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Abstract

This study examines the effects of embedding Quality Management practices (QMP), that is, quality training, employee relations, and management relations on Sustainable Performance (SP), and the mediating role of Organizational ambidexterity exploration (innovation exploration) and exploitation (innovation exploitation) between the relationship between QMP and SP in the manufacturing industry. Moreover, the role of Green Innovation is explored as a moderator in the ties of Organizational Ambidexterity Exploration (innovation exploration) and SP. SmartPLS is used in this paper to analyze quantitative data collected from industry specialists and supply chain managers in the food, paint, and textile industries. The findings suggest that good management practices: management relations, employee training, and quality training, can help create a conducive environment for exploratory innovations, which can furthermore help improve the SP of the firm. In the case of exploration, incorporating green products and procedures can help the company achieve long-term success. QMP in ambidextrous manufacturing industries improves the firm’s social performance by meeting the needs of environmentally conscious stakeholders and ensuring healthy relationships, social welfare, customer satisfaction, and societal friendliness toward sustainable products through green product and process innovation. Managers can take advantage of the inherent potential of quality management systems to integrate them into exploitative and exploratory activities and boost the company’s long-term profitability. This study explored a novel concept of green innovation as rare, valuable, inimitable, and organized, so it helps firms in the attainment of sustainable competitive advantage.

Keywords

quality management practices organizational ambidexterity exploration exploitation sustainable performance green innovation

Introduction

The ability of a corporation to develop both the investigation of new possibilities and the exploitation of current certainty is referred to as organizational ambidexterity (OA; March, 1991). The exploitation of current core competencies is necessary to stay relevant and competitive in the marketplace, whereas exploration anticipates future needs (Asif & de Vries, 2015). Despite this, research on organizational ambidexterity reveals that explorative and exploitative activities are driven by resource limits and create paradoxical obstacles because they demand radically distinct structures, processes, techniques, skills, and cultures (He & Wong, 2004; Backström, 2017). Organizations must engage in both activities to attain deep-rooted success (Tushman & O'Reilly, 1996). As a result, companies may find it challenging to achieve a high level of exploration and exploitation at the same time (Asif & de Vries, 2015).

To fully understand how organizations could become ambidextrous, existing research studies looked at both the causes and consequences of organizational ambidexterity. Organizational culture (Jansen et al., 2009), qualities of organizational leadership (Keller & Weibler, 2015), and practices in people management (Malik et al., 2019) are some of the elements that have been experimentally studied in connection to the antecedents of ambidexterity (Lee et al., 2017). However, it is still unclear how to achieve organizational ambidexterity (Asif, 2019). The causes and implications of ambidextrousness are a hot issue (Koryak et al., 2018) in management research. According to Kim et al. (2012), quality management systems can result in both gradual and radical changes in procedures and/or outputs, which might be a significant factor in organizational ambidexterity (Asif & de Vries, 2015).

Studies also demonstrated that because QM systems can boost not only efficiency and production but also adaptability, they can lead to both exploratory and exploitative activities (Behmer et al., 2016; Kim et al., 2012; Malik et al., 2019). QMP may assist in the simultaneous expansion of exploratory and exploitative activities, allowing for the formulation of an organizational setting that promotes ambidexterity. Despite the fact that some researchers have looked into the personal effects of QMP on exploitative and explorative activities, more research is needed to see if QM systems can try to balance the concurrent advancement of exploratory and exploitative activities, resulting in ambidexterity (Asif, 2019; Fundin et al., 2017; Kim et al., 2012).

QMP may help organizations become more ambidextrous, and that can help people perform better. These notions, as well as the reality that QMP can improve performance (Bhatia & Awasthi, 2018; Shafiq et al., 2019), suggest that QMP, ambidexterity, and SP are linked. As a result, through organizational ambidexterity, QMP may have a favorable indirect impact on the long-term sustainable implementation of the firms. In other words, organizational ambidexterity (OA) may serve as a mediator between QMP and sustainable performance. In the manufacturing sector, there is no empirical research on the impact of QMP on dynamic organizational capability or the causal effect of QMP on OA on SP.

Depending on such deficiencies, this article suggests the following, research question: Do QMP contribute to the improvement of OA and, as a result, increase both direct and indirect performance through organizational ambidexterity? The initial goal of this study is to look at the impact of QMP on organizational ambidexterity to answer this research issue. Second, to research the link between QMP and SP, and finally, to investigate the indirect effect of quality management techniques on long-term performance in Pakistan’s manufacturing industry via organizational ambidexterity. Fabrics, FBT that is, food, beverages, and tobacco (Botha et al., 2022), Coke, Petroleum, and medical products dominate Pakistan’s industrial sector. In terms of GDP, Large Scale Manufacturing (LSM) is at the top of the manufacturing industry. All LSMs that were most likely to be devoted to QM and the development of exploitative and explorative activities, even though their quality and exploitative/explorative activities may differ, were chosen because they may have more steady resources to afford these operations. Moreover, in the manufacturing sector, the textile industry is the largest industrial sector of Pakistan (in terms of GDP), having a strong focus on quality management practices (U. Ali et al., 2015). Similarly, the food sector is the second largest contributor to Pakistan’s GDP and is growing at a significant rate of 7%, annually. The significance of these sectors, along with the use of quality management practices (QMP) in these sectors, provides a strong narrative for investigating these sectors for this research.

Previous research has either focused on the impact of quality management practices on sustainable performance (Abbas, 2020; Androwis et al., 2018; Shafiq et al., 2019) or the impact of organizational ambidexterity on sustainable performance (Clauss et al., 2021; Herzallah et al., 2017 However, the impact of quality management practices on sustainable performance while considering organizational exploration and exploitation could not be found. Moreover, the studies have either been conducted in a different sector, such as education (García-Hurtado et al., 2024) or service (Cao et al., 2024). Furthermore, the effect of green innovation on organizational ambidexterity exploration and sustainable performance is still to be investigated.

Therefore, this study aims to fill this research gap. The environment consciousness of the customers and stakeholders has urged organizations to adopt practices that foster environmental protection. A firm that has profitable outcomes and sales growth can significantly invest in quality management practices and green innovations to improve sustainable performance. Not only this, but such investments may also improve environmental performance by implementing practices and initiatives that decrease negative environmental impacts.

This study is significant for industrial managers since it tells how QM approaches may improve not only the efficacy of services given to customers but also the ease of adopting new services and discovering new clients. QM methods may aid in the improvement of both exploitation and exploration activities, allowing for increased long-term viability (Asif & de Vries, 2015).

The remaining paper is distributed as follows. Section 2 focuses on the hypothesis formation as well as a comprehensive review of the literature. The adopted research methodology is detailed in Section 3. Section 4 examines the critical review of the study’s findings as well as provides a summary of the results. Later, the study’s theoretical contribution, as well as management implications, are examined. Finally, in Section 5, a conclusion is given, along with several key research agendas for the future.

Literature Review

In the era of sustainability, organizations may not be able to attain a competitive advantage without considering the environment as an element of paramount importance (Hart & Dowell, 2011; Kharub & Sharma, 2020). Moreover, the devastating effects of climate change, global warming, and environmental degradation have alarmed the world and prompted everyone to take responsibility to ensure the sustainability of the environment for future generations. For the successful eradication of environmental pollution, firms are adopting and pursuing green practices like green purchasing, green innovation, green production, and green management to secure a Green branding image of the organization (Y. S. Chen, 2008). The environmental regulations of the government have forced organizations to adopt environmental management as a principal agenda. These regulations have not only induced the environmental consciousness of the buyers and customers but have also raised the bar of business competition through the adoption of quality management and green practices (Awan et al., 2021; Nadeem et al., 2021).

Existing Theories (RBV & Institutional)

The resource-based view (RBV) is one theoretical framework that can be utilized to explain the link between QMP and SP. According to the RBV, a company’s competitive advantage is generated from the internal resources and skills available to it. This is similar to the IT resources enhancing the environmental performance of the firm (Hashmi et al., 2023). RBV claims that a company can get a competitive edge if its resources are rare, inimitable, valuable, and non-substitutable (Fainshmidt et al., 2016). Maravilhas and Martins (2019) highlighted that QMP, as a resource and a strategy, tend to improve a company’s performance by supporting the creation of specialized assets that are ingrained in the company’s culture, as well as producing both knowledge and a diverse connection.

Another theory that can be considered relevant to this research is the institutional theory. According to this theory, various rules and norms become a guiding principle for the social behavior is the organization (Amenta & Ramsey, 2010). If a rule can be made to follow the quality management practices in an organization, then it can help promote sustainability in an organization. In this regard, M. Rahman et al. (2023) identified that the institutional theory helps analyze and recognize the factors that promote sustainability in an organization. Therefore, it is institutional theory is considered an important lens to see the impact of QMP on SP.

Quality Management Practices (QMP)

“Quality management practices (QMP) are regarded as the foundation of competitive advantage, and it has received widespread support across the world as a result of its significance” (Dean & Bowen, 1994). The purpose of quality management is to achieve consistency both inside and outside an organization: The manufacturing system or dealing with humans within the organization are examples of internal elements. Quality training, employee relations, and management relations are the internal quality practices. The behavior of suppliers and consumers are examples of external components of the organization (Shafiq et al., 2019).

Through the deployment of quality management practices, a firm can improve customer satisfaction, organizational performance, quality performance, and services. These practices focus on enhancing customer satisfaction which directly involves the improvement of organizational performance (Al-qahtani et al., 2020). Total Quality Management (TQM) is a part of Quality management (Kharub & Sharma, 2020). The term “total” refers to the complete organization, it includes all teams, functions, and departments. They all are involved in the management of quality. The term “system” refers to the methods of management and technology that are used to achieve the quality requirements and objectives of the organization (Mosadeghrad, 2014). The previous research is used as a foundation, and it is determined that the QMP factors differ from one author to the next. However, it appears that there is a common core produced by the following criteria: Customer perception, employee engagement, leadership, quality training, personnel management, continual improvement, management relations, quality management, and process management are all terms that come to mind when discussing customer-centric culture, employee engagement, and leadership. learning, etc. (Claver et al., 2003).

Management Relations (MR)

Management relations can be described as a company’s dedication to quality procedures that result in a favorable performance outcome (Tarí et al., 2017). Better management relationships, in combination with other high-quality resources, aid an organization’s success (Kim et al., 2012). In general, MR is defined as the firm’s managerial involvement in promoting quality improvement initiatives, which includes taking full responsibility for important quality activities such as reviewing the quality management system and performance (Kaynak & Hartley, 2008).

In two ways, examining MR and other quality relationships is crucial: First and foremost, a strong management relationship is critical for improved business success (S. U. Rahman & Bullock, 2005). Second, managers are in charge of building and reconfiguring the firm’s performance-enhancing resources. According to recent studies, management plays an important role in organizational growth. Managers’ dynamic capability is critical to long-term performance. In a changing environment, the position of competent managers serves as a transmission mechanism (Ambrosini & Altintas, 2019). Management relations make it easier to create a dynamic quality environment that influences quality performance and promotes internal quality practices, such as employee relations (Kaynak & Hartley, 2008).

Another management role is to provide critical assets for high-quality training. As a human resource, training is viewed as a strategic instrument, and it is discussed in all debates aimed at improving performance (Blume et al., 2010). Employees’ abilities and capacities improve as a result of quality training (Zeng et al., 2015). The research has shown that management commitment has a substantial impact on training and that there is a considerable association between leadership and training (Kaynak, 2003).

Quality Training

For both managers and staff, quality training involves training on quality principles, problem-solving abilities, and teamwork (Tarí et al., 2017). Training is a strategic resource associated with the attainment of a competitive advantage that can drive the success of quality management, according to the resource method. Training alone does not provide an edge in a dynamically evolving world unless it is supplemented with unique imitable methods or characteristics such as management support and employee participation. It also raises workers’ duties and participation in problem-solving in their jobs (Kaynak, 2003).

The importance of quality training in human resources cannot be overstated. In employee training, quality management employs charts, graphs, and statistical data. As a result, the staff is expected to get additional environmental and social training on topics such as recycling, pollution, and sustainable development policy (Rothenberg, 2003). Employees receive knowledge on green practices, strategies, sustainability advantages, and strategies to prevent and reduce waste through training programs. As a result, creating a quality management system that includes training would improve workers’ capacity to contribute to sustainability initiatives. Staff will be able to upgrade their knowledge and skills while developing talents and abilities (Mandip, 2012).

Employee Relations

Employee participation, employee empowerment, and teamwork are all linked to employee relations in the QMP literature. It is a method that supports collaborative problem-solving and relates to the workers’ continual development and improvement. It also refers to bosses acting as coaches rather than issuing commands in order to improve their workers’ problem-solving abilities (Flynn et al., 1995). The importance of ER in promoting sustainable performance has been demonstrated in previous research. The research’s conclusions, however, are divided. According to Jackson et al. (2016), quality management has a substantial association with environmental performance. This is in contrast to research by Rao and Holt (2005), which concluded that company efforts combined with employee encouragement can improve financial performance.

Employee engagement, according to Noah (2008), is a type of assignment where the subordinate has more freedom and autonomy of choice, breaking the communication gap between management and workers. It may be argued from these definitions that a healthy relationship with the employees and employee involvement can significantly increase their commitment toward the organization. This will help them in exploring new and innovative ideas and exploiting the current resources. Empowering employees to give solutions for environmental problems may improve the firm’s environmental performance and help the organization to operate in a sustainable manner (Bu et al., 2022).

Organizational Ambidexterity (OA)

The pursuit of new and creative ideas, opportunities, and capabilities, as well as the utilization of present resources to achieve the greatest results, are all linked to an organization’s long-term success. Exploitation activities include factors such as improvement, productivity, effectiveness, selection, application, and execution. The exploration process includes searching, variability, risk-taking, experimentation, innovation, and breakthroughs (March, 1991). Exploratory and exploitative innovations are both covered by organizational ambidexterity.

Exploration

Explorative innovation refers to a company’s efforts to discover new opportunities, thoughts, or methods, as well as develop new goods and services, to adapt to changing conditions (He & Wong, 2004; March, 1991). According to B. A. Khan and Naeem (2018). Explorative innovation is frequently associated with more drastic modifications to offer new goods or services, uncover new client demands, and locate developing markets. The hunt for new opportunities via invention and research is related to exploratory innovation. Kim et al. (2012) highlighted that quality management practices can significantly impact explorative innovation.

Alcaide-Muñoz and Gutierrez-Gutierrez (2017) asserted that in terms of customer focus, feedback from customers allows organizations to learn from mistakes, discover gaps in their systems, goods, or services, and uncover new prospective business models. Asif (2019) stated that consumer satisfaction management entails drawing inferences from consumer information and detecting shifts in customer preferences. Furthermore, he stressed that consumer management should focus on the satisfaction of the current and new potential consumers, with the goal of identifying new market trends. Advanced quality management procedures can also strive to satisfy additional stakeholders than present consumers, giving the company greater exploration potential (Escrig-Tena et al., 2018).

Exploitation

Kim et al. (2012) took the customer focus perspective to describe that organizations tend to shape up their products and services based on customer desires. This can significantly help in the understanding of the potential customer needs and wants incorporation of the customer complaints, and provision of the aftersales services. Moreover, this can aid in knowledge generation for the improvement of the existing services, processes, and products to shape them according to the customer needs. Hence, serving as exploitation activities (Alcaide-Muñoz & Gutierrez-Gutierrez, 2017).

Sustainable Performance (SP)

Sustainability has also been interpreted in the literature as the three dimensions of performance that is, economic, social, and environmental. The Triple bottom line (TBL) approach was first coined in the literature by Elkington (1998) which integrates the economic, social, and environmental aspects of performance. The TBL has now become an emerging reality as a business responsibility (Morali & Searcy, 2012). The economic aspect is concerned with maximizing the firm’s economic returns. The social aspect aims to meet the demands of the stakeholders and to benefit the consumers and the overall society. The environmental aspect refers to the minimization of waste, and hazardous pollutants, and the overall reduction of carbon emissions (Elkington, 1998).

Economic Performance

The economic performance of the firms is evaluated under several dimensions in the literature where some of which are reviewed below:

Nishitani (2011) investigated the economic performance of a company after applying Environmental Management Systems (EMS) and discovered that companies that minimize pollution by modifying their conceptual design processes may have a long-term competitive edge over their competitors. As a result, the deployment of EMS can dramatically increase environmental performance while also improving the firm’s economic performance. Blasi et al. (2018) undertook a multidimensional examination of the relationship between corporate social responsibility and a company’s financial success and reported that “Return on Equity (ROE), net income divided by shareholder equity (measured in percentages); Return on Asset (ROA), net income divided by the total asset (measured in percentages); Return on Investments (ROI), net income/investment (represented as percentages); and Return on Sales (ROS), total revenues/sales (measured in dollars)” were all considered as indicators of a company’s financial performance.

M. Rahman et al. (2020) highlighted that Environmental performance can enhance productivity since pollution is an indicator of inefficiency in manufacturing activities. As a result, Environmental Management System adoption may lead to greater sales to environmentally conscious customers by demonstrating a company’s commitment to environmental management, as well as opportunities to reduce manufacturing costs due to environmental product and process improvements. And corporate social responsibility (CSR) evolved as a way to achieve societal balance via long-term company performance (Wang et al., 2022).

Environmental Performance

Companies may play a vital part in addressing the environmental sustainability challenge effectively and efficiently by implementing applicable strategies and operations, such as green processes and product development.

Salama (2005) studied the impact of environmental performance on the firm’s financial performance to determine the relationship between corporate environmental performance (CEP) and corporate financial performance (CFP), by the utilization of OLS regression. Albino et al. (2009) investigated if sustainability-driven enterprises’ environmental strategy methodologies aid in the production of green goods, and whether there are any economic sector or geographic location distinctions. The key findings were such that sustainable product designers are more likely to support numerous ecological strategy initiatives than non-developers.

The impact of green supply chain management (GSCM) approaches on financial performance, both directly and indirectly through environmental performance, has been empirically confirmed through the study of Kalyar et al. (2019). The outcomes of this study revealed that GSCM activities (green manufacturing, green purchasing, eco-design, customer participation, and green information systems) had a direct impact on financial performance, both directly and indirectly via environmental performance as a mediator. This is in line with the study of Hang et al. (2022).

Social Performance

Caulfield et al. (2001) defined societal sustainability as a development that is attained by balancing civic society advancement and resulting in a wealthier environment. They emphasized the necessity of social inclusion, equality, and cultural variety in their concept of social sustainability. Several studies have demonstrated the value of incorporating social sustainability into company operations. Bhatti and Dixon (2003) found that pervasive poverty and underdevelopment in both developed and developing countries are obstacles to obtaining improved social and environmental outcomes. According to the research of Fombrun (2005), businesses participate in Corporate Social Responsibility (CSR) activities to improve their public image (Chatterjee et al., 2022). According to Vallance et al. (2011), people may only begin to actively confront environmental problems if their fundamental needs are addressed, according to one of the social difficulties driving sustainable development, and this perspective is well-represented in social and environmental sustainability literature. Employees now recognize that by participating in a range of eco-friendly activities, they play a critical role in the company’s greening (Lülfs & Hahn, 2013).

Research Gap

This research makes use of the quality management practices of the firm and its present standing to distinguish the work being done on the aspects of innovation exploration and innovation exploitation to enhance sustainable performance. Table 1 provides a quick overview of the literature and contribution of current research.

Table 1.

Research Gap.

Authors	QMP	OAX	OAI	SP	Green innovation
Herzallah et al. (2017)	✓	×	✓	×	×
Beda-García et al. (2018)	✓	✓	✓	×	×
B. A. Khan and Naeem (2018)	✓	✓	✓	×	×
Saudi et al. (2019)	×	×	×	✓	✓
Yuen et al. (2019)	×	✓	✓	×	×
Peng et al. (2019)	×	✓	✓	✓	×
Abbas (2020)	✓	×	×	✓	✓
Akanmu et al. (2020)	✓	×	×	✓	×
Kharub and Sharma (2020)	✓	×	×	✓	×
Shahzad et al. (2020)	×	×	×	✓	✓
Pertusa-Ortega et al. (2021)	×	✓	✓	✓	×
K. Ali and Johl (2021)	✓	×	×	✓	×
Zhao et al. (2021)	×	✓	✓	×	✓
This research	✓	✓	✓	✓	✓

Hypotheses Development

To achieve the research objectives and to address the research questions, the following hypotheses were formed. The hypotheses were designed to determine the effect of QMP on the SP of the organizations. It also evaluates whether organizational ambidexterity, consisting of organizational exploration and organizational exploitation mediate the relationship between QMP and SP or not. As the term innovation has been used in the literature (Pangarso et al., 2022), therefore, for this research, organizational exploration and organizational exploitation shall be named innovation exploration and innovation exploitation. Furthermore, it also highlights the role of organizational ambidexterity as a mediator between QMP and SP.

Quality Management Practices (QMP) and Sustainable Performance (SP)

Quality management is a concept and method of management that includes strategies, including managerial support, supplier relationship management, customer/stakeholder focus, process improvement, planning, team development, and data analysis (Asif, 2019). On the other hand, Sustainable performance is described as the long-term preservation of systems while taking into account social, economic, and environmental factors (Adams et al., 2014; Teixeira et al., 2019). The link between QM methods and long-term performance produced varied outcomes (Lu et al., 2019; Kharub & Sharma, 2020). Pawliczek and Piszczur (2013) stated that quality management systems aid in raising awareness and improving company balance in terms of sustainability priorities. Angheluta et al. (2012) argued that QMP are critical to long-term sustainability since they provide a fundamental foundation for technology endeavors, particularly in emerging and transitional economies. Quality management techniques, according to these studies, promote teamwork, management support, education and training, and leadership processes, all of which aid in achieving high levels of organizational performance. As a result, it is possible to hypothesize that:

H1: Quality management practices improves the sustainable performance of a firm.

Quality Management Practices and Innovation Exploration

Initially, QM methods were regarded to be a barrier to revolutionary innovation. Benner and Tushman (2003) stated that Quality management approaches and organizational ambidexterity are linked because they are focused on standardization and variability and result in the exploitation of organizational capabilities while avoiding the risks of exploring new opportunities. Quality management approaches can help foster gradual and dramatic breakthroughs (B. A. Khan & Naeem, 2018; Zeng et al., 2015).

Explorative innovation refers to a company’s efforts to discover new opportunities, thoughts, or methods, as well as to develop new goods and services, to adapt to changing conditions (He & Wong, 2004; March, 1991). According to B. A. Khan and Naeem (2018), explorative innovation is frequently associated with more drastic modifications to offer new goods or services, uncover new client demands, and locate developing markets. The hunt for new opportunities via invention and research is related to exploratory innovation. Kim et al. (2012) highlighted that QMP could significantly impact explorative innovation.

Asif (2019) stated that consumer satisfaction management entails drawing inferences from consumer information and detecting shifts in customer preferences. Advanced quality management systems can also work to please stakeholders other than current customers, allowing the organization to expand its research and development capabilities (Escrig-Tena et al., 2018). According to Herzallah et al. (2017), employee training is also a dimension that can aid in exploratory activities through the regeneration of knowledge of numerous talented employees of a firm. Communication, shared thoughts and brainstorming sessions of the employees form a basis for exploratory activities (Tung, 2016). Teamwork can also contribute toward new and innovative idea generation by involving people with diversified skill sets (Jansen et al., 2009; Zhang & Li, 2021). These people foster creativity by exploiting cooperation and communication among the team of multiple attributes, consequently leading to explorative innovations. Hence, based on this evidence, it can be stated that:

H2: Quality management practices foster innovation exploration in an organization

Quality Management Practices and Innovation Exploitation

Developments and/or upgrades of current products and services are referred to as exploitative innovation (B. A. Khan & Naeem, 2018). To satisfy present consumers in established markets, existing organizational information is leveraged to enhance services and improve the goods and services. Jansen et al. (2009) described the activities that boost the efficiency, focus, and refinement of the existing products and services through the overall improvement of the current skills and competencies by simultaneously adapting to the environmental changes as exploitative innovations. Herzallah et al. (2017), in their research, asserted that process management could substantially provide control over various processes, which can aid in problem-solving. Thus, process management provokes exploitative innovations in organizations. Moreover, Álvarez Santos et al. (2018) highlighted that QM methods could significantly impact exploitative activities through process management as it is based on variance reduction and conformance to specifications in the processes.

In another study, Kim et al. (2012) took the customer-focus perspective to describe that organizations tend to shape their products and services based on customer desires. This can significantly help in the understanding of the potential customer needs and wants incorporation of the customer complaints, and provision of the aftersales services. Moreover, this can aid in knowledge generation for the improvement of the existing services, processes, and products to shape them according to the customer needs. Hence, serving as exploitation activities. (Alcaide-Muñoz & Gutierrez-Gutierrez, 2017).

Moreover, Escrig-Tena et al. (2018) highlighted the importance of employee involvement in the facilitation of exploitation activities. He stated that the encouragement of organizations toward employees in terms of ideas provision could contribute to exploitative innovations. Thus, favoring exploitation activities. Hence, it can be deduced that:

H3: Quality management practices foster innovation exploitation in an organization

Organizational Ambidexterity and Sustainable Performance

According to March (1991), an organization’s long-term successful performance is associated with pursuing new and innovative developments, possibilities, and competencies but also through the exploitation of the current resources to get the best outcomes. Organizational ambidexterity covers both explorative and exploitative activities. However, a fine line must be drawn in the choice between dedicating a portion of investments in search of uncertain alternatives (getting new ideas and information about various options to maximize future returns) or using the currently available data to maximize the present returns (dedicating a portion of investment on the current best possible substitute).

Gibson and Birkinshaw (2004) highlighted that organizational ambidexterity is not only the presence of exploitation and exploration activities but a mechanism that necessitates strategic integration directed by similar values and shared aspirations inside organizations. Therefore, it is critical for organizational success. In another study, Jansen et al. (2009) highlighted that a manufacturing facility can become ambidextrous by forming two separate teams, one for exploration and the other for exploitation, and thus improve the organizational performance through the exploitation of current resources (in terms of employee skills, capabilities, and attributes) and the exploration of new ideas, technological breakthroughs and innovations with the drastically changing environment.

The exploration of new innovative designs in the products and processes through the introduction of green elements can significantly improve SP (Mothe et al., 2018). The companies should ensure the active participation of employees in activities and programs regarding green awareness. Attaining sustainability involves the proper dissemination of information regarding the product and its packaging to promote a safe environment (Wen et al., 2021). Communication and shared ideas of the employees in terms of the preservation of resources and the environment can boost the organizational performance of the firm (Moreno-Luzon et al., 2014). Companies must also adhere to continuous improvement of products and processes by focusing on the organizational goal of environmental sustainability. This fundamental goal should be supported by the commitment of all the working employees (Feng et al., 2018). Hence, it can be deduced that:

H4: Innovation exploration activities significantly improve sustainable performance.

H5: Innovation exploitation activities significantly improve sustainable performance.

Organizational Ambidexterity as a Mediator Between Quality Management Practices and Sustainable Performance

Several QMPs have been applied as a tool to improve processes, boost competitiveness, and improve organizational performance by enterprises all over the world. QM practices, for example, working as a team, continuous improvement and employee training, organizational commitment, and employee empowerment, assist an organization in enhancing its organizational performance (Bakotić & Rogošić, 2017).

Escrig-Tena et al. (2018) highlighted that soft QMP (employee involvement, employee training and development, customer focus, and team management) directly influence an organization’s performance, whereas complex QMP (process management and control, product design, customer feedback) indirectly impact the firm performance. Moreover, Bhatia and Awasthi (2018) stated that QMP could influence organizational performance not only directly but also indirectly through the presence of various mediating factors. Martínez-Costa and Martínez-Lorente (2008) explored the role of innovation as a mediator in the relationship between QMP and business performance. Kafetzopoulos et al. (2019) investigated that when the innovative capability of an organization improves, the relationship between QMP and organizational performance improves dramatically.

Organizational ambidexterity is facilitated by QMPs such as employee and management relations, commitment, and quality training. Employees within an organization can explore new and innovative alternatives and exploit the currently available resources and options to enhance the performance of an organization. According to the Resource-Based View theory (Barney, 2001), organizational ambidexterity can be regarded as a rare, inimitable, valuable, and unsubstituted resource that is essential for gaining a competitive advantage amongst rivals (Barney, 2001). Green and sustainable practices, when undertaken by an organization’s employees having diversified skill sets, knowledge, and capabilities, can lead to the formation of a green brand image of the firm by the stakeholders and customers (Olaisen & Revang, 2017).

QMP can influence a work environment where the employees make the best use of their abilities to maximize the returns by exploiting current resources and alternatives and exploring new and innovative ideas to enhance the SP of the company. This will help in customer satisfaction through high-quality products and encourage the employees to innovate according to the drastically changing environment (Messmann & Mulder, 2020). This dynamic capability of the employees can not only yield higher financial returns but also boost the social and environmental performance of the firms. Hence, it can be posited that:

H6: Innovation exploration mediates the relationship between quality management practices and sustainable performance.

H7: Innovation exploitation acts as a mediator between QMP and sustainable performance.

Green Innovation as a Moderator Between Innovation Exploration and Sustainable Performance

Green innovation, according to Y. S. Chen (2008), is a “Hardware or software innovation associated with green products or procedures, such as power saving, pollution prevention, recycling and reuse of waste, sustainable products ideas, or organizational environmental conservation.” It was further subdivided by Y. S. Chen (2008) into “green products” and “green process.” Product innovation is referred to “new or improved products that are involved in power saving, industrial pollution, recycling and reuse of waste, no toxicity, or sustainable products designs,” while “innovation of process that is related to such innovations in strategies that enhance the sustainable development and can significantly enhance the environmental performance of businesses” (Kumar & Dua, 2022).

The dawn of an age of green economy and the regional economic advancements over time have awakened the stakeholders’ interests and consciousness toward environmental protection (Famiyeh et al., 2018). Organizations are widely embracing green initiatives to protect the environment (Bathmanathan & Hironaka, 2016). The integration of eco-friendly elements in organizations leads to a mutually beneficial approach for business firms as well as society (Liao et al., 2021). The business firms that pioneer innovative green practices can not only improve the progress toward sustainability targets but can also enjoy the perks of a distinctive first-mover advantage (Amores-Salvadó et al., 2014).

Furthermore, businesses may incorporate the notion of green products into the design and packaging of their products to boost their product differentiation benefits. The firms that explore and innovate in green products and processes will have long-term benefits and enhanced SP than the companies that do not. Although, the moderating role of green innovation has been seen in sustainable development goals practices and firms’ financial performance (P. A. Khan et al., 2022), and also between firms green HRM and green performance (Muisyo & Qin, 2021), however, its role in affecting the strength of the relationship between exploration and SP need to be explored. So, it can be posited that:

H8: Green innovation moderates the relationship between innovation exploration and sustainable performance.

The framework proposed for this research is shown in Figure 1.

Figure 1.

Conceptual framework (---- = indirect effect; — = direct effect).

Research Methodology

Sample and Data Collection

Due to the high contribution to the GDP of Pakistan and the presence of quality management practices (U. Ali et al., 2015), the FBT and Textile sectors of Pakistan were selected as a population. This would also mean a large sample of data could be collected from these sectors. The units of analysis used for this study were the middle and senior workers from the manufacturing industries of Pakistan because a majority of the activities associated with these industries contribute toward environmental pollution, energy wastage, and instability of the environment corresponding to adverse effects for society. Stakeholders have put a great amount of pressure on such industries to adhere to green practices for the minimization of waste and other energy resources that pollute the environment. This research was based on the quantitative approach, where structured questionnaires were used as an aid for data collection. To ascertain the quality of data for this study, top management levels of the organizations comprising area managers, supply chain managers, quality managers, and supply chain coordinators were selected as ideal participants. The data was acquired from food, and textile supply chain managers and industry experts. The purpose sampling approach was used for data collection. The informed consent was obtained from all participants for this research. The questionnaire was designed using the scale items from different researchers, and the principle of parsimony and comprehensiveness by Whetten (1989) to shortlist the variables/items. The QMP [17 items] were taken from the study of Alsawafi et al. (2021), and innovation exploration [five items], and innovation exploitation [six items] were taken from the survey of Clauss et al. (2021). The sustainable performance [15 items] of the company was measured using the 5-point Likert scale from the previous work of E. A. Khan and Quaddus (2015). The green innovation [eight items] was measured using the scale items from Y. S. Chen et al. (2006).

A total of 400 questionnaires were circulated among the supply chain departments of various manufacturing companies, out of which 237 were received back (59% response rate). The overall samples of the study were N = 216. The majority (93%) of the respondents were male. The data was collected from the manufacturing industries of Pakistan which include FBT and the textile, industry, which has been depicted in Table 2. Questionnaires were specifically designed to be answered by the managers and white-collar workers, as shown in Appendix. The sampling technique used in the research is purposive sampling. There were a total of 53 questions in the questionnaire along with the consent form to ensure data protection, anonymity and consent of the participants.

Table 2.

Quantitative Research Design.

Quantitative research design
Population	FBT and Textile Industry of Pakistan
Unit of analysis	Organization
Data collection technique	Web Survey
Measurement scale	5-point Likert Scale
Sampling technique	Purposive Sampling

Note. Most of the respondents (64%) had an organizational period between 3 and 10 years. The demographic details are shown in Table 3 below:

Table 3.

Demographic detail.

Organization type	Frequency (n = 216)	Percentage (%)
Gender
	Male	Female
FBT	110	8
Textile	92	6
Experience	FBT	Textile
0–5 year	22	20
5–10 year	48	38
10–15 year	20	19
15–20 year	19	13
>20 years	9	8

Results and Analysis

Data Analysis

The suggested model was analyzed using the SmartPLS 3.2.8 software which is based on structural equation modeling. This software is a second generation tool for the testing of novel theories and statistical measures of the developed conceptual framework and is ideal for hypotheses verification, which is deployed by management researchers widely (Hair et al., 2013). The major reasons for using PLS are non-normal data, small sample size, formative measures and explanation of variance in the endogenous constructs (Sarstedt et al., 2022). Moreover, other advantages of Smart PLS include clarity in identifying the muticollinearity issues, and the ability to overcome the problems with low model fit (Streukens & Leroi-Werelds, 2023).

Measurement Model

In order to avoid the non-respondents bias, the respondents were clearly told in writing that by answering the questionnaire, they would be contributing to the sustainability performance (Pangarso et al., 2022). The analysis of the measurement model requires two forms of validation: discriminant validity and convergent validity (Mirza et al., 2022).

Convergent Validity

The convergent validity specifies the items that are supposed to be hypothetically related are converging on the construct to which they are related (Urbach Frederik, 2010). It includes average variance extracted, composite reliability, and outer loadings (Hair et al., 2013). The items are considered valid if the item loadings are equal to or more than the threshold value of 0.7 (Pesämaa et al., 2021). The items having item loadings between 0.5 and 0.7 can be eliminated only if they improve the composite reliability or average variance extracted, and the items having item loadings less than 0.5 should be deleted (Kock, 2014). The item loadings SP5, SP7, and SP9 were deleted to improve the Composite reliability of the Sustainable performance variable.

To establish the suitability of our measurement model, we assessed the internal consistency reliability that included Cronbach’s alpha coefficients and composite reliability. The values of Cronbach’s alpha exceeded the threshold value of .7 and indicated high internal consistency. Also, the values of composite reliability exceeded the threshold value of 0.7 and ranged between (0.7 and 0.9), which indicated high reliability (Fornell & Larcker, 1981). The values of average variance extracted were greater than 0.5, so they agreed with the described value in the literature (Leguina, 2015), as shown in Table 4.

Table 4.

Item Loadings, CR, and AVE.

Variables	Items	Factor loadings (>0.5)	Composite reliability (>0.7)	AVE	Cronbach alpha
Quality management practices	QM1	0.665	0.944	0.501	.937
	QM2	0.602
	QM3	0.630
	QM4	0.685
	QM5	0.613
	QM6	0.658
	QM7	0.742
	QM8	0.763
	QM9	0.781
	QM10	0.782
	QM11	0.781
	QM12	0.734
	QM13	0.809
	QM14	0.680
	QM15	0.645
	QM16	0.765
	QM17	0.647
Innovation exploration	OAXPLOR1	0.757	0.894	0.629	.850
	OAXPLOR2	0.856
	OAXPLOR3	0.826
	OAXPLOR4	0.821
	OAXPLOR5	0.695
Innovation exploitation	OAXPLOI 1	0.658	0.891	0.580	.854
	OAXPLOI 2	0.738
	OAXPLOI 3	0.732
	OAXPLOI 4	0.827
	OAXPLOI 5	0.850
	OAXPLOI 6	0.746
Sustainable performance	SP1	0.714	0.926	0.513	.913
	SP2	0.751
	SP3	0.742
	SP4	0.697
	SP6	0.710
	SP8	0.620
	SP10	0.716
	SP11	0.745
	SP12	0.766
	SP13	0.723
	SP14	0.678
	SP15	0.678
Green innovation	GI1	0.733	0.919	0.588	.910
	GI2	0.793
	GI3	0.851
	GI4	0.711
	GI5	0.794
	GI6	0.816
	GI7	0.703
	GI8	0.753

Principal Component Analysis

The PCA of the variables has been shown in Table 5. The Varimax Rotated Type was used. The components which have a value greater than or equal to 0.4 have been highlighted, which provided useful information about the variables which have strong patterns in the dataset (Merga & Fufa, 2019).

Table 5.

Principal Component Analysis.

	Component
Variables	1	2	3	4	5	6	7	8	9	10
QMP15	0.745
QMP17	0.707
QMP14	0.696
QMP16	0.694
QMP12	0.621
OAXPLOI5	0.525
QMP13	0.492	0.413
QMP11	0.491						0.476
SP15	0.423
OAXPLOR1	0.402
QMP5		0.783
QMP4		0.777
QMP6		0.766
QMP3		0.725
QMP2		0.697
QMP1		0.655
GI2			0.883
GI1			0.870
GI4			0.857
GI5			0.836
GI3			0.713
OAXPLOR5				0.714
OAXPLOI1				0.708
OAXPLOR3				0.677
OAXPLOR2				0.611
OAXPLOR4				0.603
OAXPLOI2				0.546
OAXPLOI3				0.432
SP13					0.832
SP14					0.816
SP12					0.783
SP11					0.724
SP3						0.805
SP2						0.805
SP4						0.740
SP1						0.640
QMP8							0.758
QMP9							0.735
QMP7							0.720
QMP10							0.645
SP8								0.752
SP6								0.644
SP7								0.541		0.535
SP5	0.409							0.523
SP10								0.483
GI6			0.471						0.736
GI7									0.729
GI8			0.503						0.716
SP9										0.798

Note. Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

Rotation converged in 8 iterations.

Discriminant Validity

In addition to this, the HTMT ratio was used to validate the discriminant validity of our research. The HTMT ratios of the constructs were less than the threshold value of 0.85. So, our findings in Table 6 show that our proposed model has achieved discriminant validity (Henseler, 2017).

Table 6.

HTMT Ratio.

Constructs	Quality management practices	Sustainable performance	Exploitation	Exploration
Quality management practices
Sustainable performance	0.775
Innovation exploitation	0.833	0.774
Innovation exploration	0.809	0.693	0.827
Green innovation	0.105	0.123	0.169	0.122

As a result, the conceptual model was supposed to be acceptable with the confirmation of composite reliability and convergent and discriminant validity.

Structural Model

After the main issues about reliability and validity have been addressed, the next stage is to create a structural model for path analysis, which will be used to evaluate hypothetical relationships developed in previous portions of the study. This section is separated into two sections: one discusses the direct link between variables, and the other discusses mediation analysis. The structural model is verified using the Beta (path coefficients), R ² values (predictive power), and t-statistics. The R ² values of Sustainable performance (R ² = .523), innovation exploration (R ² = .530), and innovation exploitation (R ² = .570) show substantial predictive power. The significance of the hypothesis is tested using the Beta value. Beta signifies the expected variation in the dependent variable for a unit variation in the independent variable. The higher the value of Beta, the higher the effect. The Beta value is furthermore verified for its significance using the t-statistics values. This was accomplished by the bootstrapping procedure with 5,000 subsamples, the results of which are presented in Table 7.

Table 7.

Results of Hypothesis Testing.

Relationships	Beta	Standard deviation	t-Values	Decision
QMP→ SP (H1)	0.581	0.042	13.961**	Supported
QMP→ IExr (H2)	0.730	0.037	19.833**	Supported
QMP→ IExp (H3)	0.756	0.034	22.355**	Supported
IExr→ SP (H4)	0.566	0.083	6.849*	Supported
IExp→ SP (H5)	0.212	0.085	2.495*	Supported

p Values < .001. *p < .05.

Hypotheses Testing

We predicted a positive relationship between QMP and SP. The findings of our research supported Hypothesis 1 (β = .581, p < .001). Hypothesis 2 predicted a positive relationship between QM methods with innovation exploration; the results showed support for Hypothesis 2 (β = .730, p < .001). Hypothesis 3 predicted a significant positive relation between Quality Management practices and innovation exploitation (β = .756, p < .001), which leads to the acceptance of Hypothesis 3.

The fourth hypothesis expected a link between innovation exploration and sustainable performance. The results of our research supported Hypothesis 4 (β = .210, p < .05). Hypothesis 5 predicted a positive relationship between innovation exploitation and SP (β = .565, p < .05), which leads to the acceptance of Hypothesis 5.

So, for the mediation analysis, the guidance by Rasoolimanesh et al. (2021) and guidance by Pangarso et al. (2022) were incorporated, which signifies that the mediation effect is achievable by emphasizing the indirect effects. The present study has tested the mediating role of Organizational ambidexterity (exploration and exploitation) on the relationship between QMP and SP. Hypothesis 6 predicted the role of innovation exploration as a mediator between QMP and SP, and it was verified through the results (β = .154, p < .001). Table 3 shows significant support for this mediation path, so Hypothesis 6 was accepted. Furthermore, the mediating role of innovation exploitation between QMP and SP was verified through the results (β = .428, p < .001) and is shown in Table 5, so Hypothesis 7 was accepted.

Moreover, Hypothesis 8 predicted the moderating role of green innovation between innovation exploration and sustainable performance, which was verified through the results (β = .143, p < .001).

Direct Relationship Analysis

Five hypotheses were presented in the section on hypothesis development to test the direct relationships between the independent variable Quality Management practices QMP, innovation exploration (IExr) and innovation exploitation (IExp), and SP. The impact of QM methods on innovation exploration and exploitation and the effect of innovation exploration and exploitation on the SP of Pakistani manufacturing firms were investigated in this study. The path model findings and the empirical analysis results are provided in Table 5. For Hypotheses H1 to H3, the R square values were .532, .534, and .537 respectively, depicting a strong variance in the dependent variable due to the independent variable.

Mediation Analysis

Mediation is tested in survey-based research to discover prevalent processes that are impacting the connection between the variables or have the potential to influence the relationship. When a relationship between two variables is unclear, a third variable can be used as a mediating mechanism to examine its involvement as a mediating variable. The mediator variable serves as a link between two other variables. To identify and explain mediation, the same bootstrap method that was used to examine direct connections is employed. Table 8 shows that mediation analysis is carried out in light of Beta and the t-value obtained by the bootstrap model, using the 95% confidence level as a decision criterion for determining if the hypothesis is true. Only innovation exploitation influences the association between QMP and SP, according to the findings. Furthermore, innovation exploration does not work as a bridge between QMP and Long-Term Performance.

Table 8.

Mediation Analysis.

Relationships	Beta	Standard deviation	t value	Decision
QMP→IExr→SP (H7)	.428	0.073	5.836**	Supported
QMP→IExp→SP (H6)	.154	0.068	2.256**	Supported

p Values < .001.

Moderation Analysis

A moderating variable (or a moderator) can affect the strength and direction of a relationship between the independent and the dependent variable (N. Chen & Yang, 2021). As shown in Figure 1, the moderator is connected to the dependent and independent variables by an arrow which points to the relationship between these variables (Memon et al., 2019). To identify and explain moderation, the same bootstrap method that was used to examine direct connections is employed. Table 9 shows that moderation analysis is carried out in light of Beta and the t-value obtained by the bootstrap model, using the 95% confidence level as a decision criterion for determining if the hypothesis is true. The findings reveal that green innovation functions as a moderator between innovation exploration and SP. This means that exploration activities can improve the SP of a firm much more rapidly in organizations employing green innovation practices than the organizations that are not.

Table 9.

Moderation Analysis.

Relationships	Beta	Standard deviation	t Value	Decision
IExp→GI→SP (H8)	.143	0.064	2.237***	Supported

***

p Values < .001.

Collinearity Diagnostic

The Collinearity diagnostic test was performed to find the VIF value. Table 10 shows the value of VIF for the predictors and constant (Olivia & Ilie, 2013).

Table 10.

Collinearity Diagnostic.

Hypothesis	Tolerance	VIF
Quality management practices significantly influence sustainable performance	1.00	1.00
Quality management practices foster exploratory innovations in an organization	1.00	1.00
Quality management practices influence exploitation activities in an organization	1.00	1.00
Organizational exploration significantly influences sustainable performance	1.00	1.00
Organizational exploitation has a positive impact on sustainable performance	1.00	1.00

Discussion

For this research, literature was utilized to establish a relationship between quality management practices (QMP) and sustainable performance (SP). The empirical evidence of this study implied a significant positive relationship between QMP and SP, which leads to the approval and acceptance of the first hypothesis, H1. The acceptance of this hypothesis calls out the need for how important it is for organizations to invest in QMP to develop a sustainable corporate image of the firm. The empirical evidence of this study verified that innovation exploration and exploitation have a positive relationship with QMP, which implies that already applied QMP in the manufacturing firms must be exploited to achieve a better sustainable performance of the firm, which will lead to a better competitive market position. Moreover, it also suggests that improving innovation exploration and innovation exploitation can play an important mediating role (Rasoolimanesh et al., 2021) between QMS and Sustainable performance. Finally, the moderating role (Memon et al., 2019) of green innovation between innovation exploration and sustainable performance has now been verified.

The empirical evidence highlighted that QMP could significantly influence and impact explorative and exploitative activities through process management as it is based on variance reduction and conformance to specifications in the processes. Hence, the continuous development of the processes and designs can multiply organizational efficiency (Benner & Tushman, 2003). The search for new and innovative ideas and the exploitation of the currently available resources can be significantly influenced by the deployment of quality management practices. As indicated in the previous studies, feedback from customers, customer focus and satisfaction, employee training, communication, and teamwork are the factors that contribute to the exploration and exploitation of innovations in organizations (Alcaide-Muñoz & Gutierrez-Gutierrez, 2017; Asif, 2019; Herzallah et al., 2017; Jansen et al., 2009; Moreno Luzon & Valls Pasola, 2011). This leads to the acceptance of Hypotheses H2 and H3.

Furthermore, the present empirical evidence exhibited a significant positive effect of innovation exploration on the sustainable performance of the firm. This study develops the relationship between exploration and SP. Leading to the acceptance of hypothesis H4. Testing another direct relationship between innovation exploitation and SP yielded some intriguing results. The present literature on innovation exploration and exploitation individually on SP is scarce; therefore, this research studies this relationship filling the research gap. The empirical evidence shows a direct positive relationship between innovation exploitation and Sustainable performance, which implies that the sustainability of a firm can significantly improve by exploiting already deployed QMP This shows that the economic success of an organization would mean setting aside some extra resources for the exploitation QMP (Kulenović et al., 2021). Another prominent consideration is that profitable companies have greater resources to invest in the exploitation of QMP in a friendly manner which significantly improves the social, economic, and environmental performance of the firm. Similarly, empirical research demonstrates a direct positive association between QM techniques, innovation exploitation, and long-term performance, implying that a company’s long-term performance can be considerably improved by utilizing QMP. When we talk about sustainability, it means social, environmental, and economic growth (Ergene et al., 2021). Better economic performance may lead to the availability of (economic and other) resources, allowing businesses to invest in social performance domains such as employee and community relations, promotion of workplace diversity, energy conservation, etc. The allocation of excess resources to the social domains will result in higher social performance, and hence overall, the sustainability of the firm will improve. This leads to the acceptance of hypothesis H5.

This study argued that QMP could affect exploration and exploitation activities, using organizational ambidexterity (exploration, exploitation) as a mediator between QMP and sustainable performance, which fosters sustainable performance. This leads to competitive advantage and the acceptance of hypotheses H6 and H7.

Moreover, the empirical evidence also demonstrated a noteworthy impact of green innovation on sustainable performance, which leads to the acceptance of hypothesis H8. The empirical evidence of the present study is in agreement with the earlier studies mentioned in the literature (Alam & Islam, 2021; Gan et al., 2021). Green innovation is a combination of hardware and software, which means that it further involves two things that are green process innovation which is the software part, and green product innovation, which is the hardware part. Green innovation as a whole is applied as a moderator between innovation exploration and sustainable performance, and it has a positive relationship with sustainable performance. It is hence, very obvious to say that if we go for the exploration part of the model, which already has a positive relationship with QMP, then we should apply the green product and process innovations, as the analysis suggests that applying green practices can overall improve the firm’s sustainability which is the social, economic and environmental growth of the firm. These green practices can promote sustainability through less air pollution, prevention of environmental accidents, waste reduction, and conservation of resources and energy and help the firm attain a sustainable competitive advantage (Alam & Islam, 2021). Firms should address environmental issues through the development of new and innovative green products besides shaping the market for such products that are environmentally friendly and compatible with the drastically changing environment (Petljak et al., 2018; Tang et al., 2018).

This research study contributes toward the existing body of knowledge as no specific study could be found which has provided these contributions in a specific way in the existing literature. First, this research explored the impact of quality management practices on sustainable performance while keeping organizational ambidexterity exploration as a mediator in the manufacturing sector, which enhanced the extant literature from the perspective of sustainability. The present research is entirely focused on either the effect of quality management methods on sustainable performance (Androwis et al., 2018; Lu et al., 2019) or evaluating the relationship between organizational ambidexterity and sustainable performance. However, the independent variables of organizational ambidexterity which are exploration and exploitation, as a mediator between quality management practices and sustainable performance have not been found in the literature.

The dawn of an age of sustainability and regional economic advancements over time has awakened the stakeholders’ interests toward the exploration of new quality management practices and consciousness toward environmental protection. Not only this, but they have become more tactful and sensitive toward such investment behaviors that encourage environmental protection along with social and economic growth. Stakeholders’ and customer awareness regarding changing environmental patterns has urged organizations to invest in practices, strategies, and behaviors that ensure environmental protection (M. Rahman et al., 2020). Economic investments in green practices can not only improve the social performance of the firm by meeting the needs of the environmentally-conscious stakeholders but also ensure healthy relationships, social welfare, customer satisfaction, and, societal friendliness toward sustainable products (Gan et al., 2021; Ullah, 2021).

Second, the present study inspected the moderating role of green innovation between organizational ambidexterity exploration and sustainable performance. This led to bridging the gap between the exploration of new quality management practices which can enhance the sustainable performance of the firm in the context of organizational ambidexterity exploration. This concept states that investments in green practices can lead to the formation of a green branding image that can significantly reduce resource consumption, pollution, and hazardous carbon dioxide emissions and improve the overall profitability and productivity of the firm.

Third, regarding the literature, this study has exploited organizational ambidexterity exploitation as a mediator between quality management practices and sustainable performance is unique, which tells that exploitation of already deployed quality management practices improves the organization’s social environmental, and economic performance. Based on the previous literature available organizational ambidexterity has been checked directly with sustainable performance but the testing of an independent variable, organizational ambidexterity exploitation as a mediator between quality management practices and sustainable performance is of paramount importance as it helps in the exploitation of the organizations’ already deployed quality management practices.

Contribution to Theory

Theoretically, by re-investigating the unanswered concerns about the link between quality management practices and sustainable performance (Alsawafi et al., 2021; Chavez et al., 2022), this preliminary study adds to the body of literature on QMP. The incorporation of organizational ambidexterity and green innovation into the theoretical model makes a substantial contribution to the literature and helps to explain the variation in the construct of sustainable performance.

This study contributes to the theory in various ways. Firstly, it is one of the first studies that explore the components of ambidexterity (exploration and exploitation) independently that was previously non-existent. Secondly, it contributed to the extension of literature under QMP by determining the mediating role of organizational ambidexterity (exploration and exploitation independently) and the moderating role of green innovation in the relationship between QMP and sustainable performance. Thirdly, and most importantly, it contributes to the theory of Resource-based view (RBV) by proposing quality management practice as a resource that could improve the sustainable performance of the organization, via organizational ambidexterity. However, our results also contribute to the institutional theory (IT) by making quality management practices as a rule or norm in an organization, which would contribute to sustainable performance.

Although there is a plethora of studies conducted on the impact of QMP on sustainable performance (Abbas, 2020; Androwis et al., 2018; Chelangat, 2022; Lu et al., 2019; Neri et al., 2021) more studies are required to understand the black box of how QMP is affecting the sustainable performance of organizations in different contexts. Thus, this study contributes to filling the gap by empirically verifying the theoretically proposed model by determining the role of organizational ambidexterity and green innovation in the relationship between quality management practices and sustainable performance.

Managerial Implications

Employees in the manufacturing business must be knowledgeable that in a changing situation where continuous improvement is required, as in the industrial sector, the implementation of exploitative activities is necessary to improve the organization’s performance. Ambidexterity in the workplace is necessary to address the needs of current customers and stakeholders while also anticipating future requirements. Managers can take advantage of QM methods’ intrinsic potential to integrate them into exploitation activities and improve the firm’s long-term success. Employees at a firm often fear that exploitative innovation would be suppressed due to a lack of resources. However, they should be aware that investing in good management approaches can assist them in achieving organizational ambidexterity.

Managers can utilize quality management approaches to encourage not only the enhancement of present services and processes but also the extension of the diversity of operations and business choices available, and thus improve long-term performance. As a result, quality management systems may be able to aid managers in combining exploitation efforts and utilizing advancements across exploitative inventions in a continuous improvement cycle. As leaders, they must create an organizational culture that supports exploitative behavior while still promoting excellent procedures.

Conclusion and Future Directions

This study’s findings back up the situational approach to ambidexterity. The findings show that QM methods generate a favorable organizational context for exploitation activities. QM leads to a process of learning in which exploitative innovations’ talents and competencies are put to good use in increasing the long-term performance of the organization. As a result, quality management creates an appreciation for the significance of ambidexterity’s exploitative dimension. As a result, our research backs up Backström’s (2017) assertion that emerging quality management systems should be supporting rather than coercive to promote both efficiency and effectiveness with ongoing and prospective consumers in mind. Furthermore, the link between QM approaches and long-term performance is moderated by innovation exploitation activities. To put it another way, quality management approaches to support long-term performance and expanding exploitative activities through quality practices lead to ambidexterity, which leads to improved long-term performance for the organization. This demonstrates that QM systems have a direct and indirect impact on long-term performance through exploitative activities as an antecedent of contextual ambidexterity.

As evident from this research, it cannot be claimed that exploration or exploitation is more important. Both have different levels of importance based on the type of organization and the context in terms of industry. However, our research so portrays that both innovation exploration and innovation exploitation can be enhanced by improving QMS, which further leads to the enhanced sustainable performance of the firm and therefore organizational success.

Limitations and Future Research

Despite the significant contributions, the current study has some limitations. Firstly, the data collected was collected only within Pakistan, thereby, limiting the generalization of the research findings to other countries. Secondly and most importantly, this study is cross-sectional, therefore, longitudinal studies should be incorporated into future research, to understand the real-time impact of the QMS on ambidexterity and sustainable performance. In addition, as many writers have noted in previous research, the most prevalent QM approaches have been integrated into a single concept in this study. Future research could look at them as a multi-dimensional construct, allowing scientists to investigate the impact of each quality component on organizational ambidexterity and long-term success in more depth other quality efforts, methodologies, and/or instruments, such as the ISO 9001 code, perfection frameworks, or lean six sigma, could be studied in the future. Ambidexterity is used as a mediating variable in this study.

Also, this study was conducted specifically in the FBT and textile sectors of Pakistan, which have a specific culture and are usually different from another industrial sector. Moreover, the culture also varies among organizations and countries. For example, the working culture of Asians is different from that of Western countries, the relationship between exploration and exploitation with QMP and sustainable performance can be moderated via various cultural variables. So, the cultural context can be involved in seeking the moderation effect in addition to the mediation analysis.

Footnotes

Appendix

Declaration of Conflicting Interests

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding

The author(s) received no financial support for the research, authorship, and/or publication of this article.

ORCID iDs

Afshan Naseem

Asjad Shahzad

Mehran Ullah

Data Availability

Data can be provided for review purpose and on request.

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Do Quality Management Practices,Organizational Ambidexterity,and Green Innovation Influence Sustainable Performance? A Structural Equation Modeling approach

Abstract

Keywords

Introduction

Literature Review

Existing Theories (RBV & Institutional)

Quality Management Practices (QMP)

Management Relations (MR)

Quality Training

Employee Relations

Organizational Ambidexterity (OA)

Exploration

Exploitation

Sustainable Performance (SP)

Economic Performance

Environmental Performance

Social Performance

Research Gap

Hypotheses Development

Quality Management Practices (QMP) and Sustainable Performance (SP)

Quality Management Practices and Innovation Exploration

Quality Management Practices and Innovation Exploitation

Organizational Ambidexterity and Sustainable Performance

Organizational Ambidexterity as a Mediator Between Quality Management Practices and Sustainable Performance

Green Innovation as a Moderator Between Innovation Exploration and Sustainable Performance

Research Methodology

Sample and Data Collection

Results and Analysis

Data Analysis

Measurement Model

Convergent Validity

Principal Component Analysis

Discriminant Validity

Structural Model

Hypotheses Testing

Direct Relationship Analysis

Mediation Analysis

Moderation Analysis

Collinearity Diagnostic

Discussion

Contribution to Theory

Managerial Implications

Conclusion and Future Directions

Limitations and Future Research

Footnotes

Appendix

Declaration of Conflicting Interests

Funding

ORCID iDs

Data Availability

References