Nexus between lean operations, eco-product innovativeness, social, green and business performances: an empirical evidence from Ghanaian manufacturing SMEs

Abstract

PurposeThis paper explores the nexus between lean operations, eco-product innovativeness, social performance, green performance and business performance. Both direct and indirect effects are tested among the variables under consideration in this study.Design/methodology/approachData is garnered from 166 Ghanaian small and medium-sized enterprise (SME) manufacturers. All hypothesized relationships are tested using partial least square-structural equation modeling.FindingsThe results suggest that lean operations has a significant positive effect on eco-product innovativeness, social performance, green performance and business performance. The results further indicate that eco-product innovativeness significantly influences green performance and social performance, but does not significantly influence business performance. The mediation procedure performed shows that eco-product innovativeness plays a complementary partial mediation role between lean operations, social performance, green performance and business performance.Practical implicationsThe study provides enough evidence that informs managers that the application of lean operations should be a necessity instead of an afterthought when pursuing their sustainable performance targets. The study specifically enlightens Ghanaian managers and those in similar environs to substantially invest in lean operations to achieve eco-product innovativeness and contribute to the survival of the manufacturing sector.Originality/valueIn addition to expanding lean operations and environmental management literature, the study happens to be among the scant studies that has verified the direct and indirect effects between lean operations, eco-product innovativeness, social, green and business performances.