Sustainable Performance Of Manufacturing Small And Medium Enterprises (Smes) In Malaysia: The Roles Of Sustainable Practices And Entrepreneurial Bricolage
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Date
2021-05
Authors
Hassan, Nor Aishah
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
As a result of global economy, environmental and social catastrophes,
businesses especially the entrepreneurs are seeking effective and efficient means to
minimise the tremendous impacts. Although various theoretical foundations are
beneficial in understanding the importance of sustainability, the sustainable
performance of small-medium enterprises (SMEs) has yet to be explored. This
research seeks to examine the drivers and outcome of sustainable practices to mitigate
economic crisis, environment degradation, and social injustice. In particular, the
individual (entrepreneurial leadership), organisational (sustainability culture), and
institutional (government support implementation) level factors are presumed to drive
the sustainable practices. These factors will in turn influence sustainable performance,
and hence demonstrating the contingent role of entrepreneurial bricolage. Drawing on
RBV and effectuation theory, a theoretical framework had been developed and
analysed using 146 respondents among Malaysian manufacturing SMEs. An analytical
method called Partial Least Squares (PLS) using SmartPLS software version 3.2.8 had
been employed. The findings reveal that entrepreneurial leadership and sustainability
culture are the key drivers of sustainable practices. Meanwhile, government support
implementation is found to be not a significant factor that influences the practices.
Additionally, sustainable practices are discovered to have positive effect on economic,
environmental and social performance. However, sustainable practices are not the mediator in the correlation of entrepreneurial leadership and economic performance.
Yet, the practices are the mediator in the correlations of entrepreneurial leadership,
and environmental and social performance. At the organisational level, sustainable
practices mediate the correlation of sustainability culture and the three dimensions of
sustainable performance. Nevertheless, at institutional level, sustainable practices are
not the mediator in the correlation of government support implementation and the three
dimensions of sustainable performance. In addition, entrepreneurial bricolage has no
contingent role in strengthening the sustainable practices-sustainable performance
nexus. Based on the major findings, this study’s constraints and implications are
presented. Also, the recommendation for future study is discussed in detail in the
conclusion.
Description
Keywords
Management