Exploring the Relationships among Sustainable Manufacturing Practices, Business Performance and Competitive Advantage: Perspectives from a Developing Economy

Abstract

This study aims to empirically test the relationships among the adoption of sustainability practices, business performance and competitive advantage in Caribbean manufacturing firms. Seven dimensions of sustainable manufacturing practices are conceptualized and tested against measures of business performance and competitive advantage. Three hypothesized relationships are tested using the partial least squares structural equation modeling (PLS-SEM) technique. The results show a negative relationship between the adoption of sustainability practices and business performance. We also find that there is no significant relationship between the adoption of sustainability practices and competitive advantage. However, we observe a significant positive relationship between competitive advantage and business performance. Based on these findings, manufacturing firms in developing regions, such as the Caribbean, are advised to pursue sustainability strategy implementation with some vigor, but should base their choices on strategies that will enhance sustainability through improved resource productivity, while improving business performance and competitive advantage.

The Role of Market Orientation, Creativity and Innovation in Creating Competitive Advantages and Creative Industry Performance

“…The higher the ability to create competitive advantage is, the higher creative industry performance. The result of this study reinforces the finding that competitive advantage can improve business performance (Russell & Millar, 2014;Mulyana, 2016). Correspondingly, this research findings competitive advantage can improve organizational performance (Lakhal, 2009;Russell & Millar, 2014).…”

“…Business performance is significantly influenced by the competitive advantages of a company (Russell & Millar, 2014;Mulyana, 2016) and competitive advantage significantly affects financial performance (Kamukama et al, 2011). Strong competitive advantage improves organizational performance (Lakhal, 2009;Russell & Millar, 2014;Putri & Yuniawan, 2016).…”

“…Strong competitive advantage improves organizational performance (Lakhal, 2009;Russell & Millar, 2014;Putri & Yuniawan, 2016). High corporate performance is an indicator of competitive strength (Awuah, 2008).…”

Digital Capability and Innovation Strategy to Develop the Performance and Competitive Advantages of Fashion Smes in Jakarta, Indonesia

“…The capability of SMES, in term of facing the global competition, indeed should get the special attention in order to be able to survive to maintain the stability of the economic. The Development strategy of SMEs to survive could be done by improving the competitive advantage and by developing the innovation in order to be able to have more values and to be able to survive in the globalization (Russell & Millar, 2014).…”

“…This is important considering the more competitive advantage we had, the more competitors paid more attentions to our weaknesses. Therefore, a company should be consistent enough to maintain their competitive advantage (Russell & Millar, 2014).…”