An empirical examination of SMEs sustainable performance through lean manufacturing

In the modern business world, manufacturing entities seek the modern way of production, which can help them to minimize the wastage of material. To minimize the wastage of materials in manufacturing entities, use different modern techniques, and one of the modern techniques is lean manufacturing. This study aims to explore the relationship between lean manufacturing and the sustainable performance (SP) of the firm. For this purpose, data were collected from SMEs working in Pakistan. Results elaborate that four lean manufacturing practices, that is, process and equipment, product design, supplier relationship, and customer relationship have a positive and significant impact on SP, but the impact of planning and control and HR practices could not be verified. Moreover, green supply chain management (GSCM) found a mediator between HR practices, product design, supplier relationships, customer relationships, and SP. Outcomes of this study provide the higher management of SMEs with a way forward to implement modern techniques within their organizations to minimize the wastage of material during the manufacturing process. Furthermore, this study will cover the deficiency in the literature about the mediating role of GSCM between lean manufacturing and sustainable performance.