Exploring the characteristics of sustainable business practice in small and medium-sized enterprises: Experiences from the Australian manufacturing industry

With small and medium-sized enterprises (SMEs) being responsible for a significant proportion of global pollution, there are increasing calls for this type of businesses to engage in ‘sustainable business practice’. However it is still unclear what this term actually means in day to day operations. This study identifies key characteristics of sustainable business practice for SMEs through evaluating the experiences of senior decision makers from 13 companies engaged in lean and green practices in Queensland, Australia. Through a systematic literature review and an exploratory study, nine characteristics emanating from the three themes of environmental stewardship, process excellence, and sustainability oriented-culture were established. Furthermore, this study build on natural-resource-based view (NRBV) theory to present a ‘Natural Resources Based View Plus’ (‘NRBV+’) model that includes an additional strategy of ‘regenerative development’. These findings can immediately assist SMEs to evaluate their practices, and in doing so, identify sustainability performance improvement opportunities. It is proposed that these findings also have implications for addressing the United Nations' Sustainable Development Goal of responsible consumption and production.No Full Tex

Evaluating the enablers and barriers for successful implementation of sustainable business practice in 'lean' SMEs

‘Sustainable business practice’ is an aspiration for an increasing proportion of small and medium-sized enterprises (SMEs) around the world, promising profitability, resilience and positive social and environmental impacts. ‘Lean thinking’ has evolved as a popular business strategy for SMEs to achieve sustainable business practice, addressing the need for efficiency in production and waste reduction. In this study we explore the co-evolution of ‘lean and green thinking’ and the potential for lean and green practices to enable successful transitions to sustainable business practice. Focusing on investigations into manufacturing SMEs in Queensland, Australia, we first establish four key enablers and six key barriers to sustainable business practice, derived from a series of in-depth interviews with Chief Executive Officers and senior managers involved in sustainability and lean manufacturing. We offer an institutional theory perspective on these findings, concluding the potential for normative, coercive and mimetic drivers to influence SMEs to shape environmental, social and economic decision making and legitimize the transition to sustainable business practice. We then present a novel ‘Model of strategic enablers of sustainable business practice’ to guide SMEs to intentionally use their lean and green strategies to successfully adopt sustainable business outcomes. We propose that through adopting lean and green thinking to transition to sustainable business practice, SMEs can more rapidly contribute to the circular economy at the level of firm. Agencies and professional bodies can support SMEs in this transition through targeted interventions that address the enablers and barriers presented.Griffith Sciences, School of Engineering and Built EnvironmentFull Tex

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

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’.Full Tex

Lean Thinking

Lean Thinking is a managerial philosophy originally born on the shop floor of the Japanese automotive firm Toyota and gradually propagated all over the world. The Toyota Production System (TPS) is a system which enables a company to face its competition by focusing on providing its market with a better answer, increasing efficiency and Total Quality. The TPS moves production from a push approach to a pull approach, where the market drives the production flow and not vice versa. Consequently, inventory has to be reduced and all waste has to be eliminated. The principles and the tools of this system helped Toyota to be successful in its sector and lead Western firms to study and imitate the approach. The model of Lean production rapidly evolved within Lean Thinking as a more comprehensive philosophy, going beyond the production area and being applicable to all organizational functions (Lean organization) and emphasizing the human factors. At the same time, Lean Thinking forced organizations to scrutinize their boundaries and to involve other actors, especially in supply chain management. More recently, the relationship between Lean Thinking and Sustainability appears to be a promising integration of Lean tools and Sustainability tools with the aim of developing new models