Benefits of adopting lean production on green performance of SMEs: a case study

Abstract

Small- and medium-sized enterprises (SMEs) are widely recommended to strive, not only for their performance in operational side, but they need to integrate the environmental dimension. To do that, the literature widely indicates a positive impact of lean practices on green performance. However, very few studies have been carried out in SMEs context. In this view, this paper aims at providing through a practical case study of lean implementation in a real-life small manufacturing company, the information to confirm this synergy between lean and green performance. To achieve this aim, a proposed framework of lean and green integration has been implemented in a SME producing different types of pumps. The results achieved shows that there is a strong correlation between operational metrics improvement and green metrics improvement. Moreover, the benefits of lean practices such as 5S, Kanban, SMED, AM, cellular manufacturing and quality control on green performance are widely demonstrated. Future work could study other processes and explore other case-specific supporting tools and techniques.     

An integrated lean and green approach for improving sustainability performance: a case study of a packaging manufacturing SME in the U.K.

Abstract

Competitive landscape, informed consumers and stringent regulations have forced many manufacturing small- and medium-sized enterprises (SMEs) to focus on operational efficiency along with sustainability issues in recent years. While many manufacturing organisations have been taking lean initiatives for the past few years for operational excellence, an impulsive rush to adopt lean without a strategic deployment vision has led to scattered implementation of lean tools and projects without desired success. Many researchers and practitioners prescribe value stream mapping as a foundation for lean transformation initiatives; however, little empirical work is available on the symbiosis of lean and green paradigms to reap maximum benefits. This research, through a systematic methodology and a novel tool called Green Integrated Value Stream Mapping (GIVSM), integrates both paradigms in a case study on a U.K. packaging-manufacturing SME. Applying the GIVSM demonstrates that simultaneous deployment of lean and green paradigms have synergistic effect for improving both operational efficiency and environmental performance. In addition, continuous improvement framework with sustainable procurement is proposed to overcome the lean-green misalignments. This study also provides a guiding reference for practitioners to undertake similar improvement projects and identifies opportunities to expand this academic research on integrated lean-green approach into other industry sectors.     

The moderating effects of corporate and national factors on lean projects barriers: a cross‐national study

Abstract

Despite companies’ efforts to develop lean thinking in their industrial context, the implementation of many lean projects has not been consistently successful, often resulting in delay, failure, abandonment or rejection. Whereas some authors emphasised that company characteristics, like the product demand profile, are significant factors in lean projects, other studies analysed the impact of national culture. This paper aims to study the combined effect of various factors related to national culture and company characteristics of lean implementation barriers in order to determine whether the environmental context in which the company operation can affect the outcome of lean project implementation. A survey has been conducted to collect information about companies of various sizes (small–medium–large) in all industry fields. Data from companies, including manufacturing firms, in 23 different countries, were analysed in depth by a combination of Association Rules and Network Analysis. The results show that some national culture dimensions, such as Performance Orientation and Gender Egalitarianism, influence lean management success and help to maintain a lean culture. Maintaining a lean culture is even more critical than developing it. Furthermore, if the implementation of lean practices is an arduous task for large organisations, it becomes even greater for SMEs. Other cultural factors of individuals such as Uncertainty Avoidance, Future Orientation and Institutional Collectivism also help to support a lean culture and overcome human and cultural barriers.     

Management consultancy’s role in delivering lasting [triple bottom line] benefits

Abstract

Management consultants have become ubiquitous in helping improve organizational performance. This paper presents an investigation of the impact of their interventions on organizational sustainability and growth through the performance improvement work carried out for and with their clients. The paper presents the findings of a questionnaire survey of 440 respondents from 206 countries; 197 of respondents were Small and Medium Sized Enterprises (SMEs) and 243 from large organizations. There is a particular focus on knowledge transfer in terms of urgency and impact of the work with regard to the extent to which consulting interventions in SMEs, as well as large multinational corporations, embed long-term sustainability practices.     

Evaluating the impact of lean practices on environmental performance: evidences from five manufacturing companies

Abstract

Previous evidence suggests that lean practices help organizations to enhance environmental performance. However, the impact of lean practices on the environment is still unclear. This study, therefore, aims to analyse the relationship between lean and environmental performance in two main stages: first, a review of the relevant literature was developed, followed by a multiple case study analysis conducted in five manufacturing companies. Onsite data were collected from the firms during a 5 years’ time span of research and developing semi-structured interviews. Findings indicate that the environmental performance of the companies analysed is generally enhanced in the long-term after the implementation of lean. Moreover, the results suggest that the environmental performance of the firms investigated is mainly improved by using JIT and TQM practices in a lean transformation context. The research findings provide further results remarking the possible negative impact of Kanban deliveries, 5S and TPM on various environmental performance indicators.     

Determinants and barriers to lean implementation in food-processing SMEs – a multiple case analysis

This study explored contextual or determining factors and their impacts on lean manufacturing in small- and medium-sized enterprises (SMEs) operating in food-processing industries. In order to get an in-depth insight into the real situation at the work floor, this study adopted a multiple-case-study research approach. The inherent characteristics of food industries, such as mandatory quality assurance requirements, low shelf life of food products, and the extremely volatile demand and supply presented barriers to lean manufacturing adoption. In addition, the challenges of ‘change’ in an SME environment are distinct from those faced by large organizations. The small size of the plant, the traditional setup, and inflexible layout make it difficult to implement lean manufacturing in food-processing SMEs. The knowledge of contextual factors influencing lean manufacturing adoption in food processing SMEs will be a contribution to current knowledge. Many studies have explored lean constructs and tools, while far fewer have explored the crucial element of actually implementing these. The study will also help practitioners to anticipate potential obstacles and take proper measures to deal with them during lean implementation.     

Risk management in SMEs: A systematic literature review and future directions

Small- and Medium-sized Enterprises (SMEs) are considered as the backbone of European economics and growth; however, their peculiar features and the limited resources drive them to adopt different tools and methods when compared to large companies. In particular, the approach adopted in SMEs for Risk Management (RM) seems not to be specifically studied and understood. To this extent, the aim of the paper is to outline the development and the state of the art of RM in SMEs, grasping new future research opportunities in this field. By conducting a systematic literature review with bibliometric tools, 61 papers published until the end of 2016 have been selected and analysed. They demonstrate that some RM streams, such as financial RM and Enterprise RM, are among the most studied in the literature. However, a holistic approach is still not diffused nor sufficiently developed in SMEs, even if the types of identified risks are increasing. There are new emerging RM streams. In particular, the relevance of Project RM, Strategic RM, and Supply Chain RM has been increasing, and it pushes researchers and practitioners to deepen the knowledge of the tools and practices that characterise them. New theoretical and practical studies on RM in SMEs will support them in protecting their business and leveraging their business value, taking advantage of the management of different types of risks.     

Training professionalisation and SME performance

ABSTRACT

This paper examines how SMEs organize their training process, the extent to which they apply training practices that are well-grounded in literature, and how these impact upon their performance. To evaluate the training process, the concept of ‘training professionalization’ was applied to identify the scope and specificity of actions undertaken. This mostly refers to formal training which should consist of needs assessment, planning, execution and evaluation. This article presents the results of research conducted on a group of 100 Polish SMEs. The research design made it possible to evaluate training professionalization and verify interdependence between training professionalization level and business outcomes. Data analysis confirmed that the training process in SMEs is generally underdeveloped; only in a few companies is it executed according to the models and procedures discussed in the literature. However, it was statistically supported that companies executing training processes according to theoretical models reported higher outcomes and an increase in almost all evaluated performance indicators.     

Supporting open innovation with the use of a balanced scorecard approach: a study on deep smarts and effective knowledge transfer to SMEs

Abstract

This study aims to develop the theory of knowledge management and organizational performance within a small and medium enterprise (SME) context using action research (AR) involving a higher education institution (HEI) and an SME. The vehicle for the knowledge exchange was Knowledge Transfer Partnerships (KTPs), the United Kingdom’s primary mechanism for delivering government funded knowledge transfer to small and medium enterprises (SMEs). KTPs facilitate knowledge exchange from HEIs to SMEs via the recruitment of a graduate plus an academic supervisor from the partnering HEI. The AR study was an award-winning KTP and the project deliverable included the implementation of a balanced scorecard for the SME to improve organizational performance. The transfer of knowledge was subsequently fed-back into the university in order to develop a performance framework for measuring the effectiveness of KTP research within the HEI in order to share knowledge and improve effective for other KTP projects.     

Knowledge management based collaboration moderator services to support SMEs in virtual organizations

Abstract

Collaboration Moderator Services (CMS) are discussed as a Knowledge management service for SMEs operating in a virtual organization (VO). In this research, a CMS supports the pre-creation stage of a VO by quickly identifying potential business opportunities and collaborative partners. Text mining techniques are used to analyze calls for tender documents based on the competencies and areas of interest stored in the shared information about companies in a collaboration pool. A case study of UK-based SMEs demonstrates the application of text mining as a knowledge discovery tool, supporting SMEs at the pre-creation stage of a VO. Results show that text mining can be used to (1) identify possible business opportunities for SMEs in the collaborative network (2) Indicate potential collaborations between pairs of SMEs using link analysis and (3) Raise awareness of business opportunities and possible SME partners for multi-enterprise collaborations using a dimensional matrix.     

Supply chain agility as an acclimatisation process to environmental uncertainty and organisational vulnerabilities: insights from British SMEs

Abstract

Even though supply chain agility (SCA) has been considered an essential concept in supply chain management (SCM) research, the way it is experienced and manifested, especially by small and medium-sized enterprises (SMEs), has received much less attention. Our purpose is to focus on SME organisational vulnerabilities in the context of increased environmental uncertainty, and explore how SCA is developed and applied by SMEs amid their vulnerabilities. By relying on insights from comparative case studies of three British SMEs, we examine SME SCA as an acclimatisation process and delve into SMEs’ experiences of facing environmental uncertainty while developing and applying SCA. Our findings highlight that organisational attitudes underlie how SMEs perceive environmental uncertainty, tackle organisational vulnerabilities and develop SCA as an acclimatisation process. Our findings also reveal that resource constraints, supply chain relationships, interorganisational power dynamics, and access to information play important roles in developing SCA.     

Lean healthcare: review,classification and analysis of literature

This study presents a literature review of 107 papers on lean healthcare to evaluate its evolution by updating previous literature reviews and to propose a classification and analysis of the papers reviewed. The literature classification was performed based on six parameters: research method, country, healthcare area, implementation, lean tools and methods and results. From the analysis performed, this paper presents a quantitative analysis of the state of the art concerning lean healthcare and indicates current research trends, based on the stage of evolution of the area, that may guide further studies on the subject. An example is lean healthcare expansion to other countries, such as Brazil and the Netherlands. Another aspect is the application of lean healthcare in hospital as a whole, not limited to a specific setting. Finally, a few studies detail the lean implementation process and use infrequently applied tools, present the barriers and main critical factors found in the lean implementation.     

Knowledge management in consultancy-involved process improvement projects: cases from Chinese SMEs

Abstract

Knowledge management (KM) is considered as an effective strategy to improve organizational performance. In its application to small and medium enterprises (SMEs), resource constraints mean that exploitation of knowledge from external sources is often needed. This study explores practical KM issues encountered by Chinese SMEs when working with management consultants to introduce new business improvement practices. A comparative case study is conducted focusing on two consultancy-involved process improvement projects in Chinese manufacturing SMEs. The case results suggest a clear KM strategy is needed at the outset of the project and SME managers and employees need to play a proactive role in the learning and adoption of new knowledge. The research is novel in that it is the first study to explore knowledge management and the notion of liminality within the context of consultancy-involved Chinese SME improvement projects. The paper culminates with two research propositions that require further empirical study.     

Integrating sustainable supply chain practices with operational performance: an exploratory study of Chinese SMEs

Abstract

With growing regulatory and market pressure to implement green practices, SMEs are facing enormous challenges to simultaneously improve operational and green performances of their supply chains. The paper aims to understand the green practices adopted by Chinese SMEs in the packaging sector in order to assess the impact of these practices in improving the operational performance. Case study-based research methodology is adopted and semi-structured interviews are conducted to collect data from seven SMEs in this study. Both in-case and cross-case analyses are performed to understand the green practices being adopted with the focus on improving the operational performance. The findings of this study indicate that although most SMEs understand the importance of green practices, they have limited knowledge to integrate these practices to improve operational performance. Integration and alignment of green activities with the operational improvement measures are identified as critical factors to develop an efficient green supply chain.     

Knowledge retention in ERP implementations: the context of UK SMEs

Abstract

Knowledge retention (k-retention) is vital for various enterprise resource planning (ERP) implementations in small and medium-sized enterprises (SMEs), though it is a highly demanding and challenging task. The aim of this paper is to investigate different types of approaches to k-retention and factors influencing k-retention in SMEs. Our study adopts a grounded theory approach with cases based on 12 ERP implementations in UK SMEs. We analyze our data using thematic analysis. The findings reveal specific elements that support the k-retention of ERP package knowledge and business process knowledge. These elements are: k-retention tools, documentation, human capital and the understanding of k-retention challenges. In addition to insights from these aspects, our study reveals two additional factors (project management and organizational culture) that influence ERP package k-retention and business process k-retention. Based on these findings, we develop an ERP k-retention (EKR) framework that can be utilized by SMEs which are considering implementing ERP systems, to facilitate knowledge retention during implementation.     

The soft side of knowledge transfer partnerships between universities and small to medium enterprises: an exploratory study to understand process improvement

Abstract

The study explores the soft side of knowledge transfer partnerships between universities and small to medium enterprises (SMEs), a topic which is often neglected in the knowledge management literature. The aim of this paper is to uncover the issues which emerge during formation of a partnership between heterogeneous organizations and universities. In addition, the study unfolds the criticalities of typical process improvement capability that supports the knowledge transfer partnerships between universities and SMEs. Using multiple cases, this study unravels the dominant elements that influence knowledge transfer process development, governance, implications and responsibilities. The major contribution of this study is the development of a framework based on empirical evidence using three knowledge transfer partnerships (KTPs) which illustrates the way in which soft factors in knowledge transfer partnership phases may have an impact on success or failure of university–industry collaborations for innovation.     

Knowledge infrastructure capability,absorptive capacity and inbound open innovation: evidence from SMEs in France

Abstract

Inbound open innovation (IOI) has become a potentially valuable means of gaining competitive advantage and enhancing organizational performance. This article explores how knowledge infrastructure capability (KIC) affects IOI through the moderating role of absorptive capacity. This research conceptualizes and develops three dimensions of KIC (technological, structural and cultural), and tests the relationships between KIC, absorptive capacity and IOI. Data for the study were collected from 125 small and medium enterprises (SMEs) based in France, and the relationships proposed in the framework were tested using structural equation modeling (SEM). The results indicate that higher levels of KIC can lead to enhanced absorptive capacity and improved IOI. That is, KIC can have a direct, positive impact on absorptive capacity and IOI. Moreover, absorptive capacity partially mediates the linkage between KIC and IOI. The article contributes to the conceptualization of the impact of KIC on IOI, by emphasizing a firm’s absorptive capacity. It offers a validated instrument to measure KIC, and provides an empirical evidence of the impact of KIC on absorptive capacity and IOI. This article also extends the extant literature by focusing on KIC and absorptive capacity simultaneously in a model to understand the notion of IOI in the SMEs based in France. This study offers useful guidance for measuring and implementing KIC in a SME context and encourages further research in this area.     

Improving control through effective performance measurement in SMEs

Research has demonstrated that the use of performance measures in SMEs (small to medium sized enterprises) is limited. Financial measures, which are required for examination by external stakeholders, are generally well developed. However, operational measures are typically ad hoc and lack formal structure. A structured approach to measuring perform ance in SMEs should improve strategic control. Current approaches, however, have proved inadequate for the specific requirements of the SME sector. A new process is presented for developing effective performance measurement in SMEs, which is tested through a case study. The aim of the process is to develop measures that drive operational performance towards the achievement of strategic objectives. The results of the case study demonstrate the potential of the process for improving strategic control and stimulating continuous improvement in SMEs.     

Management innovation: a dynamic analysis of the implementation phase over time

Abstract

We develop management innovation theory, providing insights into the role of time in the implementation phase. The management innovation literature has sought to empirically identify factors that facilitate or hinder management innovation implementation from a static perspective. To address the evolution of these factors’ resistance, a temporal perspective is appropriate, but an analysis of these factors’ evolution over time is lacking. We identify the inhibiting factors that influence the management innovation implementation phase over time and address ways in which they evolve.We conduct a comparative longitudinal and dynamic analysis based on two intermediate-sized enterprises and address the obstacles that emerge during the implementation phase of a specific management innovation: lean manufacturing. Our results highlight different categories of inhibiting factors: some inhibiting factors appear at the beginning of the implementation phase with high intensity and then fade over time; conversely, other inhibiting factors appear later and then increase in intensity.