Beyond Executive Mandates: Financial Resources and Environmental Orientation as Core Drivers of Sustainability in Malaysian Manufacturing

Erna Masfiza Mohamed Ramli, Mohamed Said Aly Amin, Nabawiyah Binti Abdul Hadi and Noor Idayu Ismail

Information Management and Business Review, 2025, vol. 17, issue 3, 1-13

Abstract: Malaysia’s manufacturing sector faces mounting pressure to integrate sustainable practices amid rising environmental concerns, resource constraints, and regulatory demands. Despite government initiatives, many firms struggle to align profitability with environmental and social responsibility, hindered by limited resources, uneven managerial commitment, and varying levels of internal environmental orientation. This study examines the key drivers of sustainable manufacturing in this context, focusing on the influence of financial resources, managerial support, and internal environmental orientation on sustainability performance. Grounded in the Natural Resource-Based View (NRBV) theory, it investigates how these determinants shape environmental, social, and economic outcomes. A quantitative approach was adopted, using a cross-sectional survey of senior executives from medium and large manufacturing firms, yielding 330 valid responses. Partial Least Squares Structural Equation Modelling (PLS-SEM) was applied to test the proposed relationships. The findings reveal that financial resources and internal environmental orientation significantly enhance sustainability performance, whereas managerial support does not show a significant effect. This suggests that while resource allocation and a sustainability-oriented culture are critical enablers, the practical impact of managerial support may be constrained by organizational or cultural barriers. The study extends NRBV theory to the Malaysian manufacturing context, providing empirical evidence on strategic drivers of sustainability and highlighting the need for targeted investments and internal capability development.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ojs.amhinternational.com/index.php/imbr/article/view/4554/3129 (application/pdf)
https://ojs.amhinternational.com/index.php/imbr/article/view/4554 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rnd:arimbr:v:17:y:2025:i:3:p:1-13

DOI: 10.22610/imbr.v17i3(I)S.4554

Access Statistics for this article

More articles in Information Management and Business Review from AMH International
Bibliographic data for series maintained by Muhammad Tayyab ().