Integrated Framework of Green Lean-Agile Management (GLAM) for Ensuring the Long-Term Sustainability of Operational Excellence Initiatives: A Case Study of Crude Palm Oil Industry in Riau Province, Indonesia

DOI

10.2991/978-94-6239-656-2_9How to use a DOI?

Keywords

Green Lean-Agile Management; Eco-Innovation; Organizational Agility; Sustainable Operational Excellence; PLS-SEM; Palm Oil Industry

Abstract

This article aims to develop and empirically validate an integrated framework of Green Lean-Agile Management (GLAM) to ensure the long-term sustainability of operational excellence initiatives within the crude palm oil (CPO) industry in Riau Province, Indonesia. Grounded in the Resource-Based View (RBV) and Dynamic Capabilities Theory, the research examines how lean practices, eco-innovation, and organizational agility interact to drive Sustainable Operational Excellence (SOE) in a resource-intensive, environmentally sensitive sector. A mixed-method approach was employed, combining quantitative analysis using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with qualitative triangulation through in-depth interviews and NVivo-assisted coding. The quantitative data were obtained from 205 respondents representing palm oil mill management units and cooperative partners (KUD). The model incorporated 39 reflective indicators tested for reliability and validity following Hair et al. (2022), while the qualitative data provided contextual interpretations to strengthen empirical findings. The results reveal that Lean Management strongly and significantly influences Eco-Innovation (β = 0.768, p < 0.001), supporting the NRBV assumption that operational efficiency serves as a foundation for innovation capability. Eco-Innovation significantly enhances both Organizational Agility (β = 0.651, p < 0.001) and Sustainable Operational Excellence (β = 0.632, p < 0.001), confirming its mediating role in the GLAM model. However, Organizational Agility did not significantly affect SOE (β = -0.028, p = 0.831), indicating that flexibility and rapid responsiveness may have limited strategic relevance in industries characterized by long production cycles and relatively stable market structures such as palm oil. The article provides actionable insights for managers and policymakers to prioritize eco-innovation capabilities, particularly in green technology adoption, regulatory compliance, and stakeholder collaboration, to enhance sustainability performance. Strengthening cooperative partnerships (KKPA model), audit mechanisms, and cross-functional coordination is also recommended to institutionalize green lean-agile practices across the supply chain.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Okta Karneli
AU  - Pazli Pazli
AU  - Suryalena Suryalena
AU  - Frini Karina Andin
AU  - Achmad Fajri Febrian
PY  - 2026
DA  - 2026/04/24
TI  - Integrated Framework of Green Lean-Agile Management (GLAM) for Ensuring the Long-Term Sustainability of Operational Excellence Initiatives: A Case Study of Crude Palm Oil Industry in Riau Province, Indonesia
BT  - Proceedings of the 4th International Conference on Management and Business (ICOMB 2025)
PB  - Atlantis Press
SP  - 108
EP  - 122
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-656-2_9
DO  - 10.2991/978-94-6239-656-2_9
ID  - Karneli2026
ER  -