Innovativeness and lean practices for triple bottom line: testing of fit-as-mediation versus fit-as-moderation models

Abstract

PurposeThe purpose of this paper is to examine whether the fit between innovativeness and lean practices (LPs) can affect triple bottom line (TBL) performance. Two types of fit are tested: fit-as-mediation in which innovativeness creates TBL performance through the mediation of LPs and fit-as-moderation whereby the effects of innovativeness on TBL performance are moderated by LPs.Design/methodology/approachStructural equation modelling and moderated regression are used to test the fit-as-mediation and fit-as-moderation models using survey data collected from 241 manufacturers in China.FindingsThe results show that innovativeness is positively associated with LPs that emphasize operational excellence. Innovativeness indirectly affects all three TBL dimensions through the mediation of LPs, and LPs do not moderate the effects of innovativeness. The applicability of fit-as-mediation model suggests directing attention towards integrating innovation and LPs within same organizational units to achieve improved TBL performance.Practical implicationsThe findings suggest manufacturers should involve employees within the same organizational unit embrace an integrated culture of innovativeness and LPs and avoid separate attention to innovativeness and LPs.Originality/valueThis is the first study of which the authors are aware developing and empirically testing both fit-as-mediation and fit-as-moderation models within the same study to understand how innovativeness and LPs work together to influence TBL performance. This study extends the boundaries of current understanding by examining how, when and why the innovativeness – LPs–TBL relationship arises between constructs central to our theories.