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Sustainable practices in Malaysian manufacturing: The influence of CSR, transformational leadership, and green organizational culture on environmental performance

Author

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  • Khaddage-Soboh, Nada
  • Yunis, Manal
  • Imran, Muhammad
  • Zeb, Faheem

Abstract

In an era marked by increasing environmental concerns, this study investigates the impact of corporate social responsibility (CSR), transformational leadership (TL), and green organizational culture (GOC) on the environmental performance of the Malaysian manufacturing sector. Utilizing the resource-based view and ability-motivation-opportunity theory, this study explores GOC's mediating role between CSR, TL, and environmental outcomes, offering insights into enhancing sustainability in manufacturing. Through a survey of 375 Malaysian manufacturing professionals from October 2022 to January 2023 and using Structural Equation Modeling for analysis, the research confirms that CSR, TL, and GOC significantly enhance environmental performance. It highlights the critical role of transformational leadership in driving sustainability efforts and the positive influence of a green culture. This study contributes practical strategies for managers and policymakers to merge leadership, culture, and social responsibility in promoting environmental sustainability. Emphasizing the benefits for the Malaysian economy, it advocates for manufacturing firms to incorporate these findings into their CSR strategies, fostering a culture and leadership conducive to superior environmental results. This approach is vital for aligning with sustainable development goals, thereby boosting both ecological and economic growth.

Suggested Citation

  • Khaddage-Soboh, Nada & Yunis, Manal & Imran, Muhammad & Zeb, Faheem, 2024. "Sustainable practices in Malaysian manufacturing: The influence of CSR, transformational leadership, and green organizational culture on environmental performance," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 753-768.
    • Handle: RePEc:eee:ecanpo:v:82:y:2024:i:c:p:753-768
    DOI: 10.1016/j.eap.2024.04.001
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