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Can entrepreneurial orientation improve sustainable development through leveraging internal lean practices?

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  • Roberto Chavez
  • Wantao Yu
  • Muhammad Shakeel Sadiq Jajja
  • Antonio Lecuna
  • Brian Fynes

Abstract

This study aims to examine the mediating role of internal lean practices (ILPs) on the relationship between entrepreneurial orientation and triple bottom line performance (i.e. environmental, social, and operational performance). We examine Chile, which represents a vibrant economy and one of the world's most productive entrepreneurship ecosystems but with a history of socio‐economic inequalities and strong profit‐driven pressures to overextract natural resources. The study is based on a questionnaire related to manufacturing sent to 112 companies in Chile. The proposed relationships are analysed through structural equation modelling. The results indicate that ILPs fully mediate the effect of entrepreneurial orientation on environmental performance and social performance and partially mediates the effect of entrepreneurial orientation on operational performance. Our study extends the literature by explaining that entrepreneurial orientation builds and strengthens ILPs for creating triple bottom line competitive advantage.

Suggested Citation

  • Roberto Chavez & Wantao Yu & Muhammad Shakeel Sadiq Jajja & Antonio Lecuna & Brian Fynes, 2020. "Can entrepreneurial orientation improve sustainable development through leveraging internal lean practices?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2211-2225, September.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:6:p:2211-2225
    DOI: 10.1002/bse.2496
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