Manufacturing Firms In Malaysia Research Articles

Linking Green Innovation and Business Sustainability: The Mediating Role of Strategic Thinking

Our planet’s growth, progress, and prosperity can be facilitated through innovation, knowledge, and thinking, and such facilitators may also assist in reversing the damage our planet has been experiencing throughout the years. The article determines the relationship between managerial innovation, process innovation, product innovation, and business sustainability among large manufacturing firms in Malaysia with mediating effect of strategic thinking. After extant literature, a research model was developed to examine the formulated study hypotheses, tested on data obtained from 208 large Malaysian manufacturing firms using partial least square-structural equation modeling. The findings showed that the two dimensions of green innovation significantly affected the business sustainability of large manufacturing firms but not green process innovation. Also, green managerial innovation significantly affected strategic thinking but not green process innovation and green product innovation. Strategic thinking also significantly affected business sustainability and fully mediated the green process innovation dimension GPCI but had no mediating effect on green managerial innovation and green product innovation. These results are expected to enlighten researchers and managers of large manufacturing firms concerning the topic under discussion. In addition, this article will assist academicians to understand the influence of managerial innovation, process innovation, product innovation, and business sustainability among large manufacturing firms in Malaysia.

The Challenges of 3D Food Printing in Malaysian Manufacturing Firms: A Preliminary Study

Additive manufacturing (AM) or 3D printing creates three-dimensional objects by adding materials using digital format files to achieve the desired shape. Researchers worldwide, including those in Malaysia, have shown interest in AM for over a decade. Although 3D printing has gained widespread adoption, 3D food printing is still in its early stages. This study aims to explore the challenges of implementing 3D printing technology in Malaysian food manufacturing firms. The research utilized a semi-structured interview method, conducting in-depth interviews with seven respondents. Snowball sampling was employed to identify potential experts, building upon the recommendations of the initial respondent. The literature review identified nine challenges: time-consuming processes, lack of standardization, scarcity of expertise, extrusion molds and materials, limitations in scalability, cost, food safety, halal compliance, and intellectual property. During the interviews, many respondents revealed that they had not yet integrated 3D food printing into their operations. Furthermore, respondents introduced a new challenge, which was related to spare parts and maintenance. In conclusion, the investigation revealed that the implementation of 3D food printing in Malaysian manufacturing firms is still at an early stage, as evidenced by the challenges reported by the respondents.

Big data analytics capability for competitive advantage and firm performance in Malaysian manufacturing firms

PurposeThis study investigated the relationships among big data analytics capability (BDAC), low-cost advantage, differentiation advantage, market and operational performance underpinning the resource-based view (RBV) and the entanglement view of sociomaterialism (EVS) theories.Design/methodology/approachA total of 191 responses from members of the Federation of Malaysian Manufacturers were analysed using a structural equation modelling approach.FindingsThis study has conclusively demonstrated that BDAC is indeed a resource bundle comprising human skills, tangible and intangible resources. This study found that BDAC positively influences competitive advantage and firm performance. The differentiation advantage was found to be a key factor in explaining market performance. Theoretically, both RBV and EVS could be used to link BDAC, differentiation advantage and market performance to explain superior firm performance.Research limitations/implicationsFirst, the sample is restricted to the manufacturers in Malaysia. Second, a single independent variable, BDAC, is used as a higher-order capability to influence competitive advantage, and thus, superior firm performance. Third, this study uses a self-reported survey, which means that only one respondent from each firm answered the questions. Fourth, this study excludes the focused strategy as it aims to investigate the competitive strategy used in the broader industry environment, rather than in a specific segment pursuing a focused strategy.Practical implicationsFirst, BDAC is a valuable, rare, inimitable and non-substitutable tool for manufacturers to enhance their firm performance. Second, BDAC is crucial for manufacturing firms to reduce costs and differentiate themselves. Third, a low-cost advantage may not help manufacturers achieve greater market and operational performance.Originality/valueThe relationship among BDAC, low-cost advantage, differentiation advantage, market and operational performance within manufacturing industry is empirically tested.

Responsible innovation and corporate sustainability performance: A structural equation modeling‐neural network approach

AbstractTechnological innovations may bring unintended consequences despite their potential usefulness. Responsible innovation (RI) has gained increasing popularity in high‐tech nations as a means to mitigate potentially disruptive technological developments. Unfortunately, existing RI research has not sufficiently elucidated the sustainability performance of firms, leading to ambiguous theoretical underpinnings, relationships, and practical applicability. This study aims to address these concerns and provide directions for future research on RI. Based on the resource‐based view, the research introduces RI as a distinctive competency of a firm to investigate the mechanisms driving sustainability performance, measured in three areas: financial, social, and environmental. The study presents the antecedents of RI as a driving force that can enable businesses to gain a sustainable competitive advantage (SCA) and improve sustainability performance. Data were collected from 190 innovative manufacturing firms in Malaysia. First, structural equation modeling (SEM) was utilized to investigate the antecedents that significantly influence RI. In the second phase, artificial neural network (ANN) analysis was employed to rank the significant predictors identified through SEM. Furthermore, the RI dimensions that lead to SCA and sustainability performance were also ranked using ANN, offering practical strategic business directions for managers.

Sustainable supply chain performance lesson from Malaysian manufacturing firms

PurposeThis study aims to investigate the impact of sustainable innovation and disruptive innovation on sustainable supply chain performance of manufacturing firms in Malaysia. The study also examined the moderating role of supply chain clockspeed in the relationship between sustainable innovation, disruptive innovation and sustainable supply chain performance.Design/methodology/approachThe data were collected from 231 respondents in manufacturing firms in Malaysia. The data were analyzed using the partial least square-based structural equation modelling (PLS-SEM) technique.FindingsThe findings revealed that sustainable innovation and disruptive innovation had a significant and positive effect on sustainable supply chain performance. Supply chain clockspeed moderated the relationship between sustainable innovation and sustainable supply chain performance. The findings also identified that there was no moderating effect on the relationship between disruptive innovation and sustainable supply chain performance.Research limitations/implicationsThis study merely focuses on sustainable supply chain performance in Malaysian manufacturing firms. Samples from manufacturing firms in Malaysia were used in the current study, and the outcomes may vary for different nations.Practical implicationsTo increase the firm’s commercial success, it is necessary to promote sustainable supply chain practices, including supply chain clockspeed, sustainable innovation and disruptive innovation.Originality/valueThis study adds to the body of knowledge by explaining the positive influence of sustainable innovation and disruptive innovation on sustainable supply chain performance in Malaysian manufacturing firms while also emphasizing the moderating role of supply chain clockspeed in this relationship. The contribution of this study could enable managers to develop sustainable supply chain performance in the manufacturing sector, based on sustainable innovation, disruptive innovation and supply chain clockspeed.

External knowledge sourcing, organizational ambidexterity and manufacturing performance: a new insight for dynamic operation management

PurposeThis study intends to examine the relationships between external knowledge sourcing (EKS), organizational ambidexterity (OA), and manufacturing performance (MP) in the context of large manufacturing firms within a dynamic environment setting. The research framework and derived hypotheses are grounded in the knowledge-based view (KBV) and dynamic capability (DC) theories.Design/methodology/approachA self-administered online survey was used in this study to gather data. Respondents were the operation leaders representing large manufacturing firms. The collected data were screened for invalid responses, and hypotheses were tested using structural equation modeling.FindingsThe study reveals that OA and EKS play key roles in achieving a better MP. Likewise, OA also mediates the relationship between EKS and MP.Research limitations/implicationsCross-sectional data were collected from large manufacturing firms within five focus sectors in Malaysia. A similar study can be conducted with more sectors of different contexts to confirm the findings.Practical implicationsKnowledge is critical for the firm to react to environmental dynamism, and the ability to manage it ambidextrously will enable the firm to enhance its performance.Originality/valueThis study offers empirical insights from the perspective of the large manufacturing firms in Malaysia, which are undergoing an Industrial Revolution 4.0 (IR4.0) transformation. This study bridges the knowledge gap by revealing the value that EKS can facilitate MP, exploring OA as the prevalent factor and demonstrating how KBV and DC can be applied in this study.

Exploring Factors Influencing Technological Capability of Food Manufacturing Firms in Malaysia

Malaysian manufacturing firms play an important role in the country’s social and economic development. However, the industry faces challenges in productivity and competitiveness due to rapid globalization and economic instabilities affecting countries worldwide. To address these challenges, technological capability has become an essential requirement for a firm’s technological progress to remain sustainable and competitive. This study aims to identify factors that influence the technological capability of food manufacturing firms by using a questionnaire. Using IBM SPSS Statistics 27, exploratory factor analysis (EFA) was employed to examine the dataset obtained from the survey and analyze the factors that contribute to a firm’s technological capability. Overall, firms are influenced by knowledge management, organizational learning, and organizational innovation in their technological capability development. By understanding these factors, firms can develop their technological capability and further improve their productivity, ultimately achieving a sustainable competitive advantage in the market.

Motivators and barriers of circular economy business model adoption and its impact on sustainable production in Malaysia.

The circular economy concept is popular among developed countries contributing to sustainable production, efficient resource utilization, a new economic model, and higher skill job creation. In production and consumption, it is inevitable in our modern life that we are used to the traditional linear economy cradle-to-cradle model. With the gap in developing countries within the Southeast Asia region, this research aims to understand the motivators and barriers to circular economy business model adoption among the manufacturing firms in Malaysia. Subsequently, the impact of sustainable production will be studied based on the circular economy business model adoption. Using the Theory of Planned Behavior and Partial Least Squares Structural Equation Modeling, this study assesses the responses of 102 respondents from various industries with environmental management systems within Malaysia. Survey-based primary data was gathered to understand motivators and barriers that negatively influence the circular economy business adoption, affecting sustainable production. The findings show that motivators have a positive impact while barriers have a negative impact on circular economy business model adoption. Apart from the barriers and motivators, the research also assesses the level of circular economy adoption among manufacturing firms with certified environmental management systems. This implies a general overview for manufacturing firms in Malaysia regarding circular economy adoption and contributes to the studies done in developing nations. In conclusion, motivators positively impact the adoption of the circular economy business model, while barriers have a negative effect. In addition, adopting the circular economy model has a positive relationship with sustainable production.

Exploring the Impact of Contingency Theory on Sustainable Innovation in Malaysian Manufacturing Firms

This study looks at the impact of contingency theory on sustainable innovation in Malaysian manufacturing firms. A quantitative approach was used, with convenience sampling to select participants from a target population of Malaysian manufacturing employees. An online survey distributed via email was used to collect 101 sets of data for the study. PLS-SEM (Partial Least Squares Structural Equation Modeling) was used to analyze the collected data. According to the findings, corporate sustainable support policies and sustainable incentives have a significant positive impact on sustainable innovation in Malaysian manufacturing firms, whereas top management commitment was found to be insignificant. Companies that prioritize sustainable practices through policies and incentives are more likely to promote sustainable innovation, according to the findings. As a result, businesses should prioritize developing these two attributes in order to foster sustainable innovation, thereby improving sustainability practices and contributing to the country’s long-term development goals. Future research should, however, investigate why top management commitment may not be a significant driver of sustainable innovation in Malaysian manufacturing firms.

Factors That Boost the Technological Capability of Malaysian Food Manufacturing Industry

The increasing urbanization of the world has created new issues and challenges for the modern food industry to meet customers’ changing demands. To address these issues, these firms need to invest in technological capability development. This study examines factors that affect the technological capability of food manufacturing firms. A large-scale survey of a sample of 270 food manufacturing firms in Malaysia was conducted. Structural equation modeling was used to evaluate the observed variables. The result shows that organizational innovation fully mediates the relationship between organizational learning and technological capability. Overall, the findings suggest that food manufacturing firms in Malaysia that want to enhance their technological capability should focus on developing and implementing organizational innovation practices, in addition to other strategies and practices that aim to promote organizational learning and innovation. This research contributes to the development of related theories and has practical implications for the stakeholders in the food manufacturing industry.

The Relationship of Industry 4.0 and Business Performance in Malaysian Manufacturing Firms: A PLS-SEM Model

Since the last decade, the industrial sector had rapidly evolved with the presence of state-of-the-art technologies that had transformed industries, society, as well as processes due to the novel opportunities stipulated by Industry 4.0 Digital Technologies. Thus, manufacturing industry internationally have been pursuing the paradigm shift and attempting to implement Industry 4.0 Digital Technologies into their respective organizations. However, albeit the fact that Industry 4.0 had promised substantial improvement to manufacturing system and processes, the correlation and influence of Industry 4.0 Digital Technologies upon Business Performance are still ambivalent as there are insufficient empirical data and studies to support the implementation and lots of challenges were met during the process of implementation. Therefore, the paper aims to provide empirical evidence collected from manufacturing firms in Malaysia via questionnaire to bridge the literature gap by identifying the correlation concerning Industry 4.0 Digital Technologies and Business Performance with Partial Least Squares Structural Equation Modelling (PLS-SEM) method to model their correlation. Accordingly, 124 responses were gathered, and results implied that Industry 4.0 Digital Technologies are directly positive correlated with Business Performance. In other words, manufacturing firms intending on achieving high excellence in Business Performance, Industry 4.0 Digital Technologies will be the impeccable solution.

Business networking orientation, green operations practices and firm performance

PurposeThe authors apply social network theory and natural resource–based view to empirically examine a model of the relationships among business networking (BN) orientation, green operations practices and performance. A firm must achieve appropriate internal green operations practices to capitalize on its external BN orientation and thus be able to establish a competitive advantage and superior performance.Design/methodology/approachUsing survey data from 132 ISO 14001–certified manufacturing firms in Malaysia, all of which participate in environmental programs and sustainability activities, the authors explore the effects of two BN orientation facets (customer-oriented and supplier-oriented) on green operations practices (green purchasing, eco-design and regulatory practices) and their subsequent influence on environmental and economic performance.FindingsStructural equation modeling outcomes confirm only one BN orientation facet positively affects green operations practices, nor do the advantages affect economic performance directly. The results illustrate how environmental outcomes mediate the links between green operations practices and economic performance.Originality/valueDrawing on social network theory and natural resource–based view, authors propose internal green operations practices as a channel through which external BN orientation induces firm performance. Internal green operations practices determine a firm's ability to exploit its external BN orientation to achieve operational competencies and lead to superior performance. Rather than focusing on the social connections generated by external BN orientation itself, the authors recommend that firms address the core competencies contributing to their green operations practices and engage in network building.

Resources Fungibility as a Moderator in the Relationship between Dynamic Capabilities and Innovation Capability

Managerial cognition of resources fungibility is an important dimension that shapes organizational responses. However, the role of managerial cognition of resources fungibility has been empirically overlooked by scholars. Furthermore, extant literature lacks a model to enable a systematic measurement and evaluation of managerial cognition of resources fungibility, which has yet to be developed. This study empirically examines the moderating role of resources fungibility in the relationship between dynamic capabilities and innovation capability. To operationalize managerial cognition to enable the development of a measurable model for resources fungibility, 209 large Malaysian manufacturing firms were selected as sample to study the relationship between resources fungibility and firm's capabilities. The Partial Least Squares (PLS) technique was applied. This study finds that resources fungibility moderates the relationship between integrating capability and coordinating capability and innovation capability. Meanwhile, resources fungibility does not moderates the relationship between learning capability and innovation capability.

Enabling green shared vision: linking environmental strategic focus and environmental performance through ISO 14001 and technological capabilities.

Consistent with the worldwide call to combat environmental degradation concerns and advance sustainable development, there is increasing pressure on organizations to ensure organizational strategies include green initiatives. In this regard, environmental strategic focus is a relevant concept for scholars and business leaders. Underpinned by dynamic capability and stakeholder theory, the present study hypothesizes that ESF derives environmental performance, coordinated by mediating role of green shared vision that strategic environmental planning and decision making. Additionally, the current study employed ISO 14001 and technological capability as moderators between ESF and the green shared vision link. Methodologically, the data for this study was collected from 162 senior managerial officials working in EMS 14,001-accredited manufacturing firms in Malaysia. The data were analyzed with the AMOS 23 software to perform covariance-based structural equation modeling (CB-SEM), and then hierarchical regression analysis and moderated-mediation analysis were applied with SPSS 25. The findings confirmed that ESF is positively linked to environmental performance. The results validate that green shared vision acts as a positive mediator between ESF and environmental performance, in which the creation and sharing of knowledge embedded in a green shared vision serve as enablers to create higher environmental performance. The current study also validates a significant moderating role of ISO 14001 and technological capability between ESF and green shared vision. The study confirms how environmental strategies are integrated into environmental management processes that can serve as a source of dynamic capabilities.

Outsourcing and Performance of the Manufacturing Firms in Malaysia

The performance of an organization is regarded fundamental in influencing its sustainability. The performance can be determined using financial and non-financial indicators. Financial indicators such as net profits, return on assets, return on equity and return on investments are key determinants of performance. The non-financial measures such as customer base, market share and employee retention supplement the financial measures. The study examined the effect of outsourcing on the performance of manufacturing firms in Malaysia. Outsourcing is the procurement of commodities/services from other external sources that are not within the firm. Outsourcing also refers to delegating in-house functions/processes/services to a third party. It is a commonly practiced strategy in private and public firms. The study was literature based on the current study's findings that depended on the existing literature. The study findings revealed that outsourcing has a positive effect on performance. Outsourcing intends to seek an expert to handle business operations outside the existing firm. It is impossible to revoke the outsourcing contracts and return the functions to the parent firm. Outsourcing non-core activities can improve efficiency and productivity because another entity performs these smaller tasks better than the firm. This strategy may also lead to faster turnaround times, increased competitiveness within an industry, and the cutting of overall operational costs. The study concluded that outsourcing positively affects the performance of manufacturing firms in Malaysia. Organizations have embraced outsourcing methods to lower the cost of doing business. It is also concluded that many organizations encounter the challenge of bringing together many business operations that they cannot manage alone. The study recommended that manufacturing firms can outsource essential services and products that are not produced internally. Managers need to use clear outsourcing techniques to realize their full usefulness. They should also provide more frameworks for choosing outsourcing vendors, which will benefit the firms in the event of a need to prevent a financial crisis. Keywords: Outsourcing, Performance, manufacturing firms, Malaysia

The Influence of Perceived Role of Government on Energy Efficiency Improvement: Evidence from Manufacturing Firms in Malaysia

Energy efficiency improvement is one of the effective strategies to attain energy sustainability. Firms’ perceptions and attitudes towards energy efficiency improvement have come to be seen as vital in the supply and demand management of energy. This research aims to examine the influence of perceived role of government on manufacturing firms’ intentions to improve energy efficiency. Data were collected from a survey, and the research model was empirically tested. Results from the empirical analysis show that perceived role of government significantly influenced manufacturing firms’ intentions to improve energy efficiency. In addition, the results indicate that there was a significant mediating effect of attitude towards energy efficiency improvement on the relationship between perceived role of government and manufacturing firms’ intentions to improve energy efficiency. Several notable policy implications can be drawn from the research results. JEL Codes: D22, L60, Q48

Impact of green supply chain management practices on firm’s competitive advantages

Green supply chain management (GSCM) practices are cross-organizational and closed-loop. They aim to reduce the ecological impact of the firm’s activity without sacrificing quality, cost, reliability, performance, or energy utilisation efficiency. This study presents empirical evidence to encourage firms to implement GSCM practices, which may enhance their competitive advantages. This study attempts to contribute to the growing research on GSCM practices—namely internal environmental management, green purchasing, eco-design and packaging, investment recovery, and cooperation with customers—and their effects on competitive advantages using a sample of 258 ISO 14001-certified manufacturing firms in Malaysia. A partial least squares structural equation modelling (PLS-SEM) analysis showed the direct effects of green purchasing, eco-design and packaging, investment recovery, and cooperation with customers directly on competitive advantages. However, internal environmental management did not relate to competitive advantages. Suggestions for future research are proposed. The study confirms the positive effects of GSCM practices on the competitive advantages of firms in the Malaysian manufacturing industry.

Firm’s Technological Capabilities towards Technology Transfer Performance in Malaysian Manufacturing Companies: The Antecedents That Lead to Successful Development of Firm’s Technological Capabilities

Drawing upon Resource-Based View (RBV) theory, this research investigates the effect of technological capabilities on the performance of technology transfer activities in Malaysian manufacturing firms. This research also empirically examines the antecedents that lead to the development of a firm’s technological capabilities. The data were obtained from 133 manufacturing companies in Malaysia by means of questionnaires. As predicted, the results indicated that the firm’s technological capabilities significantly related to technology transfer performance and all the antecedents are chosen positively influenced the firm’s technological capabilities development.

SCRUTINIZING THE IMPACT OF ESSENTIAL LEAN METHODS ON SUSTAINABLE PERFORMANCE IN MALAYSIAN MANUFACTURING FIRMS

Despite the fact that Malaysian manufacturing firms have implemented lean manufacturing principles to reduce resource waste and focus on customer demand, they still lack statistically validated lean manufacturing models to guide them in enhancing the sustainability of their businesses. This paper conducts empirical research of the multi-dimensionality of essential Lean Manufacturing (LM) methods (i.e., Total Productive Maintenance (TPM), Continuous Improvement (CI), and Just-In-Time (JIT)) and their association with sustainable performance (SP). 69 of 121 respondents’ usable surveys were collected from manufacturing sectors that are recognised by the Negeri Sembilan Investment Centre (NSIC). They are made up of small, medium, and large businesses. The structural relationship of constructs was validated using the Structural Equation Modelling (SEM). For direct linkages between LM Methods with Sustainable Performance, the JIT is the most significant determinant, and for the inter-relationship between LM Methods, the Continuous Improvement and TPM, both were significantly inter-connected, depend on one another. In terms of LM implementation, the developed model contributes to the well-being and comprehension of practitioners engaged in top management. Sustainable indicators for manufacturing organization decision makers to ensure that the LM implementation is compatible with the sustainability impact.

Corporate Social Responsibility and Firm Performance among Malaysian Firms

With the rise in corporate social responsibility (CSR) initiatives and greater awareness of sustainable development, CSR is rapidly evolving and firms’ involvement is increasing. However, the enforcement of mandatory disclosure does not necessarily mean firms will respond and go beyond these legislations. Thus, the underlying premise of positive financial outcomes could encourage firms to act beyond legislative compliance. This study first examined the current nature and extent of a firm’s CSR disclosure (CSRD), as measured by CSR dimensions workplace, marketplace, community, and environment. CSRD was measured through content analysis, through annual reports of 97 manufacturing firms in Malaysia from 2017 to 2019. A CSR disclosure index was adopted for this study. This study also determined the impact of CSRD on corporate financial performance (CFP) and identified which CSRD dimension had the greatest impact on CFP. Firm size, measured by the level of assets, sales, and market capitalisation, as well as earnings per share were the control variables for this study. Data were analysed using Pearson’s correlation and multiple regression analysis. It was found that CSRD levels in manufacturing firms in Malaysia were still low and there was a mixed relationship between CSRD and CFP. The findings suggest that the relationship between CSR and CFP may be curvilinear. It was also found that community, workplace, and marketplace related responsibility activities affected ROA the most, whereas the marketplace affected Tobin’s Q the most.