DefinePK

Abstract

The inclusion of sustainable practices in the manufacturing segment has gained importance in protecting the environment from degradation by transforming practices in SMEs.  This research investigates the link between sustainable manufacturing practices (SMP) and sustainable performance (SP) of small and medium-sized enterprises (SMEs) while examining the mediating role of competitive capabilities. This study adopts a quantitative research approach and employs a survey method to gather data from managers and employees of Pakistani SMEs with a sample of 420. Data was analyzed using Smart PLS 4.0. As per the results, sustainable manufacturing practices (SMP) significantly improve the sustainable performance of SMEs, while competitive capabilities act as a vital mediating factor between SMP and SP. SMEs must execute SMP to preserve the environment. Moreover, the government needs to develop strategies for SMP implementation in SMEs by providing training and development opportunities to initiate programs. These initiatives can help SMEs in the adoption of sustainable practices to reduce, recycle, and reprocess in order to minimize waste in the manufacturing process.