Could Lean Practices and Process Innovation Enhance Supply Chain Sustainability of Small and Medium sized Enterprises?

Prasanta K Dey, Chrisovalantis Malesios, Debashree De, Soumyadeb Chowdhury, Fouad Ben Abdelaziz

Research output: Contribution to journalArticle

Abstract

Small and medium‐sized enterprises (SMEs) adopt lean practices (LP) to reduce waste across their organisational value chain, which helps achieve sustainability. Process innovation (PI) has also been applied through cleaner production, environmental management system, ecodesign, and so on to address both customers' needs and legislations by policymakers. Although prior studies reveal the effect of sustainable practices, LP, and PI on sustainable performance separately, less is known on the integrated effect of them on sustainability performance. Moreover, studies on mediating effect of LP and PI on sustainability performance are scant. This is significant as LP and PI are considered to be the enablers for achieving sustainability performance. This research addresses this knowledge gap. The research first theorises a model integrating these four major constructs (sustainability practices, LP, PI, and sustainability performance) through hypotheses development. Subsequently, using structural equation modelling, it is tested whether each of sustainability practices, LP, and PI effect sustainability performances. Additionally, mediating effect of LP and PI between sustainability practices and performances is derived. The study uses data from 119 SMEs within manufacturing industries in the Midlands, United Kingdom. Further, a few case studies have been undertaken to validate the findings from quantitative analysis. The overall results show that although sustainability practices, LP, and PI help achieve sustainability performance of SMEs supply chain through efficiency and responsiveness respectively, the mediating effect LP is more compared with PI. Moreover, SMEs adopt LP when they are economy focused and implement PI when they are pressurised by customers and/or policymakers.
Original languageEnglish
Pages (from-to)582-598
Number of pages17
JournalBusiness Strategy and the Environment
Volume28
Issue number4
Early online date7 Jan 2019
DOIs
Publication statusPublished - 1 May 2019

Fingerprint

small and medium-sized enterprise
innovation
sustainability
supply
performance
Supply chain
Small and medium-sized enterprises
Process innovation
Sustainability
cleaner production
customer
quantitative analysis
environmental management
effect
knowledge gap
value chain
legislation
manufacturing industry
manufacturing

Bibliographical note

This is the peer reviewed version of the following article: Dey PK, Malesios C, De D, Chowdhury S, Abdelaziz FB. Could lean practices and process innovation enhance supply chain sustainability of small and medium‐sized enterprises? Bus Strat Env. 2019;1–17, which has been published in final form at https://doi.org/10.1002/bse.2266.  This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

Keywords

  • lean practices
  • process innovation
  • small and medium-sized enterprises
  • structural equation modelling
  • sustainability performance
  • sustainability practices

Cite this

@article{ecdafa4c67034d038fffc32aaf522fc9,
title = "Could Lean Practices and Process Innovation Enhance Supply Chain Sustainability of Small and Medium sized Enterprises?",
abstract = "Small and medium‐sized enterprises (SMEs) adopt lean practices (LP) to reduce waste across their organisational value chain, which helps achieve sustainability. Process innovation (PI) has also been applied through cleaner production, environmental management system, ecodesign, and so on to address both customers' needs and legislations by policymakers. Although prior studies reveal the effect of sustainable practices, LP, and PI on sustainable performance separately, less is known on the integrated effect of them on sustainability performance. Moreover, studies on mediating effect of LP and PI on sustainability performance are scant. This is significant as LP and PI are considered to be the enablers for achieving sustainability performance. This research addresses this knowledge gap. The research first theorises a model integrating these four major constructs (sustainability practices, LP, PI, and sustainability performance) through hypotheses development. Subsequently, using structural equation modelling, it is tested whether each of sustainability practices, LP, and PI effect sustainability performances. Additionally, mediating effect of LP and PI between sustainability practices and performances is derived. The study uses data from 119 SMEs within manufacturing industries in the Midlands, United Kingdom. Further, a few case studies have been undertaken to validate the findings from quantitative analysis. The overall results show that although sustainability practices, LP, and PI help achieve sustainability performance of SMEs supply chain through efficiency and responsiveness respectively, the mediating effect LP is more compared with PI. Moreover, SMEs adopt LP when they are economy focused and implement PI when they are pressurised by customers and/or policymakers.",
keywords = "lean practices, process innovation, small and medium-sized enterprises, structural equation modelling, sustainability performance, sustainability practices",
author = "Dey, {Prasanta K} and Chrisovalantis Malesios and Debashree De and Soumyadeb Chowdhury and Abdelaziz, {Fouad Ben}",
note = "This is the peer reviewed version of the following article: Dey PK, Malesios C, De D, Chowdhury S, Abdelaziz FB. Could lean practices and process innovation enhance supply chain sustainability of small and medium‐sized enterprises? Bus Strat Env. 2019;1–17, which has been published in final form at https://doi.org/10.1002/bse.2266.  This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.",
year = "2019",
month = "5",
day = "1",
doi = "10.1002/bse.2266",
language = "English",
volume = "28",
pages = "582--598",
journal = "Business Strategy and the Environment",
issn = "0964-4733",
publisher = "John Wiley and Sons Ltd",
number = "4",

}

Could Lean Practices and Process Innovation Enhance Supply Chain Sustainability of Small and Medium sized Enterprises? / Dey, Prasanta K; Malesios, Chrisovalantis; De, Debashree; Chowdhury, Soumyadeb; Abdelaziz, Fouad Ben.

In: Business Strategy and the Environment, Vol. 28, No. 4, 01.05.2019, p. 582-598.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Could Lean Practices and Process Innovation Enhance Supply Chain Sustainability of Small and Medium sized Enterprises?

AU - Dey, Prasanta K

AU - Malesios, Chrisovalantis

AU - De, Debashree

AU - Chowdhury, Soumyadeb

AU - Abdelaziz, Fouad Ben

N1 - This is the peer reviewed version of the following article: Dey PK, Malesios C, De D, Chowdhury S, Abdelaziz FB. Could lean practices and process innovation enhance supply chain sustainability of small and medium‐sized enterprises? Bus Strat Env. 2019;1–17, which has been published in final form at https://doi.org/10.1002/bse.2266.  This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

PY - 2019/5/1

Y1 - 2019/5/1

N2 - Small and medium‐sized enterprises (SMEs) adopt lean practices (LP) to reduce waste across their organisational value chain, which helps achieve sustainability. Process innovation (PI) has also been applied through cleaner production, environmental management system, ecodesign, and so on to address both customers' needs and legislations by policymakers. Although prior studies reveal the effect of sustainable practices, LP, and PI on sustainable performance separately, less is known on the integrated effect of them on sustainability performance. Moreover, studies on mediating effect of LP and PI on sustainability performance are scant. This is significant as LP and PI are considered to be the enablers for achieving sustainability performance. This research addresses this knowledge gap. The research first theorises a model integrating these four major constructs (sustainability practices, LP, PI, and sustainability performance) through hypotheses development. Subsequently, using structural equation modelling, it is tested whether each of sustainability practices, LP, and PI effect sustainability performances. Additionally, mediating effect of LP and PI between sustainability practices and performances is derived. The study uses data from 119 SMEs within manufacturing industries in the Midlands, United Kingdom. Further, a few case studies have been undertaken to validate the findings from quantitative analysis. The overall results show that although sustainability practices, LP, and PI help achieve sustainability performance of SMEs supply chain through efficiency and responsiveness respectively, the mediating effect LP is more compared with PI. Moreover, SMEs adopt LP when they are economy focused and implement PI when they are pressurised by customers and/or policymakers.

AB - Small and medium‐sized enterprises (SMEs) adopt lean practices (LP) to reduce waste across their organisational value chain, which helps achieve sustainability. Process innovation (PI) has also been applied through cleaner production, environmental management system, ecodesign, and so on to address both customers' needs and legislations by policymakers. Although prior studies reveal the effect of sustainable practices, LP, and PI on sustainable performance separately, less is known on the integrated effect of them on sustainability performance. Moreover, studies on mediating effect of LP and PI on sustainability performance are scant. This is significant as LP and PI are considered to be the enablers for achieving sustainability performance. This research addresses this knowledge gap. The research first theorises a model integrating these four major constructs (sustainability practices, LP, PI, and sustainability performance) through hypotheses development. Subsequently, using structural equation modelling, it is tested whether each of sustainability practices, LP, and PI effect sustainability performances. Additionally, mediating effect of LP and PI between sustainability practices and performances is derived. The study uses data from 119 SMEs within manufacturing industries in the Midlands, United Kingdom. Further, a few case studies have been undertaken to validate the findings from quantitative analysis. The overall results show that although sustainability practices, LP, and PI help achieve sustainability performance of SMEs supply chain through efficiency and responsiveness respectively, the mediating effect LP is more compared with PI. Moreover, SMEs adopt LP when they are economy focused and implement PI when they are pressurised by customers and/or policymakers.

KW - lean practices

KW - process innovation

KW - small and medium-sized enterprises

KW - structural equation modelling

KW - sustainability performance

KW - sustainability practices

UR - https://onlinelibrary.wiley.com/doi/full/10.1002/bse.2266

UR - http://www.scopus.com/inward/record.url?scp=85059652166&partnerID=8YFLogxK

U2 - 10.1002/bse.2266

DO - 10.1002/bse.2266

M3 - Article

VL - 28

SP - 582

EP - 598

JO - Business Strategy and the Environment

JF - Business Strategy and the Environment

SN - 0964-4733

IS - 4

ER -