various factors along with the set of lean and green practices adopted by the firms. Design/methodology/approach The study employs a holistic approach by integrating multiple case study and data envelopment analysis (DEA) in eight manufacturing SMEs to verify a set of five propositions relating issues such as organizational factors, quality and environmental management certifications, implementation of lean and green practices with operational and environmental performance in Indian SMEs. Within-case analysis and cross-case analysis are used for a qualitative investigation of cases while DEA with four input variables, two desirable output variables and one undesirable output variable, is used for quantitative investigation with returns to scale (RTS) and damages to scale (DTS) analysis. Findings The RTS/DTS results suggest that Indian SMEs exhibit decreasing RTS and increasing DTS, implying that they need to decrease their operational sizes in order to improve the operational and environmental performance. The possible alternative and more practical strategy could be to introduce new technology innovation and holistic adoption of manufacturing excellence initiatives such as lean and green. Originality/value The research findings provide insights into the lean and green performance enhancement approach in the context of SMEs. The study extends key managerial implications and policy-related guidelines.

Beyond HRM’s Performance Management: Towards Strategic Workforce Resilience

“…On a practical level, the model can be used as a tool to help managers of small firms know which aspects of internal innovation capability [15] and external network relations development [19] are essential to foster the type of sustainability needed in the performance management of SMEs [21,27]. de Araújo Lima et al [17] risk management of performance, Shibin et al's [16] recommendation of the judicious use of human resources and the knowledge management aspects highlighted by Albassami et al's [28] and Petrov et al [12] should be combined for the effective implementation of the innovation and organisational capability of the HPO and HPWS models.…”

“…Employees' shift towards greater clarification of and participation in each other's role boundaries also showed the need to go beyond mechanised communication practices and rigid workplace structures. The need to clarify expectations of what level of performance is needed for organisational performance viability as earlier anticipated by Thanki and Thakkar [27]. The urgency for both management and staff to agree on task redefinition and clarification helps in enabling the types of contributions that could foster Asamany and Shaorong [14] employee commitment to performance management measures.…”

“…Secondly, Katzenbach and Smith [26] highlighted value creation as part of the management planning process so as to make organisations more financially viable [11]. However, this proposition has not addressed the core human resource issues related to what staff regard as valuable, meaningful and sustainable organisational performance practices [21,27]. In addition, creating reward systems for staff as suggested by may help in partially alleviating keeping staff financially satisfied but this measure has also prompted critique that it overlooks a wider and more crucial staff development and knowledge management issue [28,29].…”

“…This has also led to a wider organisational viability predicament [10,21]. Within such a state of affairs, management and staff groups are left divided on which strategy to focus on [5] and which resolutions will be effective [30,31] in the sustainable future [27].…”

“…Therefore, based on the examined HPO and HPWS models, there is a fundamental organisational performance gap problem, which has led Higgs and Dulewicz [8], Van de Ven and Jing [41] and recently Miller et al [10] to refer the situation we are currently in as 'a crisis' . Other scholars have also opined the unsustainability of the management practices used [21,27]. In order to see whether other literature could help resolve this research problem, the chapter examines Resilience Theory next.…”