Sustainability Through Operational Excellence: An Emerging Country Perspective

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sustainability

Article
Sustainability through Operational Excellence: An Emerging
Country Perspective
Rafael Henríquez-Machado 1,2 , Andrés Muñoz-Villamizar 2, * and Javier Santos 1

1 TECNUN, Escuela de Ingenieros, Universidad de Navarra, 20018 San Sebastián, Spain;


rhenriquezm@alumni.unav.es (R.H.-M.); jsantos@tecnun.es (J.S.)
2 School of Economic and Administrative Sciences, Universidad de La Sabana, 140013 Chia, Colombia
* Correspondence: andresmunvi@unisabana.edu.co

Abstract: Operational excellence is directly related to improving performance and efficiency in every
dimension of sustainability (i.e., economic, environmental and social). Consequently, companies are
implementing this initiative to remain competitive in their industries. Previous works measured
operational excellence in first-world companies. However, it is expected that the productivity
level in many companies from developing or emerging countries is far below the average level of
developed companies. In this context, the research objectives of this study are to (1) evaluate the
level of implementation of operational excellence, impacting the three dimensions of sustainability
simultaneously in some companies from the central-savanna region of Colombia; (2) compare their
implementation status with similar studies carried out in companies of developed countries. In order
to solve it, we first present an empirical assessment of operational excellence in that region using
semistructured interviews in 79 different companies. Then, we compare the obtained results with the

assessments available in the literature. Our results show that operational excellence performance
 in Colombian companies is lower than in developed companies in terms of economic performance
Citation: Henríquez-Machado, R.; by operations standards and continuous improvement schemes, environmental sustainability and
Muñoz-Villamizar, A.; Santos, J. social sustainability.
Sustainability through Operational
Excellence: An Emerging Country Keywords: sustainable development; sustainable manufacturing; operational excellence; semistruc-
Perspective. Sustainability 2021, 13, tured interview; emerging economies
3165. https://doi.org/10.3390/
su13063165

Academic Editor: Zied Ftiti 1. Introduction


It is widely accepted that the concept of operational excellence involves economic,
Received: 7 February 2021
Accepted: 11 March 2021
social and environment aspects [1,2]. From the economic point of view, operational excel-
Published: 13 March 2021
lence in a company can be measured by efficiency in operating costs, used in operations
and continuous improvement schemes. These schemes can be traditional and well-known,
Publisher’s Note: MDPI stays neutral
such as lean manufacturing or six-sigma, among others, or simply models developed for
with regard to jurisdictional claims in
each organization [3]. Waste reduction, pollution reductions, improving the efficiency
published maps and institutional affil- of processes, energy efficiency, emission reductions and others, represent environmental
iations. sustainability and social sustainability provides equitable opportunities, encourages diver-
sity, promotes occupational health and safety at work [4–6]. These are the three aspects of
sustainability according to operational excellence: economic sustainability, environmental
sustainability and social sustainability [7].
Copyright: © 2021 by the authors.
The term sustainability, from a company’s perspective, can be defined as an operations
Licensee MDPI, Basel, Switzerland.
strategy that simultaneously considers the economic, environmental, and social impact of
This article is an open access article
the processes executed by the organization [5,8]. Nowadays, this operations strategy is an
distributed under the terms and important requirement for companies due to established and also emerging environmental
conditions of the Creative Commons concerns, such as increasing consumer preference for environmentally friendly products,
Attribution (CC BY) license (https:// inflated energy costs and stricter legislation [6,9,10].
creativecommons.org/licenses/by/ Many companies in developed countries have already introduced operational ex-
4.0/). cellence schemes to achieve sustainability [11], as these schemes impact the three fun-

Sustainability 2021, 13, 3165. https://doi.org/10.3390/su13063165 https://www.mdpi.com/journal/sustainability


Sustainability 2021, 13, 3165 2 of 17

damental pillars (i.e., economic, environmental and social sustainability) [1,2,12]. Oper-
ational excellence consists of the continuous developments that companies employ to
attain a competitive edge (i.e., the best practices and efforts within their industries for
continuous improvement) [13].
Modern organizations in developed countries that work under operational excellence
seek to maximize benefits and in turn satisfy the needs of customers and other interested
parties, such as society and the environment. Many researchers have devoted considerable
attention to developing models of operational excellence [7,14–16]. Additionally, there
have been several studies, dating from before the 2000s [17–19].
Most studies of operational excellence initiatives have been carried out in developed
countries, where satisfactory implementation results are observed today [20]. However, in
developing countries, there is not much information to be found, and in current existing
information, the degree of implementation is still lower than in developed countries [21].
Consequently, companies from emerging markets need guidance on measuring and
evaluating the level of development for operational excellence schemes [11], thus opening
an exploration gap about the status in terms of operational excellence in companies from
these developing countries. The motivation of this study is to fill that gap by the research
about that status in some companies from different economic sectors, within a country
with an emerging economy. In the same way, make a comparison of these results with
similar studies carried out in companies that belong to developed countries, to observe if
the operational excellence status is coincident.
This study evaluates to what degree some companies in the central-savanna region of
Colombia (which includes Bogotá) are working in terms of operational excellence, impact-
ing the three aforementioned pillars—economic, environmental and social—simultaneously.
In this context, we propose the following research questions:
• What is the degree of implementation of operational excellence in companies of
emerging countries impacting simultaneously the three dimensions of sustainability?
• What is the operational excellence implementation status in emerging countries com-
pared with similar studies carried out in companies of developed countries?
To that end, there were invited up to 125 companies of different sectors and sizes to
participate in a semistructured interview for this study. These companies were selected
using a nonprobability sample for convenience, taking into account its geographical prox-
imity. Finally, 79 companies from 11 different sectors and sizes accepted to participate in
this research. The results were used to compare the work done in terms of operational
excellence carried out in companies in developed countries. In this way, the analysis of
the survey results not only estimates the number of companies that work under complete
operational excellence schemes in the Colombian region under study, but also makes it
possible to compare these companies to companies in developed countries.
The organization of the paper is as follows. The literature review is presented in
Section 2, while the research method is presented in Section 3. The results and the compari-
son with companies in developed countries are presented in Section 4. Finally, the main
conclusions of this study and opportunities for further research are presented in Section 5.

2. Literature Review
In this section, the main objective is to understand the essence of what operational
excellence is and its relationship with sustainability. To do so, we present and explain in
depth the three fundamental concepts, namely economic sustainability, environmental
sustainability and social sustainability, from the perspective of operational excellence. Ad-
ditionally, as part of the study consists of comparing the results from first-world companies
against the results of the companies evaluated in our research, similar studies carried out
in first-world countries will be presented in this section.
2.1. Operational Excellence
In operational excellence, the word “operational” refers to the assembly an
bution of a product and to the accomplishment of a specific task, while “excellenc
Sustainability 2021, 13, 3165 to a goal that must be met and sustained in order to remain outstanding [22]. In a
3 of 17
operational excellence is directly related to improving performance and efficien
dimensions that the industry presents [2]. It is associated with both the operating
mance
2.1. (suchExcellence
Operational as measures of expense, quality, and resilience) and sustainable perfo
(such as dealing with individuals
In operational excellence, and resources
the word “operational” effectively
refers to support
to the assembly business exp
and distribu-
[23].of a product and to the accomplishment of a specific task, while “excellence” refers
tion
to a goalIn that
ordermust to beincrease
met and customer
sustained inworth,
order tooperational excellence
remain outstanding is addi-
[22]. In as concern
tion, operational excellence is directly related to improving performance and efficiency
manufacturing processes as it is with waste minimization, and it generates inte
in all dimensions that the industry presents [2]. It is associated with both the operating
between employees
performance and customers
(such as measures of expense, [12]. The
quality, andcorrect management
resilience) and sustainable of per-
operation
lence increases
formance operating
(such as dealing profits byand
with individuals ensuring
resourcesthat it is stable
effectively in the
to support production
business
which supports customers by offering them fair value for the products and serv
expansion) [23].
In order to increase customer worth, operational excellence is as concerned with
vided. In order to attain operational excellence toward sustainable practices in in
manufacturing processes as it is with waste minimization, and it generates interactions
all three
between sustainability
employees aspects—social,
and customers environmental,
[12]. The correct and economic—must
management of operational excellence be
[24]. operating profits by ensuring that it is stable in the production system, which
increases
supports The social aspect
customers of sustainable
by offering operational
them fair value excellence
for the products helps
and services to intensify
provided. In bus
pansion and stabilize the programs within it; industries operate to obtain econom
order to attain operational excellence toward sustainable practices in industries, all three
sustainability aspects—social, environmental, and economic—must be studied [24].
fits The
andsocial
generateaspectprofits. The economic
of sustainable operationalaspect of sustainable
excellence operational
helps to intensify businessexcellen
to ensure in a low way the economic profitability of the organization,
expansion and stabilize the programs within it; industries operate to obtain economic in such a w
sustainable
benefits operational
and generate profits. excellence
The economic can only
aspect of be achieved
sustainable if it generates
operational excellence an econo
pact, but this should not generate negative results for the environment and the
seeks to ensure in a low way the economic profitability of the organization, in such a way
that sustainable operational excellence can only be achieved if it generates an economic
The environmental aspect of operational excellence decisions that lead to negati
impact, but this should not generate negative results for the environment and the society.
ronmental
The environmentaloutcomes must
aspect of be eradicated,
operational even if such
excellence decisions decisions
that lead areenviron-
to negative highly profi
the industry
mental outcomes [1].
must be eradicated, even if such decisions are highly profitable for the
industry Figure 1 shows a sustainable operational excellence scheme according to [1
[1].
the Figure
three 1aforementioned aspects are the fundamental pillars, and are going t
shows a sustainable operational excellence scheme according to [1], where
the three aforementioned aspects are the fundamental pillars, and are going to be described
scribed
better better in
in Sections Sections
2.1.1–2.1.3 2.1.1., 2.1.2. and 2.1.3. below.
below.

FigureFigure 1. Sustainable
1. Sustainable model of excellence
model of operational operational
[1]. excellence [1].

2.1.1. Economic Sustainability in Operational Excellence


2.1.1. Economic
Economic Sustainability
sustainability is definedinasOperational
the ability of anExcellence
economic process to autoreplicate
Economic
itself, to sustainability
preserve its is defined and
ability of autoreplication as the ability of
to preserve its an economic
structure process to au
[25], which
means that for operational excellence, a sustainable economy is based on the correct use of
cate itself, to preserve its ability of autoreplication and to preserve its structure [25
the tools needed to enhance economic processes.
means that for
The steady operational
search for profit inexcellence,
the economic aenvironment
sustainable economy isasbased
of sustainability definedon
in the cor
of the tools
operational neededfocuses
excellence to enhance economic
on the correct use of processes.
tools including six sigma, which is used
to identify and rectify errors and eliminate defects from a process and improve the quality
of a manufacturing process [26]; lean manufacturing, which supports manufacturing
Sustainability 2021, 13, 3165 4 of 17

companies that constantly seek to improve in different areas, reduce production cost,
improve quality [27], reduce lead times [28], and increase flexibility [29]; balanced scorecard,
a carefully selected set of measures derived from an organizations strategy [30]; other tools
such as business process reengineering (BPR) and performance benchmarking.

2.1.2. Environmental Sustainability in Operational Excellence


Operational excellence is generally present in all business decisions that lie behind
the products produced and the services provided by companies. Product and service
manufacturing processes involve various tasks and activities, which have an impact on the
environment. Thus, for operational excellence to be sustainable, the actions and decisions
taken should consider the protection of the natural world [31].
Environmental sustainability is relevant for operational excellence because the idea is
also to conserve natural resources, human’s surroundings and overall ecosystems with-
out compromising human development goals [32]. Therefore, if the decisions regarding
operational excellence show very profitable results but cause negative impacts on the
environment, they will be discarded. All processes should be environmentally compliant,
unless they will not be sustainable in the long run. Many companies across the world have
struggled to cope with these challenges. Some companies now allocate a fund to support,
for instance, greenhouse gas reduction projects. The operational excellence models should
take this impact into account, otherwise they will result in failure [33].

2.1.3. Social Sustainability in Operational Excellence


Operational excellence also considers factors external to the organization, such as the
environment and society. Social sustainability reflects a broad set of basic human needs that
should be met without harming nature and its regenerative abilities over time [27]. Social
sustainability consists of identifying the positive and negative impacts of the company’s
operational excellence programs on society. Therefore, if operational excellence practices
can assist in social improvement, this may lead to opening or attracting new businesses
and sustaining the present collaborations [34].
Furthermore, social sustainability encourages diversity, provides equitable oppor-
tunities, promotes a one-sided connection within and outside the community, ensures a
good quality of life, and provides democratic processes and responsible and appropriate
governance structures [4]. In this way, operational excellence seeks to generate positive
impacts in all sectors involved in society [22].

2.2. Previous Studies on Operational Excellence in Companies from Developed Countries


Varieties of studies have been carried out to evaluate the performance of at least two of
the three aspects (economic, environmental and social) that make up operational excellence
using semistructured interviews. For example, the authors of [20] conducted a study in
Sweden through the Lowell Center for Sustainable Production (LCSP), that evaluated nine
principles of sustainable production, which refer to practices in product design (Principle
1), reduction and elimination of waste (Principle 2), polluting factors (Principles 3 and 4),
various aspects that involve workers (principles 5, 7 and 8) and economic factors (principles
6 and 9). In that study it is possible to find the three aspects of operational excellence.
The study, in which interviews were conducted in 12 companies from different sectors,
attempted to present empirical evidence of adherence to the LCSP sustainable production
principles through practices in the manufacturing sector [20]. The study was inspired
by the fact that manufacturers have become increasingly aware of the impacts of their
operations on what is called the triple bottom line: people, planet and profit. Added to
this is a growing pressure on companies to account for their consumption of resources and
what is known as the environmental footprint [8].
Similarly, the authors of [35] conducted semistructured interviews in 56 companies
from 16 different countries in the world, all considered to be industrialized and developed
countries. The study evaluates the relationship between environmental practices and
cifically analyzed: economic and environmental. In this study the authors show relevant
information on social practices that complement operational excellence [35]. The study
turns on two main research questions: what types of environmental management prac-
tices do these companies handle, and which of these informed environmental manage-
Sustainability 2021, 13, 3165 5 of 17
ment practices are associated with the short- and long-term financial performance of these
companies? Only listed companies from developed countries and which had data and
environmental reports published
their economic online
impact. In thiswere taken
case, two of theinto
threeaccount
pillars of in the study
operational [35]. were
excellence
Finally, a study performed in Spain, used semistructured interviews in 58 relevant
specifically analyzed: economic and environmental. In this study the authors show different
information on social practices that complement operational excellence [35]. The study
companies to discover how
turns on two manufacturing
main research questions: companies
what types carry out manufacturing
of environmental management and envi-
practices
ronmental practices do simultaneously,
these companies handle, taking and into
whichaccount that manufacturers
of these informed environmental have become
management
increasingly awarepractices
of the are
impacts
associatedof their
with theoperations
short- and on social,financial
long-term environmental
performanceand finan-
of these
companies? Only listed companies from developed countries and which had data and
cial aspects whichenvironmental
are the three fundamental
reports published onlinepillars
wereof operational
taken into accountexcellence [36]. In that
in the study [35].
study there is a contribution to the
Finally, a study current
performed in debate
Spain, used within the environmentally
semistructured friendly
interviews in 58 different
manufacturing literature that argues that companies with advanced manufacturingenvi-
companies to discover how manufacturing companies carry out manufacturing and prac-
ronmental practices simultaneously, taking into account that manufacturers have become
tices do not proactively engage
increasingly aware of with tactical
the impacts andoperations
of their strategic environmental
on social, environmentalmanagement
and financial
practices [36]. That paper allows us to see studies that have been
aspects which are the three fundamental pillars of operational excellence [36].carried out within
In thatthe
framework of at least studytwothereofisthe three pillars
a contribution to theof operational
current excellence
debate within and their results
the environmentally friendly in
manufacturing literature that argues that companies with advanced manufacturing prac-
developed countries. tices do not proactively engage with tactical and strategic environmental management
The methodology we[36].
practices followed
That paper to evaluate
allows us tothesee performance
studies that haveof companies
been carried out in the the
within three
aspects of operational excellence (economic, environmental and social) are presented
framework of at least two of the three pillars of operational excellence and their results in in
developed countries.
the next section. In addition, the analysis of results, including a comparison between re-
The methodology we followed to evaluate the performance of companies in the three
sults our study with previous
aspects ones,excellence
of operational is presented later
(economic, in Sectionand
environmental 4. social) are presented in the
next section. In addition, the analysis of results, including a comparison between results
3. Research method our study with previous ones, is presented later in Section 4.

In order to answer the Method


3. Research two research questions of this study (i.e., the degree of imple-
mentation of operational excellence in emerging countries and its comparison with com-
In order to answer the two research questions of this study (i.e., the degree of im-
plementation of operational excellence in emerging countries and its comparison with
panies in developed countries)
companies we defined
in developed thewemethodology
countries) described
defined the methodology belowbelow
described and and
sum-
marized in Figuresummarized
2. in Figure 2.

Figure 2. Steps of the research. Figure 2. Steps of the research.

The primary method of data collection was to conduct semistructured interviews with
The primary operations
methodmanagers
of dataandcollection wastoto
also administer conduct
them semistructured
an open-ended interviews
survey that inquired into
with operations managers and also administer
continuous improvement, to them an
social and environmental open-ended
practices survey
as part of their that in-
company’s
quired into continuous improvement, social and environmental practices as part of their
processes of operational excellence [37]. The survey proposed in this study is included in
Supplementary Materials. Before the interviewees gave their answers, they were given
company’s processes of operational excellence [37]. The survey proposed in this study is
Sustainability 2021, 13, 3165 6 of 17

explanations and some well-known examples of operational excellence, ensuring that all
interviewees had the same understanding of the context of the study. Additionally, it was
sometimes necessary to standardize interviewees’ answers in terms of the academic litera-
ture regarding operational excellence. In the interview physical business characteristics
such as company age, size (according to the income) and business sector were also noted.
Following the proposed sampling procedure for questionnaire formatting, distribution,
and collection [38], a semistructured survey was created and then administered to the
companies directly via a representative member of the operations area by telephone,
email or face-to-face at the company’s premises. The survey promised to keep the data
confidential [39].
The survey has four pillar sections. First, we asked respondents if they manage
any type of operations and continuous improvement scheme, one that may be based on
lean manufacturing, balanced scorecard, six-sigma, another established scheme or simply
the company’s own. Next, if they did manage some type of environmental practice, we
asked whether it was focused on complying with environmental regulations or if they go
beyond these laws. After that, we asked if they had some kind of social practice with their
employees in terms of industrial security or occupational health. Finally, it was asked if
they had any type of certification from the point of view of standardized processes, the
environment, industrial safety or an integral management certificate that includes the
above three.
This study was conducted in Colombia, specifically in Bogotá and small towns around
that city (central-savanna region). In the region studied, there are 295,000 companies
approximately. The survey was applied to companies of four different sizes, classified
as large, medium, small, and micro according to their annual incomes in millions of
Colombian pesos [40]. These companies are distributed among the following 11 sectors
of the Colombian economy, which include the 75% of the companies in the region [40]:
agriculture, food, automotive, construction, education, entertainment, pharmaceuticals,
chemicals, retail, clothing and footwear, and health and beauty. This is significant because
in order to evaluate environmental performance and social practices as part of operational
excellence within companies generally, more studies that focus on the unexplored areas
of the globe and industry are needed [41]. Table 1 presents the number of companies
interviewed per sector, while Figure 3 shows the number of companies by size.

Table 1. Number of companies interviewed per sector.

SECTOR Number of Companies


Automotive 12
Food 11
Retail 9
Clothing & footwear 8
Construction 7
Entertainment 7
Chemicals 6
Health & beauty 6
Education 5
Agriculture 4
Pharmaceuticals 4
Total 79

The companies interviewed are summarized in Table 2 according to sector and size.
The survey asked about operational excellence.
Sustainability 2021, 13, x FOR PEER REVIEW

Sustainability 2021, 13, 3165 7 of 17

Figure
Figure 3. Number
3. Number of companies
of companies interviewed
interviewed per size. per size.

Table 2. The companies


Number interviewed
of companies interviewed perare summarized
sector and size. in Table 2 according to sector
The survey asked
SECTOR/SIZE
about operational
Micro Small
excellence.
Medium Large Total
Automotive 4 2 6 0 12
Table
Food2. Number1 of companies
7 interviewed
1 per sector2 and size. 11
Retail 1 3 3 2 9
SECTOR Clothing
/ SIZE& Micro
1 Small
3 Medium
3 Large1 Total 8
footwear
Automotive
Construction 40 21 6 3 0 3 12 7
Entertainment 1 2 2 2 7
Food Chemicals 10 7 2 1 1 2 3 11 6
Health &
Retail beauty 11 31 3 2 2 2 9 6
Education
Clothing & footwear 11 31 3 2 1 1 8 5
Agriculture 1 0 3 0 4
Construction
Pharmaceuticals 02 1 1 3 0 3 1 7 4
Total 13 23 26 17 79
Entertainment 1 2 2 2 7
Chemicals The data from the0 interviews2 and visits was 1 collected and 3 refined. Then,
6 the in-
Health &formation
beauty provided 1by the respondents1 2
was verified in three2different ways:
6 insights
from factory visits, direct observation, and information from company websites [36].
Education
Among the 79 companies1 1 only 57% 2of these hold 1a quality, environmental,
surveyed, 5
Agriculture 1
industrial safety, or integral 0
certificate. Of these3 certified companies,
0 4 no evi-
20% have
dence of the certifications on their web pages and they were not shown to us during the
Pharmaceuticals
interviews, either. 2 1 0 1 4
Finally, the results of this study were used to compare the state of the Colombian
Total 13 23 26 17 79
companies that participated in the study against the results of operational excellence found
The
in similar dataapplied
studies from the interviews
to companies and visits
in developed was collected
countries. Details ofand
whatrefined.
has just Then,
mation
been provided
mentioned and theby the
rest respondents
of the was
survey results are verified
shown in in three
next different ways: insig
section.
factory visits, direct observation, and information from company websites [36]
4. Results
theIn79 companies surveyed, only 57% of these hold a quality, environmental, i
this study, the three aspects of operational excellence mentioned above (economic,
safety, or integral
environmental certificate.
and social) Of these
were taken into accountcertified companies,
for the companies 20%considering
analyzed, have no eviden
certifications
for on operation
the economic case their web andpages and improvement
continuous they were not shown
schemes, to usthey
whether during
own the in
aneither.
in house developed system or if they used the traditional proposal. For environmental
sustainability companies were asked about environmental practices and whether they
Finally, the results of this study were used to compare the state of the C
companies that participated in the study against the results of operational e
found in similar studies applied to companies in developed countries. Details of
just been mentioned and the rest of the survey results are shown in next section
ing for the economic case operation and continuous improvement schemes
own an in house developed system or if they used the traditional proposa
mental sustainability companies were asked about environmental practice
they complied with current environmental regulations or went beyond. Fi
purposes, they were asked if they handle any type of practice in matters r
Sustainability 2021, 13, 3165 8 of 17

table opportunities, diversity, industrial safety, and occupational health. A


survey,with
complied they wereenvironmental
current asked if they have any
regulations certification
or went that for
beyond. Finally, supports
social any
studiedthey
purposes, in were
this asked
paper. The
if they following
handle any typesections
of practice describe the results.
in matters related to equitable
opportunities, diversity, industrial safety, and occupational health. At the end of the survey,
4.1. Operations and Continuous Improvement Practices or Schemes
they were asked if they have any certification that supports any of the aspects studied in
this paper. The following sections describe the results.
According to Figure 4, of the 79 companies interviewed, 57% (45 com
4.1. Operations and Continuous Improvement Practices or Schemes
using some kind of operations and continuous improvement schemes. Of
According to Figure 4, of the 79 companies interviewed, 57% (45 companies) report
use some
using a scheme
kind of developed
operations andincontinuous
house and the other
improvement 47% use
schemes. a 57%,
Of this traditional
53% sch
lean
use manufacturing
a scheme or six-sigma,
developed in house among
and the other 47% use others.
a traditional scheme based on lean
manufacturing or six-sigma, among others.

USE OF OPERATIONS AND


CONTINUOUS KIND OF SCHEME
IMPROVEMENT SCHEMES
devel oped i n-hous e
YES 24
COMPANIES 45 (57%) (53%)
SURVEYED Tra di ti ona l
79 NO 21
34 (43%) (47%)

Figure
Figure 4. Number
4. Number of companies
of companies using
using operation operation
and continuous and continuous
improvement improvement
schemes. sch
Of these companies, 78% are medium and large sized, as shown in Figure 5, which
seems to Ofshow
thesethatcompanies, 78% arearemedium
the largest companies andadopt
the ones that large thissized,
type ofas shown in F
practice
toseems
manageto show
their that the
operations, largest
control their companies
costs and engage areinthe ones that
continuous adopt this typ
improvement.
manage their operations, control their costs and engage in continuous
Similarly, in Figure 6 it can be observed that in terms of sector, the food sector and clothing impr
and footwear predominates. In food, it happens because it is a sector with a high number
ofilarly, in Figure
companies studied, and6 itthey
canmay
be be
observed
respondingthat in regulations
to local terms of whichsector, the com-
require food secto
and footwear
panies predominates.
in the food and medicine sector In food, it
to comply happens
with the decreebecause it is a sector with
of good manufacturing
of companies
practices, given thatstudied, andarethey
their products may consumption
for human be responding [10]. Thetodecree
localofregulations
good
manufacturing practices requires high standards of control for all processes in the company
companies
and in suppliers
it even covers the foodof and goodsmedicine
and services.sector to comply
Exploring more about with the decree of
the operation
turing
and practices,
continuous given schemes
improvement that theirusedproducts are for human
by the 45 companies shown inconsumption
Figure 4, it is [10
good manufacturing practices requires high standards of control
found
Sustainability 2021, 13, x FOR PEER REVIEW
that 53% of them (24 companies) use developed in-house schemes, and the others for all p
9 of 20
use traditional schemes (24% based on lean principles, 13% six sigma principles and 9%
company
other schemes).and it even covers suppliers of goods and services. Exploring m
operation and continuous improvement schemes used by the 45 companie
ure 4, it is found that 53% of them (24 companies) use developed in-hous
the others use traditional schemes (24% based on lean principles, 13% six si
and 9% other schemes).

Figure 5. Number of companies per size using operation and continuous improvement schemes.
Figure 5. Number of companies per size using operation and continuous improvement schemes.
Sustainability 2021, 13, 3165 9 of 17
Figure 5. Number of companies per size using operation and continuous improvement schemes.
Figure 5. Number of companies per size using operation and continuous improvement sc

Figure 6. Number of companies per sector using operation and continuous improvement

Figure 6. Number of companies per sector using operation and continuous improvement schemes.
4.2. Use of Environmental Practices
Figure 6. Number of companies per sector using operation and continuous improvement schemes.
4.2. UseInof the study carried
Environmental out, results show that 54 companies (68%) claimed to ha
Practices
typeIn of
the environmental
study carried out, practice.
results showInthat
this54case, it is important
companies (68%) claimedtotonote
havethat,
some as a fu
4.2. Use of Environmental Practices
their economic activity, they are controlled by the environmental agency
type of environmental practice. In this case, it is important to note that, as a function of of th
In the study carried
and out,
thus results
they areshow
forcedthat 54 companies (68%)
at least with the claimed to have
their economic activity, they are controlled by the environmental agency of the region, and
to comply legal aspects.
thus they are forced to comply at least with the legal aspects. Figure 7 shows how many of
Figuresome
7 sho
type of environmental many of
thesepractice.these companies
In this
companies limited limited
case, ittois
themselves themselves
theimportant to
minimum required the
to note minimum
by thethat, required
as a and
government by
function
how the gov
of
and they
their economic activity,
many how
go many go beyond. by the environmental agency of the region,
are controlled
beyond.

and thus they are forced to comply at least with the legal aspects. Figure 7 shows how
USE OF ENVIRONMENTAL
many of these companies limited themselves to the minimumSCOPE
PRACTICES
required by the government
and how many go beyond. Compl y wi th regul a ti ons
YES 36
COMPANIES 54 (68%) (67%)
USE OF ENVIRONMENTAL
SURVEYED Go beyond regul a ti ons
79
PRACTICES NO SCOPE 18
32 (32%) (33%)
Compl y wi th regul a ti ons
Figure
Figure YES
7. 7. Number
Number of companies
of companies 36 environmental
using
using environmental practices. practices.
COMPANIES 54 (68%) (67%)
SURVEYED In this case, unlike in the
Gooperations anda ticontinuous
beyond regul ons improvement schemes, the scale
is a little more balanced in terms of the size of the company. Figure 8 shows that those with
79 NO 18
the lowest environmental practices are micro companies. This could be because their low
32 (32%) (33%)
volumes of sale, production and operation makes them less susceptible to rigorous controls
by legal entities, while the larger companies receive rigorous controls. Figure 9 shows the
Figure 7. Number of companies
companies that using
haveenvironmental practices.practice, by sector.
some kind of environmental
shows the companies that have some kind of environmental practice, by sector.
Although 68% of companies manage some environmental practice, only 33% of these,
Although 68% of companies manage some environmental practice, only 33% of th
that are, 18 companies, go beyond the required environmental legislation. This shows that
that are, 18 companies, go beyond the required environmental legislation. This shows
the environment is of utmost importance for these organizations and demonstrates their
the environment is of utmost importance for these organizations and demonstrates
pursuit of
Sustainability 2021,
excellence in this regard.
13, 3165 10 of 17
pursuit of excellence in this regard.

Figure 8. Number of companies


Figure 8. Numberper size using
of companies per environmental practices.
size using environmental practices.
Figure 8. Number of companies per size using environmental practices.

Figure 9. Companies per sector using environmental practices.


Figure 9. Companies per sector using environmental practices.
Although 68% of companies manage some environmental practice, only 33% of these,
that are, 18 companies, go beyond the required environmental legislation. This shows that
4.3. UseFigure
of Complete Internal
9. Companies
the Social
per
environment isPractices
sector using environmental
of utmost practices.
importance for these organizations and demonstrates their
pursuit of excellence in this regard.
As noted in the analysis of environmental practices, in Colombia a series of minimum
4.3. Use
conditions are of Complete
required ofInternal
4.3. Useaccording Social
to law.
Complete Internal Practices
That
Social is why from the internal social point of
Practices
As noted
view, companies offerintheir
the
As analysis
workers
noted of environmental
adequate
in the analysis conditions
of environmental practices,
for carrying
practices, in Colombia
in Colombia theira
outa series series
ofwork.
minimum of minim
The
conditions are required according to law. That is why from the internal social point of view,
study found that 71%
conditions are of the offer
required
companies
companies
according
their
evaluated
to law.indicated
workers adequate That isfor
conditions
that
why their
from
carrying
internal
out the
social social
their internal
prac- poi
work. The study
tices with
view,their workers
found go
companies thatbeyond
offer71%their
of thewhat
workers is established
companies adequate in national
conditions
evaluated indicated legislation.
for internal
that their carrying Some
socialout of thework
their
practices
practices thatfound
study they that
mention
with 71% are
their of the
workers family
go integration
companies
beyond what is activities,
evaluated
established the generation
indicated
in national that their of
legislation. training
internal
Some of thesocial p
spacestices
in entrepreneurship
with their workers forgo family
beyond members,
what is management
established inofnational
family finances,
legislation. time
Some o
practices that they mention are family integration activities, the generation of trai
spaces in entrepreneurship for family members, management of family finances,
Sustainability 2021, 13, x FOR PEER REVIEW
Sustainability 2021, 13, 3165 11 of 17

management and rewards for performance, such as jewelry. They also


Sustainability 2021, 13, x FOR PEER REVIEW mention
11 of 20
Sustainability 2021, 13, x FOR PEER REVIEW 11 of 20
practices that they mention are family integration activities, the generation of training
in the form of extra salary bonuses, educational aids, career plans and a series
spaces in entrepreneurship for family members, management of family finances, time
benefit packages
management and rewardsthatforgoperformance,
beyond the suchlaws in terms
as jewelry. They ofalso
industrial safety in
mention support and occu
health.
management
the
management
and rewards
form of extra
andsalary
rewards
for performance,
bonuses, educational such
for performance,
such career
aids, as jewelry. They
plansThey
as jewelry.
also
and aalso mention
series support
of othersupport
mention benefit
in the form of
Figure extra salary
10 shows bonuses,
the number educational aids,
of companies career plans and a series of other
packages
in the form that go beyond
of extra the laws
salary bonuses, in terms of
educational aids, careerthat
industrial safety and
plansengage in complete
occupational
and a series of other social
health.
benefit packages that go beyond the laws in terms of industrial safety and occupational
going
benefit
health.
beyondthat national laws. theIn addition,
in termsFigures 11 and
Figure 10 shows the number of companies that engage in complete social practices
packages go beyond laws of industrial safety12and
present the details in
occupational
going beyond national laws. In addition, Figures 11 and 12 present the details in terms
health.
ofsize
sizeand
andsector,
Figure 10 shows
sector, respectively.
the numberOf
respectively. ofOf the56 56
companies
the organizations
that engage
organizations that
in follow
that follow
complete thispractices
thissocial
type oftype of social
social
Figure 10 shows the number of companies that engage in complete social practices
nearly
going
practice, 62.5%
beyond
nearly correspond
national
62.5% correspond totomedium
laws. In addition,
medium Figures and
and 11 large
and
large 12size
size companies.
present
companies. the In
details In
microin micro
terms
and of and sm
small
going beyond national laws. In addition, Figures 11 and 12 present the details in terms of
panies,
size
companies, on
onthe
and sector, other
respectively.
the hand,
other hand, Ofvery
thevery
56 little is
organizations
little is done done thatinfollow
in terms terms
of of
thisthis this
type
matter. ofmatter.
size and sector, respectively. Of the 56 organizations that follow this type of social practice,
social practice,
nearly 62.5% correspond to medium and large size companies. In micro and small com-
nearly 62.5% correspond to medium and large size companies. In micro and small com-
panies, on the other hand, very little is done in terms of this matter.
panies, on the other hand, very COMPLETE
little is done SOCIAL
in terms of this matter.
COMPLETE PRACTICES
SOCIAL
COMPLETE SOCIAL
PRACTICES
PRACTICES
YES
YES
COMPANIES YES 56 (71%)
COMPANIES 56 (71%)
SURVEYED
COMPANIES
SURVEYED
56 (71%)
SURVEYED
79 79 NO NO
79 NO
23 (29%)23 (29%)
23 (29%)
Figure 10. Number of companies using social practices.
Figure
Figure
Figure 10.10.
10. Number
Number
Numberof of companies
ofcompanies
companiesusing using
usingsocial
social social practices.
practices.
practices.

Figure
Figure 11.
11. Number
Number of
of companies
companies per
per size
size using
using social
social practices.
practices.
Figure 11. Number of companies per size using social practices.

Figure 11. Number of companies per size using social practices.

Figure 12. Number of companies per sector using social practices.


Figure 12. Number of companies per sector using social practices.
Figure 12. Number of companies per sector using social practices.
4.4. Companies with Certifications in Terms of Operational Standards, the Environment
Sustainability 2021, 13, 3165
trial Safety, or Integral Management. 12 of 17
At the end of the interview, the companies were asked if they held any type
fication. First, if they handle a certification that ensures the standardization of op
andCompanies
4.4. continuous improvement
with Certifications processes.
in Terms AsStandards,
of Operational it is not the
easy to have Industrial
Environment, a certification
operation and continuous improvement practices because in many opportuniti
Safety, or Integral Management
are developed
At the end ofin-house, ISO the
the interview, 9001 can be awere
companies certification
asked if theythatheld
ensures theofstandar
any type
certification. First, if they handle a certification that ensures the standardization of operation
of the company’s processes, and it is enough for the study. Then, some companies
and continuous improvement processes. As it is not easy to have a certification of some
a certification
operation that ensures
and continuous the standardization
improvement practices because of processes based on environmen
in many opportunities these
tices,
are such as
developed ISO 14,000
in-house, ISO 9001[5].canFinally, in the case
be a certification of social
that ensures practices, when
the standardization of study
internal
the aspects,
company’s to beand
processes, more
it is exact
enoughwithfor thethe employees,
study. Then, some they were asked
companies sought for
a an in
safety certification, for example OHSAS 18,000.
certification that ensures the standardization of processes based on environmental practices,
such as ISO 14,000 [5]. Finally, in the case of social practices, when studying the internal
Of course, an integral management certification is also valid, which brings
aspects, to be more exact with the employees, they were asked for an industrial safety
management
certification, by process,
for example OHSAS environmental
18,000. and industrial safety standards. The res
presented
Of course,in an
Figure 13.management
integral The resultscertification
also showis that the eight
also valid, whichcompanies that hold
brings together
ronmental certification also have one for standardized processes. There is only o
management by process, environmental and industrial safety standards. The results
are presented in Figure 13. The results also show that the eight companies that hold
pany with certification in industrial safety, and that company also holds one for st
an environmental certification also have one for standardized processes. There is only
izedcompany
one processes. withCertification
certification in in integralsafety,
industrial management is sought
and that company alsomostly byfor
holds one large com
as they want
standardized to comply
processes. with theinthree
Certification integral pillars of operational
management is sought excellence,
mostly by largeand they
single certification
companies, as they want thatto includes
comply with allthe
three
threeofpillars
themofrather than three
operational separate
excellence, and certif
Only two medium-sized and one small-sized company have an integral managem
they prefer a single certification that includes all three of them rather than three separate
certifications. Only two medium-sized and one small-sized company have an integral
tificate, butcertificate,
management no microbut companies have one.
no micro companies have one.

Figure 13. Certifications results.


Figure 13. Certifications results.

4.5. Companies That Engage in the Three Types of Practices and Can Be Considered as Working
4.5. Companies
under that Engage in the Three Types of Practices and Can Be Considered
Operational Excellence as W
underIn Operational
order to defineExcellence.
the organizations that work under a complete model of operational
excellence, companies that handle the three types of practices (economic, through a scheme
In order
of operation andto define the
continuous organizations
improvement, that workcomplying
environmental, under a complete model of ope
with legal require-
excellence,
ments given bycompanies that and
local government handle
goingthe
eventhree
further,types of practices
and social, (economic,
the companies that th
schemetheofinternal
beyond operation
socialand continuous
practices improvement,
required by environmental,
laws take care about the well-being complying
of their w
employees in other ways and demonstrate it) were taken. Results are shown in Figure 14.
requirements given by local government and going even further, and social, the
nies that beyond the internal social practices required by laws take care about t
being of their employees in other ways and demonstrate it) were taken. Results ar
in Figure 14.
13, x FOR PEER REVIEW 13 of 20

Sustainability 2021, 13, x FOR PEER REVIEW


Sustainability 2021, 13, 3165 13 of 17

WORKING UNDER A
PROGRAM OF COMPANY SIZE
OPERATIONAL EXCELLENCE WORKING UNDER A
PROGRAM OF COMPANY SIZE
YES Large
OPERATIONAL EXCELLENCE
COMPANIES 16 (20%) 12 (75%)
SURVEYED Medium
YES Large
79 NO 4 (25%)
COMPANIES
63 (80%) 16 (20%) 12 (75%)
SURVEYED Medium
Figure 14. Number of companies
79 working under a program
NO of operational excellence.
4 (25%)
63 (80%)
These results show that it is difficult to find small or micro-sized companies that work
Figure
Figure 14. Number
14. Number of companies
of companies working underworking under
a program a program
of operational of operational excellen
excellence.
under an operational excellence program. This opens a new line of research in studying
where the causes of this
Thesegap lie. show
results The that
largeit iscompanies aresmall
difficult to find mostly recognized
or micro-sized Colombian
companies that work
multinationals and These
large
under results
international
an operational show that
companies
excellence it is difficult
program.operating to
This opens in find small
theline
a new country. or micro-sized
Figure
of research 15 comp
in studying
shows the number under
where thean operational
causes
of companies working excellence
of this gap lie. program.
The large companies
under a program
areThis
mostlyopens
of operational a new
recognized
excellence line
by of resear
Colombian

sector. where the causes of this gap lie. The large companies are mostly recogniz
multinationals and large international companies operating in the country. Figure 15 shows
the number of companies working under a program of operational excellence by sector.
multinationals and large international companies operating in the coun
shows the number of companies working under a program of operationa
sector.

Figure 15. Number of companies per sector working under a program of operational excellence.
Figure 15. Number of companies per sector working under a program of operational excellence.
For the study carried out, it is also important to mention that of the 16 companies
that work under an operational excellence program, almost all hold certifications that
For the studyprove
carried out, it is also important to mention that of the 16 companies that
it. For example, 11 of these have an integral management certificate, which includes
work under an operational
standardizedexcellence program,endorsing
process management almost production
all hold certifications
and continuousthat prove
improvement
it. For example, 11schemes,
of theseenvironmental
have an integral management
management certificate,
and industrial which includes
safety management. stand-
Four companies
ardized process holdFigure
management15.one
at least Number of companies
ofendorsing
the above perand
production
certifications, sector
only working
and under
continuous
one company a program
certificate of
hasimprovement
no operation
from
any certifying body.
schemes, environmental management and industrial safety management. Four companies
hold at least one of the
4.6. For the
above
Comparing thestudy
Results carried
certifications, out,
andwith
Obtained onlyitone
isStudies
Other also important
company has no
in Developed tocertificate
mention from
Companies that of the 16
any certifying body.work undersimilar
Reviewing an operational excellence
studies of companies program,
in developed almost
countries, the all hold
results certificat
found
init.
theFor example,
literature can be11 of thesewith
compared havethe an integral
results management
found here. certificate,
While no published studywhich
4.6. Comparing theisResults
ardized Obtained
process
100% comparable, with Other Studies
management
there are studies inendorsing
Developed
in which the threeCompanies
production
pillars and
studied here havecontinuous
been
analyzed separately.
schemes,
Reviewing similar environmental
studies of companies management and industrial
in developed countries, safety
the results management.
found in F
hold
the literature can be at leastwith
compared one of
thethe above
results certifications,
found here. Whileand only one company
no published study is has no
100% comparable, anytherecertifying
are studies in which the three pillars studied here have been an-
body.
alyzed separately.
Sustainability 2021, 13, 3165 14 of 17

The authors of [20] conducted a study in Sweden, through the Lowell Center for
Sustainable Production (LCSP) and presented an insight into how companies from differ-
ent industries carry out manufacturing practices related to the principles of sustainable
production. The study included 12 companies from the following sectors: plastics, metal
machining and foundry, manufacturers of engines, hydraulic systems, and furniture. The
study found empirical evidence of adherence to the LCSP’s principles of sustainable pro-
duction, which includes economic, environmental and social sustainability practices in
the sectors studied. More specifically, this was the first study to explore adherence to
LCSP’s sustainable production principles in practice, involving both large companies and
SMEs [20]. Table 3 compares the Swedish companies with the Colombian companies in
this study.

Table 3. Comparison between the companies in Sweden in [20] and the companies in Colombia in this study.

Analysis of Companies in Sweden Analalysis of Companies in Colombia


Most of the companies are addressing the three dimensions of In the companies surveyed just 13% are addressing the
operational excellence. three dimensions
Most companies still base their environmental practices on
regulatory and market pressures, not so much tools that go Most of the surveyed companies use environmental practices,
beyond environmental laws. However, more proactive practices and almost half of them go beyond regulations. The others just
were found in some sectors such as foundry, metalworking, and meet regulations
engine manufacturing.
The social practices vary according to the size of the
The effect is the same in the surveyed companies. All of the 11
organization: while SMEs barely abided by the principles, large
large companies engage in these practices, while in the others
companies often engaged in proactive practices, anticipating or
there are just some of them, taking into account what by
going beyond regulation. The retention of employees, for
regulations they have to meet.
example was seen as part of their practices.

Another study [35] was carried out in 2016 in 56 large companies in the construction
sector in developed countries such as Australia, Japan, South Korea, Austria, Denmark,
France, Germany, Greece, Italy, Holland, Norway, Portugal, Spain, England, Canada, and
the United States. The study evaluated the relationship between environmental practices
and their economic impact. In this study, two of the three pillars that make up operational
excellence were explored. The analysis showed a positive relationship between environ-
mental and financial performance, which also depended on analysis methods, variables
used, time, and countries where the samples’ information are considered [35]. However,
although their focus is primarily environmental, they presented relevant information on
operational and social practices that complement operational excellence. A comparison
between their results and the results of this study are presented in Table 4.

Table 4. Comparison between 56 companies analyzed by [35] and those in this study.

Analysis in 16 First World Countries Analalysis in this Study


34% of the companies hold a certification in environmental
80% of the companies hold a certification in environmental
management, either ISO 14000, integral management or similar.
management, either ISO 14000, integral management or similar.
This includes 100% of large-sized companies surveyed.
87% of companies claim to have a program based on process
standards and continuous improvement. (In this case their 71% of companies claim to have a program based on process
focus is on environmental practices, but with this they also seek standards and continuous improvement.
financial sustainability)
89% of companies handle internal social practices that go even
71% of companies handle internal social practices focused on
beyond legal requirements, many of them are focused on
industrial security with people.
education and training.
Sustainability 2021, 13, 3165 15 of 17

From the above, it is evident that there is still a lot to work on with regard to op-
erational excellence in the companies under study. If this study represented a national
analysis, it would surely be far from the levels of companies in developed countries.

5. Conclusions
Operational excellence aims to improve the economic, environmental and social per-
formance of companies. Previous works have assessed operational excellence in first-world
companies. However, to the best of our knowledge, no previous work has studied this
initiative in developing countries. Similarly to [20,35,36], we implemented semistructured
interviews to explore and assess companies’ performance. In this study, we evaluated
the operational excellence of 79 companies from different sectors (e.g., food, construc-
tion, chemicals, agriculture, etc.) located in Bogotá, Colombia, and its metropolitan area
(savanna region). We also compared the results with the performance of companies in
first-world countries, thus contributing to the understanding of companies’ level of opera-
tional excellence in developing countries. It was found that as answer for the first research
question, just 20% are working under a program of operational excellence impacting the
three dimensions of sustainability simultaneously and as answer for the second research
question, in general, studied companies are far from companies in developed countries in
terms of operational excellence.
In the case of the pillar of economic sustainability through profits in operations, we
evaluated the operation and continuous improvement schemes, such as lean manufacturing,
six sigma, others or an organization’s own adaptation (in house) of a standard scheme,
due to the fact that in operations, these schemes allow efficient management of all the
resources that impact operating costs [8]. In the case of environmental sustainability, we
evaluated whether companies have any defined environmental practice, either complying
with legislation or going beyond [41]. Finally, regarding the social pillar, we focused
only on internal practices, meaning whether the company’s approach is based solely on
compliance with industrial safety requirements or if they have plans that go further with
their workers [27]. Our study is not without limitations. First, even if the size of this
study is up to four times the size of the compared studies, the size of the sample may
not be representative to generalize to all companies in Colombia, as we are evaluating
one of the most developed regions in the country. Analogously, it cannot be said that this
study is applicable in all emerging countries for cultural and legal reasons, among others.
However, this research provides a basis to be applied in other Colombian companies and
other emerging countries’ companies, taking into account the corresponding legal and
cultural aspects. Moreover, our study offers a starting point to carry out a diagnosis of
operational excellence in companies in emerging economies.
As for opportunities for further research, it is important to identify the most critical
determinants and barriers to implementing operational excellence in companies from
emerging markets. Furthermore, and due to the fact that companies in emerging countries
are mostly micro, small, and medium-sized, it is also necessary to provide a managerial
methodology not only for large-size companies (multinationals) but for the smaller ones as
well. Additionally, results of this study show only overall level of economic, environmental
and social sustainability, but for future research it can be possible to analyze which of them
are preferred by companies.

Supplementary Materials: The Supplementary Materials are available online at https://www.mdpi.


com/2071-1050/13/6/3165/s1.
Author Contributions: Conceptualization, A.M.-V., R.H.-M., and J.S.; validation, A.M.-V., R.H.-M.,
and J.S.; formal analysis, R.H.-M.; investigation, R.H.-M., data curation, R.H.-M.; writing—original
draft preparation, R.H.-M.; writing—review and editing, A.M.-V. and J.S.; visualization, R.H.-M. and
A.M.-V.; supervision, A.M.-V. and J.S.; funding acquisition, R.H.-M. All authors have read and agreed
to the published version of the manuscript.
Funding: This research received no external funding.
Sustainability 2021, 13, 3165 16 of 17

Conflicts of Interest: The authors declare no conflict of interest.

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