Mediating Role of Cost Reduction on Agile, Lean, and Green Manufacturing to Performance of Pharmaceutical Industries in Thailand

Abstract

The financial performance of an organization is very crucial for that organization and it depends on various factors. The types of manufacturing i.e. lean manufacturing, agile manufacturing and green manufacturing are very important to be considered. This study was conducted was to study the impact of three types of manufacturing i.e. lean manufacturing, agile manufacturing and green manufacturing on financial performance of the firm in the presence of mediating role of cost reduction. The data for this particular study has been collected from 313 employees of pharmaceutical companies in Thailand. The collected data was subjected to SPSS and AMOS and the results obtained indicated that the impact of all the independent variables i.e. lean manufacturing, agile manufacturing and green manufactiring on financial performance is found to be significant. On the other hand, the mediating impact of cost reduction has also been found as significant in all cases i.e. in the relationship between all independent variables i.e. lean manufacturing, agile manufacturing and green manufactiring and dependent variable, financial performance. In other words, all the hypotheses generated by the reseracher in the current study have been accepted. Various implications, limitations and future research indications have also been discussed by the author in the study.