Effects of lean and green supply chain management practices on the performance of Hungarian manufacturing companies

Abstract Ensuring long-term sustainability and maintaining competitiveness are critical challenges for manufacturing enterprises. In this study the authors investigated the hypothesis that the adoption of Lean and GSCM practices affects corporate performance across environmental, economic, and operational dimensions. The data consisted of a sample of 125 Hungarian manufacturing firms that had adopted Lean management principles. To the authors’ knowledge, no comparable large-scale empirical investigation has been conducted in Hungary, thus the research is unique in the national literature. The study employed Partial Least Squares Path Modelling (PLS-PM) as the analytical approach to the analysis. The findings indicate that Lean practices as side effects independently yield notable efficiency improvements, primarily in waste reduction and process optimisation what are coincides with GSCM initiatives too. However, the results also demonstrate that GSCM alone cannot produce such results on corporate performance only when it combined with Lean. A strong positive relationship was found between the two approaches: Lean fosters the adoption of GSCM elements—such as green procurement and eco-design—which in turn indirectly enhance both economic and operational performance. The practical implication of the research is that it revealed that the manufacturing firms may gain measurable competitive advantage through the strategic integration of green initiatives built on a Lean foundation.