Is lean synergistic with sustainable supply chain? An empirical investigation from emerging economy

Abstract

In the extant literature some researchers have agreed upon the nature of inter-relationship between lean and green as synergistic whereas other have termed it as coincidental or even dichotomous. We submit that the inconclusiveness in the relationship between lean and green arises from not investigating it from a holistic standpoint. In this study, we address this gap by adjudging the relationship of lean systems with holistic supply chain context which includes sourcing, production and logistics. The proposed hypotheses are grounded in the resource-based view of the firm. We examine the relationship in the context of emerging economy such as India. Results obtained using structural equation modelling method indicates that lean implementation positively influences the implementation of sustainability practices for supplier selection and production but negatively impacts sustainability practices for delivery and logistic services. We conclude that the relationship between lean management and sustainable supply chain management is not straightforward. Gain at some place may cause loss at other places. Therefore, the net impact must be seen in totality and segmented analysis is the cause of inconclusive findings.