Analysing the Barriers for Implementation of Lean-led Sustainable Manufacturing and Potential of Blockchain Technology to Overcome these Barriers: A Conceptual Framework

Abstract

Micro- Small and Medium Enterprises (MSMEs) are very significant for a country’s economy due to their contribution to manufacturing, sales and Gross Domestic Product (GDP) growth. The global market competition and standards have been compelling MSMEs to improve quality, reduce waste, improve environmental performance and optimize the cost of products by implementing sustainable practices. The combined approach of lean and sustainable practices can help MSMEs to minimize emissions from waste and manufacture low-cost products with energy-efficient technology. However, MSMEs face many challenges while implementing lean and sustainability tools. Therefore, the main aim of this study is to identify the barriers which create obstruction in the implementation of lean-led sustainable manufacturing practices in Indian MSMEs and prioritize them by calculating their weights. The study also proposes a framework for the integration of blockchain technology in the supply chain to overcome the barriers for the implementation of lean and sustainable manufacturing practices. Extensive literature reviews and experts’ opinions have been used to identify the critical barriers for the implementation of lean-led sustainable manufacturing practices in manufacturing firms. A total of forty barriers were selected and further categorized under seven main categories of barriers. The main category barriers and subcategory barriers are ranked based on the weight obtained through Best Worst Method (BWM). The ranking results are further analysed to assess the reliability and robustness using sensitivity analysis. The study reveals that economic and managerial barriers, knowledge and awareness barriers and organizational barriers are the most prominent category of barriers for lean and sustainable manufacturing. The study found that ‘Lack of awareness among customers towards sustainability’, ‘initial capital investment and low financial profit’, ‘lack of knowledge about potential benefits from sustainable products and practices’ and ‘resistance to change due to past failure’ are the most critical barriers for implementation of lean-led sustainable practices in Indian MSMEs. The study has analysed the features of blockchain technology and their effect on the performance of lean-led sustainable supply chain. The findings of the study will help managers and practitioners in Indian MSMEs from certain perspectives to develop an effective and efficient strategy to overcome these barriers and become sustainable. Therefore, this study provides valuable insights for researchers and practitioners.