Green Lean Concept for Measurement of Sustainable Performance Mediated by Organizational Culture in Oil & Gas and Petrochemical Industry

Bambang Santoso and Tota Pirdo Kasih
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Bambang Santoso: Industrial Engineering Department, BINUS Graduate Program - Master of Industrial Engineering, Bina Nusantara University, Jakarta 11480, Indonesia
Tota Pirdo Kasih: Professional Engineer Program Department, Faculty of Engineering, Bina Nusantara University, Jakarta 11480, Indonesia

International Review of Management and Marketing, 2024, vol. 14, issue 5, 88-100

Abstract: This research explores the measurement of green lean concept in Oil and Gas and Petrochemical Industry in Indonesia to sustainable performance by examine organizational culture as a mediated. The green lean concept approach provides social benefits for industry, financial aspects, and environmental aspects that influence its performance so that it can be sustainable. A structured questionnaire was distributed among employees of the Oil and Gas and Petrochemical Industry in Indonesia. The sample consisted of 153 respondents consisting of 32 females and 121 males, and the composition consisted of Oil and Gas Companies 44 respondents; Oil Companies 87 respondents; and Petrochemical Companies 22 respondents was analyzed using the Structural Equation Mo deling - Partial Least Square (SEM-PLS). The results indicate that the green lean concept is proxied by customer relationships, human resource practices, manufacturing planning and control, process and equipment, and supplier relationships have a positive and significant effect on organizational culture in the Oil and Gas and Petrochemical Industry in Indonesia. Organizational culture variable is “Fully Mediating” the sustainable performance variable in the Oil and Gas and Petrochemical Industry in Indonesia. The R-squared value is 65% that green lean concept able to explain, while the remaining 35% explained by other f actors that were excluded in this research. The research outcomes contribute to the analysis of the research, broadening the writings on green lean concept and sustainable performance with a mediating of organizational culture. The research possibly will be used as a motivation for industries in Indonesia to implement green lean concept as companies that adopt green lean concept globally have the result of improving firms’ endurable performance through green lean approaches.

Keywords: Customer Relationship; Green Lean Concept; Human Resource Practices; Organizational Culture; Sustainable Performance (search for similar items in EconPapers)
JEL-codes: H52 L33 (search for similar items in EconPapers)
Date: 2024
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