Beyond Lean Manufacturing and Sustainable Performance: Are the Circular Economy practices worth pursuing?

Purpose - The need to improve sustainability in manufacturing firms, which would allow them to reduce the emission of pollutants and the generation of industrial waste, has stimulated the adoption of Circular Economy (CE) alongside lean manufacturing practices to significantly improve the sustainable performance of organizations. However, empirical evidence provided in previous studies and that has related the practices of lean manufacturing, CE, and sustainable performance does not allow establishing an interconnection between these three concepts. Therefore, this paper fills this gap in the literature by exploring the relationship between these three concepts. Design/methodology/approach - A quantitative study in which data was collected from 460 managers working in the automotive industry in Mexico was conducted. The data allowed the testing and validation of four hypotheses through the use of partial least squares structural equation modelling. Findings - The results obtained suggest that lean manufacturing practices have a significant positive influence both on sustainable performance and CE. In turn, the results also demonstrate the existence of a significant positive relationship between Circular Economy and the sustainable performance of manufacturing firms in the automotive industry as well as that CE has a positive role in mediating the interconnection between lean manufacturing practices and sustainable performance. Originality – This is one of the first studies that have investigated the relationship between lean manufacturing, CE, and sustainable performance, particularly, in the automotive sector. Practical implications – The results obtained from the present study will allow entrepreneurs in the automotive industry and industry professionals as well as government authorities to formulate more effective policies and strategies to support the improvement of environmental sustainability performance in the manufacturing sector

The circular economy impact on small to medium enterprises

In recent years, the literature surrounding the circular economy has grown. While the notion of reducing, recycling and reusing have become adopted practices in many organisations under the umbrella of sustainability, having a circular economy is arguably the next generation step, in terms of sustainability. A systematic literature review on the circular economy identified a gap in the research, regarding the impact at the micro level to be placed on small to medium enterprises. The research concludes that a paradigm shift in circular thinking at the micro level is required, and that further research is needed to identify new skills, resources, approaches, and business models to enable subject matter experts (SMEs) to adopt a circular practice.N/

Optimisation of a distribution system in the retail industry: An Australian retail industry

This paper develops a mathematical model based on inventory routing problem that aims to minimise transportation cost, inventory carrying cost and optimises delivery schedules in a retail Australian industry. A supply chain is considered which comprises of a single distribution centre, having homogenous fleet of vehicles, supplying a single product to multiple retailers having deterministic demand. The mathematical model takes into account varying level of road congestion.N/

A C-LEAN Framework for Deploying Circular Economy in Manufacturing SMEs

The adoption of Circular Economy (CE) is challenging, especially for manufacturing SMEs. Without SMEs, CE’s full spectrum cannot be realised, since they contribute to around 50% of the national GDP, globally. This research proposes a novel framework (C-LEAN) to facilitate the implementation of CE in manufacturing SMEs by combining the principles of CE and Lean, as both foci on waste elimination and value creation/preservation. The framework utilises Lean tools/methods mingled with CE principles to achieve circularity, efficiency and effectiveness in manufacturing SMEs. The proposed framework was conceptually developed based on an extensive review of the existing scholarly literature and verified by a panel of field experts, through a Delphi study, from academia and industry. The model was further validated to assess its practical relevance through a case study approach in an SME manufacturing company. The results derived from the verification and validation of the proposed C-LEAN framework suggest that CE can be effectively and efficiently adopted through its amalgamation with Lean. The C-LEAN framework provides a systematic approach for manufacturing SMEs to simultaneously adopt CE and Lean practices in their existing operations. The proposed C-LEAN framework can support and guide managers in the concurrent deployment of CE and Lean for their organisations to enhance both their operational and sustainability performance. This research provides a novel framework that converges CE and Lean as no such framework exists to date. C-LEAN is attractive for manufacturing SMEs due to its dual nature of achieving operations excellence in a sustainable circular manner

Industry 4.0 Maturity Assessment: A multi-dimensional indicator approach

Purpose - Industry 4.0 has offered significant potential for manufacturing firms to alter and rethink their business models, production processes, strategies, and objectives. Manufacturing organizations have recently undergone substantial transformation due to Industry 4.0 technologies. Hence, to successfully deploy and embed Industry 4.0 technologies in their organizational operations and practices, businesses must assess their adoption readiness. For this purpose, a multidimensional analytical indicator methodology has been developed to measure Industry 4.0 maturity and preparedness. Design/methodology/approach- A weighted average method was adopted to assess the Industry 4.0 readiness using a case study from a steel manufacturing organization. Findings- The result revealed that the firm ranks between Industry 2.0 and Industry 3.0, with an overall score of 2.32. This means that the organization is yet to achieve Industry 4.0 mature and ready organization. Practical Implications- The multi-dimensional indicator framework proposed can be used by managers, policymakers, practitioners, and researchers to assess the current status of organizations in terms of Industry 4.0 maturity and readiness as well as undertake a practical diagnosis and prognosis of systems and processes for its future adoption. Originality/ value- Although research on Industry 4.0 maturity models has grown exponentially in recent years, this study is the first to develop a multi-dimensional analytical indicator to measure Industry 4.0 maturity and readiness

Investigating the Influence of Total Productive Maintenance Key Success Factors on the Social Sustainability Dimension of Manufacturing SMEs

Key success factors (KSFs) of Total Productive Maintenance (TPM) have historically played a vital role in attaining economic and ecological sustainability but have overlooked social sustainability. Hence, this study analyses and ranks the most significant TPM KSFs for attaining social sustainability in manufacturing SMEs. The research employs a deductive methodology to identify the relevant TPM KSFs and social sustainability indicators and then uses Fuzzy TOPSIS to rank the TPM KSFs in order to achieve social sustainability, followed by a sensitivity analysis to assess the methodological robustness. The findings indicate that the top five TPM KSFs influencing social sustainability are employee health and safety, organizational culture, top management commitment, employee engagement and effective communication, and effective workplace management. In addition, the results indicate that effective equipment utilization is the least significant TPM key factor affecting social sustainability. In the existing literature, little emphasis has been paid to social sustainability and how SMEs may implement these practices. This research adds to the current theory of TPM and social sustainability and sheds light on how SMEs might use TPM to advance toward more socially sustainable operations. SME manufacturing managers don't need to worry about all of the TPM KSFs if they only concentrate on the ones that will have the most impact. If managers use the top 5 TPM KSFs as a starting point, they may create customized TPM training programs for their companies. As a result, this will facilitate the efforts of their personnel toward social sustainability

Sustainable Supply Chain Management Drivers and Barriers in the Ethiopian Manufacturing Sec-tor

The prime essence of this paper is to identify the drivers of Sustainable Supply Chain Management (SSCM) and determine the barriers to its implementation in the Ethiopian manufacturing sector. Studies related to SSCM mainly from 2010 onwards are reviewed, analysed and discussed using exploratory and meta-synthesis analyses. The findings indicate that there is an absence of a clear connection between SSCM practices and performance among the manufacturing industries in Ethiopia. This creates a hindrance for manufacturing firms in Ethiopia seeking to implement SSCM

Regenerating the Logistics Industry through the Physical Internet Paradigm: A Systematic Literature Review and Future Research Orchestration

The operations of other businesses rely heavily on the logistics sector, making logistics the most crucial industry. There are multiple issues available in the existing logistics sector including the lack of logistics optimization and unsustainability operations. To deal with these issues, the concept of the Physical Internet (PI) has arisen. For this reason, the current study conducts a comprehensive literature review to determine how PI has emerged within the logistics sector to improve its condition. In this research, we present a comprehensive and in-depth analysis of the present situation of the PI in the logistics literature by conducting a systematic review of 114 publications published in 39 top journals on the topic between 2007 and 2022. This paper makes three significant contributions to the existing literature using such an analysis. To begin with, it provides an overarching context for the part played by the PI in the overall logistics industry. Second, it provides a road layout of the breadth and depth of the research on PI and the overall logistics, including the approaches taken by researchers, regions covered, sectors examined, and theoretical stances taken by those who have explored the topic thus far. Finally, it addresses the conclusions based on the different clusters discovered and the issues of existing logistics systems along with the moderators of influencing the PI and its outcomes. Given the rising significance of PI and channels for sustainability in the logistics sector, this is the first time that an effort has been made to investigate the function of the PI within the context of overall logistics performance. The paper identifies crucial gaps in research and brings to light different factors that have the potential to shed light on this essential subject. Furthermore, we argue that there is an immediate need to build new business models for enhanced adaptation and execution of the PI strategy, and we urge business managers, academics, and regulators to consider it. In addition, we advocate that professionals scrutinize ways in which the PI approach may be applied to the existing business structures

Blockchain Technology and Circular Economy in the environment of Total Productive Maintenance: A Natural Resource-Based View Perspective

Total Productive Maintenance (TPM) could act as a practical approach to offer sustainability deliverables in manufacturing firms aligning with the natural resource-based view (NRBV) theory’s strategic capabilities: pollution prevention, product stewardship, and sustainable development. Also, the emergence of Blockchain Technology (BCT) and Circular Economy (CE) are proven to deliver sustainable outcomes in the past literature. Therefore, the present research examines the relationship between BCT and CE and TPM’s direct and mediation effect through the lens of NRBV theory. The current study proposes a conceptual framework to examine the relationship between BCT, CE, and TPM and validates the framework through the Partial Least Squares Structural Equation Modeling. Responses from 316 Indian manufacturing firms were collected to conduct the analysis. The investigation outcomes indicate that BCT positively influences CE and TPM and that TPM has a significant positive impact on CE under the premises of NRBV theory. The results also suggest that TPM partially mediates the relationship between BCT and CE. This research fills a gap in the literature by investigating the effect of BCT and TPM on CE within the framework of the NRBV theory. It explores the link between BCT, TPM, and CE under the NRBV theory's strategic capabilities and TPM mediation. Implications - The positive influence of TPM and BCT on CE could initiate the amalgamation of BCT-TPM, improving the longevity of production equipment and products and speeding up the implementation of CE practices

Green Innovation and Firm Performance: The Mediating Role of Sustainability in the Automotive Industry

Purpose – Green innovation and sustainability are two contemporary initiatives that are gaining more and more attention from researchers, academics, and industry professionals as they are considered important business strategies to improve environmental conditions and obtain better organisational performance. Besides, the growth of uncontrolled economic activities leads to an imbalance of economic, social, and environmental values in different sectors. However, little is known about the mediating role that economic, social, and environmental sustainability has in the relationship between green innovation and firm performance. Previous literature has focused on developed economies, but not on a developing economy such as that of Mexico. Therefore, this research fills this existing gap by exploring the mediating effects of sustainability in the relationship between green innovation and firm performance. Design/methodology/approach – A theoretical research model that theorizes, through ten hypotheses, the antecedents and consequences of the mediating effect of economic, social and environmental sustainability and the occurrence between green innovation and firm performance is proposed. The model is tested through PLS-SEM using data that was collected using a questionnaire survey that was distributed among companies in the automotive industry in Mexico. In total, a sample of 460 responses was obtained. Findings – The results suggest that green innovation has significant positive effects on economic and environmental sustainability, as well as on firm performance, but not on social sustainability. The results also indicate that the relationship between green innovation and firm performance improves considerably with the mediation of economic, social, and environmental sustainability. Practical Implications – The findings of this study have important implications for both policymakers and managers of manufacturing firms in the automotive industry as they can be used as a basis to formulate better strategies and policies to enhance the capabilities of companies to develop innovations that could reduce environmental risks and other consequences of climate change. Originality – The present study adds to the innovation and sustainability body of knowledge by analyzing and discussing the mediating role of sustainability in the relationship between green innovation and firm performance. It also generates new knowledge about the mediating effect that sustainability has on the relationship between green innovation and firm performance, particularly in the context of a developing economy such as that of Mexico. Limitations – Despite the present study focused on an industrial sector that is commonly at the forefront of technological development, it was limited to a specific region of Mexico. Thus, its results must be taken with caution as more extensive results including other regions and nations will be required to further validate the results obtained from the present study