The Impact of Lean Practices and Process Innovation on the Performance of Small and Medium Sized Enterprises: Mediating Role of Supply Chain management

Abstract

The aim related to the present article is to investigate the impact of sustainability practices, lean practices and process innovation on the performance of SMEs in Indonesia. The aim also included the investigation of mediating role of supply chain management among the links of sustainability practices, lean practices, process innovation and performance of SMEs in Indonesia. The data of the study has been collected by using the questionnaires from the employees of SMES that related to the supply chain practices. The smart-PLS 3.0 has been employed for the purpose of the data analysis. The results revealed that lean practices and process innovation have positive association with performance of SMEs. The results also indicated that supply chain management positive along with significantly mediating among the links of sustainability practices, lean practices, process innovation and performance of SMEs in Indonesia. These findings are guided to the regulation making authorities that they should provide the focus on the supply chain and lean practices that enhance the performance of SMEs.