Sustain or perish: how lean manufacturing practices predict the sustainable performance of manufacturing SMEs? A moderated mediation analysis

Abstract

Purpose: This paper aims to explore how lean manufacturing practices (LMPs) predict sustainable performance (SP) in the context of manufacturing small and medium-sized enterprises (SMEs) in less developed countries, like Yemen. In particular, it investigates the mediating effect of corporate social responsibility (CSR) under different levels of competitive intensity (CI). Design/methodology/approach: Hierarchical regression analysis was used to analyze data gathered from a survey of 259 Yemeni manufacturing SMEs. Findings: The findings confirm that LMPs affect CSR, which in turn affects SP. This study also confirms that LMPs have a positive indirect effect on SP through CSR, which diminished in the presence of CI. Practical implications: This study provides useful insights for policymakers and firms’ managers, who are anticipated to show a higher commitment to CSR in their firms when adopting LMPs to enhance their firms’ SP, especially under a low level of CI. Originality/value: This paper contributes to expanding knowledge on the effect of LMPs on SP through CSR constrained by the level of CI.