Influence Of Energy Management Practices On Energy Efficiency And Carbon Emission Reduction : Mediating Effect Of Green Supply Chain Performance
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Date
2015-05
Authors
Hor, Wei Lin
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
International concern on the rising emissions of greenhouse gases (GHG) has prompted
action from the Malaysian government to impose ambitious carbon dioxide (CO2) emissions
reduction targets for Malaysia. As energy consumption contributes to a majority of carbon
dioxide emissions, manufacturing firms as the primary consumer of energy are under
pressure to improve energy efficiency and reduce carbon emissions in their operational
activities. This study conducted a survey among 111 manufacturing firms in Malaysia to
determine the effectiveness of institutional pressure in driving energy management practices
towards achieving energy efficiency and carbon emission reduction. It also attempts to study
effects of energy management on the firm's green supply chain performance and the role
supply chain plays in improving energy efficiencies or carbon emission reduction. The result
of the study shows that while institutional pressure has encouraged management support in
building energy awareness and technical capabilities to improve energy efficiency, concern
for carbon emission are nearly non-existent within the Malaysian manufacturing context and
existing energy management practices are still very much in its infancy. Green supply chain
performance is enhanced by energy management and plays a mediating role in improving
energy efficiency primarily through technical knowledge sharing. This study concludes that
coercive pressure employed did not achieve its intended goals and have resulted in mixed
signals among practicing firms, while normative pressure was found to have bounded effects
on internal and external green supply chain performance. Lack of competitive pressure in
environmental management among the industry is prevailing although marginal
improvements in energy management practices and energy efficiency are evident. The
findings in this study has opened new research and development opportunities to identify
new alternatives to monetizing environmental concepts such carbon emission and green
supply chain activities.
Description
Keywords
Greenhouse gases (GHG)