The relationships among transformational leadership, sustainable leadership, lean manufacturing and sustainability performance in Thai SMEs manufacturing industry

Abstract

The purpose of this paper is to examine the structural relationship model among transformational leadership, sustainable leadership (SL), lean manufacturing practices and sustainability performance.,The data were collected from the middle and senior managers working in small and medium enterprises of Thai manufacturing industry. Regarding the quantitative approach, the data were collected by means of survey from 598 respondents from 374 companies. Qualitative data were collected from 40 participants by participant observation, non-participant observation and in-depth interview.,The model reported that lean manufacturing has a partial mediate effect on the relationship between transformational leadership and sustainability performance, and between SL and sustainability performance. The structural model is different in automotive and nonautomotive companies, and the structural model is different among the companies which implemented lean program for less than five years and above five years. The data from in-depth interview informed that lean practices are appropriate for automotive industry though with less implementation in other industries. Firms pay most attention on customer involvement with some attention on employee and supplier involvement. Managers give advices and exchange ideas with their followers rather than inspiring and giving opportunities to make decision.,The findings may also enable Thai managers to realize that lean practices are appropriate for any industry. The first thing to do before launching lean program to all process is that the company should buy-in the understanding of managers about lean concept and implementation. Willingness with well understanding and realizing importance of lean program will lead to superior results, especially operational, economic and sustainable performance.,The reliability and validity measurements confirmed that both SL and environmental and social performance are appropriate for manufacturing industries. This study provides evidence of the positive relationship between SL and lean manufacturing, lean manufacturing and sustainability performance, as well as the partial mediate effect of lean manufacturing on the relationship between SL and sustainability performance, which are the additional contributions to research in academic field. The results confirmed the positive relationship between transformational leadership and lean manufacturing. The results reported that there is difference of lean practices between automotive and nonautomotive companies, and between companies which implemented lean program less than five years and above five years. The structural relationship result reported that transformational leadership has effects on lean manufacturing whereas SL has no effect on lean manufacturing, which asserted the previous study in which one leadership model is more appropriate for success within lean implementations.