Effects of lean manufacturing on sustainable performance: results from two conceptual approaches

Abstract

Purpose Sustainability has become a priority for companies due to pressure from multiple stakeholders. In an overly competitive market, shareholders push for economic results, allowing lean manufacturing to establish itself as dominant paradigm in manufacturing. However, concerns grow regarding how lean implementation can allow companies to achieve sustainable development goals, or, if the resources required for a successful lean implementation can result in a detriment of environmental and social performance. This paper intends to help close the knowledge gap regarding the effects of lean manufacturing on sustainable performance from a triple bottom line perspective, and how operational, environmental and social outcomes interact between themselves. Design/methodology/approach Two models for the interaction between lean and sustainability were proposed. The first is called the “sand-cone” model, which poses that performance improvements derived from lean are cumulative on each one of the sustainability dimensions. The second is called the “trade-offs” approach. In this case, the resources required to improve one dimension of sustainability clash with those required by the others. Data were gathered from a sample of 133 Colombian metalworking companies and processed using structural equations models. Findings The results support the cumulative “sand-cone”, which follows a sequence of operational-environmental-social improvement in the presence of lean. For the “trade-offs” model, partial evidence suggests that they can occur in detriment of social performance. Originality/value The “sand-cone” and “trade-offs” are empirically tested for the first time in the context of sustainability, providing further knowledge into its interaction with lean manufacturing. The models’ results contribute to practitioners by providing a tested path for companies to improve their performance in a cumulative sequence that will provide better long-term results.