Exploring the Impact of Contingency Theory on Sustainable Innovation in Malaysian Manufacturing Firms

Muhammad Fakhrul Yusuf, Nur Anis Imalyn Mohamad Nasarudin, Shahryar Sorooshian (), Muhammad Ashraf Fauzi and Nur Muneerah Kasim
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Muhammad Fakhrul Yusuf: Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuh Persiaran Tun Khalil Yaakob, Gambang, Kuantan 26300, Pahang, Malaysia
Nur Anis Imalyn Mohamad Nasarudin: Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuh Persiaran Tun Khalil Yaakob, Gambang, Kuantan 26300, Pahang, Malaysia
Shahryar Sorooshian: Department of Business Administration, University of Gothenburg, 405 30 Gothenburg, Sweden
Muhammad Ashraf Fauzi: Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuh Persiaran Tun Khalil Yaakob, Gambang, Kuantan 26300, Pahang, Malaysia
Nur Muneerah Kasim: Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuh Persiaran Tun Khalil Yaakob, Gambang, Kuantan 26300, Pahang, Malaysia

Sustainability, 2023, vol. 15, issue 9, 1-16

Abstract: This study looks at the impact of contingency theory on sustainable innovation in Malaysian manufacturing firms. A quantitative approach was used, with convenience sampling to select participants from a target population of Malaysian manufacturing employees. An online survey distributed via email was used to collect 101 sets of data for the study. PLS-SEM (Partial Least Squares Structural Equation Modeling) was used to analyze the collected data. According to the findings, corporate sustainable support policies and sustainable incentives have a significant positive impact on sustainable innovation in Malaysian manufacturing firms, whereas top management commitment was found to be insignificant. Companies that prioritize sustainable practices through policies and incentives are more likely to promote sustainable innovation, according to the findings. As a result, businesses should prioritize developing these two attributes in order to foster sustainable innovation, thereby improving sustainability practices and contributing to the country’s long-term development goals. Future research should, however, investigate why top management commitment may not be a significant driver of sustainable innovation in Malaysian manufacturing firms.

Keywords: sustainable innovation; top management commitment; corporate sustainable support policies; sustainable incentive; contingency theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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