Barriers of Biodiesel Adoption by Transportation Companies: A Case of Malaysian Transportation Industry

Suhaiza Zailani, Mohammad Iranmanesh, Sunghyup Sean Hyun and Mohd Helmi Ali
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Suhaiza Zailani: Faculty of Business and Accountancy, University of Malaya, 50603 UM, Kuala-Lumpur, Malaysia
Mohammad Iranmanesh: Graduate School of Business, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia
Sunghyup Sean Hyun: School of Tourism, Hanyang University, 133-791 Seoul, Korea
Mohd Helmi Ali: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 UKM, Selangor, Malaysia

Sustainability, 2019, vol. 11, issue 3, 1-15

Abstract: The need to develop an alternative fuel to fossil fuel is growing day by day, especially for the transportation industry, as the supply of fossil fuels is limited and is depleting at a rapid rate. One available resource that has emerged recently is biodiesel. However, the usage of biodiesel is very low among transportation companies. An investigation into the barriers of adopting biodiesel by transportation companies is the focus of the present study. A survey of 147 transportation companies in Malaysia was undertaken, and the data gathered were analyzed using partial least squares technique. Lack of government support, lack of environmental–commercial benefits, and lack of competitive pressure were found to be the barriers to biodiesel adoption. The results also indicated that differentiation strategy moderates the impact of lack of government support, lack of customer demand, lack of environmental-commercial benefits and lack of competitive pressure on biodiesel adoption. The results of this study could benefit policy makers by providing them key focus areas in which they can modify their strategies to actively and successfully promote the use of biodiesel among transportation companies in developing countries.

Keywords: biodiesel adoption; transportation; barriers; differentiation strategy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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