The mediating effect of sustaining lean improvement on the relationship between sustainable manufacturing practices and sustaining performance

Abstract

Sustainable Development Goals are setting a new global target on sustainability whereby oil and gas (O&G) corporate are expected to play an important role through sustainable manufacturing practices (SMP) and sustaining lean improvement (SLI). Accordingly, both parties are crucial to achieve sustainable performance (SP) with triple-bottom line concept of these organisations. However, research on the relationship of SMP, SLI and SP is relatively rare particularly in Malaysian O&G sector. Therefore, this study is aimed to provide empirical evidence showing that SMP and SLI significantly improve SP in order to encourage organisations to implement these practices. The study population will be Malaysian O&G organizations listed in Malaysia Oil and Gas Services and Equipment (OGSE) Catalogue 2018 where data were collected using a questionnaire-based survey through Linkedin and Google form. This research involved 53 O&G organisations in Malaysia. This paper provides evidence of the positive and significant relationship between SMP, SLI and SP as well as the partial mediating effect of SLI implementation on the relationship between SMP and SP.