Leveraging Lean and Green Supply Chain Practices for Sustainable Supply Chain Performance: The Moderating Role of Environmental Orientation

Abstract

This study investigates the impact of lean and green supply chain practices on business process performance and sustainable supply chain performance. The research utilises the resource-based view (RBV) theory to construct a conceptual model wherein lean and green supply chain practices are employed to augment business processes and sustainable performance. Concurrently, dynamic capabilities theory is applied to signify an organisation’s capacity to adapt and evolve in response to internal and external pressures from customers and competitors. The conceptual model is validated using structural equation modelling with a sample of 170 supply chain practitioners from the apparel and textile supply chain in Jordan. Results indicate that lean practices exhibit no direct impact, whereas green practices significantly influence business process performance and indirectly affect sustainable supply chain performance. Business process performance does not mediate the relationship for lean practices, but it does so for green practices. Moreover, the environmental orientation of both competitors and customers negatively moderates the impact of green practices on business processes and sustainable supply chain performance. These findings contribute to existing literature and underscore the crucial role of green supply chain practices in enhancing sustainable supply chain performance in the apparel and textile industry.