Lean, sustainability and the triple bottom line performance: a systems perspective-based empirical examination

Abstract

Purpose This study draws on the systems perspective to study the individual and combined interaction effect of lean management (LM) and sustainability management (SM) on the organization's triple bottom line (TBL) performance. Design/methodology/approach The study employs structural equation modeling to test the proposed hypotheses using data from the sixth version of the International Manufacturing Strategy Survey (IMSS VI). Findings The study finds that LM is positively related to all dimensions of the TBL performance. In contrast, SM is positively related to social and environmental performance and negatively related to economic performance. Finally, by finding that the interaction between LM and (SM) is positive for social and environmental performance, this study not only confirms that LM is an enabler for sustainability, but it also supports that the two paradigms are mutually compatible and reinforcing. Practical implications The findings imply that practitioners pursuing both LM and SM should leverage their mutual positive effects and balance the unintended effects of implementing isolated bundles by implementing them together as a complete socio-technical system. Their combined impact on the TBL performance will outweigh the sum of their individual effects in the case of isolated implementations. Originality/value In contrast with the extant literature, this study proposes that LM and SM make parts of one system as opposed to one correlated with the other or having a positive causal effect on the other. Taking an integrated systems approach, the study empirically verifies the “mutual compatibility” of the lean and sustainability paradigms argument, with regard to their effect on the TBL performance.