Abstract
The objective of the current study is to empirically investigate the link between entrepreneurial attributes, strategic capabilities, and environmental nexus in Malaysian manufacturing firms. In doing so, the present study is motivated to recognize the role of entrepreneurial innovation, entrepreneurial orientation and environmental strategies in influencing firm’s energy efficiency potential and environmental performance. To the best of our knowledge, the current study is first of its kind in investigating the effect of the considered explanatory variables on energy efficiency. Moreover, in line with the rising emphasis on environmental impact of firms, the current study is novel for identifying the relationship of firm’s internal expertise and capabilities in leading environmental performance. The data is collected from different multinational firms in Malaysia. We applied PLS-SEM on the 300 samples which suggested that environmental strategy, entrepreneurial innovation, and entrepreneurial orientation have a positive and significantly influenced environmental performance and energy efficiency. Technical speaking, the results confirm that the environmental strategy, entrepreneurial innovation, and entrepreneurial orientation are the key contributors to enhance the energy efficiency and environmental performance of multinational firms in Malaysia.
Highlights
The significance of environmental management has witnessed to gain popularity in modern times (Zhai et al, 2018; Marchese et al, 2018)
In pursuance of green environmental practices, organizations seek to heavily depend on their internal organizational capabilities to cope with the rising environmental concerns and deteriorations
The present study is motivated to recognize the role of entrepreneurial innovation (EN-IN), entrepreneurial orientation (EN-OR), and environmental strategies (EN-ST) in influencing firm’s energy efficiency potential and environmental performance
Summary
The significance of environmental management has witnessed to gain popularity in modern times (Zhai et al, 2018; Marchese et al, 2018). Many studies contended that external ecological conditions influence an organization’s performance (Ramanathan et al, 2017; Malarvizhi and Matta, 2016; Shirokova et al, 2016; Testa et al, 2016). In this regard, the aspect of a firm’s internal expertise and innovation capability are considered vital to affect firm’s environmental performance and eco-friendly practices (Liu et al, 2019).
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