Lean-green performance management in Indian SMEs: a novel perspective using the best-worst method approach

Abstract

PurposeIn a globalized environment, small and medium enterprises (SMEs) are facing formidable challenges. Not only do they have to keep up their profitability, but there is also a pressure from various stakeholders to add to their environmental and quality performance .The solution obviously lies in continuously adopting and improving upon lean-green practices in their operations. This work aims at identifying, classifying and building up a duly tested robust ranked-order model of such “enablers”, related to lean-green practices, that puts them (the enablers) in an order of being the most significant to being the least significant further to be accorded the same or similar weight in strategy formulation and implementation stage by Indian SMEs for enhancing their overall organizational performance.Design/methodology/approachThe study identifies 20 enablers (12 lean and 08 green manufacturing enablers) through extensive literature review and experts' opinion survey and classifies them into three main categories. The ranking and significance of each of the main and subcategory enablers is evaluated according to its weight which is determined by the best-worst method (BWM) approach, one of the novel multi-criteria decision-making (MCDM) methods. Further, the results have been drawn after running accuracy check of the rankings (based upon optimal weights) and testing the robustness of the ranked-order model through sensitivity analysis.FindingsThe results of this study reveal that out of the three main category enablers, “operational performance enablers (E1)” and “quality performance enablers (E3)” are the most and the least significant enablers, while in the group of 20 subcategory enablers, “Kaizen (E17)” and “environment emission control (E28)” are the most and the least significant subcategory enablers, respectively.Practical implicationsThe prioritization model or ranked-order model of the lean-green manufacturing enablers proposed through this study may serve as a standard model to managers to help them decide and allocate their efforts and resources accordingly in managing their operations. This will also help them adopt high-ranking lean-green manufacturing enablers in their firms and benchmark and standardize their existing practices accordingly, leading to greater competitive advantage.Originality/valueThe study identifies various green-lean manufacturing enablers in SMEs, classifies them into three main categories and ranks them using BWM approach. The findings of this study should be extremely relevant to managers, manufacturing engineers and practitioners in Indian SMEs from the perspective of developing deeper appreciation of these enablers as per their relative ranked importance to further formulating an effective and efficient strategy for their implementation resulting in optimal results.