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Unfolding the impact of leadership and management on sustainability performance: Green and lean practices and guanxi as the dual mediators

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  • Pik‐Yin Foo
  • Voon‐Hsien Lee
  • Keng‐Boon Ooi
  • Garry Wei‐Han Tan
  • Amrik Sohal

Abstract

This study aims to empirically evaluate the predictors that influence sustainability performance among manufacturing firms. Leadership and management, green and lean practices, and guanxi were examined to determine whether these predictors are directly and/or indirectly affecting sustainability performance; 160 valid responses were collected and partial‐least‐squares‐structural‐equation‐modeling (PLS‐SEM) was used to analyze the data. The results showed that leadership and management positively influenced green and lean practices and green and lean practices positively influenced sustainability performance. Leadership and management also positively influenced guanxi. Interestingly, leadership and management and guanxi do not exert a significant direct influence on sustainability performance. The findings contributed to the development of the resource‐based‐view theory further by empirically exploring the significance of leadership and management coupled with green and lean practices as competencies and capability to drive sustainability performance. The testing of the dual mediators' effects further added value to this study.

Suggested Citation

  • Pik‐Yin Foo & Voon‐Hsien Lee & Keng‐Boon Ooi & Garry Wei‐Han Tan & Amrik Sohal, 2021. "Unfolding the impact of leadership and management on sustainability performance: Green and lean practices and guanxi as the dual mediators," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4136-4153, December.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:8:p:4136-4153
    DOI: 10.1002/bse.2861
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    5. Kleber F. Barcia & Lizzi Garcia-Castro & Jorge Abad-Moran, 2022. "Lean Six Sigma Impact Analysis on Sustainability Using Partial Least Squares Structural Equation Modeling (PLS-SEM): A Literature Review," Sustainability, MDPI, vol. 14(5), pages 1-26, March.
    6. Wong, Lai-Wan & Tan, Garry Wei-Han & Ooi, Keng-Boon & Chan, Hing Kai, 2024. "Blockchains for SMEs: A Fit-Viability perspective moderated by organizational innovation diffusion for supply chain performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).
    7. John Sihar Manurung, 2024. "Green Tech and Human Dynamics: Transforming Indonesia’s Waste Industry with VR, AR, and Renewable Energy Innovations," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 603-617, March.
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