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Sustainable Manufacturing Practices, Competitive Capabilities, and Sustainable Performance: Moderating Role of Environmental Regulations

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  • Hazem Ali

    (School of Business Administration, Zhejiang Gongshang University, Hangzhou 310018, China)

  • Ting Chen

    (School of Business Administration, Zhejiang Gongshang University, Hangzhou 310018, China)

  • Yunhong Hao

    (School of Business Administration, Zhejiang Gongshang University, Hangzhou 310018, China)

Abstract

Research highlights the increasing engagement of SMEs in adopting sustainable practices to enhance their sustainable performance. This paper extends the current literature on sustainable manufacturing practices (SMPs) and SMEs’ sustainable performance by examining the mediating effect of competitive capabilities and the moderating impact of environmental regulation. Structured questionnaires were used to collect data from 288 manufacturing SMEs in China. Research findings using structural equation modeling with partial least squares (PLS-SEM) revealed that adopting SMPs enables SMEs to gain competitive capabilities and to positively influence their sustainable performance. In addition, gaining competitive capabilities have a positive mediating impact on the relationship between SMPs and SMEs’ sustainable performance. Further, the interaction between SMPs and environmental regulation strengthens SMEs’ sustainable performance. At the end of this paper, a set of concluding remarks and implications is drawn.

Suggested Citation

  • Hazem Ali & Ting Chen & Yunhong Hao, 2021. "Sustainable Manufacturing Practices, Competitive Capabilities, and Sustainable Performance: Moderating Role of Environmental Regulations," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:10051-:d:631297
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    2. Xiaowei Guan & Jun Zhao, 2022. "A Two-Step Fuzzy MCDM Method for Implementation of Sustainable Precision Manufacturing: Evidence from China," Sustainability, MDPI, vol. 14(13), pages 1-27, July.
    3. Ya Cheng & Mohammad Masukujjaman & Farid Ahammad Sobhani & Muhammad Hamayun & Syed Shah Alam, 2023. "Green Logistics, Green Human Capital, and Circular Economy: The Mediating Role of Sustainable Production," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    4. Zakaria Elkhwesky & Islam Elbayoumi Salem & Michal Varmus & Haywantee Ramkissoon, 2022. "Sustainable practices in hospitality pre and amid COVID‐19 pandemic: Looking back for moving forward post‐COVID‐19," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 1426-1448, October.
    5. Kurniawati, 2023. "Sustainable Textile Practices by Integrated Viscose Rayon and Yarn Producers: An Empirical Study," GATR Journals jfbr210, Global Academy of Training and Research (GATR) Enterprise.
    6. Asuamah Yeboah, Samuel, 2023. "From Potential to Practice: Unveiling Sustainable Manufacturing in Low-Income Countries," MPRA Paper 117979, University Library of Munich, Germany, revised 29 Jun 2023.

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