GREEN PRACTICES AND CORPORATE SUSTAINABILITY PERFORMANCE OF CHEMICAL MANUFACTURING ORGANISATIONS IN MALAYSIA: THE MODERATING ROLE OF ISLAMIC WORK ETHICS, ORGANISATION SIZE, AND ORGANISATION AGE

Dissertation, Universiti Tenaga Nasional (2020)
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Abstract

Sustainability is a crucial issue for many sectors in Malaysia, including the manufacturing sector. Many businesses, especially the chemical manufacturing industry, aim to achieve a sustainable business through the implementation of green practices. Green practices provide guidelines for the employees to simultaneously sustain the organisation in a sustainable manner and carry out the required manufacturing activities. Focusing on that, this study aimed to examine the effects of green practices on corporate sustainability performance through Islamic work ethics, organisation size, and organisation age as moderators. Using the stratified random sampling technique, 344 chemical manufacturing organisations in Malaysia were invited to participate in a survey. Data from 130 completed questionnaire sets were subjected to partial least square (PLS) analysis. The results demonstrated significant effects of green practices on corporate sustainability performance via Islamic work ethics and organisation size. However, organisation age was found to exhibit no moderation effect on the relationship between green practices and corporate sustainability performance. Conclusively, as part of the organisational strategies, the sustainability of chemical manufacturing organisations must involve successful implementation of green practices, Islamic work ethics, and organisation size. This study offered several theoretical and practical contributions on green practices, Islamic work ethics, organisation size, and organisation age, and corporate sustainability performance. Theoretically, this study extended literature on the resource-based view theory, natural-resource-based view theory, and stakeholder theory. Al-Quran and hadith were used to support this study to link the relationships of the variables under study, particularly in the context of chemical manufacturing organisations in Malaysia. Practically, this study was expected to assist chemical manufacturers in selecting the appropriate green practices to achieve corporate sustainability performance and good implementation of Islamic work ethics. Additionally, it is recommended for future research to explore other types of industries in the manufacturing sector given the focus of this study on the chemical manufacturing industry only.

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