The Impact of Sustainable Manufacturing Practices on Sustainability

Abstract

This study aims to empirically investigate the impact of sustainable manufacturing practices (SMP) on sustainability performance (SP) among manufacturing firms in Malaysia. Drawing from the theoretical lenses of stakeholder theory, the present study advocates the three pillars of sustainability, encompassing economic, environmental, and social sustainability, in measuring firm performance. Using PLS-SEM approach, the survey data collected from 150 firms were analyzed. The findings reveal that both underlying variables of SMP, internal SMP and external SMP, have positive and significant impact on environmental and social sustainability. Surprisingly, while internal SMP proof the significant positive influence on economic sustainability, external SMP failed to do so. Theoretically, the study contributes to the sustainable manufacturing literature by demonstrating the relationship between SMP and sustainability performance (SP). Practically, the study is beneficial for practitioners in understanding the diverse aspects of SMP and SP, identifies the strengths and weaknesses of their current SMP, and provides a guideline in improving their performance.

Entrepreneurial Leadership and Sustainable Performance of Manufacturing SMEs in Malaysia: The Contingent Role of Entrepreneurial Bricolage

“…Although there is no empirical support for the direct relationship between EL and ECSPF, this finding is in contrast with [85], who stated that EL is positively influencing acquisition performance, which indirectly influences economic performance through returns on investment, sales, and equity. This finding also contradicts the previous literature which stated that sustainable practices positively enhance economic performance [22,57,86]. The authors found that by being friendly to the environment and responsible to employees, society, as well as suppliers, a better market position and business performance may be attained for a business.…”

“…Most previous studies relate sustainable performance with sustainable manufacturing practices [44,57], green supply chain practices [43][44][45][46][47], environmental management systems i.e., the international standard ISO 14001 and the European EMAS scheme [58], strategic purchasing, and sustainable supply management [48]. Thus, empirical research that examines the relationship between sustainable performance and EL is scarce.…”

“…The study described that leaders play a significant role in driving sustainable practices where this leads to organizational efficiency and a reputable green image. Most prior research agreed that sustainability has a positive relationship with environmental performance through reduction of waste, resources, product defects, and pollution [57,86]. According to [47], legislation and regulation focusing on sustainability drive environmental performance.…”

“…The result is also consistent with research conducted by [36], who discovered that EL plays an important role in developing innovative organizations through an innovation process (idea generation, idea selection, idea development, and idea diffusion). A study by [57] revealed that sustainability practices improve social well-being for customers, suppliers, employees, and society at large.…”

Integrating Sustainable Maintenance Into Sustainable Manufacturing Practices and Its Relationship With Sustainability Performance: A Conceptual Framework

“…In this respect, sustainable manufacturing practices (SMPs) have not been widely studied and documented by researchers (Alayón et al, 2017;Despeisse et al, 2012;Roberts and Ball, 2014). Additionally, several empirical evidence suggests that SMPs contribute to improved economic, environmental and social sustainability (e.g., Abdul-Rashid et al, 2017a;Abdul-Rashid et al, 2017b;Gimenez et al, 2012;Habidin et al, 2013;Hami, 2015;Hami et al, 2016;Hartini and Ciptomulyono, 2015;Shubham et al, 2018;Zubir et al, 2012). Therefore, there is a necessary need to study SMPs as they will contribute to addressing the practical issue of SP in the O&GI in Iraq.…”