Lean and green combine to impact environmental and operational performance

Abstract

We assess the antecedent link between lean and green practices and assess the combined impact of lean and green practices on both environmental and operational performance. A lean and green practices performance model is proposed that incorporates lean and green practices as antecedents to both environmental and operational performance. Structural equation modelling was used to analyse data collected from a sample of 182 manufacturing managers in U.S. plants. We found that lean manufacturing practices are positively associated with environmental performance and operational performance and that green supply chain management practices are positively associated with environmental performance and environmental performance is positively associated with operational performance. No support was found for the idea that green supply chain management practices are positively associated with operational performance. While lean practices were found to directly affect environmental performance, the indirect effect of lean practices on environmental performance through green practices is stronger, indicating complementarity.