Determinants of Sustainable Development among Malaysian Small and Medium Enterprises: A New Conceptual Framework

  • Mazlina Manshor Faculty of Business and Management, Universiti Teknologi MARA
  • Mohd Najib Saad Faculty of Business and Management, Universiti Teknologi MARA
Keywords: Green Corporate Image, Government support, Integrated Management Systems, Sustainability Orientation, Sustainable Development, Technology and Innovation Capability.

Abstract

Sustainable development is an emerging paradigm designed to strike the balance between the ecological health of the planet and human development in a manner that ensures that both meet the needs of the present without compromising the future. However, little is known about the determinants of sustainable development among Small and Medium Enterprises (SMEs) in Malaysia. As such, the present study fills up the gaps by examining the relationship between integrated management systems, technology and innovation capability, sustainability orientation, green corporate image, government support and sustainable development. This research applies a quantitative survey method using a self-administrated survey questionnaire to collect data from SMEs in Malaysia. Data from this survey will be analyzed using PLS-SEM to examine the associative relationship between determinants of sustainable development and sustainable development. This study will contribute to the body of knowledge by documenting factors that lead to sustainable development, namely integrated management systems, technology and innovation capability, sustainability orientation, green corporate image and government support. It also will benefit both enterprises and the government in building competitive, resilient, and sustainable enterprises in the domestic and international markets.

Downloads

Download data is not yet available.

References

Apostolopoulos, N., Al-Dajani, H., Holt, D., Jones, P. & Newbery, R. (2018). Entrepreneurship and the Sustainable Development Goals. Contemporary Issues in Entrepreneurship Research, 8, 1–7.
Amaratunga, D., Baldry, D., Sarshar, M. & Newton, R. (2002). Quantitative and Qualitative Research in the Built Environment: Application of “Mixed” Research Approach. Work Study, 51(1), 17–31.
Amaeshi, K., Osuji, O. & Nnodim, P. (2008). Corporate Social Responsibility in Supply Chains of Global Brands: A Boundaryless Responsibility? Clarifications, Exceptions and Implications. Journal of Business Ethics, 81(1), 223-234.
Amores-Salvadó, J., Castro, G. M. De. & Navas-López, J. E. (2014). Green Corporate Image: Moderating the Connection between Environmental Product Innovation and Firm Performance. Journal of Cleaner Production, 83, 356–365.
Anholon, R., Rampasso, I. S., Ordonez, R. E. C., Da Silva, D., Quelhas, O. L. G. & Filho, W. L. (2018). Observed Difficulties During the Implementation of Quality Management Systems in Brazilian Manufacturing Companies. Journal of Manufacturing Technology Management, 29(1), 149–167.
Bai, C. & Sarkis, J. (2010). Green Supplier Development: Analytical Evaluation Using Rough Set Theory. Journal of Cleaner Production, 18(12), 1200–1210.
Ball, A. & Craig, R. (2010). Using Neo-Institutionalism to Advance Social and Environmental Accounting. Critical Perspectives on Accounting, 21(4), 283–293.
Barney, J. B. (1996). The Resource-Based Theory of the Firm. Organization Science, 7, 469.
Becker, W. & Dietz, J. (2004). R&D Cooperation and Innovation Activities of Firms - Evidence for the German Manufacturing Industry. Research Policy, 33(2), 209–223.
Behnam, S. & Cagliano, R. (2017). Be Sustainable To Be Innovative: An Analysis of Their Mutual Reinforcement. Sustainability, 9(1), 17.
Benaim, A., Collind, A. C. & Raftis. L. (2008). The Social Dimension of Sustainable Development: Guidance and Application Abstract. Technology, 1(1).
Bansal, P. & Desjardine, M. (2014). Business Sustainability: It Is About Time. Strategic Organization, 12(1), 70–78.
Ben Youssef, A., Boubaker, S. & Omri, A. (2018). Entrepreneurship and Sustainability: The Need for Innovative and Institutional Solutions. Technological Forecasting and Social Change, 129(October), 232–241.
Bennett, N. & Lemoine, G. J. (2014). What A Difference A Word Makes: Understanding Threats to Performance in A Vuca World. In Business Horizons.
Berrone, P., Cruz, C. & Kintana, M. (2010). Socioemotional Wealth and Corporate Responses to Institutional Pressures: Do Family-Controlled Firm Pollute Less. Administrative Science Quarterly, 55(1), 82-113.
Browning, M. H. E. M. & Rigolon, A. (2019). School Green Space and Its Impact on Academic Performance: A Systematic Literature Review. International Journal of Environmental Research and Public Health, 16(3).
Brown, L. R. 1991. The State of the World. Washington, Dc: World Watch Institute.
Cambridge. (2020). Affiliated | Meaning in the Cambridge English Dictionary. Cambridge Dictionary
Chang, A. Y. & Cheng, Y. T. (2019). Analysis Model of The Sustainability Development of Manufacturing Small and Medium-Sized Enterprises in Taiwan. Journal of Cleaner Production, 207, 458–473.
Claudy, M. C., Peterson, M. & Pagell, M. (2016). The Roles of Sustainability Orientation and Market Knowledge Competence in New Product Development Success. Journal of Product Innovation Management, 33, 72–85.
Conner, K. (1991). Historical Comparison of RBV. Journal of Management, 17(1), 34.
Cohen, M. J. (1998). Risk Society and Ecological Modernization. Futures, 29(2), 105–119.
Cavana, R. Y., Delahaye, B. L. & Sekaran, U. (2001). Applied Business Research: Qualitative and Quantitative Methods (3rd Ed.). Milton, Qld: John Wiley & Sons.
Dey, P. & Mason, C. (2018). Overcoming Constraints of Collective Imagination: An Inquiry into Activist Entrepreneuring, Disruptive Truth-Telling and the Creation of ‘Possible Worlds.’ Journal of Business Venturing, 33(1), 84–99.
Dimaggio, P. J. & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism In Organizational Fields. American Sociological Review, 48(2), 147–160.
Dyck, B., Walker, K. & Caza, A. (2019). Antecedents of Sustainable Organizing: A Look at the Relationship between Organizational Culture and the Triple Bottom Line. Journal of Cleaner Production, 231, 1235–1247.
De Medeiros, J. F., Ribeiro, J. L. D. & Cortimiglia, M. N. (2014). Success Factors for Environmentally Sustainable Product Innovation: A Systematic Literature Review. Journal of Cleaner Production, 65, 76–86.
Delgado-Verde, M., Martín-De Castro, G. & Emilio Navas-López, J. (2011). Organizational Knowledge Assets and Innovation Capability: Evidence from Spanish Manufacturing Firms. Journal of Intellectual Capital, 12(1), 5–19.
Doe, F. G. A. (2010). National Policy on the Environment. Department of Environment Ministry of Natural Resources and Environment, Eleventh Edition.
Fonseca, J. P. C., Ferreira, F. A. F., Pereira, L. F., Govindan, K. & Meidut?-Kavaliauskien?, I. (2020). Analyzing Determinants of Environmental Conduct in Small and Medium-Sized Enterprises: A Sociotechnical Approach. Journal of Cleaner Production, 256.
Gast, J., Gundolf, K. & Cesinger, B. (2017). Doing Business in A Green Way: A Systematic Review of the Ecological Sustainability Entrepreneurship Literature and Future Research Directions. Journal of Cleaner Production, 147, 44–56.
George, H. (1879). Progress and Poverty. Modern Economic Classics-Evaluations through Time, 1–24.
Gimenez, C., Sierra, V. & Rodon, J. (2012). Sustainable Operations: Their Impact on the Triple Bottom Line. International Journal of Production Economics, 140(1), 149–159.
Gomes, C. F., Lisboa, J. V. & Yasin, M. M. (2006). Performance Measurement Practices in Manufacturing Firms: An Empirical Investigation. Journal of Manufacturing Technology Management, 17(2), 144–167.
Grant, R. M. (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. In Knowledge and Strategy, 33(3). Butterworth-Heinemann.
Gunasekaran, A. & Spalanzani, A. (2012). Sustainability of Manufacturing and Services: Investigations for Research and Applications. International Journal of Production Economics, 140(1), 35–47.
Hall, J. K., Daneke, G. A. & Lenox, M. J. (2010). Sustainable Development and Entrepreneurship: Past Contributions and Future Directions. Journal of Business Venturing, 25(5), 439–448.
Hart, S. L. (1995). A Natural-Resources-Based View of the Firm. Academy Of Management Review, 20(4), 986–1014.
Hajer, M. A. (1995). The Politics of Environmental Discourse: Ecological Modernization and the Policy Process. Global Environmental Change, 7(2), 181–183.
Hasna, A. M. (2007). Dimensions of Sustainability. Journal of Engineering for Sustainable Development: Energy, Environment, and Health, 2(1), 47-57.
Lash S., Szerszynski B. & Wynne, B. (Eds) (1996). Risk, Environment and Modernity: Towards a New Ecology (Sage, London).
Karakaya, A. & Özilgen, M. (2011). Energy Utilization and Carbon Dioxide Emission in the Fresh, Paste, Whole-Peeled, Diced, and Juiced Tomato Production Processes. Energy, 36(8), 5101–5110.
Kafetzopoulos, D. & Psomas, E. (2015). The Impact of Innovation Capability on the Performance of Manufacturing Companies: The Greek Case. Journal of Manufacturing Technology Management, 26(1), 104–130.
Kilbourne, W. E., Beckmann, S. C. & Thelen, E. (2002). The Role of the Dominant Social Paradigm in Environmental Attitudes: A Multinational Examination. Journal of Business Research, 55(3), 193–204.
Klewitz, J. & Hansen, E. G. (2011). Sustainability-Oriented Innovation in SMEs: A Systematic Literature Review of Existing Practices and Actors Involved. Ispim Conference (International Society for Professional Innovation Management), Sustainability in Innovation: Innovation Management Challenges, 12–15.
Kuckertz, A. & Wagner, M. (2010). The Influence of Sustainability Orientation on Entrepreneurial Intentions - Investigating the Role of Business Experience. Journal of Business Venturing, 25(5), 524–539.
Kumar, V. & Christodoulopoulou, A. (2014). Sustainability and Branding: An Integrated Perspective. Industrial Marketing Management, 43(1), 6–15.
Le, C. L. V. (2010). Technical Efficiency Performance of Vietnamese Manufacturing Small and Medium Enterprises. University of Wollongong, 9, 676–688.
Lozano, R., Carpenter, A. & Huisingh, D. (2015). A Review of “Theories of the Firm” And Their Contributions to Corporate Sustainability. Journal of Cleaner Production, 106, 430–442.
Mazutis, D. & Sweet, L. (2022). The Business of Accelerating Sustainable Urban Development: A Systematic Review and Synthesis. Journal of Cleaner Production, 1(1).
March, J. G. & Olsen, J. P. (1989). Rediscovering Institutions: The Organizational Basis of Politics. New York, Free Press, 1.
Mcfadzean, E., O’loughlin, A. & Shaw, E. (2005). Corporate Entrepreneurship and Innovation Part 1: The Missing Link. European Journal of Innovation Management, 8(3), 350–372.
Molinario, E., Kruglanski, A. W. & Bonaiuto, F. (2020). Motivations to Act for the Protection of Nature Biodiversity and the Environment: A Matter of “Significance.” Environment and Behavior, 52(10), 1133–1163.
Mol, A. P. J. & Sonnenfeld, D. A. (2000). Ecological Modernization around the World: An Introduction. Ecological Modernization around the World: Perspectives and Critical Debates, September 2013, 3–14.
Musa, H. & Chinniah, M. (2016). Malaysian SMEs Development: Future and Challenges on Going Green. Social and Behavioral Sciences, 224(August 2015), 254–262.
Muñoz, P. & Cohen, B. (2018). Sustainable Entrepreneurship Research: Taking Stock and Looking Ahead. Business Strategy and the Environment, 27(3), 300–322.
Namkung, Y. & Jang, S. C. S. (2013). Effects of Restaurant Green Practices on Brand Equity Formation: Do Green Practices Really Matter? International Journal of Hospitality Management, 33(1), 85–95.
Onsel, S., Ulengin, F. & Kabak, O. (2008). A Cluster-Based Approach for the Innovation Assessment of Countries. International Engineering Management Conference, Europe: Managing Engineering, Technology and Innovation for Growth, 1–5.
Paniccia, I. (1998). One, A Hundred, Thousands of Industrial Districts. Organizational Variety in Local Networks of Small and Medium-Sized Enterprises. Organization Studies, 19(4), 667–699.
Patzelt, H. & Shepherd, D. A. (2011). Recognizing Opportunities for Sustainable Development. Entrepreneurship Theory and Practice, 35(4), 631–652.
Poon Teng Fatt, J., Wei, M., Yuen, S. & Suan, W. (2000). Enhancing Corporate Image in Organizations. Management Research News, 23(5–6), 28–54.
Prashar, A. & Sunder M, V. (2020). A Bibliometric and Content Analysis of Sustainable Development in Small and Medium-Sized Enterprises. Journal of Cleaner Production, 245.
Pullman, M., Maloni, M. & Carter, C. (2009). Food for Thought: Social versus Environmental Sustainability Practices and Performance Outcomes. Journal of Supply Chain Management, 45(4), 38-54.
Rahim, R. & Raman, A. A. A. (2015). Cleaner Production Implementation in a Fruit Juice Production Plant. Journal of Cleaner Production, 101, 215–221.
Roth, K. & 000O'Donnell, S. (1996). Foreign Subsidiary Compensation Strategy: An Agency Theory Perspective. Academy Of Management Journal, 39(3), 678-703.
Sarkis, J., Zhu, Q. & Lai, K. H. (2011). An Organizational Theoretic Review of Green Supply Chain Management Literature. International Journal of Production Economics, 130(1), 1–15.
Sarango-Lalangui, P., Santos, J. L. S. & Hormiga, E. (2018). The Development of Sustainable Entrepreneurship Research Field. Sustainability, 10(6), 1–19.
Schick, A., Hobson, P. R. & Ibisch, P. L. (2016). Conservation and Sustainable Development in a Vuca World: The Need for a Systemic and Ecosystem- ­ Based Approach.
Shepherd, D. A. & Patzelt, H. (2011). The New Field of Sustainable Entrepreneurship: Studying Entrepreneurial Action Linking “What Is to Be Sustained” With “What Is to Be Developed.” Entrepreneurship: Theory and Practice, 35(1), 137–163.
Shambach, S. A. (2004). Strategic Leadership Primer. Journal of Chemical Information and Modeling, 53(2nd Edition), 1689–1699.
Schwab, L., Gold, S. & Reiner, G. (2019). Exploring Financial Sustainability of SMEs during Periods of Production Growth: A Simulation Study. International Journal of Production Economics, 212(October 2018), 8–18.
Shi, L., Han, L., Yang, F. & Gao, L. (2019). The Evolution of Sustainable Development Theory: Types, Goals, And Research Prospects. Sustainability, 11(24).
Teece, D. J. (2016). Dynamic Capabilities. The Palgrave Encyclopedia of Strategic Management, 18(March), 1–9.
Terán-Yépez, E., Marín-Carrillo, G. M., Casado-Belmonte, M. Del P. & Capobianco-Uriarte, M. De Las M. (2020). Sustainable Entrepreneurship: Review of Its Evolution and New Trends. Journal Of Cleaner Production, 252.
Too, L. & Bajracharya, B. (2015). Sustainable Campus: Engaging the Community in Sustainability. International Journal of Sustainability in Higher Education, 16(1), 57–71.
Van Kleef, J. A. G. & Roome, N. J. (2007). Developing Capabilities and Competence for Sustainable Business Management as Innovation: A Research Agenda. Journal Of Cleaner Production, 15(1), 38–51.
Van Der Waldt, G. (2016). The Role of Government in Sustainable Development: Towards A Conceptual and Analytical Framework for Scientific Inquiry. Public Administration, 24(2), 49-72.
Wagner, M. (2012). Ventures for the Public Good and Entrepreneurial Intentions: An Empirical Analysis of Sustainability Orientation as a Determining Factor. Journal Of Small Business and Entrepreneurship, 25(4), 519–531.
Walker, R. M., Damanpour, F. & Devece, C. A. (2011). Management Innovation and Organizational Performance: The Mediating Effect of Performance Management. Journal Of Public Administration Research and Theory, 21(2), 367–386.
W. C. E. D. (1987). Report Of the World Commission on Environment and Development: Our Common Future Towards Sustainable Development. Brundtland Commission, 383.
Weber, H. & Weber, M. (2020). Where Means of Implementation Meet Ecological Modernization Theory: A Critical Frame for Thinking About Sustainable Development Goals Initiative. World Development, 1(1).
Yap, C., Soh, C. & Raman, K. (1992). Information Systems Success Factors In Small Business. Omega, 20(5–6), 597–609.
Zahra, S. A., Jennings, D. F. & Kuratko, D. F. (1999). The Antecedents and Consequences of Firm-Level Entrepreneurship: The State of The Field. Entrepreneurship Theory and Practice, 14(2), 45-65.
Zeng, J. (2017). Fostering Path of Ecological Entrepreneurship Within Big Data Network Systems. International Entrepreneurship and Management Journal, 14(1), 79-95.
Published
2023-05-11
How to Cite
Manshor, M., & Saad, M. N. (2023). Determinants of Sustainable Development among Malaysian Small and Medium Enterprises: A New Conceptual Framework. Information Management and Business Review, 15(1(I)SI), 94-105. https://doi.org/10.22610/imbr.v15i1(I)SI.3391
Section
Research Paper