Green Lean : the effects of lean on environmental strategies in Swedish agricultural firms

University essay from SLU/Dept. of Economics

Abstract: Swedish agricultural firms are today facing high competitiveness from foreign producers and a decreasing profitability. Simultaneously, the agricultural sector are facing challenges regarding the impact generated from the production systems on the natural environment and especially emissions of greenhouse gases. Previous studies show that the implementation of Lean has led to both increased competitiveness and a reduced environmental impact due to a reduction of waste. In 2010 Lean Lantbruk was introduced within Swedish agriculture, where firms implement Lean during an 18 month period with the purpose of increasing the competitiveness of the firm through increased efficiency and profitability. The aim in this study is to examine whether Lean may contribute to a sustainable Swedish agriculture with long-term competitive agricultural firms. In order to achieve this aim, the following research question is asked: How does Lean affect strategies concerning climate efficiency within Swedish agricultural firms? Green Strategies in SMEs (small and medium sized enterprises) is used as the main theory. Empirical data has been gathered through semi-structured in-depth interviews with the manager at 16 agricultural firms in Västra Götaland, Sweden. The sample consist of 8 firms that have implemented Lean and 8 reference firms. The result show that the farms that have implemented Lean have more well-developed routines in the production system compared to the reference farms, implicating that the companies that uses Lean also has been observed to use an Eco-efficiency strategy to a greater extent i.e. reducing environmental impact through increased efficiency. The reduced impact on the environment should however be viewed as a spill-over effect of Lean rather than a purpose within itself, which is in line with previous research. Finally, some suggestions of future research are made for regarding for example the perspective of employees.

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