Fostering Operational Excellence Through Business Agility and Lean Practices: Infusing Insights from Manufacturing Small Food Processing Enterprises in Kerala

Surviving with excellence is the aspiration of every enterprise, rooted in continuous improvement, quality, and efficiency. In the manufacturing sector, operational excellence embodies a strategic pursuit to minimize waste, enhance productivity, and maintain quality. However, for small-scale food processing enterprises, especially in regions like Kerala, achieving this remains challenging due to limited resources and financial constraints. This study examines the relationship between business agility, organizational size, and operational excellence, with lean practices acting as a mediating variable. Data were collected from 60 small-scale food processing units in Kerala using a multistage random sampling method. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study found that business agility and organizational size significantly enhance lean practices, which in turn drive operational excellence. The mediation effect was found to be significant, highlighting agility as a critical link between lean implementation and performance outcomes. The conclusions change the theoretical emphasis on agility as a means of attaining excellence through lean practices. The study offers practical evidence to support the agile responsiveness and tactical adoption of lean practices in manufacturing small food processing enterprises in Kerala. This study suggests practical insights for policymakers and business leaders to improve competitiveness and ensure long-term sustainability in the food processing sector.