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Can entrepreneurial orientation improve sustainable development through leveraging internal lean practices?
Author(s) -
Chavez Roberto,
Yu Wantao,
Sadiq Jajja Muhammad Shakeel,
Lecuna Antonio,
Fynes Brian
Publication year - 2020
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2496
Subject(s) - entrepreneurship , structural equation modeling , entrepreneurial orientation , triple bottom line , business , profit (economics) , sustainable development , market orientation , marketing , industrial organization , economics , ecology , computer science , microeconomics , finance , machine learning , biology
This study aims to examine the mediating role of internal lean practices (ILPs) on the relationship between entrepreneurial orientation and triple bottom line performance (i.e. environmental, social, and operational performance). We examine Chile, which represents a vibrant economy and one of the world's most productive entrepreneurship ecosystems but with a history of socio‐economic inequalities and strong profit‐driven pressures to overextract natural resources. The study is based on a questionnaire related to manufacturing sent to 112 companies in Chile. The proposed relationships are analysed through structural equation modelling. The results indicate that ILPs fully mediate the effect of entrepreneurial orientation on environmental performance and social performance and partially mediates the effect of entrepreneurial orientation on operational performance. Our study extends the literature by explaining that entrepreneurial orientation builds and strengthens ILPs for creating triple bottom line competitive advantage.