Impact of Sustainable Manufacturing Practices on Financial Performance of MSME in Coimbatore District

Abstract

Sustainable manufacturing practices are described from an environmental angle, with the objective of minimization of effects of manufacturing activities on environment with best performance of firms. The adoption of sustainable manufacturing practices is not only concentrating on large sized manufacturing firms but also on Micro, Small and Medium Enterprises (MSMEs). Significant difference is prevailing amongst profile of MSMEs and their sustainable manufacturing practices. Cleaner production, eco-efficiency, relation with supplier, relation with employee and relation with customer are having significant and positive impact on financial performance of MSMEs. To improve sustainable manufacturing practices, MSMEs should reduce their solid waste and usage of materials and they must have efficient compliance for environment and adopt environment regulations properly. Furthermore, MSMEs should provide sufficient salary and good work life balance to their employees and they must direct suppliers to act on environment problems and send appraisal of environmental performance to them and these measures will improve financial performance of MSMEs.