While lean management practices (LMP) helps small and medium sized enterprises (SMEs) to be efficient, sustainability oriented innovation (SOI) facilitates to adopt environmental and social practices.
Although prior research looks into the effect of LMP on economic performance of SMEs, less is known about the effect of LMP on sustainability (economic, environmental, and social) performance. Studies on effect of SOI on sustainability and economic performance are also scant. Additionally, examining the mediating effect of corporate social responsibility (CSR) practices (environmental and social practices) on both LMP and SOI achieving sustainability performance is rare. This research bridges these knowledge gaps by answering the question how LMP, SOI, CSR practices, sustainability and economic performance are correlated. Through a few hypotheses testing using structural equation modelling, this study reveals the impact of LMP, SOI, CSR (environmental and social) practices on sustainability and economic performance. The study uses data from 119 SMEs within manufacturing industries in the Midlands, UK. The analysis reveals that LMP and SOI facilitate achieve both sustainability and economic performance, and SOI mediates LMP to achieve sustainability performance. Additionally, although CSR practices mediate LMP to achieve sustainability performance, it does mediate SOI only borderline to achieve sustainability performance. Το see the full article, please press here.
Source: ResearchGate https://www.researchgate.net