Causal Relationship between Lean Supply Chain Management Practices, Green Supply Chain Management Practices and Organisational Performance

Transcription

1 Causal Relationship between Lean Supply Chain Management Practices, Green Supply Chain Management Practices and Organisational Performance By B.L. Lakshmi Meera Supervisor Dr. P. Chitramani A Thesis submitted to Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Business Administration August 2014

2 ii DECLARATION I hereby declare that the matter embodied in the thesis entitled Causal Relationship between Lean Supply Chain Management Practices, Green Supply Chain Management Practices and Organisational Performance is the result of investigations carried out by me in Avinashilingam School of Management Technology, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore, under the supervision and guidance of Dr. P. Chitramani, MBA, M.Phil., Ph.D., Avinashilingam School of Management Technology, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore and it has not been submitted for the award of any Degree / Diploma / Associateship / Fellowship or similar title to any University or Institute. Signature of the Candidate

3 iii CERTIFICATE FROM THE SUPERVISOR This is to certify that the thesis entitled Causal Relationship between Lean Supply Chain Management Practices, Green Supply Chain Management Practices and Organisational Performance submitted to Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore for the award of the degree of Doctor of Philosophy, is a record of original research work done by B.L. Lakshmi Meera, during the period of her study in Avinashilingam School of Management Technology, Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore, under my supervision and guidance and the thesis is not formed the basis for the award of any Degree / Diploma / Associateship / Fellowship or similar title to any University or Institute. Signature of the Dean Faculty of Business Administration Signature of the Supervisor

4 vi CONTENTS Sl. No. Title Page No. 1. INTRODUCTION 1.1 Lean Supply Chain Management 1.2 Green Supply chain Management 1.3 Integration of Lean and Green SCM practices towards sustainability 1.4 Need for the Study 1.5 Objective 1.6 Organization of the Thesis 2. REVIEW OF LITERATURE 2.1 Supply Chain Management 2.2 The Lean Paradigm Demand Management Value Addition/ Waste Elimination Culture Process Standardization Industry Standardisation Cross-Enterprise Collaboration 2.3 Relationship between Lean and Green Supply Chain Management 2.4 The Green Paradigm ISO Certification Green Drivers Green Support practices Management Support Customer Support: Green SCM Practices Green Inbound Practices Green Operational practices Green Design Green Manufacturing Green Outbound Practices Reverse Logistics

5 vii Sl. No. Title Page No. 2.5 Organisational performance Environmental Performance Financial Performance 3. RESEARCH METHODOLOGY 3.1 Conceptualization of the Constructs, Research Model and Hypotheses Operational Definition Conceptual Framework and Hypotheses Development Lean adoption and ISO certification Causal relationship between Lean SCM practices, Green SCM practices and organizational performance 3.2 Research Methods Population and Sampling Data Collection Research Instrument 3.3 Validity and Reliability Reliability Validity 3.4 Data Analysis Content Validity Construct Validity 4. ANALYSIS AND INTERPRETATION 4.1 Descriptive Statistics 4.2 Measurement model Multicollinearity Common Method Variance Unidimentionality Convergent Validity Discriminant Validity

6 viii Sl. No. Title Page No. 4.3 MANCOVA Lean Adoption ISO Certification Causal Relationship between Lean and Green SCM Practices and Organizational Performance 4.4 Causal Model and Hypotheses Testing Structural Equation Modelling (SEM) Hypotheses testing 5 SUMMARY 5.1 Discussion of the findings Implementation of Lean and Green SCM practices Green Drivers Green support practices Green SCM practices Lean SCM practices 5.2 The influence of Lean Adoption and ISO certification on Lean SCM practices and Green SCM practices: 5.3 Causal Model: Causal relationship between Lean and Green SCM practices and Organisational performance Green Drivers and Green support practices Green Support practices and Green SCM practices Lean SCM practices and Green SCM practices Lean and Green SCM practices and Organisational Performance 5.4 Contributions 5.5 Implications 5.6 Limitation and Recommendation for future research 5.7 Conclusion

7 xi ABSTRACT In today's changing business landscape ecological and economic developments are posing major concern in creating sustainable organisations. It is important to know how companies could manage these two paradigms through the supply chain. The integrative framework of the reseach validates the causal relationship between Lean adoption, Lean SCM practices, Green SCM practices and Organisational performance. Quantitative method and deductive approach was used to establish the strength of the relationship. Data from 200 experts from manufacturing firms in Tamilnadu indicated these practices have been initiated and assimilated into their processes at various levels. The measurement model was tested for multicollinearity, common method variance and unidimensionality. The firms were classified as Lean initiators, Lean movers and Lean adopters based on the assimilation of Lean by them. MANCOVA validated the influence of Lean adoption in the presence of ISO certification on Lean SCM practices, Green SCM practices and organizational performance. Structural Equation Modelling of the causal relationship between Lean SCM practices, Green SCM practices and organizational performance was found fit. The strength of the relationship indicated that there exists a positive direct and indirect effect between the constructs. The results provide and integrated perpective of Lean adoption, Lean SCM practices, Green SCM practices and Organisational performance. The contribution and implication of the research was unique in providing strategies to improve the practices from the present state to the future state and integrate. The integrated framework suggested can be leveraged by researchers and practioners to capitalize on lean as green for sustainable supply chain.