Sustainable management practices, operational and sustainable performance in manufacturing contexts: empirical evidence from a developing economy

Abstract

Purpose – Sustainable management practices are crucial environmental initiatives implemented by manufacturing organisations to mitigate growing social and ecological problems and progress operational and economic successes. The theory of constraints highlights the essence of adopting sustainability practices, including green management, lean management, top management commitment and reverse logistics, to address production constraints and achieve manufacturing performance. However, more empirical evidence is required to determine whether sustainability practices affect manufacturing performance metrics in economies like Ghana. This research establishes whether adopting sustainable management practices impacts manufacturers’ operational and sustainable performance. Design/methodology/approach – This deductive research adopts an explanatory research design. Survey data was administered to 285 managers in 5,329 manufacturing businesses in Ghana. The data was processed and analysed with SmartPLS4.1 and structural equation modelling. Findings – Green management and top management commitment positively predict the performance aspects of manufacturing organisations in Ghana. Also, reverse logistics and lean management practices improve firms’ operational, social and environmental performance, except for economic performance. It is concluded that manufacturing businesses that embrace sustainable management practices can improve their performance. Research limitations/implications – Although the study’s objectives were primarily achieved, it was geographically restricted to Ghana, a developing country. Also, it was carried out within the boundaries of explanatory design and structural equation modelling. Practical implications – It provides comprehensive information to assist owner-managers in prioritising heavy investments in appropriate sustainable management practices. It will also encourage them to develop a sustainability culture within their firms and supply chains to fast-track and sustain the adopted practices. These measures will enable manufacturing organisations to effectively handle growing sustainability problems to leverage their sustainable and operational performance. Originality/value – This study analyses the interplay between sustainable management practices and manufacturing performance dimensions in a developing economy. Hence, the outcomes would serve as valuable guidelines for selecting relevant practices to foster sustainable production and meet performance objectives.

Keywords

• Sustainable management practices
• Operational performance
• Sustainable performance
• Developing economy