Do Quality Management Practices, Organizational Ambidexterity, and Green Innovation Influence Sustainable Performance? A Structural Equation Modeling approach

Abstract

This study examines the effects of embedding Quality Management practices (QMP), that is, quality training, employee relations, and management relations on Sustainable Performance (SP), and the mediating role of Organizational ambidexterity exploration (innovation exploration) and exploitation (innovation exploitation) between the relationship between QMP and SP in the manufacturing industry. Moreover, the role of Green Innovation is explored as a moderator in the ties of Organizational Ambidexterity Exploration (innovation exploration) and SP. SmartPLS is used in this paper to analyze quantitative data collected from industry specialists and supply chain managers in the food, paint, and textile industries. The findings suggest that good management practices: management relations, employee training, and quality training, can help create a conducive environment for exploratory innovations, which can furthermore help improve the SP of the firm. In the case of exploration, incorporating green products and procedures can help the company achieve long-term success. QMP in ambidextrous manufacturing industries improves the firm’s social performance by meeting the needs of environmentally conscious stakeholders and ensuring healthy relationships, social welfare, customer satisfaction, and societal friendliness toward sustainable products through green product and process innovation. Managers can take advantage of the inherent potential of quality management systems to integrate them into exploitative and exploratory activities and boost the company’s long-term profitability. This study explored a novel concept of green innovation as rare, valuable, inimitable, and organized, so it helps firms in the attainment of sustainable competitive advantage.