The Mediating Role of Green Supply Chain Management between Lean Manufacturing Practices and Sustainable Performance

Abstract

The Philippine Economic Zone Authority (PEZA)-registered multinational manufacturing companies in Laguna continue to face financial, social, and sustainability challenges despite adopting Lean Manufacturing Practices (LMP). However, evidence remains limited on how Green Supply Chain Management (GSCM) enhances the sustainability outcomes of lean initiatives in the Philippine manufacturing context. This study examined GSCM's mediating role in the relationship between LMP and Sustainable Performance (SP) among PEZA-registered multinational manufacturing companies in Laguna. Using a quantitative descriptive-correlational research design, data were collected from middle- to upper-level managers through a researcher-made questionnaire and analyzed using descriptive statistics, regression analysis, and mediation analysis. The findings revealed that selected LMP dimensions significantly influenced SP, while GSCM significantly mediated the effects of selected LMP on financial, social and environmental performance. The results indicate that environmentally responsible supply chain practices can serve as an important pathway linking selected lean manufacturing practices with sustainable performance. Based on these findings, the study proposed a strategic plan to help PEZA promote sustainable manufacturing practices and enhance the competitiveness of multinational manufacturing companies. The study provides empirical evidence that integrating lean and green practices is essential to achieving long-term sustainable performance and advancing the Philippines’ goal of becoming a leading sustainable manufacturing hub in Asia.