State of the Art of Sustainable Development: An Empirical Evidence from Firm's Resource and Capabilities of Malaysian Automotive Industry

Abstract

In the 21st century, sustainable development play a pivotal role since the commitment towards sustains competitive advantage broader to triple helix performance. Although manufacturing industry is recognized as the heart of nation development, but it's imposed to the causes of a natural disaster. Thus in the new millennium, eco product innovation became a buzz word to leverage firm's environmental performance, values creation and social development. Firm's resource and capabilities are recognized as a firm's strategic weapons to success on reducing carbon footprint. In a nutshell, Firm's capabilities relies on technology collaboration, green human resource (GHR) and, eco culture, meanwhile, at the heart of resource view, firms embraced formal EMS and top management support as a drivers to attain sustainable development as well as eco product innovation. Sample data was collected from 320 respondents comprised of a Small, Medium (SME) and Large Corporation which derived from an automotive industry in Malaysia due to a progressive commitment towards green initiatives. The proposed model and related hypotheses were tested by using the Structural Equation Modelling (SEM) techniques. To conclude, the proposed factors play an important role on crafting sustainability and eco product innovation efforts. Further, eco product innovation was crucial to mediate the relationship between Green human resource (GHR), technology collaboration and formal EMS to realised sustainable development