Evaluating the enablers and barriers for successful implementation of sustainable business practice in ‘lean’ SMEs

Abstract

Sustainable business practice' is an aspiration for an increasing proportion of small and mediumsized enterprises (SMEs) around the world, promising profitability, resilience and positive social and environmental impacts. 'Lean thinking' has evolved as a popular business strategy for SMEs to achieve sustainable business practice, addressing the need for efficiency in production and waste reduction. In this study we explore the co-evolution of 'lean and green thinking' and the potential for lean and green practices to enable successful transitions to sustainable business practice.Focusing on investigations into manufacturing SMEs in Queensland, Australia, we first establish four key enablers and six key barriers to sustainable business practice, derived from a series of indepth interviews with Chief Executive Officers and senior managers involved in sustainability and lean manufacturing. We offer an institutional theory perspective on these findings, concluding the potential for normative, coercive and mimetic drivers to influence SMEs to shape environmental, social and economic decision making and legitimise the transition to sustainable business practice.We then present a novel 'Model of strategic enablers of sustainable business practice' to guide SMEs to intentionally use their lean and green strategies to successfully adopt sustainable business outcomes. We propose that through adopting lean and green thinking to transition to sustainable business practice, SMEs can more rapidly contribute to the circular economy at the level of firm.Agencies and professional bodies can support SMEs in this transition through targeted interventions that address the enablers and barriers presented.

An analysis of environmental sustainability in small & medium‐sized enterprises: Patterns and trends

“…Triguero, Moreno‐Mondéjar, and Davia () surveyed 5,222 European SMEs and discovered that companies could more easily innovate sustainable solutions when they work closely with institutions and colleges/government. Caldera, Desha, and Dawes's () study found drivers consisting of organizational support, stakeholder collaboration, business direction, and green relationship. Similarly, Raar's () study of 360 SMEs and Lewis, Cassells, and Roxas's () survey of 1,361 SMEs found similar drivers: collaboration, continuous innovation and vision, and lastly, external factors.…”

“…Lack of awareness, education, and expertise were recognized as major barriers in SMEs' adoption of sustainability (Caldera et al, 2019;Singh & Thakar, 2018). Mangla, Govindan, and Luthra's (2017) study also examined dimensions of barriers.…”

Eco‐innovation and firm growth in the circular economy: Evidence from European small‐ and medium‐sized enterprises

“…Evidence shows that lack of financial resources is a major deterrent for SMEs' engagement with EI (Álvarez Jaramillo, Zartha Sossa, & Orozco Mendoza, ; Caldera, Desha, & Dawes, ; Ghisetti, Mancinelli, Mazzanti, & Zoli, ). In the absence of internal financial resources, SMEs are forced to consider external finance, which is often limited in availability, further constraining the innovation and growth of SMEs (Revest & Sapio, ).…”

Eco-Innovation and Firm Growth in the Circular Economy: Evidence from European SMEs

“…Evidence shows that lack of financial resources is a major deterrent for SMEs' engagement with EI (Álvarez Jaramillo et al, 2018;Caldera et al, 2019, Ghisetti et al, 2017. In the absence of internal financial resources, SMEs are forced to consider external finance which is often limited in availability, further constraining the innovation and growth of SMEs (Revest and Sapio, 2012).…”