Synergetic effect of lean and green on innovation: A resource-based perspective

Abstract The purpose of this study is twofold: to improve understanding on how the synergetic relationship between lean and green practices is operationalized and how innovative practices are fostered in workplace through integrated lean and green approaches. The Resource-based view (RBV) of the firm, and in particular, the concept of complementarity is used as a theoretical lens to achieve the purpose of the study. Following an inductive theory building approach using exploratory case study methodology in two manufacturing organisations in the UK, the authors conduct twelve semi-structured interviews with cross-functional team involved in integrated lean and green practices. The outcomes of the study evidence several examples of innovation fostered through synergetic lean and green implementation, though the integration requires customisation depending upon the operations profile of selected cases, e.g. high volume/low variety versus low volume and high variety setting. Our study also reported the possibility of creation of environmental value alongside economic value, e.g. eco-friendly products are cheaper to produce through integrated lean and green practices in design and service delivery processes. Cross-functional collaboration and collaboration with suppliers are key to promote innovation within operations and supply chains. Following a theory building approach, authors propose two testable hypotheses for future research.