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A natural resource and institutional theory‐based view of green‐lean‐six

sigma drivers for environmental management

Article in Business Strategy and the Environment · November 2021

DOI: 10.1002/bse.2936

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 1 A natural resource and institutional theory-based view of green-lean-six sigma drivers
2 for environmental management
3
4 Amna Farrukh
5 School of Food and Advanced Technology, Massey
6 University, Auckland, New Zealand
7 Sanjay Mathrani
8 School of Food and Advanced Technology, Massey
9 University, Auckland, New Zealand
10 Aymen Sajjad
11 School of Management, Massey University, Auckland, New
12 Zealand
13
14 Keywords: Green-lean-six sigma, drivers, environmental management, institutional theory, natural-
15 resource-based view

1
16 A natural resource and institutional theory-based view of green-lean-six sigma drivers
17 for environmental management
18
19 Amna Farrukh
20 School of Food and Advanced Technology, Massey
21 University, Auckland, New Zealand
22 Sanjay Mathrani
23 School of Food and Advanced Technology, Massey
24 University, Auckland, New Zealand
25 Aymen Sajjad
26 School of Management, Massey University, Auckland, New
27 Zealand
28
29 Abstract
30 Green-lean-six sigma (GLSS) is an evolving strategy that can be applied in the manufacturing context
31 to address pressing environmental issues. However, due to a lack of research in this area, investigating
32 the motivations behind GLSS implementation is crucial to develop a deeper understanding of factors
33 that shape the overall environmental management strategy of a firm. Drawing on the natural-resource-
34 based view and institutional theory, we explore the GLSS drivers and compare developed and
35 developing country contexts by conducting in-depth interviews with senior consultants specializing in
36 green-lean-six sigma implementation from New Zealand (NZ) and Pakistan (PK). Findings reveal that
37 the key drivers of GLSS adoption in NZ are general environmental awareness, creating a company
38 image, and government pressure, whereas the main drivers for PK include cost reduction, international
39 customers’ influence, and competitiveness. These findings throw light on the reasons for GLSS
40 adoption in different regions and have significant theoretical and practical implications towards
41 improving environmental performance.
42 Keywords: Green-lean-six sigma, drivers, environmental management, institutional theory, natural-
43 resource-based view
44 1. Introduction
45 Climate change and global warming are increasingly associated with human activities as is evident from
46 the recent assessment report of the Intergovernmental Panel on Climate Change (IPCC, 2021), which
47 highlighted the human-induced emissions of greenhouse gases and aerosols. Negative environmental
48 impacts of industrial operations have attracted much scrutiny from international bodies, non-
49 governmental organizations (NGOs), governments, consumers, and the public. Thus, manufacturing
50 organizations – perceived as a key source of environmental degradation – are expected to positively
51 contribute towards global sustainability issues such as climate change and resource depletion by
52 improving their environmental impacts (Gouda & Saranga, 2020; Nguyen et al., 2021) and
53 incorporating environmental sustainability practices within their business strategies (Baah et al., 2021;
54 Eweje, 2020; Terlaak et al., 2018). In addition, organizations are embracing environmental management
55 programmes to obtain competitive advantage and improve stakeholder value (Nguyen et al., 2021).
56 However, environmental management is a complex endeavour and manufacturing organizations
57 continue to encounter multifaceted challenges concerning the development of governance systems
58 (Kirschke & Newig, 2017; Wagner, 2020), knowledge and awareness of environmental issues (Ikram
59 et al., 2019), lack of technology infrastructure, and skilled employees as well as design and
60 implementation of environmental approaches (Moktadir et al., 2018).
61 Both developed and developing countries are trying to cope with these environmental problems
62 resulting from manufacturing operations. The environmental challenges for developing countries can
63 be attributed to several causes such as large population, lack of governance, and priority given to
64 economic growth as compared to environmental goals (Du Plessis, 2007; Mangla et al., 2018; Teles et
65 al., 2015). On the other hand, manufacturing companies in developed countries are adopting

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 66 environmental practices for environmental safety and waste minimization (Diaz-Sarachaga et al., 2016)
67 and to meet growing stakeholder expectations regarding resource stewardship and climate change
68 (Mangla et al., 2018). To achieve these objectives, a green-lean-six sigma (GLSS) strategy is proposed
69 (Garza-Reyes, 2015) as one of the promising approaches in which green addresses the environmental
70 waste, lean removes non-value-adding activities and reduces operational waste, and six sigma
71 minimizes defects and controls process variation. It is argued that the application of these strategies in
72 an integrated way provides significant environmental benefits (Banawi & Bilec, 2014; Gholami et al.,
73 2021).
74 The adoption of an environmental strategy can be attributed to different factors such as financial
75 situation, culture, state policies, and region, which may vary from country to country (Gandhi et al.,
76 2018; Mangla et al., 2018). The institutional norms in developing countries can be different from the
77 developed countries; for example, government regulations concerning environmental aspects and public
78 expectations associated with environmental safety can vary across countries (Laosirihongthong et al.,
79 2013). Despite addressing both the internal and external drivers of GLSS in a few studies (e.g., Cherrafi
80 et al., 2017; Gaikwad & Sunnapwar, 2020) such as cost reduction, process improvement, consumer
81 requirements, government pressure, and market competition, it is unclear how these drivers promote
82 the adoption of GLSS practices. A scarcity of studies in this area calls for an investigation of
83 motivational factors behind the adoption of GLSS and the overall trajectory a company would pursue
84 towards improving its environmental performance. Further, a comparative analysis of drivers for
85 environmental management between different countries is lacking in the literature (Belhadi et al., 2020;
86 Farrukh et al., 2020). From this perspective, Cherrafi et al. (2016) have highlighted this gap and
87 emphasized comparative regional evaluation through an integrated model comprising strategies such as
88 green, lean, and six sigma. Accordingly, to bridge these gaps, this study explores and compares the
89 drivers for GLSS adoption in both a developed and developing country context. Hence, the research
90 questions are:
91 (i) What are the drivers that motivate manufacturing organizations to implement a green-lean-six sigma
92 strategy?
93 (ii) How do these drivers vary between a developed and developing country?
94 Further, to fully understand the underlying reasons behind GLSS adoption, it is essential to
95 incorporate an appropriate theoretical lens. While the theoretical framework has a central role in
96 knowledge creation (McAdam & Hazlett, 2010), extant GLSS literature has overlooked this important
97 aspect for advancing academic knowledge. Against this background, we utilized a natural-resource-
98 based view (NRBV) and institutional theory to better understand an organization’s motivations for
99 adopting GLSS practices associated with environmental impacts. The study presented in this paper is
100 conducted in New Zealand (NZ) as a developed country and Pakistan (PK) as a developing country. A
101 theoretical framework that includes both the natural resource and institutional theory-based view of
102 GLSS drivers is developed based on literature findings. The results highlight valuable insights that may
103 assist academia, industry practitioners, and policymakers in future research and strategic planning.
104 The remainder of the paper is organized as follows. Next, section two presents a theoretical
105 background of the GLSS approach including its linkages with the natural-resource-based view (NRBV)
106 and institutional theory. After that, section three describes the research methodology. Then, section four
107 presents the study results, which is followed by a discussion section that integrates the findings and
108 GLSS literature to explicate theoretical and practical implications of the present study. The paper
109 concludes with conclusions and future research directions.
110 2. Theoretical background
111 The following sections review the literature on GLSS strategy as an integrated approach and the drivers
112 behind its adoption. The GLSS drivers are discussed next under the theoretical lens of the natural-
113 resource-based view and institutional isomorphisms which provide a profound understanding of the
114 research phenomenon. Finally, a framework linking GLSS drivers with the natural-resource-based view
115 and institutional theory is developed.
116 2.1 Green-lean-six sigma strategy
117 GLSS is increasingly getting traction in emerging environmental sustainability discourse and
118 managerial practice. Several studies have investigated green, lean, and six sigma strategies in different

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119 combinations to address the environmental management issues of manufacturing organizations such as
120 green-lean (GL), lean-six sigma (LSS), and green-lean-six sigma (Erdil et al., 2018; Farrukh et al., 2021;
121 Fercoq et al., 2016; Gholami et al., 2021; Shokri & Li, 2020). An integrated green-lean adoption has
122 been recognized as an efficient approach towards managing environmental waste based on the mutual
123 objective of waste minimization (Fercoq et al., 2016). However, a green-lean implementation has a few
124 limitations which hinder organizations’ desired environmental sustainability outcomes. The integrated
125 green-lean strategy fails to control process variation and lacks a structured problem-solving approach
126 to waste reduction (Garza-Reyes, 2015; Sagnak & Kazancoglu, 2016). Similarly, the integration of lean-
127 six sigma is regarded as a promising strategy for waste minimization with common characteristics of
128 customer satisfaction and continuous improvement (Parmar & Desai, 2019). However, this strategy
129 does not address the life cycle aspects nor fully implement the environmental improvement initiatives,
130 which pose challenges towards effectively achieving environmental sustainability goals (Banawi &
131 Bilec, 2014; Zhang, 1999). Therefore, researchers have emphasized an integrated green, lean, and six
132 sigma (GLSS) approach as an environmental management strategy to overcome the drawbacks of
133 green-lean and lean-six sigma combinations (Garza-Reyes, 2015; Gholami et al., 2021). Such an
134 integrated strategy can improve the environmental performance by identifying environmental impacts
135 and removing waste, with common characteristics of waste reduction, value addition, and customer
136 satisfaction (Farrukh et al., 2020; Gaikwad & Sunnapwar, 2020).
137 2.2 Green-lean-six sigma drivers
138 GLSS drivers include several internal and external drivers that propel an organization to adopt green-
139 lean-six sigma practices (Gaikwad & Sunnapwar, 2020). Literature reveals that the internal drivers are
140 described as either organizational or operational drivers (Nair et al., 2021; Walker et al., 2008). External
141 drivers can be defined as drivers set by external agencies such as government, trade unions, United
142 Nations (UN), European Union (EU), and clients/customers that encourage companies to adopt
143 environmental practices (Darko et al., 2017; Zhang et al., 2019). Moreover, the internal and external
144 drivers can be prerequisite to each other (Kumar et al., 2019).
145 Increasing costs of raw materials and resource depletion issues are the operational drivers that can
146 encourage organizations to streamline their processes to meet environmental sustainability objectives
147 (Diaz-Elsayed et al., 2013; Gaikwad & Sunnapwar, 2020). Costa et al. (2018) have determined
148 operational drivers in the food industry such as cost reduction, waste reduction, process variation
149 reduction, lead time reduction, defect reduction, and value addition. Garza-Reyes (2015) and Powell et
150 al. (2017) have emphasized waste reduction and process efficiency as the major operational reasons for
151 GLSS adoption. In a similar vein, Cherrafi et al. (2017) have emphasized profitability and process
152 improvement as operational drivers for GLSS adoption. A recent study in a cookware manufacturing
153 company has determined hazardous waste reduction, machine setup time reduction, defective products
154 reduction, and incident reduction as the internal drivers (Tiwari et al., 2020). Similarly, availability of
155 skilled workers, training of employees, and following standard operating procedures are emphasized as
156 key organizational drivers in manufacturing organizations (Sarwar et al., 2019). Caldera et al. (2018)
157 have identified the organizational drivers, namely process streamlining and the company’s quest for
158 environmental performance. Additionally, improving financial performance and promoting a
159 continuous improvement culture (Chaplin & O’Rourke, 2018; Parmar & Desai, 2019) are the
160 organizational drivers prompting organizations to execute GLSS practices.
161 External drivers are generally categorized as shareholders’ concerns, customers’ requirements,
162 competitive environment, environmental regulations, stakeholders’ influence, and social pressure
163 (Cherrafi et al., 2017; Darko et al., 2017; Oelze et al., 2016; Sajjad et al., 2020). Several research studies
164 have recognized customer pressure as an influential factor in adopting environmental management
165 practices (Famiyeh et al., 2018; Mittal & Sangwan, 2015). Government regulations including current
166 and future legislation pressure organizations to adopt environmental practices (Gandhi et al., 2018;
167 Sajjad et al., 2015; Zhang et al., 2019). Social pressure also drives firms to consider environmental
168 initiatives (Fargani et al., 2016; Mittal & Sangwan, 2014) driven by the public, NGOs, and the media
169 (Liu et al., 2021; Oelze et al., 2016). Tiwari et al. (2020) have determined external drivers as customer
170 satisfaction, environmental regulation compliance, and employee satisfaction. One study conducted in
171 a food company has identified “an automatic escalation of the landfill tax” as the key external driver in
172 a landfill reduction project (Chaplin & O’Rourke, 2018, p.13). Similarly, another study in Chinese

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173 manufacturing organizations has identified the key drivers as corporate social responsibility, improving
174 company image, and fulfilling customers’ requirements for environmentally-friendly products (Garza-
175 Reyes et al., 2018b). Caldera et al. (2018) have identified several drivers, namely customers’
176 requirements, community expectations, competitors’ strategies, and environmental legislative demands.
177 Prior literature has revealed that there is a lack of studies investigating the reasons behind the
178 implementation of a GLSS strategy since a few researchers have highlighted both the internal and
179 external drivers of GLSS for motivating organizations to initiate environmentally responsible practices
180 (Cherrafi et al., 2017; Gaikwad & Sunnapwar, 2020). Although linking with theory when adopting any
181 continuous improvement strategy is strongly recommended (McAdam & Hazlett, 2010), a review of
182 the literature has also highlighted the link between organizational theories and a GLSS strategy as
183 lacking in prior studies. The following sections describe the natural-resource-based view, institutional
184 theory, and GLSS drivers associated with these theories.
185 2.3 Natural-resource-based view
186 The NRBV argues that an organization could gain a competitive advantage through three strategic
187 capabilities of pollution prevention, product stewardship, and sustainable development policies
188 (Barney, 1991; Cristina De Stefano et al., 2016; King & Lenox, 2002). Each of these strategies has
189 different environmental forces, building upon different key resources. The key driving force for
190 pollution prevention includes reduction of waste and emissions by reducing inputs and simplifying
191 processes (Gabriel et al., 2018; Hart et al., 2010). The key driver for product stewardship is reducing
192 the life cycle cost of products by incorporating the “voice of the environment” (Hart et al., 2010, p.1466)
193 in the design of products and processes. The main drivers for sustainable development strategy are
194 minimizing the environmental burden of an organization’s growth and sustaining resources for future
195 use and future market position (Baumgartner & Rauter, 2017; Hart et al., 2010).
196 2.4 Institutional theory
197 Institutional theory investigates the role of formal and informal constraints that force an organization to
198 adopt a certain strategy (North, 1996). The formal constraints include laws, rules, and constitutions and
199 informal constraints include conventions, social norms, and ethical codes (Hofer et al., 2011). DiMaggio
200 and Powell (1983) have identified three types of isomorphic drivers, namely coercive, normative, and
201 mimetic, within institutional theory. Coercive drivers include pressure from regulatory authorities,
202 customers, and suppliers that force an organization to execute a certain strategy (Adebanjo et al., 2017;
203 Hofer et al., 2011). Mimetic drivers include forces that propel organizations to imitate competitors’
204 strategies in an uncertain environment as an attempt to follow the path of their success (Aerts et al.,
205 2006; Sarkis et al., 2011). Normative drivers compel an organization to meet social expectations and
206 obligations which contribute to organizational survival and success (Oliver, 1997). The institutional
207 theory has been suggested as a theoretical lens to understand the reasons for environmental management
208 practices adopted by organizations in developed and developing countries as the institutional pressures
209 for environmental safety from external agencies may vary across countries (Sarkis et al., 2011; Ye et
210 al., 2021).
211 2.5 Natural-resource-based and institutional theory-based view of green-lean-six sigma drivers
212 With respect to linking green-lean-six sigma drivers with the natural-resource-based-view, the
213 underlying mechanisms of waste reduction, resource conservation, and continuous improvement
214 aligned with pollution prevention, product stewardship, and sustainable development policies cause an
215 organization to implement GLSS practices. The operational and environmental waste reduction (e.g.,
216 defects reduction, energy reduction, and wastewater reduction) are the reasons for an organization to
217 adopt a GLSS strategy (Darnall et al., 2008) linked with pollution prevention. Several green-lean-six
218 sigma practices such as environmental management systems (Gharfalkar et al., 2016), total productive
219 maintenance (Garza-Reyes et al., 2018a), and control charts (Shih & Wang, 2016) are used for waste
220 reduction. Further, operational and environmental cost reduction as a GLSS driver (Gandhi et al., 2018;
221 Parmar & Desai, 2019) is linked with product stewardship due to life cycle cost considerations. Various
222 GLSS practices are used to minimize cost and conserve resources such as material flow cost analysis,
223 3R (reducing, reusing, and recycling) (Namagembe et al., 2019), just-in-time (Shashi et al., 2019), and
224 cost-benefit analysis (Hoogmartens et al., 2014). Similarly, continuous improvements of products and

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225 processes (Garza-Reyes et al., 2018; Mishra, 2018) are associated with sustainable development. Some
226 salient GLSS practices including ISO 14001 (Al-Sheyadi et al., 2019), PDCA (plan-do-check-act), and
227 DMAIC (define, measure, analyze, improve, control) (Gaikwad & Sunnapwar, 2020) can be linked to
228 sustainable development.
229 With respect to links between green-lean-six sigma drivers and the institutional theory, pressure
230 from government agencies to initiate environmental practices is a coercive driver (Laosirihongthong et
231 al., 2013; Rivera, 2004). Further, customers’ requirements for eco-friendly products at a minimum price
232 can be a coercive isomorphic driver (Thun & Müller, 2010). In this scenario, the customer influences
233 an organization to adopt lean and six sigma either through contract specifications in a formal way or
234 informally by highlighting the benefits of LSS implementation (Braunscheidel et al., 2011).
235 Organizations also adopt green-lean-six sigma to imitate the practices of successful companies in the
236 industry due to mimetic pressure. An example is Interface, the leading carpet manufacturer in the United
237 States of America (USA), which has received significant attention. In 2006, it was the first company to
238 implement a commercial recycle and reuse system (Rajala et al., 2016; Trapp & Kanbach, 2021) that
239 influenced other companies in the carpet industry to follow in Interface’s footsteps. Similarly, the
240 success of the lean strategy in Japanese manufacturing organizations has influenced other companies
241 and industries across the world to implement it to achieve business excellence (Dhiravidamani et al.,
242 2017; Jasti & Kodali, 2016; Sahoo et al., 2008). Likewise, many companies have followed in the
243 footsteps of General Electric and Motorola who were the early adopters of the six sigma strategy.
244 Normative isomorphic drivers include social requirements from local communities, media, and NGOs
245 (Ball & Craig, 2010; Gandhi et al., 2018; Sarkis et al., 2011) that cause organizations to execute GLSS
246 practices. As an example, Greenpeace, Friends of Earth, and World Wildlife Fund (WWF) are
247 international NGOs promoting green practices (Lauesen, 2013). Similarly, professional societies
248 encourage organizations to adopt lean and six sigma, such as the American Society for Quality (ASQ)
249 and The International Association for Six Sigma Certification (IASSC) (Braunscheidel et al., 2011).
250 Accordingly, it can be argued that the NRBV incorporates the internal drivers and institutional theory
251 encompasses the external drivers. Figure 1 presents the theoretical framework of green-lean-six sigma
252 drivers.
253 *** Insert Figure 1 about here***
254 3. Research methodology
255 An empirical investigation of GLSS drivers is conducted from a developed and developing country
256 perspective using qualitative inductive and holistic approaches to analyze the experiences of LSS and
257 environmental experts working in small consultancy firms in New Zealand and Pakistan (Patton, 1990).
258 Based on the premise of exploring the opinions of experts on GLSS drivers, semi-structured interviews
259 of approximately 1.5 hours’ duration were conducted with each LSS and environmental consultant from
260 both countries (Galletta, 2013). Questions such as why manufacturing organizations implement green-
261 lean-six sigma strategy and what are the internal and external motivations behind its execution were
262 asked to gain an in-depth understanding of GLSS drivers for environmental benefits. Four participants
263 including LSS and environmental consultants from both regions were selected using the purposive
264 sampling method (Bryman & Bell, 2007). The selection criteria were that the LSS and environmental
265 experts must have at least 2 years of implementation experience of these strategies in manufacturing
266 firms in their respective countries. As a requirement of the scientific inquiry, the experience of these
267 experts in manufacturing firms helps synthesize the reasons for GLSS adoption (Lopez & Willis, 2004;
268 Pietkiewicz & Smith, 2014). A summary of the participants is given in Table 1.
269 *** Insert Table 1 about here***

270 The theoretical framework developed in Figure 1 has been used as a guide for the empirical
271 investigation. The interview data were analyzed to assess the perspectives of experts for generating
272 insights into the reasons for GLSS adoption (Braun & Clarke, 2006; King, 2004). A thematic analysis
273 technique is utilized for the development of key themes. Following the thematic analysis guidelines
274 from Creswell et al. (2016), in the first stage, the interview data were transcribed carefully and reviewed
275 multiple times to understand and comprehend essential aspects covering the reasons for GLSS adoption.
276 In the second stage, the authors developed the themes emerging from the data by generating codes using

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277 the open coding method and then combined them into categories according to similarities. In the third
278 stage, the categories were organized into themes. The analysis revealed two major themes – internal
279 and external drivers and five major categories, namely operational drivers, organizational drivers,
280 regulatory drivers, society-oriented drivers, and market-oriented drivers emerging from the interview
281 data. Under these categories, various sub-categories of green-lean-six sigma drivers aligned with the
282 critical aspects of NRBV and institutional isomorphisms emerged. Overall, the interview data highlights
283 the common understanding and recognition of the GLSS drivers for environmental performance in both
284 countries.
285 4. Results
286 The consultants identified a range of internal drivers and external drivers of GLSS adoption in
287 manufacturing firms. The internal drivers comprise the operational and organizational drivers and the
288 external drivers include the regulatory, society-oriented, and market-oriented drivers. The operational
289 drivers consist of cost reduction, waste reduction, and process control and the organizational drivers
290 include continuous improvement, environmental awareness, and resource circulation. The regulatory
291 drivers include environmental regulations and the society-oriented drivers comprise public pressure and
292 development organizations. Finally, the market-oriented drivers include customer influence,
293 competitive pressure, and company image. All of these internal and external GLSS drivers are explained
294 in the following sections from New Zealand and Pakistan perspectives.
295 4.1 Internal drivers – organizational and operational (New Zealand perspective)
296 The findings highlighted cost reduction as one of the operational reasons for adopting GLSS in
297 manufacturing organizations. N1 Enviro posited that a “green strategy helps organizations in reducing
298 their manufacturing and total lifecycle cost”. N2 Enviro further explained that organizations tend to
299 look at their financials as a reason for adopting lean and six sigma. Manufacturing companies use the
300 lean paradigm for reducing costs in the form of environmental fines and penalties since they are required
301 to pay for discharging effluents and dumping waste.
302 The findings highlighted operational and environmental waste reduction as one of the key
303 operational GLSS drivers by NZ consultants. Minimizing environmental waste such as wastewater,
304 excessive energy consumption, and carbon footprints from manufacturing operations are some of the
305 reasons for companies to adopt green practices as cited by the environmental and LSS consultants. From
306 a lean perspective, the findings suggest that manufacturing firms implement lean initiatives to minimize
307 operational wastes which do not add value for their customers. Waste reduction through error-free
308 production is also cited as one of the major reasons for implementing six sigma in NZ.
309 Process control is also recognized as a driving force for GLSS implementation where lean strategy
310 is used for controlling processes in small scale production. N1 LSS highlighted that if three people are
311 working in a process in three different ways, it may end up with some sort of failure. Therefore, the
312 cause of failure is identified, and the process is standardized through the lean methods to overcome the
313 problem. Consultants from NZ also underscored minimizing process variation as a significant reason
314 for implementing six sigma. Manufacturers use this approach when the process generates large amounts
315 of data and statistical tools are required to simulate complex problems with different variables. This
316 was suggested by both LSS consultants. Similarly, N1 LSS and N1 Enviro explained that manufacturing
317 firms in NZ apply six sigma practices to control process variation in highly automated and repeatable
318 processes such as dairy plants and printing presses.
319 All three − green, lean, and six sigma − are system improvement strategies, therefore “continuous
320 improvement is a driver of these approaches” as stressed by N1 LSS who also stated that this was a
321 “reality of life”. On the other hand, N2 Enviro explained that many organizations do not recognize
322 continuous improvement as a driver for green manufacturing because it requires investment and
323 resources. One LSS and two environmental consultants emphasized that growing environmental
324 awareness has compelled manufacturers in NZ to undertake long-term initiatives and to adopt a green
325 strategy as part of their corporate policy. The LSS consultant explained that organizations evaluate
326 different environmental parameters such as “how many fewer tons of wastes go into landfills, how much
327 less carbon footprint they have created, and whether they have transitioned from one toxic compound
328 to a more neutral compound?”

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329 Consultants from NZ also highlighted resource circulation as a significant organizational driver of
330 the GLSS. Most of the manufacturing organizations in NZ now are trying to incorporate the closed-
331 loop cycle in their operations to retrieve recyclable products and the circular economy is being
332 acknowledged as an environmental initiative in NZ as emphasized by N1 Enviro. It is gaining traction
333 due to increasing awareness and the realization of benefits by manufacturers and the government.
334 Therefore, organizations are effectively working on product stewardship aspects and integrating
335 environmentally friendly design in their products and processes. Manufacturing companies are using
336 the lean paradigm to increase their recycling abilities to avoid fines and penalties in the discharge of
337 effluents and waste.
338 4.2 Internal drivers – organizational and operational (Pakistan perspective)
339 Cost reduction is recognized as a significant operational driver of GLSS by Pakistan consultants. P1
340 Enviro regarded cost minimization as one of the key reasons for implementing green strategy for those
341 organizations who understand that reducing environmental footprints such as water, material, and
342 carbon will have a substantial impact on manufacturing cost. However, there is only a small number of
343 such organizations in PK that realize this aspect. One consultant explained that buyer organizations
344 force manufacturers to reduce their operational costs by implementing lean practices which can result
345 in a substantial decrease in per-unit cost. Similarly, P2 LSS underscored cost reduction as a lean driver
346 for both local and export manufacturing firms in PK, especially operating in the apparel sector. These
347 local branded organizations have become quite large and their sales revenues have increased. However,
348 they are still not making money because their cost of production is high. Therefore, these kinds of
349 companies want to use the lean processes to reduce their operational costs to become more efficient and
350 compete with international brands. P1 Enviro explained that cost is also a substantial driver for six
351 sigma. “If a pesticide organization is filling a bag with a surplus of one hundred grams due to process
352 discrepancies, it will increase the cost. Therefore, those manufacturers that understand the concept of
353 cost incurrence associated with the process variation apply six sigma in their organizations”.
354 Consultants pointed out waste reduction including air emissions and effluent discharges as definite
355 operational reasons for a GLSS strategy. According to P1 Enviro, “the driver normally would be a
356 reduction in the environmental footprint. So, it could be water, it could be hazardous chemicals, or it
357 could be gaseous emissions”. Organizations also focus on minimizing various operational wastes in
358 production, transportation, and warehousing by considering lean mudas (wastes or inefficiencies) which
359 have an impact on environmental performance. For example, an organization may use mechanized
360 vehicles for transportation if the travel distances are large. Reducing travel distances with better
361 transportation systems can improve air emissions and energy usage, explained P1 Enviro. P1 Enviro
362 further emphasized the use of six sigma for reducing air emissions with an example: “six sigma
363 practices such as cause-effect analysis is being used to identify the reasons for carbon monoxide
364 emissions from the exhaust of a boiler”.
365 The findings suggest process control as one of the key operational GLSS drivers. Achieving process
366 control through green practices is highlighted as a major reason for implementing the energy
367 management system ISO 50001, which focuses on energy performance through process optimization.
368 It evaluates the energy indicators by assessing energy data to determine the causes of process variation
369 as explained by P2 Enviro. Reducing process variation is a significant driving force for implementing
370 six sigma. The consultants include variance analysis as part of the environmental performance
371 indicators in the realization that variation in processes could negatively affect environmental
372 sustainability. P2 LSS cited the examples of Pakistan Tobacco Company and Philip Morris, who have
373 commonly implemented six sigma to solve critical problems in their processes. Their industrial
374 engineers are trained in using six sigma in manufacturing operations. These companies have also
375 provided statistical training to their employees to handle large amounts of data to solve complex
376 problems and develop data visualization.
377 Environmental awareness in manufacturers is regarded as an organizational GLSS driver to
378 implement green initiatives, which was conveyed by one LSS and one environmental consultant.
379 Corporate policies towards environmental sustainability force organizations to implement green
380 practices; however, few organizations have included corporate social responsibility (CSR) in their
381 business models as explained by P2 Enviro. The export-oriented manufacturing organizations in PK are
382 conscious of the environmental aspects while implementing lean initiatives as compared to those

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383 organizations that only have local customers. P1 Enviro indicated that environmental awareness is used
384 as a potential reason for six sigma implementations by consultants though manufacturing organizations
385 do not consider it as a driver, but rather a process variation control tool.
386 The results have further highlighted that manufacturing organizations are using green-lean-six sigma
387 practices to increase the recycling levels. P1 LSS explained that sugar manufacturers in PK now recycle
388 the by-products of sugarcane to generate energy. Additionally, manufacturing organizations in Karachi
389 are generally recycling their wastewater and reusing it in processes as compared to manufacturing firms
390 in Lahore. This difference is attributed to the scarcity of freshwater facilities for manufacturing firms
391 in Karachi as compared to Lahore, which forces manufacturers (in Karachi) to recycle wastewater.
392 Further, the export-oriented companies generally address this aspect more stringently as compared to
393 the local ones. Most of the export-oriented companies in PK are adopting a green strategy for
394 wastewater recycling. P1 Enviro further elaborated on the use of lean and six sigma in the waste
395 recycling process: “organizations are applying six sigma for treatment of wastewater by reducing
396 variation in water quality parameters such as chemical oxygen demand (COD)”.
397 4.3 External drivers – regulatory, society-oriented, and market-oriented (New Zealand perspective)
398 Among the external GLSS drivers, regulatory requirements for environmental performance have a
399 significant impact on adopting green practices in NZ as they force manufacturers to reduce their
400 environmental waste such as air pollution and solid waste. According to N2 Enviro, “there are
401 government policies for environmental performance including carbon footprint and health and safety
402 in NZ”. N2 Enviro further explained that manufacturing organizations in NZ are required to procure an
403 industrial and trade activities permit from the council regarding their environmental waste such as air
404 emissions and effluent discharges. Similarly, N1 Enviro noted environmental regulations such as carbon
405 taxes as a driver for green manufacturing. As an example, N1 Enviro explained that the Resource
406 Management Act (RMA, 1991) in NZ follows international patterns of assigning liability to
407 manufacturing firms in cases of environmental deterioration. According to the RMA, everyone is
408 responsible for saving the environment and effectively handling the environmental impacts of their
409 associated activities. Government policies play a critical role in the execution of green strategy as
410 compared to lean and six sigma, which is evident from the remarks of the environmental expert N1
411 Enviro: “it is obvious, the government policies, regulations, and guidelines will probably drive more of
412 the environmental green strategy than they will drive a lean or six sigma”. However, regulatory
413 requirements are highlighted as an important GLSS driver. N1 Enviro further stressed the regulatory
414 requirements as a possible reason for implementing six sigma as it enables organizations in controlling
415 manufacturing processes to achieve legal obligations (e.g., air emissions and effluent discharges in the
416 dairy industry) through practices such as control charts and design of experiments.
417 Public pressure is recognized as a society-oriented driver for manufacturing organizations in NZ to
418 initiate green activities. N1 Enviro explained that these organizations consider environmental
419 sustainability strategies since they face substantial public pressure and need to have some environmental
420 practices in place because of that. For example, Silver Fern has a visible “Sustainable Chain of Care”
421 programme that includes financial, environmental, and social sustainability aspects. Their
422 environmental sustainability practices include recycling initiatives, sustainable procurement, zero
423 biological waste, wastewater treatment plants, and an environmental management system. Along with
424 the public pressure, the local development bodies are also encouraging companies to incorporate green
425 strategies such as the circular economy in their operations. The NZ Product Stewardship Council
426 (NZPSC) facilitates government, industry, and community towards evaluation and execution of product
427 stewardship and related regulation. Similarly, Plastics NZ, the industry association for the New Zealand
428 plastics industry, works closely with its members to educate the public about plastic pollution in the
429 environment. They aim to produce plastics in a sustainable manner and promote the recovery, reuse,
430 and recycling of plastics.
431 All environmental and LSS consultants suggested various market-oriented drivers such as customer
432 pressure for environmentally friendly products is driving manufacturing organizations in NZ to
433 implement GLSS practices. N2 Enviro emphasized that customers are the key stakeholders in any
434 business, and they are keen to know about an organization’s environmental credentials, green practices,
435 and environmental performance. Likewise, N2 LSS asserted that consumer preferences are moving
436 towards selecting eco-friendly products. Customers now expect that organizations have implemented

9
437 some kind of efficiency programme like lean and six sigma towards supplying quality products at a
438 reasonable price. Additionally, N1 LSS stressed customer value as the driver for green-lean-six sigma
439 and regarded it as a “forward thinking and proactive approach”.
440 According to N2 LSS, competitiveness is not a significant driving force for organizations in NZ due
441 to a limited number of manufacturing firms in a particular area and having high profitability. However,
442 N1 Enviro emphasized that manufacturers in NZ are now becoming conscious of achieving
443 competitiveness by adopting a green strategy, which has now become an emerging driver. The findings
444 further revealed company image as one of the key drivers for green-lean-six sigma adoption in NZ.
445 According to N1 LSS, dairy farmers continuously implement ecological practices to maintain their
446 green image and avoid negative environmental impacts. Improving their corporate green image allows
447 manufacturing firms in NZ to also address environmental regulatory requirements. Similarly, N2 Enviro
448 emphasized that a positive company image of an organization assures its stakeholders that the
449 organization is working on fulfilling their demands, achieving a branding benefit. However, N2 LSS
450 stated, “my perception is that the company does not worry much about the environment but the impact
451 that can cause the company if they do not follow the regulations”. N2 Enviro further explained that
452 businesses can become more “marketable and valuable” with lean implementation, especially for small
453 and medium firms, as every operation is visible through process mapping. Thus, the entire operations
454 can be easily understood by new staff or management and chances of errors are reduced. Furthermore,
455 organizations utilize their positive image for commercialization as well. Companies want to improve
456 and maintain their image to gain trust and recognition from customers, which is also strongly associated
457 with six sigma, as explained by N2 Enviro. According to N2 Enviro, six sigma is seen to be quite an
458 achievement as it carries kudos with it. “Six sigma is like ISO 14001 these days and it can be a struggle
459 for some organizations. Therefore, six sigma has a significant branding benefit as it promotes and
460 increases a company’s image”.
461 4.4 External drivers – regulatory, society-oriented, and market-oriented (Pakistan perspective)
462 The consultants highlighted several regulatory drivers, society-oriented drivers, and market-oriented
463 drivers for GLSS adoption in Pakistan. International environmental regulations force export-oriented
464 manufacturers in PK to embrace green practices, as clarified by P2 LSS. For example, the European
465 Union has certain environmental regulations, which must be fulfilled by any supplier supplying to
466 Europe. The local government regulations in PK are not strict compared to the international regulatory
467 requirements, which is why minimizing environmental fines and conforming to legal obligations is not
468 a priority for PK firms as per P1 Enviro. Further, the local environmental regulations vary between
469 different regions of PK where organizations may need to comply with obligations due to penalties. In
470 some industrial areas, government inspectors regularly visit and measure the wastewater load and
471 wastewater quality in manufacturing organizations and may penalize them in cases of non-compliance.
472 Additionally, P2 LSS highlighted that several environmental initiatives have been taken by the new PK
473 government such as installing water treatment plants at different industrial sites of export-oriented
474 organizations. The findings reveal that the PK government is actively implementing environmental
475 programmes to better improve the water footprint of manufacturing firms as compared to other
476 environmental wastes such as air pollution.
477 Public pressure is found to be an emerging society-oriented driver for green manufacturing in PK.
478 One environmental consultant explained that there are organizations like “Fixit” who are working
479 towards creating environmental awareness in the public. Certain manufacturing organizations are being
480 forced to follow environmental practices in city outskirt areas where public pressure is high as a result
481 of industrial wastes discharged from these organizations belonging to industries such as leather and
482 paper and pulp. The findings also highlight that various international development organizations are
483 forcing manufacturing companies in Pakistan to adopt a GLSS strategy. Different donor organizations
484 and development cooperation organizations are enthusiastically working in PK on various projects in
485 green productivity, chemicals management, and green efficiency, and are trying to convince
486 manufacturers to implement green, lean, and six sigma. For example, the United Nations Industrial
487 Development Organization (UNIDO), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ),
488 and Japan International Cooperation Agency (JICA) have various green-lean, lean-six sigma, and green-
489 lean-six sigma projects in different industry sectors of PK such as textile, automotive parts
490 manufacturing, and engineering.

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491 Among the market-oriented drivers, customer influence is found to be one of the main drivers of
492 GLSS practices in PK as emphasized by environmental and LSS consultants. However, it is viewed as
493 a major driver for export organizations specifically because they need to comply with their international
494 customers’ requirements of having environmental certifications such as ISO 14001. The buyers from
495 PK exporting companies insist on adherence to international environmental standards in reducing their
496 carbon footprints and water footprints. The international customers also seek social compliance from
497 manufacturers. P1 LSS cited an example that Nike’s suppliers in Pakistan are required to follow the
498 CSR policies of Nike which focus on environmental safety in the manufacturing plants and training
499 programmes for workers to educate them regarding Nike’s codes of conduct. CSR audits are conducted
500 by Nike’s agent in Pakistan to verify compliance. Customer influence is also recognized as a driver for
501 the lean strategy. For example, if a PK organization is a supplier to a Japanese car manufacturer, then
502 it is necessary for the company to follow lean practices because every year they may be audited by the
503 Japanese firm on their lean implementation. P2 Enviro further explained that customer pressure is a
504 relevant factor in six sigma adoption as well, since customers drive an organization to meet their
505 demands and force an organization to produce quality products with minimum variation.
506 The consultants further suggest competitor pressure as a driver for compelling PK manufacturing
507 organizations to adopt a GLSS strategy. P2 LSS explained that manufacturers have realized that they
508 will not be able to compete with global companies without implementing GLSS practices. For instance,
509 Interloop – one of the largest hosiery manufacturing companies − is taking up environmental initiatives
510 due to global competition. Additionally, manufacturing firms in Pakistan are implementing GLSS
511 practices for improving their company’s image and using it for advertising purposes. P1 Enviro
512 elucidated that organizations who implement green tools for increasing environmental performance
513 publicize their green projects by breaking them down into mini projects. By doing this, they want to
514 show their customers that they are working on different environmental improvement initiatives such as
515 energy consumption, chemicals management, and air emissions rather than only one green project.
516 Moreover, P2 LSS emphasized corporate green image as a driver for export-oriented organizations as
517 they needed to comply with international regulatory obligations. However, according to P1 LSS, the
518 green image of a company is not a reality but is just a “façade” because most of the multinationals in
519 some ways are destroying the environment with their products (e.g., cigarette manufacturers) and on
520 the other hand they say, “oh, we are just putting some trees on. We are spending money on planting
521 trees”.
522 P2 Enviro emphasized that manufacturing organizations want to maintain a positive company image
523 for their immediate clients instead of the end consumer. For example, if an organization is producing
524 auto parts for Honda and Toyota it will implement lean and six sigma to build its image for the client
525 companies as the end user is “least bothered”. According to P1 Enviro “Interloop is implementing six
526 sigma, and sometimes the company hires very expensive European consultants for conducting six sigma
527 projects. The CEO of this company occasionally talks about six sigma programmes through press and
528 media, thereby, utilizing it for marketing purposes”. Table 2 and Table 3 present the internal and
529 external GLSS drivers answering the first research question from New Zealand and Pakistan
530 perspectives.
531 *** Insert Table 2 about here***
532 *** Insert Table 3 about here***
533 5. Discussion
534 This study examines and compares the green-lean-six sigma drivers for manufacturing organizations
535 from NZ and PK through an empirical investigation with LSS and environmental consultants from these
536 countries. Drawing on the natural-resource-based view and institutional theory, we have developed a
537 framework of GLSS drivers for environmental management based on the findings under internal and
538 external driver categories. We argue that process control and waste reduction (pollution prevention),
539 resource circulation and cost reduction (product stewardship), and continuous improvement and
540 environmental awareness (sustainable development) are the internal operational and organizational
541 drivers from a NRBV perspective. The external drivers including government policies and customer
542 influence (coercive isomorphisms), competitor pressure (mimetic isomorphisms), and public pressure,
543 company image, and development organizations (normative isomorphisms) are identified as the

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544 regulatory, society and market-oriented drivers from an institutional theory perspective. Figure 2
545 presents the natural resource and institutional theory-based view of GLSS drivers for environmental
546 management.
547 *** Insert Figure 2 about here***
548 Building on the natural-resource-based view, the findings highlighted operational and environmental
549 waste reduction as green-lean-six sigma drivers for manufacturing organizations in both NZ and PK.
550 However, manufacturing organizations in NZ are adopting green-lean-six sigma strategies to reduce
551 waste and air emissions to prevent pollution and maintain a clean green image. On the other hand,
552 manufacturing organizations in PK are implementing green-lean-six sigma methods to reduce
553 operational and environmental waste due to increasing pollution and climate change concerns in
554 developing countries which aligns with the study results of Masron and Subramaniam (2018). Further,
555 manufacturing organizations in Pakistan are adopting a GLSS strategy to reduce their operational costs
556 whereas manufacturers in New Zealand implement this to reduce their environmental costs from fines
557 and penalties. The analysis highlights that overall, manufacturing firms in New Zealand are
558 implementing GLSS to follow closed-loop practices, which showcases the environmental commitment
559 and responsibility in developed nations (Agyemang et al., 2019). On the other hand, recycling is an
560 emerging driver of GLSS adoption in manufacturing organizations of Pakistan and varies in different
561 regions of the country, which is also aligned with the study results of Agyemang et al. (2019). This
562 difference may be associated with the recognition of product stewardship aspects, resource conservation
563 for future use, and government regulations in NZ. However, in PK, resource deficiency issues such as
564 water scarcity and energy crises have compelled manufacturers in certain areas to manage resources
565 through recycling.
566 Drawing on the institutional theory-based view, coercive pressures by the government to drive
567 environmentally responsible practices are quite stringent in NZ and manufacturing organizations
568 regularly follow the environmental guidelines. This finding confirms the result of a study conducted by
569 Govindan et al. (2015) in which strict environmental regulations in developed countries drive
570 manufacturing organizations to implement green practices. However, the government requirements for
571 environmental performance are not strict in PK and therefore, manufacturing organizations do not
572 generally consider the environmental aspects in their manufacturing operations. This finding resonates
573 with the findings of Hussain et al. (2019) and Zhang and Yang (2016) who pointed out similar issues
574 in the developing world context. Due to the lack of environmental regulations in developing countries
575 like PK, international companies can easily operate their business operations in a low cost and low
576 legislation environment. However, international environmental regulations force export-oriented
577 manufacturers in PK to embrace green and lean practices. This can be attributed to the regulations in
578 developed countries that have caused an increase in institutional pressures for achieving environmental
579 sustainability by organizations in developing countries. This is in alignment with, for example, the
580 European Community Directive on Waste Electrical and Electronic Equipment (WEEE) which compels
581 export-oriented electrical and electronic component manufacturers in developing countries to take back
582 used products or pay premiums (Sarkis et al., 2011; Yu et al., 2006).
583 Public pressure is found to be a significant driver in NZ since most people are aware of ecological
584 aspects. In contrast, public pressure is not considered a strong driver by PK consultants; however, it can
585 be a driver for those organizations operating in residential areas. This variance can also be related to a
586 lack of understanding and awareness among the general public regarding the environmental issues and
587 the importance of green aspects in developing countries, which is also consistent with the study results
588 of Gandhi et al. (2018) and Rehman and Shrivastava (2013). Furthermore, government and local
589 development bodies in New Zealand promote GLSS practices in manufacturing firms whereas
590 international development organizations support and drive GLSS in Pakistan.
591 The findings suggest that both end consumer or client/customer organizations (local and
592 international) can drive the manufacturers in NZ towards environmentally responsible practices.
593 Conversely, the participant views from PK regard the international customer organizations as the driver
594 of GLSS in the country. This difference can be attributed to an increased environmental awareness
595 among consumers in developed countries (Sarkis et al., 2011). Further, international customers require

12
596 certifications (e.g., ISO 14001, ISO 9001, and ISO 50001) from manufacturers in PK and insist on
597 achieving social compliance along with environmental requirements. This pressure might be the result
598 of the lack of legal requirements in PK, which is also suggested as a reason for developing countries by
599 Seuring and Müller (2008) where such legal requirements either do not exist or are not enforced. On
600 the other hand, NZ has a good reputation of implementing world class business practices, which
601 alleviate the customers’ requirements for certifications. While competitiveness plays a significant role
602 in encouraging organizations in developed countries to implement environmental practices (Aerts et al.,
603 2006), the findings reveal that it is not a strong driver of green-lean-six sigma in NZ due to the lower
604 number of manufacturing firms operating, while also having high profit margins. In contrast,
605 organizations in PK are forced to implement green-lean-six sigma due to competitive pressure, which
606 can be associated with the benefits of globalization that has created opportunities for manufacturers in
607 developing countries to learn from foreign competitors in implementing environmental practices
608 (Christmann & Taylor, 2001; Sarkis et al., 2011). Company image is regarded as a GLSS driver for
609 organizations in Pakistan to maintain their reputation in the international market. Conversely,
610 consultants from NZ considered company image as a reason for green-lean-six sigma adoption due to
611 stringent environmental legislation.
612 The above discussion highlights the varying reasons for GLSS adoption in manufacturing
613 organizations in New Zealand and Pakistan, answering the second research question of this study. Table
614 4 presents the key differences in green-lean-six sigma drivers between NZ and PK.
615 *** Insert Table 4 about here***
616 6. Theoretical and practical implications
617 The current study has significant theoretical and practical implications. From a theoretical perspective,
618 this paper builds on institutional theory and the natural-resource-based view to examine the GLSS
619 drivers for environmental management and provides timely theoretically enriched insights regarding
620 GLSS implementation. Using the NRBV and institutional theory perspectives, this research contributes
621 to literature on the internal and external green-lean-six sigma drivers for environmental management,
622 which are rarely examined in other studies. Since there is a lack of comparative studies in this domain,
623 this study further contributes by identifying the possible reasons for GLSS adoption in developed and
624 developing country contexts.
625 From a practical perspective, this study provides the manufacturers, practitioners, policymakers, and
626 consultants with valuable insights regarding GLSS strategy adoption. First, the study offers an
627 opportunity for practitioners to examine the contextual factors from NRBV and institutional
628 perspectives while implementing the GLSS strategy for achieving environmental performance. By
629 doing this, industrial practitioners can carefully decide how to invest resources and efforts in the GLSS
630 practices. Further, this study can facilitate the industrial practitioners in both regions to consider the
631 local values, social aspects, and regulations to guide them in initiating GLSS practices and making
632 appropriate decisions. Second, this study offers implications for policymakers, especially those in
633 developing countries, to formulate effective environmental laws and policies for manufacturing
634 organizations that enable them to reduce negative environmental impacts and promote a green image.
635 Third, the study has significant implications for consultants from both countries in advising
636 manufacturing organizations to implement a GLSS strategy that can address both their operational and
637 environmental concerns. Building on the current findings, the consultants can recommend the
638 manufacturing organizations a mix of green-lean-six sigma practices such as environmental
639 management systems (ISO 14001), value stream mapping, statistical process control, energy
640 management systems (ISO 50001), designs for the environment, and life cycle analysis for
641 environmental management. Since the consultants specialize in conducting various LSS and
642 environmental projects in both discrete and process industries, they can also facilitate policymakers to
643 develop environmental policies according to the processes and operational requirements of
644 manufacturing organizations. For example, the consultants can assist policymakers in articulating
645 environmental policies for managing the operational and environmental waste in the paper and pulp
646 industry such as greenhouse gas emissions, wastewater discharge, and solid waste. To summarize,
647 consultants can play an intermediary role between manufacturers and policymakers for cross-sectoral
648 collaboration in improving environmental performance.

13
649 7. Concluding remarks, limitations, and future works
650 Green-lean-six sigma is considered as a merger of green, lean, and six sigma strategies striving to
651 improve environmental performance. There have been research studies related to GLSS adoption in
652 manufacturing organizations. However, to the best of our knowledge, none of the prior studies have
653 integrated organizational theories with the internal and external GLSS drivers and conducted a
654 comparative study. Hence, the institutional and natural-resource-based theoretical lens for examining
655 GLSS drivers with a comparison between developed and developing nations is a significant contribution
656 in this domain.
657 The findings highlight that waste and emission reduction (operational drivers) and general
658 environmental awareness and resource circulation (organizational drivers) are the key internal drivers
659 and government pressure (regulatory drivers), public pressure (society-oriented driver), and customer
660 influence (market-oriented driver) are the key external drivers of GLSS adoption in New Zealand. On
661 the other hand, waste and emission reduction, cost reduction, and process control (operational drivers)
662 are the key internal drivers and international customer influence, and competitive pressure (market-
663 oriented drivers) are the key external drivers of GLSS adoption in Pakistan. The findings provide fresh
664 insights into the GLSS drivers for manufacturing organizations in developed and developing country
665 contexts. The key differences between the two countries highlight that the internal organizational
666 drivers are mainly compelling manufacturers in NZ to adopt green-lean-six sigma strategy whereas
667 internal operational drivers are particularly driving PK manufacturing organizations to implement
668 green-lean-six sigma strategy. Further, the external drivers including regulatory, society and market-
669 oriented factors compel NZ manufacturing firms to adopt green-lean-six sigma strategy whereas the
670 external drivers comprising market-oriented factors mainly drive PK manufacturing organizations to
671 implement green-lean-six sigma strategy.
672 The results of this study are discussed in depth, providing useful insights for academics and industry
673 professionals on the analysis of the drivers that compel manufacturing organizations to adopt GLSS.
674 Further, this study can be considered as one of the pioneering comparative studies for exploring and
675 analyzing the GLSS drivers between a developed and a developing country. The results of this study
676 can be used as a benchmark for future comparative studies conducted in other countries.
677 This research has a few limitations. The current research was primarily conducted with LSS and
678 environmental experts having experience in the manufacturing sector, therefore the GLSS drivers could
679 be different in other sectors like healthcare, service, and education. Further, this study is conducted with
680 consultants from NZ and PK; the drivers may vary from country to country due to differences in cultural
681 and social values, working conditions, and legislative requirements. Since this research is built on
682 institutional and natural-resource-based view theories, the use of other relevant theories can be explored
683 to bring new insights. Moreover, this study can be further extended by evaluating the interaction among
684 the GLSS drivers using modelling techniques such as structural equation modelling and analytical
685 hierarchy processes.
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1003
1004
1005
1006
1007
1008
1009
1010

20
1011 Tables
1012 Table 1: Interview participants from New Zealand and Pakistan
1013
New Zealand participants Pakistan participants

Consultants’ Type of Job title Years of Consultants’ Type of Job title Years of
codes expertise experience codes expertise experience

N1 LSS Lean six sigma Principal advisor 20 P1 LSS Lean six sigma Chief executive 17
officer
N2 LSS Lean six sigma Associate supplier 3 P2 LSS Lean six sigma Managing director 8
quality engineer
N1 Enviro Environmental Chief executive officer 3 P1 Enviro Environmental Executive director 8

N2 Enviro Environmental Senior environmental 15 P2 Enviro Environmental Chief executive 14

advisor officer

1014

1015

1016

1017

1018

1019

1020

1021

1022

1023

1024

1025

1026

1027

1028

1029

1030

1031

1032

1033

1034

1035

21
1036 Table 2: Green-lean-six sigma drivers from New Zealand consultants

GLSS drivers Categories Sub-categories Illustrative quotes from New Zealand consultants
Internal Operational Cost reduction Basically, one of the main reasons to implement green is because manufacturing organizations
drivers drivers try to reduce their cost and bring in tax benefits. N2 LSS
Process control There are plenty of businesses in NZ that are not involved in mass production, and it is difficult
for them to control any variables. Nevertheless, they are still controlling their processes
through work standardization. N1 LSS
Waste reduction Having less rework and scrap are the main drivers for the majority of the businesses that we
are working with. N2 Enviro
Organizational Continuous Organizations need to continuously improve their business models due to changing
drivers improvement circumstances, customers’ preferences, emerging regulations, and competitors’ strategies. N1
LSS
Resource The manufacturers plan for various aspects of product stewardship such as what will they do
circulation with the products at the end of life. N1 Enviro
Environmental There are organizations whose owners are very environmentally conscious. So, we call those
awareness early adopters. They have a champion in their organizations who has authority and who
believes it is the right thing to do and so they drive it within their organization. N2 Enviro
External Regulatory Environmental There are going to be taxes and regulations. For example, in the plastic industry,
drivers drivers regulations manufacturers can see the government pressure on plastic. Therefore, they know that they have
to do something around their packaging as the cost of compliance is increasing. N1 Enviro
Public pressure Large companies like Silver Fern, Toms and Gallagher have got quite a big public presence
and they need to have some sustainability things in place. N1 Enviro
Society-oriented Development A group called “Rata” is promoting social sustainability through scientific and ecological
drivers organizations literacy programmes and involving the community in environmental decision making. N1
Enviro
Customer Many customers in NZ choose their product or service from the companies that are awarded
influence in environmental sustainability, the driver over here is the customer”. N2 LSS
Company Six sigma has a little bit more global awareness than lean does or perhaps not global
image awareness, maybe it is better attainment by manufacturers. So, to be recognized by other
Market-oriented manufacturers and clients, it adds trust in that manufacturer. So, that level of added trust of
drivers the manufacturer probably is a stronger driver for six sigma than is for lean. N2 Enviro
Competitor Seen a couple of things, seen that it is going to become a competitive advantage. So, we have
pressure got a client who can say that they are carbon neutral all across. Environmental credibility is
one thing that I am starting to see emerging. N1 Enviro

1037

1038

1039

1040

1041

1042

1043

1044

1045

1046

1047

1048

1049

1050

1051

1052

22
1053 Table 3: Green-lean-six sigma drivers from Pakistan consultants

GLSS drivers Categories Sub-categories Illustrative quotes from Pakistan consultants

Internal Operational Cost reduction When the volume is huge, even pennies mean a lot. For example, if you are exporting 100
drivers drivers million dollars’ worth of products, even a penny of that is huge. The main driver would be cost.
P1 LSS
Process control Six sigma enables the organizations to deliver their products with least variation and maintain
the product quality throughout the manufacturing processes as per customers’ specification
limits. P2 LSS
Waste reduction Manufacturing organizations in different industrial sectors such as apparel and dye houses are
using lean practices to remove the hazardous wastes such as cutting fluid, metal cations
(chromium, cobalt, and copper), metal dust, and oil mist. P2 LSS
Organizational Resource We are producing large poly bags to pack fabric rolls, which costs Rs. 20 per poly bag. We
drivers circulation transport the fabric rolls to dye houses and then bring back those poly bags and reutilize. P2
LSS
Environmental Companies like Engro have adopted green strategy due to their corporate policies according
awareness to which they implement environmentally sustainable practices to save environment and society
from the harsh impact of environmental issues. P2 Enviro
External Regulatory Environmental There are local laws which have started to get implemented in some areas to some extent and
drivers driver regulations the organizations have to fulfil those otherwise they could face penalties. P1 Enviro
Public pressure In PK, it is not right now but in certain areas where organizations are located in those outskirts
areas where people are having agricultural issues and the wastewater is coming from the
organizations. In those areas, public pressure is coming up from, like, villages. P2 LSS
Development I was working on a project in which six areas of improvement have been included such as
Society-oriented organizations energy efficiency, wastewater reduction, quality improvement, chemicals management, process
drivers improvement, and resource efficient management system of an organization. All these six areas
are combined under the resource efficiency programme initiated by International Finance
Corporation in PK. P1 Enviro
Customer I remember, buyers have prompted Sitara Chemicals for ISO 14000 certification. P1 LSS
influence
Market-oriented Company image There is a second type of organization who are not yet exporting but they want to market
drivers themselves as green companies or environmentally responsible companies and then they go for
these kinds of initiatives. P1 Enviro
Competitor Being Nike’s vendors in PK, Style Textile, Interloop, and Silver Star have to compete with other
pressure vendors in the world. P2 LSS
1054
1055
1056
1057
1058
1059
1060
1061
1062
1063
1064
1065
1066
1067
1068
1069
1070
1071
1072
1073
1074
1075

23
1076
1077 Table 4: Key differences of green-lean-six sigma drivers between New Zealand and Pakistan
Key differences
GLSS drivers Categories New Zealand Pakistan
Internal Operational Cost reduction drives manufacturing organizations to Cost reduction drives manufacturing organizations to
drivers drivers implement GLSS with a major focus on environmental implement GLSS with a major focus on operational costs.
costs.
Process control is a driver through use of lean and six Process control is a major driver through use of green and
sigma practices such as work standardization and six sigma practices such as ISO 50001 and control charts.
control charts.
Organizational Environmental awareness is a key driver due to Environmental awareness is a driver for a few large
drivers environmental commitment and organizational norms manufacturing firms that are environmentally conscious
set by manufacturing firms irrespective of their size and have included environmental sustainability aspects in
(i.e., owners of both large and small-to-medium sized their organizational policies.
organizations are environmentally conscious)
Resource circulation is a significant driver and Resource circulation is an emerging driver of GLSS
manufacturing companies are trying to incorporate the adoption in manufacturing organizations and varies in
closed-loop cycle in their operations. different regions of the country
External Regulatory Environmental regulations by the government are Environmental regulations by the government are not
drivers drivers stringent and manufacturing organizations regularly stringent and vary in different regions of the country.
follow the environmental guidelines. However, international environmental regulations are
followed by manufacturing companies.
Society-oriented Public pressure is a significant driver since most of the Public pressure is not a driver due to the lack of
drivers public is aware of ecological aspects. environmental awareness among the public.
Both government and local development bodies are International development organizations are supporting
encouraging companies to incorporate GLSS the implementation of the GLSS strategy.
practices.
Market-oriented Both client organizations and end consumers drive Only client organizations (international customers)
drivers manufacturers to implement green practices. require manufacturers to implement green strategy.
Competitiveness is not found to be a strong driver of Competitiveness is regarded as a strong driver of GLSS
GLSS due to high profit margins and a limited number due to global competition.
of companies.
Company image is a reason for GLSS adoption due to Company image is regarded as a driver for organizations
stringent environmental legislation. to maintain their reputation in the international market.

1078

24
 Figures

Green-lean-six sigma
drivers

Internal External
drivers drivers

Natural-resource-based view Institutional theory

- Pollution prevention - Coercive isomorphism

- Product stewardship - Mimetic isomorphisms
- Sustainable development - Normative isomorphisms

Figure 1: A theoretical framework of GLSS drivers

25
 Green-lean-six sigma drivers

Internal drivers External drivers

Operational drivers Organizational drivers Regulatory Market-oriented Society-oriented

drivers drivers drivers
Waste reduction

Cost reduction
Process control

Environmental

Company image
improvement

Public pressure
Continuous
circulation

Government

organizations
Development
awareness
Resource

Competitor
Customer
pressure

influence

pressure
development

isomorphisms
Sustainable
prevention

isomorphisms

isomorphisms
stewardship
Pollution

Normative
Coercive
Product

Mimetic

Natural-resource-based view Institutional theory-based view

Figure 2: A natural-resource-based and institutional theory-based view of GLSS drivers

26

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