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Intensity of market competition, strategic orientation and adoption of green initiatives in Malaysian public listed companies

Nor Azah Abdul Aziz (Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Durian Tunggal, Malaysia)
Soon Y. Foong (Putra Business School, Universiti Putra Malaysia, Serdang, Malaysia)
Tze San Ong (Faculty of Economics and Management, Universiti Putra Malaysia, Serdang, Malaysia)
Rosmila Senik (Faculty of Economics and Management, Universiti Putra Malaysia, Serdang, Malaysia)
Hassan Attan (Faculty of Engineering Technology, Universiti Teknikal Malaysia Melaka, Durian Tunggal, Malaysia)
Yusri Arshad (Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Durian Tunggal, Malaysia)

International Journal of Productivity and Performance Management

ISSN: 1741-0401

Article publication date: 12 November 2018

896

Abstract

Purpose

The purpose of this paper is to examine the influence of intensity of market competition and strategic orientation on the adoption of green initiatives among public listed companies (PLCs) in Malaysia.

Design/methodology/approach

A questionnaire survey was distributed to all 921 PLCs, and 120 samples were analysed. This study used a statistical tool named partial least squares – structural equation modelling (PLS–SEM) for data analysis. Interviews were also conducted with a few selected companies to obtain in-depth information on green practices.

Findings

The findings of this paper reveal that strategic orientation significantly influences the adoption of green initiatives in Malaysian PLCs while the intensity of market competition does not. Competition on green products or services is not prevalent yet in Malaysia; hence, PLCs are reluctant to make huge investment in green activities. The extent of green initiatives adoption in Malaysian PLCs is just at a moderate level, suggesting that Malaysian PLCs are not so proactive but in the progressing stage of practicing green. PLCs still need some incentives to adopt more green initiatives.

Research limitations/implications

The present study only focussed on the green initiatives adoption in Malaysian PLCs; hence, the research findings may not be generalizable to other countries. This study only considered the contingency theory and stakeholder theory. Due to the time and cost constraints, the data were collected at only one single point of time; thus, it may inherit the usual limitations of cross-sectional data.

Practical implications

The findings of this study also give empirical evidence to the practitioners that their decisions to adopt green initiatives are significantly influenced by certain factors. Companies need to understand the key drivers of their green initiatives in order for them to meet the green challenges and to ultimately derive performance from their implementations. Regulatory authorities and financial institutions could facilitate and encourage for the effective implementation of green initiatives by providing more incentives and facilities.

Social implications

The findings of this study that provide the forces of green initiatives would arouse more environmental concerns among individuals, organizations, and society. The findings of this study also open an eye to the society that commitment of everyone, including upper and lower level of position, is needed in order to create the culture of green for the benefit of society as a whole.

Originality/value

This study contributes to the environmental management literature in the context of green and sustainable development, and to nurture green practices among industries and society for the aims to achieve the sustainability agenda. This study is conducted to explain the motivation behind the proactive decisions on sustainability practices. The current literature on green issues and sustainability provides limited evidence on what really drives companies to practice green.

Keywords

Acknowledgements

The authors would like to thank the Universiti Teknikal Malaysia Melaka (UTeM) and Ministry of Education Malaysia for sponsoring this research project. The authors would also like to thank the Putra Business School, Universiti Putra Malaysia and Centre for Technopreneurship Development (C-TeD) UTeM for facilitating this project.

Citation

Aziz, N.A.A., Foong, S.Y., Ong, T.S., Senik, R., Attan, H. and Arshad, Y. (2018), "Intensity of market competition, strategic orientation and adoption of green initiatives in Malaysian public listed companies", International Journal of Productivity and Performance Management, Vol. 67 No. 8, pp. 1334-1351. https://doi.org/10.1108/IJPPM-03-2017-0078

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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