An investigation on lean-green implementation practices in Indian SMEs using analytical hierarchy process (AHP) approach

In order to be competitive, small and medium size enterprises (SMEs) should focus, not only towards their performance in operational dimension, but they need to integrate the environmental dimension through the balanced adoption of lean and green paradigms simultaneously. Prior research indicates the positive impact of integrated lean and green paradigms on a firm's performance and competitiveness. This paper applies an analytical hierarchy process approach to investigate the impact of select lean and green practices on performance benefits, and to evaluate the influence of lean and green paradigms on overall performance of SMEs. Total productive maintenance is identified as the most important lean practice, while ISO 14001is the most significant green practice. On-time delivery and a reduction in emissions are the most critical criteria for leanness and greenness, respectively. Based on the dynamic sensitivity analysis of three AHP models, we propose bundles of lean and green practices to surmount the market challenges faced by SMEs. These results are used to develop an integrated framework for lean green system to guide SMEs towards sustainable growth. The findings are expected to benefit policy makers and industrial practitioners of SMEs to focus on a few vital issues to facilitate both lean and green manufacturing implementation and assessment. (C) 2016 Elsevier Ltd. All rights reserved.