Exploring synergetic effects between investments in environmental and quality/lean practices in supply chains

Abstract

PurposeThis paper seeks to report the empirical results examining potential synergetic effects between investments in environmental and quality/lean practices within the supply chain.Design/methodology/approachCross‐country survey data collected by the “Global Manufacturing Research Group” within Europe was utilized to test the hypotheses. Synergetic effects were conceptualized through interaction effects using ordinary least square regression (OLS) analysis.FindingsResults indicate that synergetic effects between traditional practices such as lean and quality and environmental practices are possible. More specifically, the impact of lean and quality practices on operational supply chain performance can be amplified through environmental practices such as ISO 14001, pollution prevention, recycling of materials and waste reduction.Originality/valueAlthough research on the performance impact of environmental practices within the supply chain context has matured over the past years, there is still a scarcity of research exploring their relationship with traditional manufacturing practices such as quality and lean. Underpinned through the resource based view and the concept of complementarity, this study addresses this shortcoming through exploring the impact of environmental practices on the efficacy of quality and lean practices within a supply chain context. This paper will thus be beneficial for supply chain managers developing a case for environmental investments and will further advance research on manufacturing practices within the supply chain context.

Green and lean sustainable development path in China: Guanxi , practices and performance

“…What is more, Garza-Reyes et al (2015) suggest that green and lean practices can effectively work together since they are concurrent to some extent. For example, both maintain synergies related to waste reduction, lead time reduction, product design and the use of various approaches and techniques to manage people, organisations and the supply chain (Garza-Ryes et al, 2014;2015;Dues et al, 2013;Larson and Greenwood, 2004;Wiengarten et al, 2013). Moreover, researchers such as Mollenkopf et al (2010) and Pampanelli et al (2014), who address the relationship between green and lean practices through different approaches to integrate them, note the advantages and synergies available when they are implemented concurrently.…”

“…When green and lean practices are combined, it is important to identify which of them are relevant to any particular set of operations and which require improvement (Duarte and Cruz-Machado, 2013;2015). A number of studies have considered the relationship and investigated the effects of green and lean initiatives on organisational performance and their integration as a single combined approach (Larson and Greenwood, 2004;Dues et al, 2013;Wiengarten et al, 2013;Duarte and Cruz-Machado, 2015;Sobral et al, 2013;Garza-Reyes, 2015;Mollenkopf et al, 2010;Pampanelli et al, 2014;Mason et al, 2008;Kurdve et al, 2014). However, despite these studies, the academic literature and research exploring the impact of green and lean practice on organisational performance still remain in their early stages.…”

“…Therefore, despite the great pressure to perform environmentally and large-scale investment in green programmes, these programmes cannot guarantee an improved performance of environment (Tseng et al, 2014a;. Recent literature offers insight into how green and lean practice can help organisations to better appreciate the notion of environmental and business performance (Dues et al, 2013;Duarte and CruzMachado, 2015;Wiengarten et al, 2013;Wadhwa, 2014;Larson and Greenwood, 2004;Sobral et al, 2013). As lean practice is an operations management approach that aims at the elimination of waste in every area of design, production, factory management and the supply network (Chauhan and Singh, 2012), its alignment with the green paradigm, and its methods and tools, seems natural (Garza-Reyes, 2015).…”

“…Therefore, researchers are starting to investigate the effect of green and lean practices on various composite dimensions of organisational performance, including different aspects of environmental, operational and financial performance and customer satisfaction (Dues et al, 2013;Wiengarten et al, 2013). Particularly, Rappaport (1987) points out that business performance takes into account the responsibilities and profit maximisation objectives of an organisation, while environmental performance indicates to the environmental responsibilities of an organisation .…”

“…Therefore, tools and techniques should be considered as a part of critical green and lean practice in organisations. (Jeyaraman and Teo, 2010;Dues et al, 2013;Wiengarten et al, 2013;Azevedo et al, 2012) Leadership and Management (Bergmiller and McCright, 2009;Rothenberg et al, 2001;Sobral et al, 2013;Larson and Greenwood, 2004) Employee Involvement (Florida, 1996;Zhu et al, 2005;Pampanelli et al, 2014;DiazElsayed et al, 2013;Mason et al, 2008) Integrated Approach (Drew et al, 2004;Garza-Reyes et al, 2014;2015;Carvalho et al, 2011;) Tools and Techniques (Hines et al, 2004;Srivastava, 2007;Sertyesilisik, 2014;Salleh et al, 2012;Banawi and Bilec, 2014) The remainder of the literature review will draw from the main aspects we will be exploring in our empirical study, including issues related to the implementation of green and lean practice, organisational performance, and guanxi in Chinese organisations.…”