IDEAS home Printed from https://ideas.repec.org/a/spr/circec/v4y2024i2d10.1007_s43615-023-00341-7.html
   My bibliography  Save this article

Towards a Circular Economy: Cleaner Production Technology Adoption Among Small and Medium Enterprises in an Emerging Economy

Author

Listed:
  • Syed Shah Alam

    (Prince Sultan University)

  • Mohammad Masukujjaman

    (Faculty of Business and Professional Studies, Management and Science University)

  • Saif Ahmed

    (Universiti Kebangsaan Malaysia)

  • Husam Ahmad Kokash

    (Prince Sultan University)

  • Amira Khattak

    (Prince Sultan University)

Abstract

The integration of environmental considerations into business strategies is vital for organizational sustainability. The adoption of cleaner production technologies remains a complex issue in emerging economies. The majority of the literature still focuses on developed nations. This study aims to fill this gap by providing empirical insights into CPT adoption among small and medium enterprises (SMEs) in Malaysia. Utilizing the technology-organization-environment (TOE) framework and multiple regression analysis, data from 437 SME managers reveal that factors such as relative advantage, regulatory pressure, government support, customer pressure, environmental uncertainty, human resources, top management support, compatibility, and complexity significantly influence CPT adoption. Interestingly, perceived cost was not a significant predictor. Both research and managerial implications are discussed.

Suggested Citation

  • Syed Shah Alam & Mohammad Masukujjaman & Saif Ahmed & Husam Ahmad Kokash & Amira Khattak, 2024. "Towards a Circular Economy: Cleaner Production Technology Adoption Among Small and Medium Enterprises in an Emerging Economy," Circular Economy and Sustainability, Springer, vol. 4(2), pages 1357-1386, June.
    • Handle: RePEc:spr:circec:v:4:y:2024:i:2:d:10.1007_s43615-023-00341-7
    DOI: 10.1007/s43615-023-00341-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43615-023-00341-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43615-023-00341-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Laurin Arnold & Philip Karnebogen & Nils Urbach, 2023. "Challenges of Organizations’ Adoption of Industrial IoT Platforms — Results of a Delphi Study," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-37, October.
    2. Maduku, Daniel K. & Mpinganjira, Mercy & Duh, Helen, 2016. "Understanding mobile marketing adoption intention by South African SMEs: A multi-perspective framework," International Journal of Information Management, Elsevier, vol. 36(5), pages 711-723.
    3. Chen, Jian-Xun & Sharma, Piyush & Zhan, Wu & Liu, Li, 2019. "Demystifying the impact of CEO transformational leadership on firm performance: Interactive roles of exploratory innovation and environmental uncertainty," Journal of Business Research, Elsevier, vol. 96(C), pages 85-96.
    4. Bo Feng & Xueyan Hu & Ifeyinwa Juliet Orji, 2023. "Multi-tier supply chain sustainability in the pulp and paper industry: a framework and evaluation methodology," International Journal of Production Research, Taylor & Francis Journals, vol. 61(14), pages 4657-4683, July.
    5. Teo, Thompson S.H. & Lin, Sijie & Lai, Kee-hung, 2009. "Adopters and non-adopters of e-procurement in Singapore: An empirical study," Omega, Elsevier, vol. 37(5), pages 972-987, October.
    6. Oeij, Peter R.A. & van der Torre, Wouter & Vaas, Fietje & Dhondt, Steven, 2019. "Understanding social innovation as an innovation process: Applying the innovation journey model," Journal of Business Research, Elsevier, vol. 101(C), pages 243-254.
    7. Kevin Zhu & Kenneth Kraemer & Sean Xu, 2003. "Electronic business adoption by European firms: a cross-country assessment of the facilitators and inhibitors," European Journal of Information Systems, Taylor & Francis Journals, vol. 12(4), pages 251-268, December.
    8. Dianne H. B. Welsh & Ilan Alon & Cecilia M. Falbe, 2006. "An Examination of International Retail Franchising in Emerging Markets," Journal of Small Business Management, Taylor & Francis Journals, vol. 44(1), pages 130-149, January.
    9. Alvarez-Gil, M Jose & Berrone, Pascual & Husillos, F. Javier & Lado, Nora, 2007. "Reverse logistics, stakeholders' influence, organizational slack, and managers' posture," Journal of Business Research, Elsevier, vol. 60(5), pages 463-473, May.
    10. Charbel Jose Chiappetta Jabbour & Stefan Seuring & Ana Beatriz Lopes De Sousa Jabbour & Daniel Jugend & Paula de Camargo Fiorini & Hengky Latan & Wagner Colucci Izeppi, 2020. "Stakeholders, innovative business models for the circular economy and sustainable performance of firms in an emerging economy facing institutional voids," Post-Print hal-04275092, HAL.
    11. Judge, William Q. & Elenkov, Detelin, 2005. "Organizational capacity for change and environmental performance: an empirical assessment of Bulgarian firms," Journal of Business Research, Elsevier, vol. 58(7), pages 893-901, July.
    12. Murphree, Michael & Anderson, John (Andy), 2018. "Countering Overseas Power in Global Value Chains: Information Asymmetries and Subcontracting in the Plastics Industry," Journal of International Management, Elsevier, vol. 24(2), pages 123-136.
    13. Astrachan, Claudia Binz & Patel, Vijay K. & Wanzenried, Gabrielle, 2014. "A comparative study of CB-SEM and PLS-SEM for theory development in family firm research," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 116-128.
    14. Wong, Lai-Wan & Leong, Lai-Ying & Hew, Jun-Jie & Tan, Garry Wei-Han & Ooi, Keng-Boon, 2020. "Time to seize the digital evolution: Adoption of blockchain in operations and supply chain management among Malaysian SMEs," International Journal of Information Management, Elsevier, vol. 52(C).
    15. Kevin Zhu & Shutao Dong & Sean Xin Xu & Kenneth L Kraemer, 2006. "Innovation diffusion in global contexts: determinants of post-adoption digital transformation of European companies," European Journal of Information Systems, Taylor & Francis Journals, vol. 15(6), pages 601-616, December.
    16. Cristina I. Fernandes & Pedro Mota Veiga & João J.M. Ferreira & Mathew Hughes, 2021. "Green growth versus economic growth: Do sustainable technology transfer and innovations lead to an imperfect choice?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2021-2037, May.
    17. Shuai Shao & Zhigao Hu & Jianhua Cao & Lili Yang & Dabo Guan, 2020. "Environmental Regulation and Enterprise Innovation: A Review," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1465-1478, March.
    18. Hart O. Awa & Ojiabo Ukoha & Bartholomew C. Emecheta, 2016. "Using T-O-E theoretical framework to study the adoption of ERP solution," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1196571-119, December.
    19. Oksana Seroka‐Stolka & Kamil Fijorek, 2020. "Enhancing corporate sustainable development: Proactive environmental strategy, stakeholder pressure and the moderating effect of firm size," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2338-2354, September.
    20. Ada Scupola, 2003. "The Adoption of Internet Commerce by SMEs in the South of Italy: An Environmental, Technological and Organizational Perspective," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 6(1), pages 52-71, January.
    21. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    22. Joseph Amankwah‐Amoah & Johnny Syllias, 2020. "Can adopting ambitious environmental sustainability initiatives lead to business failures? An analytical framework," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 240-249, January.
    Full references (including those not matched with items on IDEAS)

    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. Srivastava, Deepak Kumar & Kumar, Vikas & Ekren, Banu Yetkin & Upadhyay, Arvind & Tyagi, Mrinal & Kumari, Archana, 2022. "Adopting Industry 4.0 by leveraging organisational factors," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    2. Thamir Hamad Alaskar & Amin K. Alsadi, 2023. "Drivers of mobile commerce adoption intention by Saudi SMEs during the COVID-19 pandemic," Future Business Journal, Springer, vol. 9(1), pages 1-13, December.
    3. Abou-Shouk, Mohamed A. & Lim, Wai Mun & Megicks, Phil, 2016. "Using competing models to evaluate the role of environmental pressures in ecommerce adoption by small and medium sized travel agents in a developing country," Tourism Management, Elsevier, vol. 52(C), pages 327-339.
    4. Theerasak Nitlarp & Supaporn Kiattisin, 2022. "The Impact Factors of Industry 4.0 on ESG in the Energy Sector," Sustainability, MDPI, vol. 14(15), pages 1-19, July.
    5. Marcos Carchano & Inmaculada Carrasco & Ángela González, 2024. "Eco‐innovation and environmental performance: Insights from Spanish wine companies," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 595-623, June.
    6. Sarstedt, Marko & Hair, Joseph F. & Ringle, Christian M. & Thiele, Kai O. & Gudergan, Siegfried P., 2016. "Estimation issues with PLS and CBSEM: Where the bias lies!," Journal of Business Research, Elsevier, vol. 69(10), pages 3998-4010.
    7. Maya Vachkova & Arsalan Ghouri & Haidy Ashour & Normalisa Binti Md Isa & Gregory Barnes, 2023. "Big data and predictive analytics and Malaysian micro-, small and medium businesses," SN Business & Economics, Springer, vol. 3(8), pages 1-28, August.
    8. Jausan, Muhammad & Silva, Jose & Sabatini, Roberto, 2017. "A holistic approach to evaluating the effect of safety barriers on the performance of safety reporting systems in aviation organisations," Journal of Air Transport Management, Elsevier, vol. 63(C), pages 95-107.
    9. Mahadi Bahari & Ibrahim Arpaci & Oguzhan Der & Fatih Akkoyun & Ali Ercetin, 2024. "Driving Agricultural Transformation: Unraveling Key Factors Shaping IoT Adoption in Smart Farming with Empirical Insights," Sustainability, MDPI, vol. 16(5), pages 1-22, March.
    10. Jung Wan Lee & Young Min Kim & Young Ei Kim, 2018. "Antecedents of Adopting Corporate Environmental Responsibility and Green Practices," Journal of Business Ethics, Springer, vol. 148(2), pages 397-409, March.
    11. Hernández-Perlines, Felipe, 2016. "Entrepreneurial orientation in hotel industry: Multi-group analysis of quality certification," Journal of Business Research, Elsevier, vol. 69(10), pages 4714-4724.
    12. Brantnell, Anders & Wagrell, Sofia, 2024. "Implementation of medical technology in management and engineering studies: A systematic literature review and future research agenda," Technology in Society, Elsevier, vol. 77(C).
    13. Cinnie Liu, 2019. "Understanding Electronic Commerce Adoption at Organizational Level: Literature Review of TOE Framework and DOI Theory," International Journal of Science and Business, IJSAB International, vol. 3(2), pages 179-195.
    14. Wang, Yi & Chen, Yang & Benitez-Amado, Jose, 2015. "How information technology influences environmental performance: Empirical evidence from China," International Journal of Information Management, Elsevier, vol. 35(2), pages 160-170.
    15. Xisi Yang & Anja Weber & Anna-Katharina Grimm, 2022. "The effects of green consumer empowerment in advertising on corporate evaluations and purchase intention: the case of organic food," Review of Managerial Science, Springer, vol. 16(6), pages 1877-1909, August.
    16. Felipe Hernández-Perlines & Antonio Ariza-Montes & Luis Araya-Castillo, 2020. "Sustainable Growth in the Agro-Food Cooperatives of Castilla-La Mancha (Spain)," Sustainability, MDPI, vol. 12(12), pages 1-19, June.
    17. Xiaocui Li & Nengmin Wang & Bin Jiang & Tao Jia, 2023. "Institutional pressures and proactive environmental strategy: The mediating effect of top managerial environment attitude and the moderating effect of new media pressure," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6106-6123, December.
    18. Luo, Mingjie & Ma, Zhuanglin & Zhao, Wenjing & Enoch, Marcus & I-Jy Chien, Steven, 2022. "An ex-post evaluation of the public acceptance of a license plate-based restriction policy: A case study of Xi’an, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 259-282.
    19. Pittino, Daniel & Barroso Martínez, Ascensión & Chirico, Francesco & Sanguino Galván, Ramón, 2018. "Psychological ownership, knowledge sharing and entrepreneurial orientation in family firms: The moderating role of governance heterogeneity," Journal of Business Research, Elsevier, vol. 84(C), pages 312-326.
    20. A. Blanco-Oliver & A. Irimia-Diéguez, 2021. "Impact of outreach on financial performance of microfinance institutions: a moderated mediation model of productivity, loan portfolio quality, and profit status," Review of Managerial Science, Springer, vol. 15(3), pages 633-668, April.

    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:spr:circec:v:4:y:2024:i:2:d:10.1007_s43615-023-00341-7. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.