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Impact of Lean and Sustainability Oriented Innovation on Sustainability Performance of Small and Medium Sized Enterprises: A Data Envelopment Analysis-based framework

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  • De, Debashree
  • Chowdhury, Soumyadeb
  • Dey, Prasanta Kumar
  • Ghosh, Sadhan Kumar

Abstract

Lean and Sustainability Oriented Innovation both enhance competitiveness of small and medium enterprises (SMEs) in a sustainable way. Lean is efficiency focused, whereas Sustainability Oriented Innovation emphasizes on responsiveness. Although lean and sustainability oriented innovation have been separately researched, there is a gap in knowledge on the combined effect of lean and sustainability oriented innovation (SOI) on SMEs Supply Chain sustainability. SMEs have limited resources and face numerous competition. Therefore, their supply chain sustainability can only be achieved through most appropriate trade-off between economic, environment and social aspects of business. The purpose of this paper is to understand the combined effect of sustainability oriented innovation and lean practices, on supply chain sustainability performance of SMEs. The study uses a Data Envelopment Analysis (DEA) based framework and applies this to a group of SMEs within the Eastern part of India. Lean and sustainability oriented innovation are considered as input criteria, and economic, operational, environmental and social aspects are considered as output criteria of the proposed framework. DEA segregates inefficient SMEs and suggests at least a SME to benchmark. Subsequently, the study undertakes qualitative approach to suggest improvement measures for the inefficient SMEs. The results reveal that combined lean and SOI helps achieve SMEs' supply chain sustainability. The findings are useful for policy makers and Individual SMEs' owners and managers to undertake measures for improving sustainability. Theoretically this research contributes a DEA-based framework to study the effect of combined lean and SOI on sustainability that helps improving SMEs’ sustainability performance.

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  • De, Debashree & Chowdhury, Soumyadeb & Dey, Prasanta Kumar & Ghosh, Sadhan Kumar, 2020. "Impact of Lean and Sustainability Oriented Innovation on Sustainability Performance of Small and Medium Sized Enterprises: A Data Envelopment Analysis-based framework," International Journal of Production Economics, Elsevier, vol. 219(C), pages 416-430.
    • Handle: RePEc:eee:proeco:v:219:y:2020:i:c:p:416-430
    DOI: 10.1016/j.ijpe.2018.07.003
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    2. Venugopal Gopalakrishna‐Remani & Kyung‐Ah ( Kay) Byun & D. Harold Doty, 2022. "The impact of employees' perceptions about top management engagement on sustainability development efforts and firm performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 2964-2977, November.
    3. Jum'a, Luay & Zimon, Dominik & Ikram, Muhammad & Madzík, Peter, 2022. "Towards a sustainability paradigm; the nexus between lean green practices, sustainability-oriented innovation and Triple Bottom Line," International Journal of Production Economics, Elsevier, vol. 245(C).
    4. Carla M. A. Pinto & Jorge Mendonça & Lurdes Babo & Francisco J. G. Silva & José L. R. Fernandes, 2022. "Analyzing the Implementation of Lean Methodologies and Practices in the Portuguese Industry: A Survey," Sustainability, MDPI, vol. 14(3), pages 1-24, February.
    5. Chowdhury, Soumyadeb & Dey, Prasanta Kumar & Rodríguez-Espíndola, Oscar & Parkes, Geoff & Tuyet, Nguyen Thi Anh & Long, Dang Duc & Ha, Tran Phuong, 2022. "Impact of Organisational Factors on the Circular Economy Practices and Sustainable Performance of Small and Medium-sized Enterprises in Vietnam," Journal of Business Research, Elsevier, vol. 147(C), pages 362-378.
    6. Kyriaki-Argyro Tsioptsia & Eleni Zafeiriou & Dimitrios Niklis & Nikolaos Sariannidis & Constantin Zopounidis, 2022. "The Corporate Economic Performance of Environmentally Eligible Firms Nexus Climate Change: An Empirical Research in a Bayesian VAR Framework," Energies, MDPI, vol. 15(19), pages 1-16, October.
    7. Kleber F. Barcia & Lizzi Garcia-Castro & Jorge Abad-Moran, 2022. "Lean Six Sigma Impact Analysis on Sustainability Using Partial Least Squares Structural Equation Modeling (PLS-SEM): A Literature Review," Sustainability, MDPI, vol. 14(5), pages 1-26, March.
    8. Palash Saha & Subrata Talapatra & H. M. Belal & Victoria Jackson, 2022. "Unleashing the Potential of the TQM and Industry 4.0 to Achieve Sustainability Performance in the Context of a Developing Country," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(4), pages 495-513, December.
    9. Jui-Chung Kao & Hsiang-Yu Ma & Nein-Tsu Chiang & Rui-Hsin Kao & Cheng-Chung Cho, 2021. "How to Establish a Sustainable Organization? A Study on the Relationship between Social Work Characteristics and Innovativeness for Employees of Organizations," Sustainability, MDPI, vol. 13(11), pages 1-18, June.
    10. Eduardo Machado & Luiz Felipe Scavarda & Rodrigo Goyannes Gusmão Caiado & Antonio Márcio Tavares Thomé, 2021. "Barriers and Enablers for the Integration of Industry 4.0 and Sustainability in Supply Chains of MSMEs," Sustainability, MDPI, vol. 13(21), pages 1-31, October.
    11. Rodríguez-Espíndola, Oscar & Ahmadi, Hossein & Gastélum-Chavira, Diego & Ahumada-Valenzuela, Omar & Chowdhury, Soumyadeb & Dey, Prasanta Kumar & Albores, Pavel, 2023. "Humanitarian logistics optimization models: An investigation of decision-maker involvement and directions to promote implementation," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    12. Dey, Prasanta Kumar & Malesios, Chrysovalantis & Chowdhury, Soumyadeb & Saha, Krishnendu & Budhwar, Pawan & De, Debashree, 2022. "Adoption of circular economy practices in small and medium-sized enterprises: Evidence from Europe," International Journal of Production Economics, Elsevier, vol. 248(C).
    13. Luay Jum’a & Dominik Zimon & Muhammad Ikram, 2021. "A Relationship between Supply Chain Practices, Environmental Sustainability and Financial Performance: Evidence from Manufacturing Companies in Jordan," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    14. Sung Tae Kim & Hong-Hee Lee & Seongbae Lim, 2021. "The Effects of Green SCM Implementation on Business Performance in SMEs: A Longitudinal Study in Electronics Industry," Sustainability, MDPI, vol. 13(21), pages 1-23, October.
    15. Nuria González-Álvarez & Laura Cabeza-García, 2020. "Introduction to Special Issue “Advances in Sustainability-Oriented Innovations”," Sustainability, MDPI, vol. 12(21), pages 1-5, October.
    16. Rodríguez-Espíndola, Oscar & Cuevas-Romo, Ana & Chowdhury, Soumyadeb & Díaz-Acevedo, Natalie & Albores, Pavel & Despoudi, Stella & Malesios, Chrisovalantis & Dey, Prasanta, 2022. "The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental performance: Evidence from Mexican SMEs," International Journal of Production Economics, Elsevier, vol. 248(C).
    17. Xuhua Hu & Bertha Ada Danso & Isaac Adjei Mensah & Michael Addai, 2020. "Does Innovation Type Influence Firm Performance? A Dilemma of Star-Rated Hotels in Ghana," Sustainability, MDPI, vol. 12(23), pages 1-27, November.
    18. Malesios, Chrisovalantis & De, Debashree & Moursellas, Andreas & Dey, Prasanta Kumar & Evangelinos, Konstantinos, 2021. "Sustainability performance analysis of small and medium sized enterprises: Criteria, methods and framework," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    19. Guo, Feng & Bo, Qingwen & Tong, Xun & Zhang, Xiaofei, 2020. "A paradoxical view of speed and quality on operational outcome: An empirical investigation of innovation in high-tech small and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 229(C).

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