Fostering sustainability performance in the Malaysian manufacturing companies: the role of green technology innovation and innovation capabilities

Abstract

PurposeThe purpose of this study is to examine the influence of green technology innovation on sustainability performance with the moderating effect of innovation capabilities in the Malaysian manufacturing listed companies.Design/methodology/approachThis was a quantitative study and carried out by applying a research survey. The questionnaire was used to collect the data from 204 Malaysian manufacturing companies of the “consumer products and services” sector listed at Bursa Malaysia, incorporating a five-point Likert scale. All the hypothesized relationships were tested by using the partial least square structural equation modeling (PLS-SEM).FindingsThe empirical results showed that the comprehensive adoption of green technology innovation significantly promotes sustainability performance including economic, environmental and social performance. In addition, innovation capabilities significantly and positively moderate the relationship between green technology innovation and sustainability performance.Research limitations/implicationsThe scope of this study is specifically confined to the Malaysian manufacturing listed companies, operating within the consumer products and services sector listed at Bursa Malaysia. Consequently, the findings of this study may not be generalized to manufacturing companies of the different geographical contexts.Practical implicationsThe findings of this study may help the top management and policymakers of the Malaysian manufacturing listed companies to scrutinize green technology innovation and innovation capabilities to achieve higher sustainability performance.Originality/valueThis study magnifies and provides new insights into the extant literature by developing a comprehensive research model that concurrently tests the direct and moderation effects between green technology innovation, innovation capabilities and sustainability performance. Additionally, this is the first study to examine the influence of green technology innovation on sustainability performance with the moderating effect of innovation capabilities in the Malaysian manufacturing listed companies. This distinct approach significantly bolsters the originality of this study.