Green-lean-six sigma practices and supporting factors for transitioning towards circular economy: A natural resource and intellectual capital-based view

Abstract

Conservation of natural resources has a critical role in promoting sustainable development. However, emerging evidence suggests that the overexploitation of natural resources and inadequate concern for environmental sustainability by manufacturing firms in recent times have posed a significant threat to ecosystem services and exacerbated the ongoing climate change crisis. In this regard, Green-lean-six sigma (GLSS) is recognized as an emerging strategy to effectively address pressing environmental issues and conserve natural resources in manufacturing operations. While prior studies have documented the operational and environmental benefits of this strategy, there is a paucity of empirical research examining the role of the GLSS approach in fostering a circular economy in the manufacturing industry. Against this backdrop, this study aims to investigate the role of GLSS practices and factors supporting the circular economy in the flexible packaging (FP) industry. In particular, this process industry is selected as it faces several circular economy-related issues including natural resource depletion, lack of recycling, solid waste generation, air pollution, energy footprints, and marine pollution. A multiple-case study approach is used to obtain data through semi-structured interviews with senior corporate managers in New Zealand FP industry. Further, to corroborate the research findings, we have interviewed key informants including lean six sigma and environmental consultants. Building on the natural resource-based view (NRBV) and intellectual capital-based view (ICBV), our analysis reveals that GLSS practices related to waste elimination, pollution reduction, resource circulation, and environmental conservation enable FP manufacturing firms to transit towards the circular economy. The findings further demonstrate that supporting factors including strategic, technical, human resource, and external stakeholders contribute to GLSS adoption in promoting the circular economy concept. We argue that these findings can assist academia, practitioners, and policymakers in understanding the significance of GLSS practices and supporting factors for enabling circular economy in the process industry.