Transforming manufacturing to be ‘good for planet and people’, through enabling lean and green thinking in small and medium-sized enterprises

Abstract

Abstract Background The United Nations’ Sustainable Development Goals remind us of the urgent need for every business to operate in ways that are good for planet and people. Manufacturing is a critical sector to address, where industry is compelled to rethink the acts of sourcing, producing, consuming and handling goods and their subsequent ‘waste’ components. Over the last decade in particular, lean and green thinking has emerged as a desirable strategy to improve efficiency and environmental outcomes towards sustainable business practices that meet circular economy objectives. However, moving beyond ad hoc and champion-based take-up by organisations with deep pockets, there is generally a lack of momentum towards mainstreaming such lean and green focused operations in the many small and medium-sized enterprises (SMEs) internationally. This research used case study analysis within the manufacturing sector in Queensland, Australia, to investigate how SMEs could readily engage in lean and green processes to achieve sustainable business practice with regard to the ‘3Ps’ of the triple bottom line (i.e. Planet, Profit and People). ‘Natural resource-based view theory’ and ‘Institutional theory’ were used to develop a conceptual framework to explain the findings. Results The paper describes the lean and green practices observed in the SMEs, drivers for implementation, and the perceived benefits within the realm of sustainable business practice. Building on case study findings, the authors provide the first 3P Model for lean and green strategy, presenting four steps that SMEs can follow, including a 3P matrix of tools to selectively engage with lean and green actions towards sustainable business practice. This model guides SMEs to use the best tools and processes given their circumstances and aspirations. Conclusions The model has the immediate benefit of focusing SME time and resources towards circular economy enquiry, reducing uncertainty and enabling forward-planning. The findings provide practical guidelines to enable SMEs to achieve sustainable business practice while appreciating the ‘triple bottom line’ approach. The findings also have immediate policy and governance implications within the public and private sector, providing guidance on integrating lean and green thinking to advance from doing ‘business as usual’.

Keywords

• Sustainable business practice
• Lean and green thinking
• Small to medium-sized enterprises
• Manufacturing efficiency
• Waste