Impact of Smart, Green, Resilient, and Lean Manufacturing System on SMEs’Performance: A Data Envelopment Analysis (DEA) Approach

• Published in: Sustainability 2023-01, Vol.15 (2), p.1379
• Main Authors: Abdullah, Ahmad, Saraswat, Shantanu, Talib, Faisal
• Format: Article
• Language: English
• Subjects: Case studies; Cost control; Criteria; Data envelopment analysis; Decision making; Digitization; GDP; Gross Domestic Product; Lean manufacturing; Linear programming; Literature reviews; Manufacturers; Manufacturing; Natural resources; Product quality; Production costs; Small business; Supply chains; Sustainability; SWOT analysis
• ISSN: 2071-1050; 2071-1050
• DOI: 10.3390/su15021379

In the present era of the fourth industrial revolution, small and medium enterprises (SMEs) are adopting smart, green, resilient, and lean (SGRL) practices to enhance their performance and achieve sustainability. For SMEs to perform well in their supply chains and satisfy customers, the impact of the combined effects of SGRL manufacturing on SMEs’ performance needs to be studied. Although SGRL manufacturing has been studied independently in order to understand its impact on SMEs’ performance, there is still a need for significant research on its combined effect. The objective of the present work is to evaluate the performance of SMEs and to understand the combined effect of SGRL manufacturing on SMEs’ performance. This research applied the data envelopment analysis (DEA) methodology to evaluate 30 SMEs identified in the northern region of India. A DEA model was developed that considers environmental, operational, and social performances as output criteria while considering SGRL practices as input criteria. Sixteen decision-making units (DMUs) were identified as inefficient using the DEA approach and one of them was considered for a case study for comparison with efficient SMEs. The case study employed a Strength, Weakness, Opportunity, and Threat (SWOT) analysis to provide remedial action to one of the selected underperforming SMEs, i.e.,SME11. The strengths, weaknesses, opportunities, and threats of SME11 were identified and strategies were suggested by benchmarking SME11 with one of the efficient SMEs, i.e., SME23. The findings of this research work will help policymakers, owners, and managers of SMEs take necessary actions and enhance their performance by adopting the proposed DEA model using SGRL manufacturing practices.