Beyond lean manufacturing and sustainable performance: are the circular economy practices worth pursuing?

Abstract

PurposeThe need to improve sustainability in manufacturing firms, which would allow them to reduce the emission of pollutants and the generation of industrial waste, has stimulated the adoption of circular economy (CE) alongside lean manufacturing (LM) practices to significantly improve the sustainable performance of organizations. However, empirical evidence provided in previous studies and that has related the practices of LM, CE and sustainable performance do not allow establishing an interconnection between these three concepts. Therefore, this paper fills this gap in the literature by exploring the relationship between these three concepts.Design/methodology/approachA quantitative study in which data were collected from 460 managers working in the automotive industry in Mexico was conducted. The data allowed the testing and validation of four hypotheses through the use of partial least squares structural equation modeling (PLS SEM).FindingsThe results obtained suggest that LM practices have a significant positive influence both on sustainable performance and CE. In turn, the results also demonstrate the existence of a significant positive relationship between CE and the sustainable performance of manufacturing firms in the automotive industry as well as that CE has a positive role in mediating the interconnection between LM practices and sustainable performance.Practical implicationsThe results obtained from the present study will allow entrepreneurs in the automotive industry and industry professionals as well as government authorities to formulate more effective policies and strategies to support the improvement of environmental sustainability performance in the manufacturing sector.Originality/valueThis is one of the first studies that have investigated the relationship between LM, CE and sustainable performance, particularly, in the automotive sector.

Harmonizing Sustainability Goals: Empirical Insights into Climate Change Mitigation and Circular Economy Strategies in Selected European Countries with SDG13 Framework

“…While some studies suggest that a reduction in CO 2 emissions is associated with circular economy practices, others find no compelling evidence of such a nexus. Advocates assert that the principles of the circular economy, which prioritize recycling, reuse, and waste reduction, can significantly lower CO 2 emissions [34][35][36][37][38][39][40]. Studies suggest that implementing effective recycling methods and adopting innovative waste management practices within the circular economy framework may lead to decreased carbon emissions compared to traditional linear production and consumption models [15,41,42].…”

Unlocking circular economy potential: evaluating production processes through circular value stream mapping in real case studies

“…quality enhancement of the manufacturing processes) (Womack and Jones, 2003; Vamsi Naga Jasti and Kodali, 2015) and reduce waste. By incorporating the concept of circularity into the traditional Lean philosophy of continuous improvement – which could be called Circular Lean – companies commit to a powerful approach that can change how they manage the production process (Maldonado-Guzmán and Garza-Reyes, 2023; Kalemkerian et al ., 2022). However, there is a lack of research on how to bring CE thinking to operations, and companies need powerful and simple-to-use tools to analyze their businesses and make decisions (Hedlund et al ., 2020).…”