Moderating Role of Perceived Benefit Between Sustainable Environmental Manufacturing Practices and Firm Performance

Abstract

The need to maintain a balance between the developmental and environmental issues in manufacturing firms is required to ensure that the cost of environmental changes does not negate the economic benefits perceived by the firms. Therefore, this study investigated the effect of sustainable environmental manufacturing practices on firm performance via the moderating effect of perceived benefits. The study used a survey questionnaire which was posted to the operation, manufacturing manager and the environmental, health and safety manager to collect 103 data from the Malaysian manufacturing firms. The data collected was analyzed with smartPLS 2. M3. The study found that sustainable environmental manufacturing practices significantly influence environmental performance, while perceived benefits moderates between sustainable environmental manufacturing practices and operational performance. The study has revealed the understanding of the scenario of sustainable manufacturing practices in a developing country as yet to be considered as a strategic factor. Therefore, it is suggested that more awareness should be created to enlighten the manufacturing practitioners not only to perceive sustainable environmental practices as ethical, but also as a strategic factor to enhance achieving better firm performance.

Classifications of Sustainable Manufacturing Practices in ASEAN Region: A Systematic Review and Bibliometric Analysis of the Past Decade of Research

“…Moving towards sustainability in current literature is widely embraced by researchers. The key is to maintain the equilibrium between economic activities and environmental damage [81]. Sustainable manufacturing practices are significantly contributing to environmental protection.…”

Sustainable Supply Chain Management: Research Pathways Based on Empirical Evidence from Chinese Automotive Companies

“…[13] also provide empirical support for the positive impact of stakeholder pressure on firm environmental proactivity. Further, [1] report that stakeholder pressure, legislation and perceived benefits have a direct influence on the implementation of environmental manufacturing practices and firm performance.…”

Integrating Sustainable Maintenance Into Sustainable Manufacturing Practices and Its Relationship With Sustainability Performance: A Conceptual Framework

“…This is because they have the same goal of improving SP (Abdul-Rashid et al, 2017b;Abdullah et al, 2017;Adebambo et al, 2015a;Alayón et al, 2017;Baluch et al, 2010;Chiang et al, 2014;Frank et al, 2016;Habidin et al, 2013;Hami, 2015;Hami et al, 2016;Liyanage et al, 2009). Besides, many studies have examined the relationship between SMPs and SP (Abdul-Rashid et al, 2017a;Abdullah et al, 2017;Adebambo et al, 2014;2015b;Adebanjo et al, 2016;Das, 2018;Esfahbodi et al, 2017;Gimenez et al, 2012;Habidin et al, 2013;Hami et al, 2016;Hami et al, 2015;Luthra and Mangla, 2018;Roni et al, 2014;Zubir et al, 2012). However, SMA has not been given any consideration in their studies.…”