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Measurement development for eco-innovation capabilities of Malaysian oil and gas firms

Russell Tatenda Munodawafa (Universiti Teknologi Petronas, Tronoh, Malaysia)
Satirenjit Kaur Johl (Universiti Teknologi Petronas, Tronoh, Malaysia)

International Journal of Productivity and Performance Management

ISSN: 1741-0401

Article publication date: 30 April 2021

279

Abstract

Purpose

To combat concerns over the state of the natural environment, energy security and deteriorating air quality, the oil and gas sector needs to implement eco-innovations. Interest in eco-innovation is growing, as its implementation facilitates the transition toward sustainable development and a circular economy, while enabling firms to attain a competitive advantage vis-à-vis capabilities that foster sustainable economic and environmental development. However, literature on eco-innovation capabilities construct development, measurement and validation is scant. This study, therefore, develops an Eco-innovation Capabilities Scale for oil and gas firms.

Design/methodology/approach

Three dimensions of Eco-innovation Capabilities are identified through an extensive literature review and qualitative interviews. Exploratory and Confirmatory Factor Analysis is applied to data collected from managers of Malaysian Oil and Gas Services and Equipment (OGSE) companies.

Findings

Results reveal a parsimonious three-dimensional structure with nine items. The construct of eco-innovation capabilities is manifested by Product Service Stewardship, Environmental Pollution Prevention and Sustainable Development Commitment dimensions. Reliability analysis confirms the reliability and validity of the scale.

Originality/value

The eco-innovation capabilities scale should be useful to researchers in exploring dimensions, factors and outcomes of eco-innovation capabilities. Oil and gas firms play a key role in the global energy mix; hence managers of oil and gas firms may also find this scale useful in measuring their eco-innovation implementation.

Keywords

Acknowledgements

Funding: This work was supported by the Yayasan-Universiti Teknologi PETRONAS Fundamental Research Grant Scheme (YUTP-FRGS) under Grant 015LC0-016.

The authors would like to express gratitude to Universiti Teknologi PETRONAS' Centre for Graduate Studies (CGS), Information Resource Centre (IRC) and the Department of Management and Humanities (M&H). The authors would also like to thank the companies which allowed the researchers access to their managers during data collection. Lastly, the authors would like to express a special thank you to the anonymous reviewers whose comments proved to be extremely valuable to the authors.

Citation

Munodawafa, R.T. and Johl, S.K. (2021), "Measurement development for eco-innovation capabilities of Malaysian oil and gas firms", International Journal of Productivity and Performance Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJPPM-07-2020-0404

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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