Determinants And Consequences Of Green Innovation Adoption: A Study On Iso 14001 Manufacturing Firms In Malaysia
Loading...
Date
2015-07
Authors
MOHD ZAHARI, FADHILAH
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The fact that the sustainability agenda is becoming a central focus globally,
Malaysia also is not without exception. Eventually, the country’s aspiration to steer a
balance in its development plan and economic growth has triggered the main interest in
this research. Following the wisdom of ecological modernization theory that suggests
the preventive technological innovation as a powerful means to mitigate the detrimental
effect of industrialization on the environment, this study sets to examine the
determinants and outcomes of green product and process innovation among ISO 14001
manufacturing firms in Malaysia. Little is known about the determinants of green
product and process innovation in the existing literature, despite its significant impact
towards environmental sustainability. In doing so, the study integrates both external and
internal perspective to enrich the discussion. The study also identifies specific firm
capabilities for green innovation, which have not well attended so far, along the other
determinants such as institutional pressures and environmental orientation. Further, this
study incorporates the moderating effect of business environment context in
understanding the conflicting results of green innovation on firm performance.
A mail survey approach was used to collect data from ISO 14001 manufacturing
firms in Malaysia. The analysis was done using SmartPLS 2.0 to examine the direct and
moderating hypotheses. Concerning the determinant factors, results failed to support the
hypothesized relationship between institutional pressures and green innovation
adoption. Indeed, firms’ environmental orientation and capabilities show some
relationships, thus reflects the significance of self regulating policy in ISO 14001
certified firms. On the outcomes part of green innovation adoption, the result strongly
affirms the positive implications on environmental performance, while the economic
and competitive advantage measures compile mixed findings. Likewise, the moderating
relationships were also partially supported. Specifically, only complexity and
uncertainty in business environment context has a sound effect in enhancing the
implications of green innovation on firm performance.
The insights forwarded through this study brings some implications to both
theoretical and practical advancements, particularly in the promotion of green
innovation in Malaysia. Besides, several potential avenues for future research were
identified and proposed. In short, this research provides a more enriching picture of the
determinants and outcomes of green innovation adoption, which remains lacking in the
current literature.
Description
Keywords
Determinants And Consequences Of Green Innovation Adoption , A Study On Iso 14001 Manufacturing Firms In Malaysia