BEYOND EFFICIENCY: SMART VALUE STREAM MAPPING AND STQM AS SYNERGISTIC DRIVERS FOR ECO-LEAN TRANSITIONS IN EMERGING MARKETS

Abstract

This study explores the integrative role of Lean Green Digitalization (LGD), Smart Value Stream Mapping (Smart VSM), and Sustainable Total Quality Management (STQM) in enhancing operational sustainability and minimizing environmental waste within Indonesian micro, small, and medium-sized enterprises (MSMEs), with a focus on the textile sector. Anchored in the Triple Bottom Line (TBL) framework, this research employs a quantitative design with data collected from 110 purposively selected respondents affiliated with Fit Force, a regional garment manufacturer. Utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM), findings reveal that both LGD and Smart VSM significantly influence STQM and environmental waste reduction, while STQM functions as a critical mediating construct, enabling the translation of digital and lean practices into tangible environmental benefits. These results offer empirical validation for a multidimensional sustainability model that merges digital innovation with quality management to address the resource asymmetries and process inefficiencies characteristic of MSMEs. The study contributes novel insights to the discourse on sustainable industrial transformation, positioning digital-lean integration not only as a strategic imperative for MSME competitiveness but also as a catalyst for inclusive and ecologically responsible growth.