5S implementation, basic needs satisfaction, sustainable leadership and firm sustainable performance: Empirical evidence from the oil and gas industry

The achievement of sustainable development goals remains a challenge for manufacturing companies, justifying the need for research on practices contributing to firm sustainable performance (FSP), which includes financial, environmental and social performance. Similarly, the lean manufacturing (LM) approach – originally focused on waste reduction – has been recognized for its potential contributions to sustainability. However, empirical evidence on the relationship between LM tools and FSP remains limited. This study, therefore, aims to investigate the direct and indirect effects of 5S implementation (5S) on FSP, mediated by basic needs satisfaction (BNS) and moderated by sustainable leadership (SL). The proposed research framework was developed on the basis of self-determination theory and situational leadership theory. The study employed a time-lagged, three-wave approach to collect data from 211 frontline employees at a large oil and gas company in Saudi Arabia. PLS-SEM analysis was conducted to test the proposed hypotheses, complemented by Finite Mixture Partial Least Squares (FIMIX-PLS) and Necessary Condition Analysis (NCA) to enhance result robustness. Findings indicate that 5S indirectly promotes FSP via BNS, with SL serving as a positive moderating factor that strengthens the impact of 5S on BNS. By providing empirical evidence on the interconnected roles of 5S, BNS, FSP, and SL, this study addresses research gaps and advances literature within self-determination theory and situational leadership theory. The study also suggests several future research directions and offers valuable insights for production and HR managers on promoting sustainable performance in manufacturing through the pro-social application of the 5S tool.