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The Mediating Role of Energy Efficiency Measures in Enhancing Organizational Performance: Evidence from the Manufacturing Sector in Jordan

Author

Listed:
  • Mohammad Nassar Almarshad

    (Department of Financial and Administrative Sciences, Al-Huson University college, Al-Balqa’ Applied University, Jordan)

  • Suad Abdalkareem Alwaely

    (Masters Department in Arabic Language Curricula and Islamic Education, Al Ain University, Abu Dhabi, UAE; & Department of Curriculum, Hashemite University, Zarqa, Jordan)

  • Bashar Younis Alkhawaldeh

    (Department of Administrative Sciences, Faculty of Business, Jerash University, PO. Box 26150, Jordan)

  • Mosa Qasim Hasan Al Qaryouti

    (Department of Business administration, Amman university college for financial and administrative sciences, Al Balqa Applied University, Amman, Jordan)

  • Ahmad Y. A. Bani Ahmad

    (Department of Accounting and Finance, Faculty of Business, Middle East University, Amman 11831, Jordan; & Applied Science Research Center, Applied Science Private University, Jordan)

Abstract

This study investigates the mediating role of energy efficiency measures in enhancing manufacturing firm performance in Jordan. A conceptual model is developed linking organizational policies, culture, and government incentives to adoption of energy efficiency measures, which in turn impact organizational performance. Data was collected through a survey of 300 manufacturing firms across major industrial sub-sectors in Jordan including food, textiles, chemicals, pharmaceuticals, construction materials, and machinery. Structural equation modeling using SmartPLS software tested the hypothesized relationships. Results provide empirical support for the conceptual framework. Organizational policies, culture emphasizing environmental responsibility, and government incentives positively influence adoption of energy efficiency measures like process optimization, equipment upgrades, and lighting improvements. Greater adoption of these measures enhances manufacturing performance across various dimensions like efficiency, quality, flexibility, and competitiveness. Further, energy efficiency measures strongly mediate the links between organizational policies, culture, incentives and manufacturing performance. The study makes important theoretical contributions to the resource-based view and natural resource-based view in a developing economy context. It also offers actionable implications for manufacturing managers and policymakers regarding energy efficiency strategies and programs. Limitations relating to the cross-sectional design, self-reported data, and generalizability are discussed along with recommendations for future research using longitudinal, qualitative, and multilevel approaches. Overall, the study highlights energy efficiency as a critical capability for boosting competitiveness in manufacturing firms, with mediation analysis elucidating the underlying performance enhancement mechanisms.

Suggested Citation

  • Mohammad Nassar Almarshad & Suad Abdalkareem Alwaely & Bashar Younis Alkhawaldeh & Mosa Qasim Hasan Al Qaryouti & Ahmad Y. A. Bani Ahmad, 2024. "The Mediating Role of Energy Efficiency Measures in Enhancing Organizational Performance: Evidence from the Manufacturing Sector in Jordan," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 360-370, July.
    • Handle: RePEc:eco:journ2:2024-04-33
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    Keywords

    Energy Efficiency Measures; Jordan; Manufacturing Firm Performance; Structural Equation Modelling;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • N6 - Economic History - - Manufacturing and Construction

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