Exploring the impact of kaizen practices on ESG performance in manufacturing: the role of digital technologies and organizational culture

This study examines how Kaizen operational practices contribute to Environmental, Social, and Governance (ESG) performance in manufacturing and proposes an integrative conceptual explanation of this relationship. Moving beyond an efficiency-focused view, Kaizen is conceptualised as a socio-technical system in which routines, people engagement, and learning mechanisms generate sustainability-oriented outcomes. The findings show that Kaizen consistently enhances environmental performance through resource optimisation, waste reduction, and emission control, and strengthens governance via improved transparency, accountability, and participatory decision-making. Social outcomes, however, are more contingent and depend on organisational context and managerial intent. Digital technologies—such as IoT, Big Data Analytics, and Artificial Intelligence—and organisational culture emerge as key mediating mechanisms. Based on qualitative content analysis of semi-structured interviews with experienced Kaizen practitioners, the study proposes a conceptual mechanism linking Kaizen practices to ESG outcomes through the joint mediation of digital transformation and organisational culture, offering both theoretical and managerial contributions.