Lean-green manufacturing: the enabling role of information technology resource

• Published in: Kybernetes Vol. 47; no. 9; pp. 1752 - 1777
• Main Authors: Ghobakhloo, Morteza, Azar, Adel, Fathi, Masood
• Format: Journal Article
• Language: English
• Published: London Emerald Publishing Limited 27.09.2018; Emerald Group Publishing Limited
• Subjects: advanced manufacturing technology; Competition; Competitive advantage; Electronic data interchange; Employees; Environmental impact; Environmental management; Information management; Information technology; Investment strategy; Lean manufacturing; Manufacturers; Manufacturing resource planning; pollution prevention; Preventive maintenance; Product design; Production and Automation Engineering; Produktion och automatiseringsteknik; Quality control; Return on assets; Software; Strategic management; sustainability; Theory; Lean manufacturing; Advanced manufacturing technology; Environmental management; Information technology; Sustainability; Pollution prevention
• ISSN: 0368-492X; 1758-7883; 1758-7883
• DOI: 10.1108/K-09-2017-0343

Purpose The purpose of this paper is to contribute to the existing knowledge about the relationships between information technology (IT), lean manufacturing (LM), organizational environmental issues and business performance. Design/methodology/approach A questionnaire-based survey was conducted to collect data from 122 elite manufacturers, and the hypothesized relationships were tested using partial least squares structural equation modeling. Findings IT competence in LM acts as a lower-order organizational capability, and its business value should be recognized through the intermediate roles of LM effectiveness and environmental management capability. Findings recommend that the net benefits of LM are mainly materialized through waste and pollution reduction and simplified implementation of proactive environmental practices. Research limitations/implications Among other limitations, relying on a rather small sample size and cross-sectional data of this research, and lack of generalizability of findings, tends to have certain limitations. An interesting direction for future research would be to extend this research by assessing interaction of other types of IT resources with LM and organizational environmental issues. Practical implications Both LM and proactive environmental management are information-intensive. Investment in both technological and human aspects of IT resource aimed at increasing the effectiveness of LM activities and proactive environmental practices is imperative for contemporary manufacturers. Originality/value This study introduces the IT capability of IT competence in LM and two organizational capabilities of LM effectiveness and environmental management capability. By doing so, the study highlights the significant role of organizational environmental issues in devising firms’ IT and advanced manufacturing technology investment strategies in LM context.