The influence of lean management and environmental practices on relative competitive quality advantage and performance
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Manufacturing Technology Management
Abstract
Purpose – Firms are adopting strategies to advance product quality and environmental sustainability to
achieve improved profitability and shareholders’ wealth. The study investigates strategies that create a
superior quality performance to competitors and improve both environmental and business performances.
This paper explores the direct and indirect influence of lean management and environmental practices on
relative competitive quality advantage, environmental performance, and business performance.
Design/methodology/approach – The study uses a quantitative method where data is gathered from 259
manufacturing firms in Ghana. The data is gathered through customized questionnaires. The partial least
squares structural equation modeling (SmartPLS 3.2.8) is used to analyze the data. Firm size, industry type, and
importance of environmental issues are used as control variables in this study.
Findings – The findings of the study indicate that both lean management and environmental practices create
relative competitive quality advantage and improve environmental performance and business performance.
Environmental performance and relative competitive quality advantage mediate the influence of lean
management and environmental practices on business performance. The results further indicate that lean
management creates a higher relative competitive quality advantage than environmental practices, while
environmental practices have more potential to enhance environmental performance than lean management.
Originality/value – The study develops and proposes a comprehensive theoretical framework that examines
the potency of environmental practices and lean management in creating a relative competitive quality
advantage and improving environmental performance and business performance from a Ghanaian
perspective, which is an emerging economy in Africa. Lean management and environmental practices may
jointly help firms create relative competitive advantage and improve environmental performance to enhance
business performance.
Description
Research Article
Keywords
Organizational performance, Lean manufacturing, Sustainable production, Total quality management, Environmental management, Green operations