Achieving Sustainable Development in Business: The Implementation of Environmental Management Practices by Small and Medium Enterprises
Journal of Contemporary Issues in Business and Government,
2021, Volume 27, Issue 3, Pages 47-56
AbstractOver the past two decades, the issue of sustainability has received mixed opinions from people, especially in business world. The concept of Sustainable Development has slowly changing the view of modernisation and growth for worldwide development activities. Small and Medium-sized Enterprises (SMEs) tend to be opposed to the idea. The purpose of this study is to evaluate the implementation of Environmental Management Practices (EMP) among SMEs in Malaysia. Using the Data Envelopment Analysis (DEA) model, this study employed barriers and motivations as an input, while sustainable development elements are taken as an output. Findings show that the implementation level of EMP varied among companies, which consequently influences their level of sustainable development. The implications of the finding are discussed based on the concept of Goal-Setting Theory to explain the nexus between the company’s ability to set the right environmental goals and employees’ understanding of the signals sent to support the company’s sustainable development.
- Alshehhi, A., Nobanee, H. and Khare, N. (2018) The impact of sustainability practices on corporate financial performance: Literature trends and future research potential. Sustainability, 10, 494.
- Altin, A., Tecer, S., Tecer, L., Altin, S., and Kahraman, B. F. (2014) Environmental awareness level of secondary school students: A case study in Balikesir (Türkiye). Procedia - Social and Behavioral Sciences, 141, 1208-1214.
- Ayuso, S., and Navarrete-Baez, F. (2017) How does entrepreneurial and international orientation influence smes’ commitment to sustainable development? Empirical evidence from Spain and Mexico: Entrepreneurial and international smes’ commitment to sd. Corporate Social Responsibility and Environmental Management. 25. 10.1002/csr.1441.
- Bolis, I., Morioka, S.N., and Sznelwar, L.I. (2017) Are we making decisions in a sustainable way? a comprehensive literature review about rationalities for sustainable development. Journal of Cleaner Production, Volume 145, Pages 310-322, ISSN 0959-6526, https://doi.org/10.1016/j.jclepro.2017.01.025.
- Buffa, F., Franch, M., and Rizio, D. (2018) Environmental management practices for sustainable business models in small and medium sized hotel enterprises. Journal of Cleaner Production, Volume 194, Pages 656-664, ISSN 0959-6526.
- Chen, Y., Cook, W.D., Du, J., Hu, H., and Zhu, J. (2017) Bounded and discrete data and likert scales in data envelopment analysis: Application to regional energy efficiency in China. Ann Oper Res 255,347–366 (2017). https://doi.org/10.1007/s10479-0151827-3
- Chin, Y.W., and Lim, E.S. (2018) SME policies and performance in Malaysia. ISEAS Yusof Ishak Institute. http://hdl.handle.net/11540/8598
- Cook, W.D., Tone, K., and Zhu, J. (2014) Data envelopment analysis: Prior to choosing a model. Omega, Volume 44, Pages 1-4, ISSN 0305-0483, https://doi.org/10.1016/j.omega.2013.09.004.
- Das, A.K., Biswas, S.R., Jilani, M.M.A.K., and Uddin, M.A. (2019) Corporate environmental strategy and voluntary environmental behavior - Mediating effect of psychological green climate. Sustainability, 11, 1-17.
- Dey, P. K., Petridis, N. E., Petridis, K. Malesios, C., Nixon, J. D., and Ghosh, S. K. (2018) Environmental management and corporate social responsibility practices of small and medium-sized enterprises. Journal of Cleaner Production, Volume 195, Pages 687702, ISSN 0959-6526.
- Dumont, J., Shen, J., and Deng, X. (2017) Effects of green HRM practices on employee workplace green behavior: The role of psychological green climate and employee green values. Human Resource Management, 56, 613-627.
- Famiyeh, S., Adaku, E., Amoako-Gyampah, K., Asante-Darko, D., and Teye Amoatey, C. (2018) Environmental management practices, operational competitiveness and environmental performance: Empirical evidence from a developing country. Journal of Manufacturing Technology Management, Vol.29 Issue: 3, pp.588-607
- Goosen, M.F.A. (2012) Environmental management and sustainable development. Procedia Engineering, Volume 33, Pages 6-13, ISSN 1877-7058, https://doi.org/10.1016/j.proeng.2012.01.1171.
- Hadj, T.B. (2020) Effects of corporate social responsibility towards stakeholders and environmental management on responsible innovation and competitiveness. Journal of Cleaner Production, Volume 250, 119490, ISSN 0959-6526, https://doi.org/10.1016/j.jclepro.2019.119490.
- Hockerts, K., and Wüstenhagen, R. (2010) Greening goliaths versus emerging davids - theorizing about the role of incumbents and new entrants in sustainable entrepreneurship. Journal of Business Venturing, 25(5), 481-492.
- Hofmann, K.H., Theyel, G., and Wood, C.H. (2012) Identifying firm capabilities as drivers of environmental management and sustainability practices - Evidence from small and medium-sized manufacturers. Business Strategy and the Environment, 21(8), 530545.
- Huang, H. (2016) Media use, environmental beliefs, self-efficacy, and pro-environmental behavior. Journal of Business Research, 69, 2206-2212.
- Jabbour, A.B.L.S., Ndubisi, N. O., and Seles, B.M.R.P. (2019) Sustainable development in asian manufacturing smes: Progress and directions. International Journal of Production Economics, 1-14.
- Jeronen E. (2013) Encyclopedia of corporate social responsibility: Sustainability and sustainable development. Heidelberg, Berlin: Springer.
- Karatekin, K. (2014) Social studies pre-service teachers’ awareness of solid waste and recycling. Procedia - Social and Behavioral Sciences, 116, 1797-1801.
- Ko, C. H. (2009) A study of the critical success factors that are synonymous with efficient international tourist hotels in Taiwan. PhD thesis. Western Sydney University. Retrieved from https://researchdirect.westernsydney.edu.au
- Locke, E.A., and Latham, G.P. (2006) New directions in goal-setting theory. Current Directions in Psychological Science, 15(5), 265-268. http://dx.doi.org/10.1111/j.14678721.2006.00449.x
- Malaysian SME Annual Report (2017) SME Corp Malaysia. Retrieved from http://www.smecorp.gov.my/index.php/en/resources/2015-12-21-11-07-06/smeannual-report/book/88-sme-annual-report-2017-18/2-annual-report
- Mat, N.H.N. and Barrett, R. (2017) A critical realist view of the human resource management role development in Malaysia. Advanced Science Letters, 23 (9), pp. 8771- 8776.
- Mat, N.H.N., Yusof, Y., Salleh, H.S., and Mohamed, W.N. (2017) Employees’ understanding of HRM practices in the hotel industry. Advanced Science Letters, 23 (11), pp. 10680-10683.
- Mat, N.H.N., Zabidi, Z.N., Yusof, Y., Salleh, H.S., Mohamed, W.N., and Mohd Yusoff, Y. (2020) The nexus of climate change and hotel management in Malaysia: An exploratory study. International Journal of Sustainable Society, 12(1), 5-17.
- Mei, N. S., Wai, C. W., and Rahmalan, A. (2016) Environmental awareness and behaviour index for Malaysia. In Procedia - Social and Behavioral Sciences, Volume 222, Pages 668-675.
- Musa, H. and Chinniah, M. (2016) Malaysian SMEs development: future and challenges on going green. Procedia - Social and Behavioral Sciences. 224. 254-262. 10.1016/j.sbspro.2016.05.457.
- Norton, T.A., Zacher, H., Parker, S.L., and Ashkanasy, N.M. (2017) Bridging the gap between green behavioral intentions and employee green behavior: The role of green psychological climate. Journal of Organizational Behavior, 38, 996-1015.
- Ozcan, Y. (2014) Health Care Benchmarking and Performance Evaluation: Performance measurement using data envelopment analysis (DEA). International Series in Operations Research & Management Science 210, DOI 10.1007/978-1-4899-7472-3_2. New york, US: Springer Science Business Media.
- Pitkänen, J. (2017) The environmental impact of service oriented companies. Master Thesis. Aalto University of Creative Sustainability, Espoo, Finland. Retrieved from https://aaltodoc2.org.aalto.fi
- Shirouyehzad, H., Lotfi, F., Aryanezhad, M. and Reza, D. (2012) A data envelopment analysis approach for measuring efficiency of employees; a case study. South African. Journal of Industrial Engineering. 23. 191-201. 10.7166/23-1-230.
- Smith, E. E., and Perks, S. (2010) A perceptual study of the impact of green practice implementation on the business functions. Southern African Business Review, 14(3).
- Tehseen, S. (2014) Malaysian service sector: an overview of wholesale and retail industry. Proceeding of 1st UniKL Business School Management and Entrepreneurship Conference (UBSMEC) held at Universiti Kuala Lumpur Main City Campus, Kuala Lumpur, 2014
- Tseng, M.L., Shun, A. Chiu, F., Tan, R.R. and Siriban-Manalang A.B. (2013) Sustainable consumption and production for Asia: Sustainability through green design and practice. Journal of Cleaner Production, 40. pp. 1-5
- Wiese, B., and Freund, A. (2005) Goal progress makes one happy, or does it? Longitudinal findings from the work domain. Journal of Occupational and Organizational Psychology 78(2). 287-304. 10.1348/096317905X26714.
- Yang, J., Han, Q., Zhou, J., and Yuan, C. (2015) The influence of environmental management practices and supply chain integration on technological innovation performance— evidence from china’s manufacturing industry. Sustainability. 7. 15342-15361.10.3390/su71115342
- Yadav, N., Gupta, K., Rani, L., and Rawat, D. (2018) Drivers of sustainability practices and smes: A systematic literature review. European Journal of Sustainable Development, Vol 7 (4). https://doi.org/10.14207/ejsd.2018.v7n4p531
- Article View: 61
- PDF Download: 63