Concern for environmental issues has entered the agenda in many companies within the manufacturing industry. The purpose of this paper is to analyse implications for the decision criteria when environmental issues are introduced into manufacturing strategy. Furthermore, the purpose is to present a framework illustrating how concern for environmental issues affects the manufacturing strategy formulation process.
The paper is based on a review of literature on environmentally conscious manufacturing and literature on manufacturing strategy. These two fields of research are merged in the analysis.
The analysis shows that concern for environmental issues may lead to a number of potential implications for the decision criteria. These implications may, in turn, affect the manufacturing strategy formulation process. A framework is presented that illustrates the interrelationships between the drivers for environmental concern, effects for the competitive priorities, implications for the decision criteria, and how it may affect the manufacturing strategy formulation process.
Inclusion of environmental issues potentially complicates the manufacturing strategy formulation process. This implies a need for further studies on the challenges companies face in the strategy formulation process.
The implications for the decision criteria and the framework presented in the paper may encourage companies to prepare for inclusion of environmental concern in the manufacturing strategy formulation process.
Manufacturing strategy has not traditionally included concern for environmental issues. The paper adopts a novel approach in which research findings on environmental concern are integrated with literature on manufacturing strategy.
