Track: Sustainable Operations and Supply Chain Management

Abstract

The manufacturing industry plays an important role in strengthening a nation’s economy. Sustainable manufacturing practices contribute heavily to accelerate the organizational performance which is measured in terms of the impact of manufacturing practices on environmental, economic and social aspects. Adopting the resource-based view, the study aims to discover the relationship between sustainable manufacturing practices and sustainable performance and assess the moderating impact of innovation on the relationship between sustainable manufacturing practices and sustainable performance.

A questionnaire survey is carried out among 168 B.O.I. registered manufacturing companies in Sri Lanka. Regression and correlation analysis was used to evaluate the relationship of sustainable manufacturing practices with sustainability performance and the moderating impact of innovation.

The findings of the study indicate a strong positive relationship between sustainable manufacturing practices and sustainable performance in the Sri Lankan manufacturing industry. Further, innovation creates a moderating impact on the relationship between sustainable manufacturing practices and sustainable performance.

The proposed framework assists manufacturing organizations in selecting suitable sustainable manufacturing practices and assessing the level of sustainability. Further, it discusses the use of innovation to enhance the sustainability performance of the organization.