Application of the PLS-SEM Model in Assessing the Sustainable Performance of Manufacturing Enterprises

This study is to identify and evaluate the key factors influencing sustainable performance in Vietnamese manufacturing enterprises. It focuses on analyzing how operational and technological methods affect environmental, social, and economic outcomes both directly and indirectly. Data were gathered from 189 manufacturing professionals across Vietnam using a structured questionnaire. This study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to test a multi-path conceptual model comprising lean manufacturing (LM), Industry 4.0 technologies adoption (ID4.0), green logistics management (GLM), green supply chain management practices (GSCMP), circular economy practices (CEP), and sustainable performance (SP). The results reveal that LM and ID4.0 positively influence the performance of sustainability both directly and indirectly through GSCMP and CEP. Although CEP is a major mediating factor, GSCMP is the most powerful driver. In contrast, GLM had a favorable indirect impact through CEP but there was no direct impact on SP. These findings provide actionable insights for managers and policymakers by highlighting the need for integrated strategies that align lean and digital capabilities with green and circular practices. Through the empirical validation of the RBV-TBL integration and identification of the mediating processes of CEP and GSCMP in the context of a growing economy, this work adds to the framework of knowledge on sustainability.