IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i3p931-d205142.html
   My bibliography  Save this article

Barriers of Biodiesel Adoption by Transportation Companies: A Case of Malaysian Transportation Industry

Author

Listed:
  • Suhaiza Zailani

    (Faculty of Business and Accountancy, University of Malaya, 50603 UM, Kuala-Lumpur, Malaysia)

  • Mohammad Iranmanesh

    (Graduate School of Business, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia)

  • Sunghyup Sean Hyun

    (School of Tourism, Hanyang University, 133-791 Seoul, Korea)

  • Mohd Helmi Ali

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 UKM, Selangor, Malaysia)

Abstract

The need to develop an alternative fuel to fossil fuel is growing day by day, especially for the transportation industry, as the supply of fossil fuels is limited and is depleting at a rapid rate. One available resource that has emerged recently is biodiesel. However, the usage of biodiesel is very low among transportation companies. An investigation into the barriers of adopting biodiesel by transportation companies is the focus of the present study. A survey of 147 transportation companies in Malaysia was undertaken, and the data gathered were analyzed using partial least squares technique. Lack of government support, lack of environmental–commercial benefits, and lack of competitive pressure were found to be the barriers to biodiesel adoption. The results also indicated that differentiation strategy moderates the impact of lack of government support, lack of customer demand, lack of environmental-commercial benefits and lack of competitive pressure on biodiesel adoption. The results of this study could benefit policy makers by providing them key focus areas in which they can modify their strategies to actively and successfully promote the use of biodiesel among transportation companies in developing countries.

Suggested Citation

  • Suhaiza Zailani & Mohammad Iranmanesh & Sunghyup Sean Hyun & Mohd Helmi Ali, 2019. "Barriers of Biodiesel Adoption by Transportation Companies: A Case of Malaysian Transportation Industry," Sustainability, MDPI, vol. 11(3), pages 1-15, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:3:p:931-:d:205142
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/3/931/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/3/931/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sumathi, S. & Chai, S.P. & Mohamed, A.R., 2008. "Utilization of oil palm as a source of renewable energy in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(9), pages 2404-2421, December.
    2. Qi, D.H. & Chen, H. & Geng, L.M. & Bian, Y.ZH. & Ren, X.CH., 2010. "Performance and combustion characteristics of biodiesel-diesel-methanol blend fuelled engine," Applied Energy, Elsevier, vol. 87(5), pages 1679-1686, May.
    3. Amoako-Gyampah, Kwasi & Acquaah, Moses, 2008. "Manufacturing strategy, competitive strategy and firm performance: An empirical study in a developing economy environment," International Journal of Production Economics, Elsevier, vol. 111(2), pages 575-592, February.
    4. Sahra Mohammadi & Fatimah Mohamed Arshad & Abdulla Ibragimov, 2016. "Future Prospects and Policy Implications for Biodiesel Production in Malaysia: A System Dynamics Approach," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 8(4), pages 42-57, October.
    5. Leduc, Sylvain & Natarajan, Karthikeyan & Dotzauer, Erik & McCallum, Ian & Obersteiner, Michael, 2009. "Optimizing biodiesel production in India," Applied Energy, Elsevier, vol. 86(Supplemen), pages 125-131, November.
    6. K. Mathiyazhagan & Udbhav Datta & Rishabh bhadauria & Aditya Singla & S. Krishnamoorthi, 2018. "Identification and prioritization of motivational factors for the green supply chain management adoption: case from Indian construction industries," OPSEARCH, Springer;Operational Research Society of India, vol. 55(1), pages 202-219, March.
    7. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    8. Zailani, Suhaiza & Ali, Suhana Mohezar & Iranmanesh, Mohammad & Moghavvemi, Sedigheh & Musa, Ghazali, 2016. "Predicting Muslim medical tourists' satisfaction with Malaysian Islamic friendly hospitals," Tourism Management, Elsevier, vol. 57(C), pages 159-167.
    9. Mofijur, M. & Masjuki, H.H. & Kalam, M.A. & Ashrafur Rahman, S.M. & Mahmudul, H.M., 2015. "Energy scenario and biofuel policies and targets in ASEAN countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 46(C), pages 51-61.
    10. Moon, Sangkil & Bergey, Paul K. & Bove, Liliana L. & Robinson, Stefanie, 2016. "Message framing and individual traits in adopting innovative, sustainable products (ISPs): Evidence from biofuel adoption," Journal of Business Research, Elsevier, vol. 69(9), pages 3553-3560.
    11. Mohammad Iranmanesh & Suhaiza Zailani & Soroush Moeinzadeh & Davoud Nikbin, 2017. "Effect of green innovation on job satisfaction of electronic and electrical manufacturers’ employees through job intensity: personal innovativeness as moderator," Review of Managerial Science, Springer, vol. 11(2), pages 299-313, March.
    12. Huang, Yun-Hsun & Wu, Jung-Hua, 2008. "Analysis of biodiesel promotion in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(4), pages 1176-1186, May.
    13. Ong, H.C. & Mahlia, T.M.I. & Masjuki, H.H. & Norhasyima, R.S., 2011. "Comparison of palm oil, Jatropha curcas and Calophyllum inophyllum for biodiesel: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3501-3515.
    14. Govindan, Kannan & Kaliyan, Mathiyazhagan & Kannan, Devika & Haq, A.N., 2014. "Barriers analysis for green supply chain management implementation in Indian industries using analytic hierarchy process," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 555-568.
    15. Foo, K.Y., 2015. "A vision on the opportunities, policies and coping strategies for the energy security and green energy development in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1477-1498.
    16. Gui, M.M. & Lee, K.T. & Bhatia, S., 2008. "Feasibility of edible oil vs. non-edible oil vs. waste edible oil as biodiesel feedstock," Energy, Elsevier, vol. 33(11), pages 1646-1653.
    17. Leung, Dennis Y.C. & Wu, Xuan & Leung, M.K.H., 2010. "A review on biodiesel production using catalyzed transesterification," Applied Energy, Elsevier, vol. 87(4), pages 1083-1095, April.
    18. Suhaiza Zailani & Mohd Rizaimy Shaharudin & Khairul Razmi & Mohammad Iranmanesh, 2017. "Influential factors and performance of logistics outsourcing practices: an evidence of malaysian companies," Review of Managerial Science, Springer, vol. 11(1), pages 53-93, January.
    19. Fatih Demirbas, M., 2009. "Biorefineries for biofuel upgrading: A critical review," Applied Energy, Elsevier, vol. 86(Supplemen), pages 151-161, November.
    20. Demirbas, Ayhan, 2007. "Importance of biodiesel as transportation fuel," Energy Policy, Elsevier, vol. 35(9), pages 4661-4670, September.
    21. Johari, Anwar & Nyakuma, Bemgba Bevan & Mohd Nor, Shadiah Husna & Mat, Ramli & Hashim, Haslenda & Ahmad, Arshad & Yamani Zakaria, Zaki & Tuan Abdullah, Tuan Amran, 2015. "The challenges and prospects of palm oil based biodiesel in Malaysia," Energy, Elsevier, vol. 81(C), pages 255-261.
    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. Jugend, Daniel & Fiorini, Paula De Camargo & Armellini, Fabiano & Ferrari, Aline Gabriela, 2020. "Public support for innovation: A systematic review of the literature and implications for open innovation," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    2. Abul Kalam Azad & Abhijaysinh Chandrasinh Jadeja & Arun Teja Doppalapudi & Nur Md Sayeed Hassan & Md Nurun Nabi & Roshan Rauniyar, 2024. "Design and Simulation of the Biodiesel Process Plant for Sustainable Fuel Production," Sustainability, MDPI, vol. 16(8), pages 1-17, April.
    3. Tamás Mizik & Gábor Gyarmati, 2021. "Economic and Sustainability of Biodiesel Production—A Systematic Literature Review," Clean Technol., MDPI, vol. 3(1), pages 1-18, January.
    4. Mohd Helmi Ali & Suhaiza Zailani & Mohammad Iranmanesh & Behzad Foroughi, 2019. "Impacts of Environmental Factors on Waste, Energy, and Resource Management and Sustainable Performance," Sustainability, MDPI, vol. 11(8), pages 1-16, April.
    5. Farayi Musharavati & Khadija Sajid & Izza Anwer & Abdul-Sattar Nizami & Muhammad Hassan Javed & Anees Ahmad & Muhammad Naqvi, 2023. "Advancing Biodiesel Production System from Mixed Vegetable Oil Waste: A Life Cycle Assessment of Environmental and Economic Outcomes," Sustainability, MDPI, vol. 15(24), pages 1-25, December.
    6. Ghazanfar Ali Abbasi & Noor Fareen Abdul Rahim & Hongyan Wu & Mohammad Iranmanesh & Benjamin Ng Chee Keong, 2022. "Determinants of SME’s Social Media Marketing Adoption: Competitive Industry as a Moderator," SAGE Open, , vol. 12(1), pages 21582440211, January.

    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. Azad, A.K. & Rasul, M.G. & Khan, M.M.K. & Sharma, Subhash C. & Hazrat, M.A., 2015. "Prospect of biofuels as an alternative transport fuel in Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 331-351.
    2. Motasemi, F. & Ani, F.N., 2012. "A review on microwave-assisted production of biodiesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4719-4733.
    3. Silitonga, A.S. & Atabani, A.E. & Mahlia, T.M.I. & Masjuki, H.H. & Badruddin, Irfan Anjum & Mekhilef, S., 2011. "A review on prospect of Jatropha curcas for biodiesel in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3733-3756.
    4. Demirbas, Ayhan, 2011. "Biodiesel from oilgae, biofixation of carbon dioxide by microalgae: A solution to pollution problems," Applied Energy, Elsevier, vol. 88(10), pages 3541-3547.
    5. Azad, A.K. & Rasul, M.G. & Khan, M.M.K. & Sharma, Subhash C. & Mofijur, M. & Bhuiya, M.M.K., 2016. "Prospects, feedstocks and challenges of biodiesel production from beauty leaf oil and castor oil: A nonedible oil sources in Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 302-318.
    6. Bhuiya, M.M.K. & Rasul, M.G. & Khan, M.M.K. & Ashwath, N. & Azad, A.K., 2016. "Prospects of 2nd generation biodiesel as a sustainable fuel—Part: 1 selection of feedstocks, oil extraction techniques and conversion technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 1109-1128.
    7. Demirbas, M. Fatih, 2011. "Biofuels from algae for sustainable development," Applied Energy, Elsevier, vol. 88(10), pages 3473-3480.
    8. Mofijur, M. & Masjuki, H.H. & Kalam, M.A. & Hazrat, M.A. & Liaquat, A.M. & Shahabuddin, M. & Varman, M., 2012. "Prospects of biodiesel from Jatropha in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5007-5020.
    9. Demirbas, Ayhan, 2011. "Competitive liquid biofuels from biomass," Applied Energy, Elsevier, vol. 88(1), pages 17-28, January.
    10. Suhaiza Zailani & Mohammad Iranmanesh & Behzad Foroughi & Kwangyong Kim & Sunghyup Sean Hyun, 2020. "Effects of supply chain practices, integration and closed-loop supply chain activities on cost-containment of biodiesel," Review of Managerial Science, Springer, vol. 14(6), pages 1299-1319, December.
    11. Andres Quintero, Julian & Ruth Felix, Erika & Eduardo Rincón, Luis & Crisspín, Marianella & Fernandez Baca, Jaime & Khwaja, Yasmeen & Cardona, Carlos Ariel, 2012. "Social and techno-economical analysis of biodiesel production in Peru," Energy Policy, Elsevier, vol. 43(C), pages 427-435.
    12. Rozina, & Asif, Saira & Ahmad, Mushtaq & Zafar, Muhammad & Ali, Nsir, 2017. "Prospects and potential of fatty acid methyl esters of some non-edible seed oils for use as biodiesel in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 687-702.
    13. Bhatia, Shashi Kant & Bhatia, Ravi Kant & Yang, Yung-Hun, 2017. "An overview of microdiesel — A sustainable future source of renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1078-1090.
    14. Ahmad, A.L. & Yasin, N.H. Mat & Derek, C.J.C. & Lim, J.K., 2011. "Microalgae as a sustainable energy source for biodiesel production: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 584-593, January.
    15. How, Bing Shen & Ngan, Sue Lin & Hong, Boon Hooi & Lam, Hon Loong & Ng, Wendy Pei Qin & Yusup, Suzana & Ghani, Wan Azlina Wan Abd Karim & Kansha, Yasuki & Chan, Yi Herng & Cheah, Kin Wai & Shahbaz, Mu, 2019. "An outlook of Malaysian biomass industry commercialisation: Perspectives and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    16. Teuku Meurah Indra Riayatsyah & Hwai Chyuan Ong & Wen Tong Chong & Lisa Aditya & Heri Hermansyah & Teuku Meurah Indra Mahlia, 2017. "Life Cycle Cost and Sensitivity Analysis of Reutealis trisperma as Non-Edible Feedstock for Future Biodiesel Production," Energies, MDPI, vol. 10(7), pages 1-21, June.
    17. Kanjaikaew, Utaiwan & Tongurai, Chakrit & Chongkhong, Sininart & Prasertsit, Kulchanat, 2018. "Two-step esterification of palm fatty acid distillate in ethyl ester production: Optimization and sensitivity analysis," Renewable Energy, Elsevier, vol. 119(C), pages 336-344.
    18. S. M. Ashrafur Rahman & I. M. Rizwanul Fattah & Hwai Chyuan Ong & M. F. M. A. Zamri, 2021. "State-of-the-Art of Strategies to Reduce Exhaust Emissions from Diesel Engine Vehicles," Energies, MDPI, vol. 14(6), pages 1-24, March.
    19. Balat, Mustafa & Balat, Havva, 2010. "Progress in biodiesel processing," Applied Energy, Elsevier, vol. 87(6), pages 1815-1835, June.
    20. Mardhiah, H. Haziratul & Ong, Hwai Chyuan & Masjuki, H.H. & Lim, Steven & Lee, H.V., 2017. "A review on latest developments and future prospects of heterogeneous catalyst in biodiesel production from non-edible oils," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1225-1236.

    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:11:y:2019:i:3:p:931-:d:205142. 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.