This study investigates how leanness, innovativeness, and knowledge management practices influence innovation quality in manufacturing firms and examines how innovation quality subsequently affects Triple Bottom Line performance. It further explores the moderating role of knowledge flow in strengthening the knowledge management–innovation quality relationship and assesses whether competitive intensity alters the impact of innovation quality on sustainability outcomes.
A quantitative, survey-based research design was employed, targeting managers responsible for lean operations, manufacturing operations, innovation, and sustainability. Data were collected from Malaysian manufacturing firms using purposive sampling. The proposed relationships were tested using structural equation modeling with the Partial Least Squares approach via SmartPLS 4.
The findings indicate that leanness does not have a significant direct effect on innovation quality in manufacturing settings. In contrast, innovativeness and effective knowledge management practices significantly enhance innovation quality. Knowledge flow further strengthens the positive influence of knowledge management on innovation quality. Innovation quality has a significant positive impact on Triple Bottom Line performance. However, competitive intensity negatively moderates the relationship between innovation quality and social and environmental performance.
This study contributes to manufacturing technology management literature by empirically examining innovation quality as a key mechanism linking lean practices, innovativeness, and knowledge management to sustainability performance. By incorporating the moderating roles of knowledge flow and competitive intensity, the study offers novel insights into how manufacturing firms can better align innovation and operational strategies with sustainability objectives. The findings provide actionable implications for managers in manufacturing environments, particularly in developing economies, seeking to improve innovation outcomes and sustainable performance.
