INTEGRATING LEAN THINKING AND GREEN MANUFACTURING FOR SUSTAINABLE ENVIRONMENTAL PERFORMANCE IMPROVEMENT

Abstract

The issue of environmental sustainability is now a challenge for manufacturers in developing economies, in which the use of resources is high and the use of cleaner technologies is not widespread. Little evidence of how lean thinking translates into environmental outcomes in the context of green manufacturing is found, especially in the Iraqi industrial sector. This study aims to investigate the impact of Lean Thinking (LT) on Environmental Sustainability (ES) and mediate the environmental impact of Green Manufacturing (GM) in Apparel Factories in Najaf, Iraq. A quantitative cross sectional survey was conducted using a five point likert scale questionnaire with 45 items randomly sent to 250 employees of which 145 questionnaires were returned (response rate-90.6%). Higher-order constructs were employed in the analysis of data using partial least squares structural equation modelling (PLS-SEM) software program "SmartPLS 4". The range of the composite reliability was 0.801 to 0.970 while all the heterotrait–monotrait ratios were less than 0.90. LT had a significant positive effect on ES (β = 0.376, t = 5.415, p < 0.001) and on GM (β = 0.797, t = 15.331, p < 0.001), and GM significantly affected ES (β = 0.603, t = 8.624, p < 0.001). The indirect effect of LT on ES through GM was significant (β = 0.481, p<0.001) and accounted for 56.1% of the total effect, meaning that GM partially mediated LT's effect on ES. The model explained 63.5% of the variance in GM and 86.7% in ES (Q² = 0.365; SRMR = 0.077). The results indicate that the best environmental impacts of lean thinking can be achieved through green manufacturing capabilities, providing an integrated lean–green strategy for apparel manufacturers in the developing economies.