An enquiry into competitive value of sustainable manufacturing capabilities

Abstract

PurposeDespite its great practical and theoretical significance, research on how and to what extent sustainable manufacturing capabilities (SMCs) provide competitive advantage to firms remains scarce. Towards bridging the gap, this paper conducts an enquiry into the competitive value of SMCs.Design/methodology/approachA theoretical framework on the competitive value of four SMCs, namely, pollution control (PC), pollution prevention (PP), product stewardship (PS) and clean technology (CT) is developed through synthesis of literature. More specifically, competitive value is characterised in terms of enabling key resources and market positioning opportunities. A case study, using a deductive qualitative approach is conducted to test the framework by analysing reported sustainable manufacturing practices (SMPs) of three multinational firms. Observed compliances and deviations to the framework are analysed and accordingly few propositions are framed.FindingsThe empirical findings largely support the conceptualisation of competitive value for PC, PP, PS and CT provided in the theoretical framework. However, a few deviations were observed for PC, PP and PS. For instance, some PC-based actions, such as co-processing and implementation of zero liquid discharge technology show characteristics of resource conservation and lead to cost benefits. Similarly, there were instances when PP demonstrated the use of non-tacit (imitable) resources and PS was employed to seek compliance to environmental regulations.Research limitations/implicationsThe results based on limited number of case firms may not be generalisable to other sectors and contexts.Practical implicationsThe study provides guidance to the manufacturing managers about the competitive value of SMPs.Originality/valueThis is a novel study that empirically investigates the competitive value of SMCs by understanding the associated sustainability impetus, enabling key resources and market positioning opportunities.