Agile manufacturing and transformational capabilities for sustainable business performance: a dynamic capabilities perspective

Drawing on the 'dynamic capabilities' perspective, this study empirically investigates whether, or not, and how agile manufacturing contributes to sustainable business performance, including economic, environmental, and social performance. Building on the notion that dynamic capabilities i...

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Bibliographic Details
Published in:Production planning & control Vol. 35; no. 16; pp. 2273 - 2285
Main Authors: Mohaghegh, Matin, Åhlström, Pär, Blasi, Silvia
Format: Journal Article
Language:English
Published: London Taylor & Francis 09.12.2024
Taylor & Francis LLC
Subjects:
09 Industry innovation & infrastructure
Agile manufacturing
and reconfiguration
dynamic capability
Environmental management
Environmental performance
Financial performance
internal learning
Manufacturing
Organizational aspects
Reconfiguration
Structural equation modeling
sustainable business performance
Italy
ISSN:0953-7287, 1366-5871, 1366-5871
Online Access:Get full text
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Summary:Drawing on the 'dynamic capabilities' perspective, this study empirically investigates whether, or not, and how agile manufacturing contributes to sustainable business performance, including economic, environmental, and social performance. Building on the notion that dynamic capabilities indirectly improve organisational performance through modifying a firm's resources/processes, we argue that agile manufacturing treated as a dynamic capability requires transformation to result in sustainable business performance. Therefore, we hypothesise the mediating effects of two transformational capabilities, namely internal learning, and reconfiguration capabilities, on the agile manufacturing-sustainable business performance relationship. Partial least square structural equation modelling (PLS-SEM) was employed to explore the validity of the conceptual model and examine the hypotheses using survey data from 99 Italian manufacturers firms. The results show that internal learning fully mediates the relationship between agile manufacturing and economic performance and partially mediates the relationship between agile manufacturing and social performance. Also, the empirical findings indicate that reconfiguration fully mediates the relationship between agile manufacturing and economic/environmental performance and partially mediates the agile manufacturing-social performance relationship. Overall, both transformational capabilities are necessary to maximise the effects of agile manufacturing on sustainable performance.
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ISSN:0953-7287
1366-5871
1366-5871
DOI:10.1080/09537287.2023.2229264