Sustainability and Lean Manufacturing Practices: The Mediating Role of Manufacturing Performance

Lean manufacturing practices (LMP) is considered a manufacturing philosophy that can lead to global manufacturing performance. It gives manufacturers a competitive advantage by enhancing their economic, environmental, and social positions. This study aims to examine the relationship between LMP and sustainability among Malaysia’s manufacturing organisations. Specifically, it investigates the mediating role of manufacturing performance (MP) on the relationship between LMP and sustainability. Consequently, this study integrates both the Resource-Based View (RBV) and Stakeholder Theory to map and position the possible relationships between the variables in the conceptual framework. This study applies the quantitative method in which a questionnaire is developed through an extensive literature review. The population size for this study is 2368 firms, based on the Federation of Malaysian Manufacturers (FMM). In this study, the unit of analysis embodies the middle up to the top management of the selected firms. The survey questionnaires were randomly distributed to a sample of 335 manufacturing organisations in Malaysia, with a 30.4 per cent response rate. The data obtained were analysed using PLS-SEM. The results indicated i) a positive relationship between LMP and sustainability, ii) a positive relationship between LMP and MP, iii) a positive relationship between MP and sustainability, and iv) a mediating role of MP in the relationship between LMP and sustainability. Hence, LMP provides a better insight into Malaysia’s manufacturing organisations by considering manufacturing performance and economical, social, and environmental sustainability. Additionally, future research also can be done through empirical study if the variables of lean manufacturing practices can be formed into multidimensionality which current study had tested lean manufacturing practices in unidimensionality. Multidimensionality perhaps could identify precise practices of lean manufacturing practices in contribution to increase the manufacturing performance towards sustainability.