The mediatory role of the environmental performance function within the lean-green manufacturing sustainability complex

Abstract

PURPOSE : The objective of the study is to explore the mediatory role of the environmental performance of organisations on their economic and social performances. It demonstrates that implementing environmental management techniques should not only be done to comply with environmental regulations, but also as a means of improving social and economic performance. DESIGN/METHODOLOGY/APPROACH : The data were gathered from the manufacturing industry of Zimbabwe, and 302 useable responses were received. Data analysis was performed through structural equation modelling (SEM) using SMART PLS 3. FINDINGS : Improvement in environmental performance led to improvements in both social and economic performances. Also, environmental performance contributes the greatest total effect; hence, it deserves attention, not only for compliance but also for economic reasons. ORIGINALITY/VALUE : Our goal is to quantify the extent to which environmental performance might improve the social and, more importantly, the economic performance of organisations. The study also explores the relative importance and performance of lean manufacturing (LM), green manufacturing (GM), social performance and environmental performance for purposes of prioritisation of organisational improvement initiatives.