Exploring synergetic effects between investments in environmental and quality/lean practices in supply chains

Abstract

PurposeThis paper seeks to report the empirical results examining potential synergetic effects between investments in environmental and quality/lean practices within the supply chain.Design/methodology/approachCross‐country survey data collected by the “Global Manufacturing Research Group” within Europe was utilized to test the hypotheses. Synergetic effects were conceptualized through interaction effects using ordinary least square regression (OLS) analysis.FindingsResults indicate that synergetic effects between traditional practices such as lean and quality and environmental practices are possible. More specifically, the impact of lean and quality practices on operational supply chain performance can be amplified through environmental practices such as ISO 14001, pollution prevention, recycling of materials and waste reduction.Originality/valueAlthough research on the performance impact of environmental practices within the supply chain context has matured over the past years, there is still a scarcity of research exploring their relationship with traditional manufacturing practices such as quality and lean. Underpinned through the resource based view and the concept of complementarity, this study addresses this shortcoming through exploring the impact of environmental practices on the efficacy of quality and lean practices within a supply chain context. This paper will thus be beneficial for supply chain managers developing a case for environmental investments and will further advance research on manufacturing practices within the supply chain context.