THE GREEN LEAN–AGILE MANAGEMENT (GLAM) FRAMEWORK FOR LONG-TERM OPERATIONAL EXCELENCE: EMPIRICAL VALIDATION IN THE RIAU PALM OIL INDUSTRY
Efforts to achieve long-term operational excellence in the crude palm oil (CPO) industry require a management approach that integrates efficiency, environmental responsibility, and adaptive capability. This research introduces and empirically assesses the Green Lean–Agile Management (GLAM) framework as a comprehensive model designed to enhance Sustainable Operational Excellence (SOE) in the palm oil sector of Riau Province, Indonesia. Anchored in the Natural Resource-Based View (NRBV) and Dynamic Capabilities Theory, the research examined the interdependencies among lean management practices, eco-innovation, and organizational agility in driving Long-Term Operational Excellence within a resource-intensive and environmentally regulated sector. We used a mixed-method design, combining PLS-SEM analysis of survey data from 205 mill managers and cooperative partners with qualitative triangulation through in-depth interviews and NVivo-assisted coding. The measurement model, comprising 39 reflective indicators, demonstrated strong reliability and validity. The results revealed that Lean Management significantly promotes Eco-Innovation, supporting the proposition that operational efficiency strengthens innovation capability. Eco-Innovation also enhances Organizational Agility and Long-Term Operational Excellence, confirming its mediating role within the GLAM framework. However, Organizational Agility shows no significant effect on Long-Term Operational Excellence, indicating limited strategic relevance in industries with long processing cycles and stable market dynamics. The research underscores the importance of green technology adoption, regulatory compliance, and cooperative partnerships to institutionalize GLAM practices and elevate sustainability performance across the CPO supply chain.
Green Lean-Agile Management, Eco-Innovation, Organizational Agility, Long-Term Operational Excellence, PLS-SEM, Palm Oil Industry.