This study analyzes the effect of Lean Management Practices (LMP) on Innovation Performance (IP) through the mediating role of Absorptive Capacity (AC) in Indonesia’s food and beverage industry. A structured questionnaire adapted from validated instruments (Gaspersz, 2007; Cohen & Levinthal, 1990; Damanpour, 1991) was distributed to 200 managers and supervisors from food manufacturing firms listed in the Indonesian Ministry of Industry registry, yielding 180 valid responses (90% response rate). Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0, assessing reliability, convergent, and discriminant validity (HTMT ≤ 0.90). The results indicate that Lean Management strongly influences Absorptive Capacity (β = 0.919, p < 0.001) and both directly and indirectly enhances Innovation Performance (β = 0.690 and 0.725, respectively). Effect sizes (f² = 0.482 – 5.431) and R² > 0.83 confirm the model’s high explanatory power, while confidence intervals (95%) validate the path significance. These findings demonstrate that lean implementation enhances innovation effectiveness primarily through knowledge assimilation and transformation. The study’s main limitation is its single-sector, self-reported cross-sectional design, which may introduce common-method bias. Future research should apply multi-method or longitudinal approaches to increase generalizability.