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Application of Lean Management Tools in a Circular Economy Model from the Perspective of Financial Security of SMEs

Author

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  • Monika Szczerbak
  • Malgorzata Ozieblo

Abstract

Purpose: Presenting the possible application of lean management tools in SME service enterprises in a circular economy model. Demonstrate where lean philosophy can contribute to efficient resource management, waste reduction and financial security for SMEs. Design/methodology/approach: Critical analysis of scientific literature was employed. was conducted to assess the maturity level of applied management tools, including Lean tools, by SMEs, as well as their familiarity with the principles of the circular economy model in Poland and in entities affiliated to international organisations. Findings: The study highlights the validity of implementing Lean Management tools within the circular economy model and identifies the specific areas where Lean tools can be employed. It has been confirmed that environmental protection efforts and quality enhancement lead to increased operational efficiency, cost reduction, and improved company image, ultimately contributing to financial security. Practical implications: The practical use of lean management tools such as Kazizen costing, Design for Disassembly, One Piece Flow will accelerate the implementation of circular economy. Moreover these tools increase the company's financial security and resistance to market risks as well as optimize resources, help to reduce costs and improve quality. Originality/value: The added value of the article lies in enriching the knowledge about evaluating the maturity level of management tool utilization and familiarity with the circular economy assumptions in Polish SMEs from the service sector. The study also identifies areas requiring further work and development, as well as the benefits that companies can achieve by implementing Lean Management.

Suggested Citation

  • Monika Szczerbak & Malgorzata Ozieblo, 2023. "Application of Lean Management Tools in a Circular Economy Model from the Perspective of Financial Security of SMEs," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 44-61.
    • Handle: RePEc:ers:journl:v:xxvi:y:2023:i:4:p:44-61
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    References listed on IDEAS

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    1. Karel HavlÃ­Ä ek & Eleftherios Thalassinos & Liliana Berezkinova, 2013. "Innovation Management and Controlling in SMEs," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 57-70.
    2. Virginia Zhelyazkova, 2018. "Sustainable Investing Trends. Can They Help The Transition To Circular Economy?," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 12(1), pages 88-94.
    3. repec:ers:journl:v:xvi:y:2013:i:sisme:p:57-70 is not listed on IDEAS
    4. Kerem Toker & Ali Görener, 2023. "Evaluation of circular economy business models for SMEs using spherical fuzzy TOPSIS: an application from a developing countries’ perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1700-1741, February.
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    More about this item

    Keywords

    Lean management; circular economy; management tools; environmental protection; waste reduction; financial security.;
    All these keywords.

    JEL classification:

    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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