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.