Synergistic effects of lean-green practices on sustainable supply chain performance with a multi-factor moderation analysis

Abstract

This study contributes by examining the impact of lean and green practices on sustainable supply chain performance, focusing specifically on songket artisan small and medium-sized enterprises (SMEs) in Bali, Indonesia. The study examines the moderating effects of top management engagement, organisational change management, collaborative synergy, and policy initiatives. The population under investigation comprised 2,194 songket artisan groups, as recorded by the Bali Provincial Trade and Industry Office. Using the Slovin formula, a sample of 584 artisan groups was selected from nine regencies and one municipality in Bali Province. Proportionate Stratified Random Sampling was employed to ensure proportional representation in the selection process. Data collection was conducted using a 1–5 Likert-scale questionnaire, and data analysis was conducted using Structural Equation Modelling (SEM) with Partial Least Squares (PLS). The findings imply that the lean practices positively influence green practices, thereby enhancing the sustainable supply chain performance. Green practices act as a mediator in the relationship between lean practices and sustainability outcomes. Furthermore, organisational change management and collaborative synergy strengthen these positive effects, whereas top management engagement and policy initiatives do not play a significant moderating role. These results highlight the need to integrate lean and green strategies, supported by effective organisational and collaborative mechanisms, to improve supply chain sustainability in small and medium enterprises (SMEs), offering valuable insights for both theoretical and practical applications in sustainable operations management.