Integrating Lean Management, Sustainability, Circular Capabilities, and Waste Minimization to Optimise Operational Performance in Manufacturing

Abstract

The purpose of this study is to investigate the impact of lean production, sustainability, circular capabilities, and waste management on enhancing operational performance. Additionally, the research aims to examine the moderating influence of organisational dynamics. The present study was conducted within the framework of the manufacturing sector in Saudi Arabia. The research study has employed a quantitative research methodology. The data was gathered through the utilisation of a survey questionnaire. The study's target population consists of individuals who possess expertise in manufacturing organisations located in Saudi Arabia. The study has employed a statistical data analysis approach through the utilisation of Smart-PLS. The results of the study indicate that circular capabilities and lean production practises have a significant effect on operational performance. However, the influence of sustainability in manufacturing and waste minimization on operational performance is found to be insignificant. The results from the moderation analysis suggest that the relationship between circular capabilities and operational performance is significantly influenced by organisational dynamism. These findings can be employed by organisations to attain sustainable operational performance. Additionally, it is suggested that manufacturing firms should explore strategies for incorporating lean production practices, sustainability initiatives, circular capabilities, and waste minimization techniques to enhance the efficiency of their operations and optimise resource utilisation. Nevertheless, it is important to note that the study employed a limited sample size, and as a result, the findings may only be applicable to a specific industry. Therefore, it is advisable for future researchers to utilise a larger sample size in order to enhance the generalizability of the findings.