The relationships among transformational leadership, sustainable leadership, lean manufacturing and sustainability performance in Thai SMEs manufacturing industry

Abstract

Purpose The purpose of this paper is to examine the structural relationship model among transformational leadership, sustainable leadership (SL), lean manufacturing practices and sustainability performance. Design/methodology/approach The data were collected from the middle and senior managers working in small and medium enterprises of Thai manufacturing industry. Regarding the quantitative approach, the data were collected by means of survey from 598 respondents from 374 companies. Qualitative data were collected from 40 participants by participant observation, non-participant observation and in-depth interview. Findings The model reported that lean manufacturing has a partial mediate effect on the relationship between transformational leadership and sustainability performance, and between SL and sustainability performance. The structural model is different in automotive and nonautomotive companies, and the structural model is different among the companies which implemented lean program for less than five years and above five years. The data from in-depth interview informed that lean practices are appropriate for automotive industry though with less implementation in other industries. Firms pay most attention on customer involvement with some attention on employee and supplier involvement. Managers give advices and exchange ideas with their followers rather than inspiring and giving opportunities to make decision. Research limitations/implications The findings may also enable Thai managers to realize that lean practices are appropriate for any industry. The first thing to do before launching lean program to all process is that the company should buy-in the understanding of managers about lean concept and implementation. Willingness with well understanding and realizing importance of lean program will lead to superior results, especially operational, economic and sustainable performance. Originality/value The reliability and validity measurements confirmed that both SL and environmental and social performance are appropriate for manufacturing industries. This study provides evidence of the positive relationship between SL and lean manufacturing, lean manufacturing and sustainability performance, as well as the partial mediate effect of lean manufacturing on the relationship between SL and sustainability performance, which are the additional contributions to research in academic field. The results confirmed the positive relationship between transformational leadership and lean manufacturing. The results reported that there is difference of lean practices between automotive and nonautomotive companies, and between companies which implemented lean program less than five years and above five years. The structural relationship result reported that transformational leadership has effects on lean manufacturing whereas SL has no effect on lean manufacturing, which asserted the previous study in which one leadership model is more appropriate for success within lean implementations.

How Does Sustainable Leadership Influence Sustainable Performance? Empirical Evidence From Selected ASEAN Countries

“…Sustainable leader focus on the capacity building, long-term results, and sustainable change (Peterlin et al, 2015). Extent literature has established the significant sustainable leadership-sustainable performance relationship (Burawat, 2019). Support from leadership such as team building, motivation, provision of energy, and assistance in the process of change influences organizational learning which are useful to grab diverse business opportunities (Hsiao & Chang, 2011).…”

“…Sustainable leadership practices such as valuing employees, shared vision, social responsibility, and amicable labor relations; significantly drive long-term firm performance (Avery & Bergsteiner, 2011). Sustainable leadership is still in the stage of infancy, so there is need to extend the literature in this domain (Burawat, 2019). As sustainable leadership significantly influences the sustainable performance, Burawat (2019) has recommended to explore the intervening variable that mediates or moderates their relationship in the complex model.…”

“…Sustainable leadership is still in the stage of infancy, so there is need to extend the literature in this domain (Burawat, 2019). As sustainable leadership significantly influences the sustainable performance, Burawat (2019) has recommended to explore the intervening variable that mediates or moderates their relationship in the complex model. Sustainable leadership plays a vibrant part in the growth of organizational learning (Al-Zawahreh et al, 2019).…”

“…Furthermore, higher the inclination toward learning, higher the ability to cope with challenges of triple bottom line approach to sustainability. Therefore, based on the recommendation of Burawat (2019) and regarding resource-based view (RBV) and dynamic theory, the study examines organizational learning as underlying the mechanism of sustainable leadership-sustainable performance relationship.…”

“…Contextual factors significantly influence sustainable performance (Burawat, 2019). On the basis of job demandsresources (JD-R) model, the present study investigates the moderating role of psychological empowerment on the organizational learning-sustainable performance relationship.…”