IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i21p8957-d436143.html
   My bibliography  Save this article

Strategic Orientations and Absorptive Capacity on Economic and Environmental Sustainability: A Study among the Batik Small and Medium Enterprises in Malaysia

Author

Listed:
  • Noorshella Che Nawi

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Pengkalan Chepa, Kota Bharu 16100, Malaysia)

  • Abdullah Al Mamun

    (UCSI Graduate Business School, Faculty of Business and Management, UCSI University, Cheras, Kuala Lumpur 56000, Malaysia)

  • Raja Rosnah Raja Daud

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Pengkalan Chepa, Kota Bharu 16100, Malaysia)

  • Noorul Azwin Md Nasir

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Pengkalan Chepa, Kota Bharu 16100, Malaysia)

Abstract

This research intended to evaluate the effects of innovation orientation (INO), customer orientation (CSO), supplier orientation (SPO), network orientation (NWO), and absorptive capacity (ABC) on economic and environmental sustainability among the Batik small and medium enterprises (SMEs) in Malaysia. This study adopted a cross-sectional design and collected quantitative data using self-reported adopted scales from 213 randomly selected Batik SMEs from Kelantan and Terengganu, Malaysia. The results revealed that INO, CSO, and ABC had a positive and significant effect on the economic sustainability (ECS) of the Batik SMEs in Malaysia. The effects of SPO and NWO on ECS were positive but not statistically significant. It was found that ECS significantly and positively affected the environmental sustainability (ENS) of the Batik SMEs in Malaysia. Besides that, ECS mediated the effects of CSO and ABC on the ENS of the Batik SMEs in Malaysia. Furthermore, important performance matrix analysis revealed that the most important factors for ENS were Batik SMEs’ ECS, absorptive capacity, and INO. For the performance of ENS, the most important factors were CSO, SPO, and NWO. The Batik SMEs and entrepreneurial development programs and policies should focus on innovation and CSO as well as improving ABC to sustain in today’s competitive business environment.

Suggested Citation

  • Noorshella Che Nawi & Abdullah Al Mamun & Raja Rosnah Raja Daud & Noorul Azwin Md Nasir, 2020. "Strategic Orientations and Absorptive Capacity on Economic and Environmental Sustainability: A Study among the Batik Small and Medium Enterprises in Malaysia," Sustainability, MDPI, vol. 12(21), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:8957-:d:436143
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/21/8957/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/21/8957/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kostopoulos, Konstantinos & Papalexandris, Alexandros & Papachroni, Margarita & Ioannou, George, 2011. "Absorptive capacity, innovation, and financial performance," Journal of Business Research, Elsevier, vol. 64(12), pages 1335-1343.
    2. repec:ucp:bkecon:9780226316529 is not listed on IDEAS
    3. Wang, Qiang & Zhao, Xiande & Voss, Chris, 2016. "Customer orientation and innovation: A comparative study of manufacturing and service firms," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 221-230.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Antonio Martos-Pedrero & David Jiménez-Castillo & Francisco Joaquín Cortés-García, 2022. "Examining drivers and outcomes of corporate social responsibility in agri-food firms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(3), pages 79-86.
    2. Fatin Aliah Phang & Anis Nadirah Roslan & Zainul Akmar Zakaria & Muhammad Abbas Ahmad Zaini & Jaysuman Pusppanathan & Corrienna Abdul Talib, 2022. "Environmental Awareness in Batik Making Process," Sustainability, MDPI, vol. 14(10), pages 1-14, May.
    3. Donatella Depperu & Giacomo Magnani & Lisa Crosato & Caterina Liberati, 2021. "Growth of Firms in a Fragmented Cultural Industry: Italian Commercial Art Galleries’ Competitive Strategies," Sustainability, MDPI, vol. 13(9), pages 1-19, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:wsi:acsxxx:v:21:y:2019:i:08:n:s1363919619500166 is not listed on IDEAS
    2. Cheng, Cheng-Feng & Chang, Man-Ling & Li, Chu-Shiu, 2013. "Configural paths to successful product innovation," Journal of Business Research, Elsevier, vol. 66(12), pages 2561-2573.
    3. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    4. Thomas, Rhodri & Wood, Emma, 2015. "The absorptive capacity of tourism organisations," Annals of Tourism Research, Elsevier, vol. 54(C), pages 84-99.
    5. Yousaf, Umair Bin & Ullah, Irfan & Jiang, Junchen & Wang, Man, 2022. "The role of board capital in driving green innovation: Evidence from China," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    6. A. E. Rodríguez Salazar & M. A. Domínguez-Crespo & A. M. Torres-Huerta & A. I. Licona-Aguilar & A. Nivón-Pellón & V. N. Orta-Guzmán, 2021. "Analysis of the Dynamical Capabilities into the Public Research Institutes to Their Strategic Decision-Making," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    7. Ye Jin Lee & Kwangsoo Shin & Eungdo Kim, 2019. "The Influence of a Firm’s Capability and Dyadic Relationship of the Knowledge Base on Ambidextrous Innovation in Biopharmaceutical M&As," Sustainability, MDPI, vol. 11(18), pages 1-17, September.
    8. Latukha, M. & Veselova, A. & Selivanovskikh, L. & Artukh, E. & Mitskevich, E., 2016. "Re-thinking the role of talent management in a firm’s performance: Talent management practices and absorptive capacity," Working Papers 6442, Graduate School of Management, St. Petersburg State University.
    9. Fındık, Derya & Beyhan, Berna, 2014. "A Perceptual Measure of Innovation Performance: Micro Level Evidence from Turkey," MPRA Paper 60961, University Library of Munich, Germany.
    10. Sang-Lyul Ryu & Jayoun Won, 2022. "The Value Relevance of Operational Innovation: Insights from the Perspective of Firm Life Cycle," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    11. Yuqiang Mai & Hualong Yang & Guangyu Zhang, 2020. "Does Business Model Innovation Enhance the Sustainable Development of New Ventures? Understanding an Inverted-U Relationship," Sustainability, MDPI, vol. 13(1), pages 1-19, December.
    12. Rangus, Kaja & Slavec, Alenka, 2017. "The interplay of decentralization, employee involvement and absorptive capacity on firms' innovation and business performance," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 195-203.
    13. Wang, Liwen & Zhao, Jane Zheng & Zhou, Kevin Zheng, 2018. "How do incentives motivate absorptive capacity development? The mediating role of employee learning and relational contingencies," Journal of Business Research, Elsevier, vol. 85(C), pages 226-237.
    14. Alexander Tan, 2018. "The Effect of Social Capital and Absorptive Capacity through Knowledge Management on Finance Company Performance in Indonesia," International Business Research, Canadian Center of Science and Education, vol. 11(1), pages 87-101, January.
    15. Li Xiong, 2022. "Improvise to win: the relationship between entrepreneurial improvisation and start-up competitive advantage," Asian Business & Management, Palgrave Macmillan, vol. 21(2), pages 184-204, April.
    16. Dimakopoulou, A.G. & Gkypali, A. & Tsekouras, K., 2024. "Technological and non-technological innovation synergies under the lens of absorptive capacity efficiency," Journal of Business Research, Elsevier, vol. 176(C).
    17. Hundt, Christian & Holtermann, Linus & Steeger, Jonas & Bersch, Johannes, 2019. "Cluster externalities, firm capabilities, and the recessionary shock: How the macro-to-micro-transition shapes firm performance during stable times and times of crisis," ZEW Discussion Papers 19-008, ZEW - Leibniz Centre for European Economic Research.
    18. Roberto Vivona & Mehmet Akif Demircioglu & David B. Audretsch, 2023. "The costs of collaborative innovation," The Journal of Technology Transfer, Springer, vol. 48(3), pages 873-899, June.
    19. Cheng, Ru & Tao, Lei & Wang, Qiang & Zhao, Xiande, 2023. "The impact of value co-creation orientation on radical service innovation: Exploring a serial mediation mechanism," International Journal of Production Economics, Elsevier, vol. 262(C).
    20. Graciela Corral de Zubielqui & Noel Lindsay & Wendy Lindsay & Janice Jones, 2019. "Knowledge quality, innovation and firm performance: a study of knowledge transfer in SMEs," Small Business Economics, Springer, vol. 53(1), pages 145-164, June.
    21. Zhou, Abby Jingzi & Fey, Carl & Yildiz, H. Emre, 2020. "Fostering integration through HRM practices: An empirical examination of absorptive capacity and knowledge transfer in cross-border M&As," Journal of World Business, Elsevier, vol. 55(2).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:8957-:d:436143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.