IDEAS home Printed from https://ideas.repec.org/a/mth/bmsmti/v12y2021i1p108-129.html
   My bibliography  Save this article

Sustainable Manufacturing Practices and Sustainability Performance: A Conceptual Framework for Manufacturing SMEs

Author

Listed:
  • WEI QI LIM
  • DEVIKA NADARAJAH
  • SAZALI ABD WAHAB

Abstract

In the Sustainable Development Goals Summit in September 2019, world leaders addressed current and future sustainability challenges faced by the world, including poverty, inequality, climate change, environmental degradation, peace, and justice. However, the Covid-19 pandemic has shocked and dampened global sustainable development efforts. Malaysian manufacturing small and medium enterprises (SMEs) are not exempt from this tragedy, as they have suffered economically, socially, and environmentally. The goal of this paper is to establish sustainable manufacturing practices (SMPs) as a dynamic internal strategic action for manufacturing firms that transforms firm capabilities into sustainability performance. The authors conducted an extensive literature search to explore global sustainability issues and narrowed the scope to issues encountered by Malaysian manufacturing firms. The most commonly used terminologies of sustainability, sustainable practices, and sustainability performance were subsequently analyzed to conceptually develop a holistic framework for future studies. Specifically, the authors proposed an explanatory quantitative study to comprehend the link between firm capabilities and multidimensional sustainability performance with the integration of SMPs as a mediator. The results of the analysis would provide useful recommendations for the manufacturing sector and directions for future studies. Additionally, this paper enriches the theory of the Dynamic Capability View by bringing in the sustainability model to explain the development process of sustainability performance among Malaysian manufacturing SMEs. This article does not just inform firms and authorities on the importance of SMPs for superior performance but also guides firms towards understanding and improving their current SMPs. Managers in the manufacturing sector would benefit from this paper by learning and implementing effective sustainable strategies in their operations management to improve sustainability-related outcomes.

Suggested Citation

  • Wei Qi Lim & Devika Nadarajah & Sazali Abd Wahab, 2021. "Sustainable Manufacturing Practices and Sustainability Performance: A Conceptual Framework for Manufacturing SMEs," Business Management and Strategy, Macrothink Institute, vol. 12(1), pages 108-129, June.
  • Handle: RePEc:mth:bmsmti:v:12:y:2021:i:1:p:108-129
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/bms/article/download/18253/14230
    Download Restriction: no

    File URL: http://www.macrothink.org/journal/index.php/bms/article/view/18253
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schrettle, Stefan & Hinz, Andreas & Scherrer -Rathje, Maike & Friedli, Thomas, 2014. "Turning sustainability into action: Explaining firms' sustainability efforts and their impact on firm performance," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 73-84.
    2. Subrata Chakrabarty & Liang Wang, 2012. "The Long-Term Sustenance of Sustainability Practices in MNCs: A Dynamic Capabilities Perspective of the Role of R&D and Internationalization," Journal of Business Ethics, Springer, vol. 110(2), pages 205-217, October.
    3. Döndü ?Lkaya & Ay?Egül O?Uz, 2015. "Economic Contribution Of Tourism," Proceedings of International Academic Conferences 3105394, International Institute of Social and Economic Sciences.
    4. Leonidou, Leonidas C. & Leonidou, Constantinos N. & Fotiadis, Thomas A. & Aykol, Bilge, 2015. "Dynamic capabilities driving an eco-based advantage and performance in global hotel chains: The moderating effect of international strategy," Tourism Management, Elsevier, vol. 50(C), pages 268-280.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hua Shang & Renfei Chen & Zhongwen Li, 2020. "Dynamic sustainability capabilities and corporate sustainability performance: The mediating effect of resource management capabilities," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 595-612, July.
    2. Kumar, Gopal & Subramanian, Nachiappan & Maria Arputham, Ramkumar, 2018. "Missing link between sustainability collaborative strategy and supply chain performance: Role of dynamic capability," International Journal of Production Economics, Elsevier, vol. 203(C), pages 96-109.
    3. Luciana Oranges Cezarino & Marlon Fernandes Rodrigues Alves & Adriana Cristina Ferreira Caldana & Lara Bartocci Liboni, 2019. "Dynamic Capabilities for Sustainability: Revealing the Systemic Key Factors," Systemic Practice and Action Research, Springer, vol. 32(1), pages 93-112, February.
    4. Paulina Golinska-Dawson & Karolina Werner-Lewandowska & Monika Kosacka-Olejnik, 2021. "Responsible Resource Management in Remanufacturing—Framework for Qualitative Assessment in Small and Medium-Sized Enterprises," Resources, MDPI, vol. 10(2), pages 1-17, February.
    5. Jinqiu He & Huiwen Su, 2022. "Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    6. Mario Vaupel & David Bendig & Denise Fischer-Kreer & Malte Brettel, 2023. "The Role of Share Repurchases for Firms’ Social and Environmental Sustainability," Journal of Business Ethics, Springer, vol. 183(2), pages 401-428, March.
    7. Ana Labella-Fernández & M. Mar Serrano-Arcos & Belén Payán-Sánchez, 2021. "Firm Growth as a Driver of Sustainable Product Innovation: Mediation and Moderation Analysis. Evidence from Manufacturing Firms," IJERPH, MDPI, vol. 18(5), pages 1-22, March.
    8. Md. Ahashan Habib & Md. Rezaul Karim & Marzia Dulal & Mohammad Shayekh Munir, 2022. "Impact of Institutional Pressure on Cleaner Production and Sustainable Firm Performance," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    9. Edith Onowe Odia & Barnabas Aigbojie Agbonifoh, 2017. "Determinants Of The Perceived Image Of Nigerian Tourism Industry," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 2(2), pages 16-26, September.
    10. Marcello Risitano & Rosaria Romano & Vincenzo Rusciano & Gennaro Civero & Debora Scarpato, 2022. "The impact of sustainability on marketing strategy and business performance: The case of Italian fisheries," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1538-1551, May.
    11. Andrea Lučić, 2020. "Measuring Sustainable Marketing Orientation—Scale Development Process," Sustainability, MDPI, vol. 12(5), pages 1-22, February.
    12. Cristian Vlad & Fumiaki Tajiri & Ana Damaschin & Kurtz Law, 2019. "Activating Symbols When Creating Culture – The Development And Dissemination Of “Asuka Pride” And Nyk Cruises Co., Ltd. In Japan," Romanian Economic Business Review, Romanian-American University, vol. 14(3), pages 19-28, September.
    13. Ge Zhang & Yuxiang Gao & Gaoyong Li, 2023. "Research on Digital Transformation and Green Technology Innovation—Evidence from China’s Listed Manufacturing Enterprises," Sustainability, MDPI, vol. 15(8), pages 1-23, April.
    14. Hariyani, Dharmendra & Mishra, Sanjeev & Hariyani, Poonam & Sharma, Milind Kumar, 2023. "Drivers and motives for sustainable manufacturing system," Innovation and Green Development, Elsevier, vol. 2(1).
    15. Guo Li & Ming K. Lim & Zhaohua Wang, 2020. "Stakeholders, green manufacturing, and practice performance: empirical evidence from Chinese fashion businesses," Annals of Operations Research, Springer, vol. 290(1), pages 961-982, July.
    16. Ian R. Gordon, 2016. "Quantitative easing of an international financial centre: how central London came so well out of the post-2007 crisis," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(2), pages 335-353.
    17. Barros, Victor & Falcão, Pedro Fontes & Sarmento, Joaquim Miranda, 2022. "Are more sustainable firms able to operate with lower working capital requirements?," Finance Research Letters, Elsevier, vol. 46(PB).
    18. Hong, Paul & Jagani, Sandeep & Kim, Jinhwan & Youn, Sun Hee, 2019. "Managing sustainability orientation: An empirical investigation of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 211(C), pages 71-81.
    19. Tulin Dzhengiz & Eva Niesten, 2020. "Competences for Environmental Sustainability: A Systematic Review on the Impact of Absorptive Capacity and Capabilities," Journal of Business Ethics, Springer, vol. 162(4), pages 881-906, April.
    20. Jeremy Galbreath, 2016. "When do Board and Management Resources Complement Each Other? A Study of Effects on Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 136(2), pages 281-292, June.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:bmsmti:v:12:y:2021:i:1:p:108-129. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/bms .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.