IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i4p1112-d207674.html
   My bibliography  Save this article

Impact of Lean Manufacturing Practices on Firms’ Sustainable Performance: Lean Culture as a Moderator

Author

Listed:
  • Mohammad Iranmanesh

    (Graduate School of Business, Universiti Sains Malaysia, Penang 11800, Malaysia)

  • Suhaiza Zailani

    (Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur 50603, Malaysia)

  • Sunghyup Sean Hyun

    (School of Tourism, Hanyang University, Seoul 133-791, Korea)

  • Mohd Helmi Ali

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Selangor 43600, Malaysia)

  • Kwangyong Kim

    (Korean Standards Association, Seoul 08056, Korea)

Abstract

Nowadays, manufacturing firms are pressured by governments, non-governmental organizations and customers to operate in a sustainable manner. Although lean practices may provide environmental, social, and financial benefits to firms, their effect on sustainable performance is ambiguous. The aim of this study is to examine the effect of lean manufacturing practices on firms’ environmental performance by considering lean culture as a moderator. Data were gathered through a survey of 187 manufacturing firms in Malaysia and were analyzed using the partial least squares technique. The results indicate that process and equipment, product design, supplier relationships, and customer relationships have a positive and significant effect on sustainable performance. It is also interesting to observe that lean culture positively moderated the effects of process and equipment and supplier relationships on sustainable performance. These results have important implications for enhancing the sustainable performance of manufacturing firms through lean manufacturing practices.

Suggested Citation

  • Mohammad Iranmanesh & Suhaiza Zailani & Sunghyup Sean Hyun & Mohd Helmi Ali & Kwangyong Kim, 2019. "Impact of Lean Manufacturing Practices on Firms’ Sustainable Performance: Lean Culture as a Moderator," Sustainability, MDPI, vol. 11(4), pages 1-20, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:4:p:1112-:d:207674
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/4/1112/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/4/1112/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rohaizah Saad & Mohd Norhasni & Mohd Asaad, 2015. "Does organizational culture moderate the relationship between ISO 9000 soft factors and organizational performance?," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(3), pages 379-394, July-Sepe.
    2. Sandra Rothenberg, 2003. "Knowledge Content and Worker Participation in Environmental Management at NUMMI," Journal of Management Studies, Wiley Blackwell, vol. 40(7), pages 1783-1802, November.
    3. Michael W Morris & Katherine Y Williams & Kwok Leung & Richard Larrick & M Teresa Mendoza & Deepti Bhatnagar & Jianfeng Li & Mari Kondo & Jin-Lian Luo & Jun-Chen Hu, 1998. "Conflict Management Style: Accounting for Cross-National Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(4), pages 729-747, December.
    4. Zheng, Wei & Yang, Baiyin & McLean, Gary N., 2010. "Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management," Journal of Business Research, Elsevier, vol. 63(7), pages 763-771, July.
    5. Suhaiza Zailani & Mohammad Iranmanesh & Sunghyup Sean Hyun & Mohd Helmi Ali, 2019. "Applying the Theory of Consumption Values to Explain Drivers’ Willingness to Pay for Biofuels," Sustainability, MDPI, vol. 11(3), pages 1-13, January.
    6. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    7. Panizzolo, Roberto, 1998. "Applying the lessons learned from 27 lean manufacturers.: The relevance of relationships management," International Journal of Production Economics, Elsevier, vol. 55(3), pages 223-240, August.
    8. Helena Carvalho & Susana Garrido Azevedo & V. Cruz-Machado, 2010. "Supply chain performance management: lean and green paradigms," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 2(3/4), pages 304-333.
    9. Losonci, Dávid & Demeter, Krisztina & Jenei, István, 2011. "Factors influencing employee perceptions in lean transformations," International Journal of Production Economics, Elsevier, vol. 131(1), pages 30-43, May.
    10. Mohammad Iranmanesh & Suhaiza Zailani & Soroush Moeinzadeh & Davoud Nikbin, 2017. "Effect of green innovation on job satisfaction of electronic and electrical manufacturers’ employees through job intensity: personal innovativeness as moderator," Review of Managerial Science, Springer, vol. 11(2), pages 299-313, March.
    11. Yang, Ma Ga (Mark) & Hong, Paul & Modi, Sachin B., 2011. "Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 129(2), pages 251-261, February.
    12. Nor’Aini Yusof & Ernawati Mustafa Kamal & Lai Kong-Seng & Mohammad Iranmanesh, 2014. "Are Innovations Being Created or Adopted in the Construction Industry? Exploring Innovation in the Construction Industry," SAGE Open, , vol. 4(3), pages 21582440145, September.
    13. Mark Anthony Camilleri, 2017. "Re-conceiving Corporate Social Responsibility Programmes for Education," CSR, Sustainability, Ethics & Governance, in: Stephen Vertigans & Samuel O. Idowu (ed.), Corporate Social Responsibility, chapter 0, pages 157-172, Springer.
    14. Suhaiza Zailani & Mohd Rizaimy Shaharudin & Khairul Razmi & Mohammad Iranmanesh, 2017. "Influential factors and performance of logistics outsourcing practices: an evidence of malaysian companies," Review of Managerial Science, Springer, vol. 11(1), pages 53-93, January.
    15. Charles J. Corbett & Robert D. Klassen, 2006. "Extending the Horizons: Environmental Excellence as Key to Improving Operations," Manufacturing & Service Operations Management, INFORMS, vol. 8(1), pages 5-22, March.
    16. Dimitrios Folinas & Dimitrios Aidonis & Giorgos Malindretos & Nikolaos Voulgarakis & Dimitrios Triantafillou, 2014. "Greening the agrifood supply chain with lean thinking practices," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 10(2), pages 129-145.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Mohammad Iranmanesh & Kavigtha Mohan Kumar & Behzad Foroughi & Reza Kian Mavi & Ng Hui Min, 2021. "The impacts of organizational structure on operational performance through innovation capability: innovative culture as moderator," Review of Managerial Science, Springer, vol. 15(7), pages 1885-1911, October.
    3. Mohd Helmi Ali & Suhaiza Zailani & Mohammad Iranmanesh & Behzad Foroughi, 2019. "Impacts of Environmental Factors on Waste, Energy, and Resource Management and Sustainable Performance," Sustainability, MDPI, vol. 11(8), pages 1-16, April.
    4. Ahmed Ghaithan & Mohammed Khan & Awsan Mohammed & Laith Hadidi, 2021. "Impact of Industry 4.0 and Lean Manufacturing on the Sustainability Performance of Plastic and Petrochemical Organizations in Saudi Arabia," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    5. Said Yousef Dwikat & Darwina Arshad & Mohd Noor Mohd Shariff, 2023. "Effect of Competent Human Capital, Strategic Flexibility and Turbulent Environment on Sustainable Performance of SMEs in Manufacturing Industries in Palestine," Sustainability, MDPI, vol. 15(6), pages 1-29, March.
    6. Amal Benkarim & Daniel Imbeau, 2021. "Organizational Commitment and Lean Sustainability: Literature Review and Directions for Future Research," Sustainability, MDPI, vol. 13(6), pages 1-24, March.
    7. Sepehr Alizadehsalehi & Ahmad Hadavi, 2023. "Synergies of Lean, BIM, and Extended Reality (LBX) for Project Delivery Management," Sustainability, MDPI, vol. 15(6), pages 1-27, March.
    8. Jum'a, Luay & Zimon, Dominik & Ikram, Muhammad & Madzík, Peter, 2022. "Towards a sustainability paradigm; the nexus between lean green practices, sustainability-oriented innovation and Triple Bottom Line," International Journal of Production Economics, Elsevier, vol. 245(C).
    9. Rajesh Kr Singh & Sachin Kumar Mangla & Manjot Singh Bhatia & Sunil Luthra, 2022. "Integration of green and lean practices for sustainable business management," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 353-370, January.
    10. Dr Emmanuel Mitaire Tarurhor & Dr Ochuko B. Emudainohwo, 2020. "LEAN Manufacturing and Firm Performance in the Palm-Oil Industries in Delta State, Nigeria," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 319-331.
    11. 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.
    12. Said Yousef Dwikat & Darwina Arshad & Mohd Noor Mohd Shariff, 2022. "The Influence of Systematic Strategic Planning and Strategic Business Innovation on the Sustainable Performance of Manufacturing SMEs: The Case of Palestine," Sustainability, MDPI, vol. 14(20), pages 1-26, October.
    13. Sasha Shahbazi & Martin Kurdve & Mats Zackrisson & Christina Jönsson & Anna Runa Kristinsdottir, 2019. "Comparison of Four Environmental Assessment Tools in Swedish Manufacturing: A Case Study," Sustainability, MDPI, vol. 11(7), pages 1-19, April.
    14. Luay Jum’a & Dominik Zimon & Muhammad Ikram, 2021. "A Relationship between Supply Chain Practices, Environmental Sustainability and Financial Performance: Evidence from Manufacturing Companies in Jordan," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    15. Geandra Alves Queiroz & Paulo Nocera Alves Junior & Isotilia Costa Melo, 2022. "Digitalization as an Enabler to SMEs Implementing Lean-Green? A Systematic Review through the Topic Modelling Approach," Sustainability, MDPI, vol. 14(21), pages 1-21, October.

    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. 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.
    2. Laura Maria Ferri & Nelly Oelze & André Habisch & Mario Molteni, 2016. "Implementation of responsible Procurement Management: An Institutional Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 25(4), pages 261-276, May.
    3. Fahimnia, Behnam & Sarkis, Joseph & Eshragh, Ali, 2015. "A tradeoff model for green supply chain planning:A leanness-versus-greenness analysis," Omega, Elsevier, vol. 54(C), pages 173-190.
    4. Luay Jum’a & Dominik Zimon & Muhammad Ikram, 2021. "A Relationship between Supply Chain Practices, Environmental Sustainability and Financial Performance: Evidence from Manufacturing Companies in Jordan," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    5. Wayne Fu & Basak Kalkanci & Ravi Subramanian, 2019. "Are Hazardous Substance Rankings Effective? An Empirical Investigation of Information Dissemination About the Relative Hazards of Chemicals and Emissions Reductions," Manufacturing & Service Operations Management, INFORMS, vol. 21(3), pages 602-619, July.
    6. Abdalla Shwairef & Azlan Amran & Mohammad Iranmanesh & Noor Hazlina Ahmad, 2021. "The mediating effect of strategic posture on corporate governance and environmental reporting," Review of Managerial Science, Springer, vol. 15(2), pages 349-378, February.
    7. Mohd Helmi Ali & Suhaiza Zailani & Mohammad Iranmanesh & Behzad Foroughi, 2019. "Impacts of Environmental Factors on Waste, Energy, and Resource Management and Sustainable Performance," Sustainability, MDPI, vol. 11(8), pages 1-16, April.
    8. Malihe Manzouri & Mohd Nizam Ab-Rahman & Che Rosmawati Che Mohd Zain & Ezad Azraai Jamsari, 2014. "Increasing Production and Eliminating Waste through Lean Tools and Techniques for Halal Food Companies," Sustainability, MDPI, vol. 6(12), pages 1-26, December.
    9. Nilanjana Dutt & Andrew A. King, 2014. "The Judgment of Garbage: End-of-Pipe Treatment and Waste Reduction," Management Science, INFORMS, vol. 60(7), pages 1812-1828, July.
    10. Yalabik, Baris & Fairchild, Richard J., 2011. "Customer, regulatory, and competitive pressure as drivers of environmental innovation," International Journal of Production Economics, Elsevier, vol. 131(2), pages 519-527, June.
    11. Cagatay Tasdemir & Rado Gazo, 2018. "A Systematic Literature Review for Better Understanding of Lean Driven Sustainability," Sustainability, MDPI, vol. 10(7), pages 1-54, July.
    12. Wong, Christina W.Y. & Lai, Kee-hung & Cheng, T.C.E. & Lun, Y.H. Venus, 2012. "The roles of stakeholder support and procedure-oriented management on asset recovery," International Journal of Production Economics, Elsevier, vol. 135(2), pages 584-594.
    13. Narayanamurthy, Gopalakrishnan & Gurumurthy, Anand & Subramanian, Nachiappan & Moser, Roger, 2018. "Assessing the readiness to implement lean in healthcare institutions – A case study," International Journal of Production Economics, Elsevier, vol. 197(C), pages 123-142.
    14. Tyagi, Satish & Choudhary, Alok & Cai, Xianming & Yang, Kai, 2015. "Value stream mapping to reduce the lead-time of a product development process," International Journal of Production Economics, Elsevier, vol. 160(C), pages 202-212.
    15. Suhaiza Zailani & Mohammad Iranmanesh & Sunghyup Sean Hyun & Mohd Helmi Ali, 2019. "Barriers of Biodiesel Adoption by Transportation Companies: A Case of Malaysian Transportation Industry," Sustainability, MDPI, vol. 11(3), pages 1-15, February.
    16. Uli Wildan Nuryanto & Masyhudzulhak Djamil Mz & Ahmad Hidayat Sutawidjaya & Ahmad Badawi Saluy, 2020. "The Impact of Social Capital and Organizational Culture on Improving Organizational Performance," International Review of Management and Marketing, Econjournals, vol. 10(3), pages 93-100.
    17. Mohammad Iranmanesh & Sajad Fayezi & Suhaiza Hanim & Sunghyup Sean Hyun, 2019. "Drivers and outcomes of eco-design initiatives: a cross-country study of Malaysia and Australia," Review of Managerial Science, Springer, vol. 13(5), pages 1121-1142, November.
    18. Suhaiza Zailani & Mohammad Iranmanesh & Behzad Foroughi & Kwangyong Kim & Sunghyup Sean Hyun, 2020. "Effects of supply chain practices, integration and closed-loop supply chain activities on cost-containment of biodiesel," Review of Managerial Science, Springer, vol. 14(6), pages 1299-1319, December.
    19. Shakun Preet Kaur & Jatinder Kumar & Rakesh Kumar, 2017. "The Relationship Between Flexibility of Manufacturing System Components, Competitiveness of SMEs and Business Performance: A Study of Manufacturing SMEs in Northern India," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(2), pages 123-137, June.
    20. Chavez, Roberto & Yu, Wantao & Jacobs, Mark & Fynes, Brian & Wiengarten, Frank & Lecuna, Antonio, 2015. "Internal lean practices and performance: The role of technological turbulence," International Journal of Production Economics, Elsevier, vol. 160(C), pages 157-171.

    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:gam:jsusta:v:11:y:2019:i:4:p:1112-:d:207674. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.