Modelling sustainable manufacturing practices effects on sustainable performance: the contingent role of ownership

This study empirically investigates the effects of sustainable manufacturing practices on sustainable performance, focusing on the moderation effect of companies' ownership (foreign or local) between sustainable manufacturing practices and sustainable performance. In this study, a survey was conducted among ISO 4001-certified manufacturers in Malaysia, and structural equation modelling was used to examine the moderating effect of a company's ownership on the relationship between sustainable manufacturing practices and sustainable performance. The findings showed that there was a positive relationship between both sustainable product design and sustainable manufacturing processes and sustainable performance for Malaysian manufacturers. However, the positive relationship between both sustainable product design and sustainable end-of-life practices on sustainable performance was stronger for foreign companies compared with that for local companies. The results showed the strengths of foreign-owned companies were at the implementation of their sustainable product design and sustainable end-of-life management practices of the product manufacturing process. The findings identified in this paper extend previous research and provide empirical evidence that a company's ownership impacts the relationship between sustainable manufacturing practices and sustainable performance.

Automated summary

This study investigates the impact of sustainable manufacturing practices on sustainable performance, taking into account the moderating effect of ownership (foreign or local) on this relationship. The findings reveal a positive relationship between sustainable product design and manufacturing processes, and sustainable performance for Malaysian manufacturers. Furthermore, it was found that this relationship is even stronger for foreign-owned companies compared to local companies, particularly in terms of sustainable product design and end-of-life practices.