THE RELATIONSHIP BETWEEN SUSTAINABLE MANUFACTURING PRACTICES AND SUSTAINABLE PERFORMANCE IN MANUFACTURING SECTOR

Abstract

The implementation of sustainable manufacturing practices has brought many benefits not only to the manufacturing industry itself but also to the environment. Among the benefits are increasing productivity, bringing a good image, and producing environmentally friendly products. However, there are still many manufacturing organizations that still do not implement sustainable manufacturing practices due to factors such as high cost and organizational culture that does not accept such practices. Thus, this study aims to identify the relationship between sustainable manufacturing practices (SMP) and the sustainable performance of manufacturing organizations. Data were collected based on quantitative methods using a questionnaire survey. This study employed a simple random sampling method and SPSS was used to analyze the descriptive and correlation data for a sample of 51 manufacturing companies in Johor. Clean production practices and employee relations show a significant relationship with sustainable performance. Eco-efficiency practices show no relationship to economic sustainability, yet there is a significant relationship to environmental sustainability and social sustainability. The benefit of this study is that manufacturing organizations can see some SMPs acting as drivers to improve the sustainable performance of the organization because of the long-term benefits it offers.