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Unfolding the impact of leadership and management on sustainability performance: Green and lean practices and guanxi as the dual mediators

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  • Pik‐Yin Foo
  • Voon‐Hsien Lee
  • Keng‐Boon Ooi
  • Garry Wei‐Han Tan
  • Amrik Sohal

Abstract

This study aims to empirically evaluate the predictors that influence sustainability performance among manufacturing firms. Leadership and management, green and lean practices, and guanxi were examined to determine whether these predictors are directly and/or indirectly affecting sustainability performance; 160 valid responses were collected and partial‐least‐squares‐structural‐equation‐modeling (PLS‐SEM) was used to analyze the data. The results showed that leadership and management positively influenced green and lean practices and green and lean practices positively influenced sustainability performance. Leadership and management also positively influenced guanxi. Interestingly, leadership and management and guanxi do not exert a significant direct influence on sustainability performance. The findings contributed to the development of the resource‐based‐view theory further by empirically exploring the significance of leadership and management coupled with green and lean practices as competencies and capability to drive sustainability performance. The testing of the dual mediators' effects further added value to this study.

Suggested Citation

  • Pik‐Yin Foo & Voon‐Hsien Lee & Keng‐Boon Ooi & Garry Wei‐Han Tan & Amrik Sohal, 2021. "Unfolding the impact of leadership and management on sustainability performance: Green and lean practices and guanxi as the dual mediators," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4136-4153, December.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:8:p:4136-4153
    DOI: 10.1002/bse.2861
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    2. Yifan Xie & Yingkai Fang & Dengjun Zhang, 2022. "How Environmental Performance Affects Financial Performance in the Food Industry: A Global Outlook," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    3. Veland Ramadani & Sucheta Agarwal & Andrea Caputo & Vivek Agrawal & Jitendra Kumar Dixit, 2022. "Sustainable competencies of social entrepreneurship for sustainable development: Exploratory analysis from a developing economy," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3437-3453, November.
    4. Liang Wu & Heng Liu, 2022. "How bricolage influences green management in high‐polluting manufacturing firms: The role of stakeholder engagement," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3616-3634, November.
    5. Kleber F. Barcia & Lizzi Garcia-Castro & Jorge Abad-Moran, 2022. "Lean Six Sigma Impact Analysis on Sustainability Using Partial Least Squares Structural Equation Modeling (PLS-SEM): A Literature Review," Sustainability, MDPI, vol. 14(5), pages 1-26, March.
    6. Joan Torrent‐Sellens & Pilar Ficapal‐Cusí & Mihaela Enache‐Zegheru, 2023. "Boosting environmental management: The mediating role of Industry 4.0 between environmental assets and economic and social firm performance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 753-768, January.
    7. Fatima Afzal & Benson Lim, 2022. "Organizational Factors Influencing the Sustainability Performance of Construction Organizations," Sustainability, MDPI, vol. 14(16), pages 1-17, August.

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