Abstract
Nowadays, the pressure of competition from multi-national companies had increased and among them is the automotive industry. It is the impact when the level of competition is intensifying as the manufactured vehicles shifts from being national to global. As a part of the competition, the important of understanding the implementation of green concepts is really useful for Malaysia to be a good competitor in Asian. Green concepts could provide assistance in making decisions at the early stage of the vehicle design and development process in order to avoid the costs and time consumed through later redesign. Thus, this study aims to build an effective model which indicates the relationship between Green Lean Six Sigma (GLSS) and Financial Performance (FP) in Malaysian automotive industry. The conceptual model using Structural Equation Modeling (SEM) has been proposed. Based on the proposed conceptual model and reviewed, research hypotheses are being developed. This research concludes with suggest future research work.
Highlights
Most develop countries planned to force automotive industry to recover and recycle their product
This study proposed that Green Lean Six Sigma (GLSS) has a direct impact on the Financial Performance (FP) and research hypotheses are based on a numbering system from H1
The population of this study comprised in Malaysian Automotive Industry and the data was obtained from Malaysian Automotive Components Parts Association (MACPMA), Proton Vendors Association (PVA) and Kelab Vendor Perodua (KVP)
Summary
Most develop countries planned to force automotive industry to recover and recycle their product. This condition occurs due to the level of production has become unprofitable in the face of increasingly segmented niche market. Some previous studies have contradicted this statement by giving evidence that companies engaging in environmental management and green innovation actively can improve the productivity as a whole such as increase corporate reputation, and thereby enhance corporate competitiveness under the trends of popular environmentalism consciousness of consumers and severe international regulations of environmental protection instead of minimize production waste and increase productivity (Chen et al, 2006)
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