Energy Management Practices, Renewable Energy Supply Chain, Government incentives and Environmental Performance among Manufacturing Firms

Usman Abdullahi (), Al-Amrani Khadeem Ali Dhahi (), Ahmad Martadha Mohamed (), Mohamad Sukeri Khalid (), Mahmoud Ahmad Mahmoud () and Nura Abubakar Allumi ()
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Usman Abdullahi: Nigeria Police Academy, Wudil, Kano State, Nigeria; & School of Government, Universiti Utara Malaysia, Malaysia
Al-Amrani Khadeem Ali Dhahi: Faculty of Business, Sohar University, Sultanate of Oman
Ahmad Martadha Mohamed: School of Government, Universiti Utara Malaysia, Malaysia
Mohamad Sukeri Khalid: School of Government, Universiti Utara Malaysia, Malaysia
Mahmoud Ahmad Mahmoud: School of Business Management, Universiti Utara Malaysia, Malaysia
Nura Abubakar Allumi: School of Technology Management and Logistics, Universiti Utara Malaysia, Malaysia

International Journal of Energy Economics and Policy, 2025, vol. 15, issue 6, 700-716

Abstract: This study examines how energy management practices (EMPs), renewable energy supply chains (RENSC), and government incentives (GOVI) influence environmental performance (ENVP) among manufacturing firms in Oman. Drawing on the Resource-Based View, Natural Resource-Based View, and Dynamic Capabilities Theory, EMPs and RENSC are framed as internal capabilities, while GOVI serves as an external enabler. Data from 308 firms were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results show that management commitment, energy awareness, knowledge, and audits significantly enhance environmental performance. RENSC also directly improves ENVP and mediates the EMP-ENVP relationship. Moderation analysis reveals that government incentives strengthen the positive effects of management commitment, energy knowledge, and renewable energy supply chains on environmental outcomes. Despite policy support under Vision 2040, the adoption of renewable energy technologies remains limited. The study calls for firms to invest in dynamic energy capabilities and green supply chain integration, while urging policymakers to implement targeted, performance-based incentives. Situated in an underexplored national context, this research offers novel insights into how internal resources, operational systems, and institutional support interact to drive sustainability in resource-constrained economies, thus advancing theory and practice in environmental management.

Keywords: Energy Management Practices; Renewable Energy Supply Chain; Government Incentives; Environmental Performance; Manufacturing; Oman (search for similar items in EconPapers)
Date: 2025
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DOI: 10.32479/ijeep.20933

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