Scrutinizing the Role of Sustainable Manufacturing Practices Towards Sustainability Performance: Empirical Evidence from Malaysian High-Value Industrial Clusters

Driven by tightening global regulatory frameworks and environmental degradation, modern manufacturing corporations are under immense pressure to reconcile economic output with social and environmental obligations. This study provides an empirical examination of the relationship between sustainable manufacturing practices and holistic sustainability performance (encompassing environmental, economic, and social dimensions) among manufacturing companies located in key industrial regions within Malaysia, specifically the Klang Valley and Kluang, Johor. Grounded in the Natural Resource-Based View (NRBV) theory, the research evaluates four main strategic dimensions: sustainable product design, sustainable manufacturing processes, sustainable supply chain management, and sustainable end-of-life management. Employing a cross-sectional quantitative research methodology, structural data was compiled through an online and physically administered questionnaire from a validated sample of 134 manufacturing personnel. Statistical testing using multiple linear regression and correlation analyses via IBM SPSS revealed that all four independent variables exert a highly significant positive influence on corporate sustainability performance. Notably, the sustainable manufacturing process emerged as the primary predictor of enhanced performance (Β = 0.343, p = 0.001), followed closely by sustainable end-of-life management (Β = 0.301, p = 0.001) and sustainable product design (Β = 0.192, p = 0.007). Sustainable supply chain management exhibited a smaller but still statistically significant contribution (Β = 0.155, p = 0.048). Collectively, the regression model explained 87.0% of the total variance in operational and strategic sustainability outcomes (R² = 0.870, F = 216.52, p < 0.001). These findings accentuate the critical requirement for manufacturing organizations to implement integrated and multidimensional sustainability frameworks rather than treating environmental compliance in isolation. The paper concludes with actionable recommendations for industry practitioners, financial institutions, and government policymakers to foster green technology deployment, subsidized green credit access, and comprehensive infrastructure for the circular economy as Malaysia transitions toward future national developmental agendas.

Sustainable Manufacturing Practices, Sustainability Performance

1. Abdul-Rashid, S. H., Sakundarini, N., Raja Ghazilla, R. A., & Thurasamy, R. (2017). The impact of sustainable manufacturing practices on sustainability performance. International Journal of Operations & Production Management, 37(2), 182–204. [Google Scholar] [Crossref]

2. Adusei, E., Demah, E., & Mensah, H. K. (2023). Does going intellectually green matter? Accentuating the role of eco-innovation speed and quality in a competitive post-Covid 19 emerging market. International Journal of Innovation Science. [Google Scholar] [Crossref]

3. Al Koliby, M., I. S., Abdullah, H. H., & Mohd Suki, N. (2022). Linking entrepreneurial competencies, innovation and sustainable performance of manufacturing smes. Asia-Pacific Journal of Business Administration, 16(1), 21–40. [Google Scholar] [Crossref]

4. Alexander, Hennelley, & Hargreaves. (2020). Make the most of qualitative research. Nature Sustainability, 3(2), 73–73. [Google Scholar] [Crossref]

5. Ali, H., Chen, T., & Hao, Y. (2021). Sustainable manufacturing practices, competitive capabilities, and sustainable performance: Moderating role of environmental regulations. Sustainability, 13(18), 10051. [Google Scholar] [Crossref]

6. Alinda, K., Tumwine, S., & Kaawaase, T. K. (2024). Environmental innovations and sustainability practices of manufacturing firms in Uganda. Asia Pacific Journal of Innovation and Entrepreneurship, 18(2), 102–129. [Google Scholar] [Crossref]

7. BP Global Energy Review. (2023). Statistical review of world energy. BP Global. [Google Scholar] [Crossref]

8. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. [Google Scholar] [Crossref]

9. Delaney, E., Liu, W., Zhu, Z., Xu, Y., & Dai, J. S. (2022). The investigation of environmental sustainability within product design: A critical review. Design Science, 8. [Google Scholar] [Crossref]

10. Department of Environment (DOE). (2023). Environmental quality report 2022. Ministry of Natural Resources, Environment and Climate Change Malaysia. [Google Scholar] [Crossref]

11. Department of Statistics Malaysia (DOSM). (2023). Manufacturing statistics. OpenDOSM. https://open.dosm.gov.my/dashboard/manufacturing-statistics [Google Scholar] [Crossref]

12. Dwivedi, A., Madaan, J., Santibanez Gonzalez, E. D. R., & Moktadir, Md. A. (2022). A two-phase approach to efficiently support product recovery systems in a circular economy context. Management Decision, 60(7), 2060–2091. [Google Scholar] [Crossref]

13. Escoto, X., Gebrehewot, D., & Morris, K. C. (2022). Refocusing the barriers to sustainability for small and medium-sized manufacturers. Journal of Cleaner Production, 338, 130589. [Google Scholar] [Crossref]

14. Gautam, P., Khanna, A., & Jaggi, C. K. (2021). An integrated green supply chain model with product recovery management towards a cleaner system. Journal of Cleaner Production, 320, 128850. [Google Scholar] [Crossref]

15. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Pearson. [Google Scholar] [Crossref]

16. Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986-1014. [Google Scholar] [Crossref]

17. Hermawan, A. N., Masudin, I., Zulfikarijah, F., Restuputri, D. P., & Shariff, S. S. (2023). The effect of sustainable manufacturing on environmental performance through government regulation and eco-innovation. International Journal of Industrial Engineering and Operations Management, 6(4), 299–325. [Google Scholar] [Crossref]

18. Huang, Y., Shafiee, M., Charnley, F., & Encinas-Oropesa, A. (2022). Designing a framework for materials flow by integrating circular economy principles with end-of-life management strategies. Sustainability, 14(7), 4244. [Google Scholar] [Crossref]

19. Ibrahim, Y. M., Hami, N., & Abdulameer, S. S. (2020). A scale for measuring sustainable manufacturing practices and sustainability performance: Validity and Reliability. Quality Innovation Prosperity, 24(2), 59. [Google Scholar] [Crossref]

20. Ibrahim, Y.M., Hami, N., & Othman, S. N. (2019). Integrating sustainable maintenance into sustainable manufacturing practices and its relationship with sustainability performance: A conceptual framework. International Journal of Energy Economics and Policy, 9(4), 30–39. [Google Scholar] [Crossref]

21. Jiang, P., Dieckmann, E., Han, J., & Childs, P. R. (2021). A bibliometric review of sustainable product design. Energies, 14(21), 6867. [Google Scholar] [Crossref]

22. Johari, N. A. M., Mokhtar, A. R. M. & Sayuti, N. M. (2022). Conceptualising Stakeholder Commitment, Closed-Loop Supply Chains and Organisational Performance: A Circular Economy Perspective. Journal of Entrepreneurship, Business and Economics, 10(2). [Google Scholar] [Crossref]

23. Khan, R. U., Saqib, A., Abbasi, M. A., Mikhaylov, A., & Pinter, G. (2023). Green leadership, environmental knowledge sharing, and sustainable performance in manufacturing industry: Application from upper echelon theory. Sustainable Energy Technologies and Assessments, 60, 103540. [Google Scholar] [Crossref]

24. Khan, N. U., Wu, W., Saufi, R. B., Sabri, N. A., & Shah, A. A. (2021). Antecedents of sustainable performance in manufacturing organizations: A structural equation modeling approach. Sustainability, 13(2), 897. [Google Scholar] [Crossref]

25. Lee, W.L., Chung, Y.A., Tan, S.S., Koh, Y.M.H., S., Lu, W.F. & Low, J. (2023). Enhancing the environmental sustainability of product through ecodesign: A systematic review. Journal of Engineering Design, 34(10), 814–843. [Google Scholar] [Crossref]

26. Loong, A.H., Lada, S., Kehui, W., Bui, C.J. & Xinyue, L. (2024). Examining influential elements impacting performance in sustainable manufacturing within Malaysian enterprise: A conceptual analysis. Malaysian Journal of Business and Economics (MJBE), 11(1), 90–101. [Google Scholar] [Crossref]

27. McDougall, N., Wagner, B., & MacBryde, J. (2021). Leveraging competitiveness from sustainable operations: Frameworks to understand the dynamic capabilities needed to realise NRBV supply chain strategies. Supply Chain Management: An International Journal, 27(1), 12–29. [Google Scholar] [Crossref]

28. Mokhtar, A. R., Anindita, M. S. & Suhaimi, Z. S. (2023). Leveraging Supply Chain Leadership for Dynamic Capabilities and Organisational Resilience. Advances in Social Sciences Research Journal, 10(6.2), 54–66. [Google Scholar] [Crossref]

29. Mokhtar, A. R. M., Sundram, V. P. K. & Shahrom, M. (2024). Sustainable Supply Chain Management Education: Employing Artificial Intelligence, Augmented Reality, and Gamification for Effective Learning. Advances in Social Sciences Research Journal, 11(2.2), 437–451. 23 [Google Scholar] [Crossref]

30. Nor-Aishah, H., Ahmad, N. H., & Thurasamy, R. (2020). Entrepreneurial leadership and sustainable performance of manufacturing smes in Malaysia: The contingent role of entrepreneurial bricolage. Sustainability, 12(8), 3100. [Google Scholar] [Crossref]

31. Rancangan Malaysia Ke-12 (RMK-12). (2021). Twelfth Malaysia Plan 2021-2025: A prosperous, inclusive, sustainable Malaysia. Economic Planning Unit, Prime Minister's Department Malaysia. [Google Scholar] [Crossref]

32. Rizwan, M., et al. (2023). Redefining contemporary strategic operations: Integrating the Triple Bottom Line framework. International Journal of Strategic Management, 29(1), 112–128. [Google Scholar] [Crossref]

33. Samah, M., Salah, O., & El Farouk Imane, I. (2022). A literature review on sustainable supply chain management and its impact on sustainable performance. 2022 14th International Colloquium of Logistics and Supply Chain Management (LOGISTIQUA). [Google Scholar] [Crossref]

34. Scharmer, V. M., Vernim, S., Horsthofer-Rauch, J., Jordan, P., Maier, M., Paul, M., Schneider, D., Woerle, M., Schulz, J., & Zaeh, M. F. (2024). Sustainable manufacturing: A review and framework derivation. Sustainability, 16(1), 119. [Google Scholar] [Crossref]

35. Sekaran, U., & Bougie, R. J. (2016). Research methods for business: A skill building approach (7th ed.). John Wiley & Sons. [Google Scholar] [Crossref]

36. Shaharudin, M. R., Abd Hamid, N. Z., Abdullah, D., Ahmad, N., Hassam, S. F., & Ahmad Fauzi, N. H. H. (2022). Factors affecting social sustainability performance amongst Malaysian manufacturing companies. International Journal of Business and Society, 23(3), 1874–1887. [Google Scholar] [Crossref]

37. Sánchez-Flores, R. B., Cruz-Sotelo, S. E., Ojeda-Benitez, S., & Ramírez-Barreto, Ma. E. (2020). Sustainable supply chain management; a literature review on emerging economies. Sustainability, 12(17), 6972. [Google Scholar] [Crossref]

38. United Nations. (2015). Transforming our world: The 2030 Agenda for Sustainable Development. UN Publishing. [Google Scholar] [Crossref]

39. Wang, S., & Su, D. (2022). Sustainable product innovation and consumer communication. Sustainability, 14(14), 8395. [Google Scholar] [Crossref]

40. Watkins, M., Casamayor, J. L., Ramirez, M., Moreno, M., Faludi, J., & Pigosso, D. C. A. (2021). Sustainable product design education: Current practice. She Ji: The Journal of Design, Economics, and Innovation, 7(4), 611–637. [Google Scholar] [Crossref]

41. Xu, J., Yu, Y., Zhang, M., & Zhang, J. Z. (2023). Impacts of digital transformation on eco-innovation and sustainable performance: Evidence from Chinese manufacturing companies. Journal of Cleaner Production, 393, 136278. [Google Scholar] [Crossref]

42. Yang, Q., & Jin, S. (2024). Exploring the impact of digital transformation on manufacturing environment, social responsibility, and corporate governance performance: The moderating role of top management teams. Sustainability, 16(11), 4342. [Google Scholar] [Crossref]

• The Effectiveness of Logistics Management - A Case Study of: Future Supply Chain Solutions Ltd (FSC)
• The Effect of E-Informing on Procurement Performance of Public Universities in Kenya: The Case of Egerton University
• Barriers to Circular Supply Chain Implementation in Indian Textile SMEs: An Exploratory Qualitative Study
• Sustainable Supply Chain to Enhance the Environmental Performance in the Cleaning Detergents Manufacturing Industry: Case of Harare, Zimbabwe
• Exploring Innovative Frontiers: Digital Public Infrastructure and Multimodal Connectivity as Catalysts for MSME Supply Chain Transformation in India