Investigating lean and green supply chain linkages through a balanced scorecard framework

Abstract

This paper investigates how to evaluate lean and green supply chain performance through a traditional Balanced Scorecard (BSC). To attain the paper's objective, in a first stage a literature review was carried out to provide a comprehensive understanding of how lean and green can be compatible in a supply chain, how the performance should be evaluated, and how the BSC can evaluate the lean and green supply chain performance. Next, a conceptual framework was developed to investigate how lean and green initiatives can affect supply chain performance. A causal diagram was used to represent the relationships between each lean and green measure through the traditional four BSC perspectives: financial, customer, internal business process and learning and growth. It is possible to recognize that lean and green initiatives influence the linkages between performance measures. These linkages were established by anecdotal evidence derived from the literature review; they are an example of how to evaluate the organization's supply chain. The proposed diagram can be the basis for further research in lean and green supply chain performance. To the author's knowledge, this study is the first to attempt to understand how to apply BSCs to evaluate the integration of lean and green paradigms on supply chain performance.

Keywords::

• lean
• green
• supply chain
• balanced scorecard

JEL Classification::

• J00; L20; L60

Additional information

Funding

The authors would like to acknowledge the Department of Mechanical and Industrial Engineering (UNIDEMI - PEst-OE/EME/UI0667/2014), Faculdade de Ciências e Tecnologia da Universidade Nova de Lisboa.