Sustainability-oriented technology adoption in Tonga: the impact of Government's incentives and internal factors

Malia Faasolo and Eli Sumarliah

International Journal of Emerging Markets, 2022, vol. 19, issue 10, 2847-2867

Abstract: Purpose - The paper seeks to investigate the impacts of government's incentives and internal aspects (i.e. firms' ethics and firms' attitudes) on the implementation of sustainability-oriented technology (SOT) among small and medium-sized enterprises (SMEs) in Tonga. Those aspects are imperative to examine as numerous enterprises in developing nations possess insufficient assets that suspend applying innovations, specifically SOT incorporated with enterprise management. Thus, it is unavoidable for an intermediary to intervene in technology implementation, and developing the more effective implementation process is reckoned. Meanwhile, governments possess the assets and authority to motivate the SOT implementation extensively. Therefore, this paper assesses governmental factors as influencing drivers for realizing cost-effective and well-organized implementation. Design/methodology/approach - The paper employs the partial least squares structural equation modeling (PLS-SEM) technique to assess the information collected from 266 Tongan SMEs. Findings - The outcomes indicate that government's policy and subsidies positively and significantly shape firms' ethics and attitudes regarding SOT implementation in Tonga. Research limitations/implications - The research analyzes the SOT implementation in a single country of Tonga; thus, the findings cannot be generalized to other emerging countries. Besides, this study selects SMEs as the sample; hence, it cannot be used to explain the behaviors of large companies. Originality/value - The research is the first attempt to assess such impacts in the SMEs of a South Pacific nation.

Keywords: Sustainability-oriented technology; Government support; Structural equation modelling; SMEs; Tonga (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoemp:ijoem-09-2021-1424

DOI: 10.1108/IJOEM-09-2021-1424

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