Abstract

Environmental sustainability is receiving serious attention from organizations. Green practices and the use of green technologies such as Light Emitting Diode (LED) among organizations can reduce energy consumption, besides providing numerous benefits to the environment as well as organizations. Using the Belief–Action–Outcome framework, the stakeholder and social contract theory, this study aims to investigate the external and internal factors that influence LED usage, and the subsequent impact this may have on organizational outcomes. Data were collected from 300 Malaysian organizations that were LED users. Findings showed that social expectation had a significant positive influence on organizations’ environmental concern while stakeholder pressure and organizations’ environmental concern had a direct significant positive influence on LED usage. The findings further revealed that LED usage has a positive impact on organizations’ environmental and economic performance. This study contributes to the green and sustainability literature by identifying the relationship between specific macro level and micro level factors, and its link to organizations’ use of LED, and the subsequent impact on organizational outcomes. The identification of the antecedents and consequences of LED usage can help managers to formulate strategies that contribute to green climate within organizations, thereby supporting green technology usage and environmental sustainability.

Highlights

  • The increasing adverse effects caused by global warming, climate change and waste and air pollution have accelerated the attentiveness of experts, globally

  • To increase the use of energy-efficient products among organizations, the Malaysian government, under the National Energy Efficiency Action Plan (NEEAP), has developed an initiative to provide free energy audit to those large and medium sized commercial buildings, industries, and large government facilities that are willing to invest an amount of energy saving measures which are equal to the cost of the energy audit

  • This study examined the relationship between the social expectations and stakeholder pressure on organizations’ environmental concern and Light Emitting Diode (LED) usage

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Summary

Introduction

The increasing adverse effects caused by global warming, climate change and waste and air pollution have accelerated the attentiveness of experts, globally This makes it important to find an effective way to improve environmental quality and sustainability [1]. Efficient energy use can lead to a reduction in monetary and social costs, and a reduction in the pollution of greenhouse effects and other contaminants in the atmosphere. This would indirectly increase new production rates, for developing countries such as Malaysia because energy-efficient lighting is one of the most effective strategies for lowering CO2 emissions [3]. The adoption of energy-efficient technology such as LED, and sustainable consumption and production (SCP) concepts among such organizations could lead to higher environmental and economic impact that reduces inefficiencies in the management of resources [5]

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