EXAMINING THE IMPACT OF LEAN AND AGILE MANUFACTURING PRACTICES ON SUSTAINABLE FIRM PERFORMANCE: THE MEDIATING ROLE OF GREEN PRACTICES

Abstract

This study examines how lean manufacturing practices including Total Quality Management (TQM), Just in Time (JIT) and agile manufacturing practices affect the Sustainable Firm Performance (SFP) with green manufacturing practices acting as a mediator. Based on the Resource-Based View (RBV), this study primarily examined the business's operational and environmental skills as strategic capabilities that contribute to long-term, sustainable firm performance. Data was gathered from 241 respondents in Pakistan's leather export sector, including executives, operational managers, and quality supervisors. Information gathered through the use of cluster sampling. Every item and associated construct was measured using a validated five-point Likert scale. The measurement and structural models, including mediation effects, were evaluated using Covariance-based Structural Equation Modeling (CB-SEM) in AMOS. The results reveal that while JIT has no measurable effect on SFP or Green Practices, TQM and Agile Manufacturing Practices both directly and indirectly improve SFP through Green Practices. The linkages among TQM and Agile Manufacturing Practices with SFP were shown to be somewhat mediated by green practices, indicating the crucial role that eco-friendly efforts play in converting operational and manufacturing excellence into long-term results. In addition to providing management insights by highlighting the combination of quality, agility, and green practices to achieve better sustainability performance, the study advances theory by expanding RBV to include environmental capabilities as strategic resources.