Analysis of the impact of Kaizen practices on ESG performance and the mediating role of digital systems

Purpose: This study investigates whether Kaizen operational practices contribute to environmental, social and governance (ESG) performance. While Kaizen is widely applied in operational improvement, its impact on ESG dimensions remains empirically underexplored. The aim is to examine this relationship through a global survey of manufacturing organizations. 

Design/methodology/approach: A cross-sectional survey was conducted with professionals experienced in Kaizen from manufacturing companies across different countries. Respondents were identified via corporate social media based on their demonstrated expertise in Kaizen practices. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). 

Findings: Results reveal that Kaizen practices positively influence environmental and governance performance. However, no direct impact on social performance was found. The use of digital systems was identified as a full mediator in the relationship between Kaizen and social performance. Practical implications: Findings suggest that organizations can enhance ESG outcomes by implementing Kaizen practices and integrating digital systems. This combined approach can improve environmental and governance results and indirectly support social sustainability. 

Originality/value: This is among the first empirical studies to explore the Kaizen–ESG link through a global sample, highlighting the role of digital systems as enablers of ESG performance.