Sustainable transformation of manufacturing small and medium-sized enterprises via life cycle assessment: insights from a hybrid SEM-ANN model

Purpose This study investigates the critical factors influencing the adoption of life cycle assessment (LCA) in manufacturing small and medium-sized enterprises (SMEs) and examines its impact on “organisational performance” and “competitive advantage”. This study aims to comprehensively understand technological, managerial and environmental factors of life cycle assessment adoption (LCAA) using a hybrid analytical approach. Design/methodology/approach A hybrid two-stage methodology integrating “structural equation modelling” (SEM) and “artificial neural network” (ANN) was used. Data were collected through a structured questionnaire from the Indian manufacturing SMEs. SEM validated hypothesised relationships, and ANN identified and ranked the most influential factors. Findings The outcomes show that organisational factors strongly influence LCA adoption, followed by technological and environmental factors. The LCAA has been shown to enhance organisational performance and competitive advantage. The integrated SEM-ANN approach revealed organisational readiness, management support and regulatory pressure as the most critical predictors. Research limitations/implications This work is limited to SMEs in India, which may affect the generalisability of results. Future research should extend the framework across regions and industries and include the post-adoption phase of LCA implementation. Practical implications The findings provide actionable insights for managers, consultants and policymakers to prioritise organisational and environmental readiness, foster management commitment and align regulatory support to drive LCAA in SMEs. Social implications Broader adoption of LCA in SMEs contributes to sustainable industrial development by reducing environmental impacts, enhancing resource efficiency and promoting eco-friendly manufacturing practices. Originality/value To the best of the authors’ knowledge, this is the first empirical study to apply the technology–organisation–environment framework with a hybrid SEM-ANN approach to analyse LCAA in manufacturing SMEs. It advances understanding of the relative importance of critical factors and provides a novel, data-driven roadmap for enhancing sustainability in SMEs.