The role of corporate social responsibility and government incentives in installing industrial wastewater treatment plants: SEM-ANN deep learning approach

Abstract

Contaminated industrial wastewater is one of the severe causes of health diseases. The wastewater treatment trend in developing countries is less, and governments are not strictly pursuing the wastewater management protocols adopted by firms. To study the intention to install wastewater treatment plants at the firm level and provide policy suggestions to the developing countries’ governments, we have collected a cross-sectional dataset from manufacturing firms. We have presented an integrated model based on the theory of planned behaviour and tested our proposed model by implying SEM-ANN deep learning techniques. Results revealed that Environmental knowledge, installation cost, firm reputation, and corporate social responsibility positively influence firm management’s intention to install wastewater treatment plants, but awareness of the risk associated with contaminated wastewater has a negative influence. On the other hand, Government incentives do not influence the process. In addition, our study has found that firm size moderates the relationship between explained and exploratory variables. Our study provided valuable insight into the available literature and provided some policy suggestions to developing countries' governments to cope with water scarcity and health issues caused by contaminated industrial wastewater.