Interdependence analysis of lean-green implementation challenges: a case of Indian SMEs

Purpose The purpose of this paper is to identify and analyze the critical success factors (CSFs) behind the successful implementation of lean-green practices in Indian small- and medium-scale enterprises (SMEs). Design/methodology/approach The analysis employs two modeling approaches such as interpretive structural modeling (ISM) and interpretive ranking process (IRP) for examining the contextual relationships among the CSFs and ranks them with respect to key lean-green performance areas. A critical review of literature has led to the identification of total 25 CSFs for lean-green implementation. The list is reduced to 18 most relevant CSFs for the context of Indian SMEs based on experts’ (from industry and academia) opinions. The ISM is utilized to develop ten-level hierarchical model of CSFs. In order to gain greater insights into the nature of variables, the matrix of cross-impact multiplications applied to classification (MICMAC) analysis has been conducted. Findings The results show “Government support” as the most significant to the successful lean-green implementation in Indian SMEs and it is placed at the base of the ISM hierarchy. The CSF “Green disposal initiatives” is identified at the top level of the ISM hierarchy. Further, MICMAC analysis identifies five independent variables, eight linkages variables, four dependent variables and none autonomous variable. This may help SME managers to decide about resource priorities toward successful implementation of lean-green initiatives. Subsequently, the IRP has examined the dominance relationship and identifies “Organizational capabilities” as the most significant CSF. Practical implications This research intends to enable practitioners in prioritizing and managing strategic and tactical challenges involved in lean-green implementation in Indian SMEs. Originality/value This study makes an initial attempt in analyzing factors critical to successful implementation of integrated lean and green manufacturing practices in Indian manufacturing SMEs using ISM. The analysis is further enhanced by applying IRP to rank the CSFs by investigating the influence lean-green integration on various performance measures.