Structural equation modeling of sustainable manufacturing practices

The purpose of this research study is to study the sustainable manufacturing practices across industrial sectors and to identify the critical factors for its success implementation. In spite of the fact that sustainable manufacturing has been frequently promoted as a means of improving business competitiveness, small empirical evidence exists in the literature validating its positive link with organizational performance. Sustainable manufacturing practices enable the manufacturing organizations to survive in the competitive environment. For this purpose, empirical data are collected to measure the sustainable manufacturing practices prevailing across different industries located in Tamil Nadu, India. Structural equation modeling (SEM) technique is used to build the measurement and structural models. After that, statistical estimates are used to validate the built model. The data analysis enables the acceptance or rejection of the hypothesis that has been stated on the basis of structural model. The results show the correlation between sustainable manufacturing practices and organizational performance among the industries being surveyed.