Impact of Lean, Agile and Green (LAG) on business competitiveness: An empirical study of fast moving consumer goods businesses

Abstract

The adoption/utilisation of Lean, Agile and Green (LAG) practices in both the manufacturing and service sector is rising. However, there yet remain a research gap to precisely evaluate the relationship between LAG practices and business competitiveness (e.g, achieving reduction in cost, lead time and environmental recyclable waste). This research aims to explore this relationship, specifically in fast-moving consumer goods (FMCG) businesses. The hypothesised relationships are tested with data collected from 96 FMCG companies. Structural Equation Modelling is applied to evaluate different channels of achieving business competitiveness through the adoption of Lean, Agile and Green. The findings suggest that competitive outcomes vary with the adoption of LAG practices in specific product life cycle stages. This implies that awareness of the product life cycle concept is essential. A combination of LAG practices for the sole purpose of reducing environmental waste is negatively related to environmental waste reduction. LAG practices are more efficiently adopted when the adopters are equipped with expert knowledge on the paradigms and their individual practices. This research has approached the attainment of competitiveness in the FMCG businesses by analysing management efforts that improve cost performance, lead time and environmental sustainability aspects of business operations. The research has also considered the product life cycle stages in analysing the impacts of management efforts.