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Exploring the Impact of Contingency Theory on Sustainable Innovation in Malaysian Manufacturing Firms

Author

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  • Muhammad Fakhrul Yusuf

    (Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuh Persiaran Tun Khalil Yaakob, Gambang, Kuantan 26300, Pahang, Malaysia)

  • Nur Anis Imalyn Mohamad Nasarudin

    (Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuh Persiaran Tun Khalil Yaakob, Gambang, Kuantan 26300, Pahang, Malaysia)

  • Shahryar Sorooshian

    (Department of Business Administration, University of Gothenburg, 405 30 Gothenburg, Sweden
    Prime School of Logistics, Saito University College, Petaling Jaya 46200, Selangor, Malaysia)

  • Muhammad Ashraf Fauzi

    (Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuh Persiaran Tun Khalil Yaakob, Gambang, Kuantan 26300, Pahang, Malaysia)

  • Nur Muneerah Kasim

    (Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuh Persiaran Tun Khalil Yaakob, Gambang, Kuantan 26300, Pahang, Malaysia)

Abstract

This study looks at the impact of contingency theory on sustainable innovation in Malaysian manufacturing firms. A quantitative approach was used, with convenience sampling to select participants from a target population of Malaysian manufacturing employees. An online survey distributed via email was used to collect 101 sets of data for the study. PLS-SEM (Partial Least Squares Structural Equation Modeling) was used to analyze the collected data. According to the findings, corporate sustainable support policies and sustainable incentives have a significant positive impact on sustainable innovation in Malaysian manufacturing firms, whereas top management commitment was found to be insignificant. Companies that prioritize sustainable practices through policies and incentives are more likely to promote sustainable innovation, according to the findings. As a result, businesses should prioritize developing these two attributes in order to foster sustainable innovation, thereby improving sustainability practices and contributing to the country’s long-term development goals. Future research should, however, investigate why top management commitment may not be a significant driver of sustainable innovation in Malaysian manufacturing firms.

Suggested Citation

  • Muhammad Fakhrul Yusuf & Nur Anis Imalyn Mohamad Nasarudin & Shahryar Sorooshian & Muhammad Ashraf Fauzi & Nur Muneerah Kasim, 2023. "Exploring the Impact of Contingency Theory on Sustainable Innovation in Malaysian Manufacturing Firms," Sustainability, MDPI, vol. 15(9), pages 1-16, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:9:p:7151-:d:1132089
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    References listed on IDEAS

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    Cited by:

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    2. Muzaffar Asad, 2024. "Impact of Environmental Management on Sustainable Performance of Pakistani Entrepreneurial Firms: The Mediating Role of Green Product Innovation and the Moderating Effect of Transformational Leadershi," Sustainability, MDPI, vol. 16(24), pages 1-23, December.
    3. Ali Mohsin Salim Ba Awain & Muzaffar Asad & Mohammed Ali Bait Ali Sulaiman & Muhammad Uzair Asif & Khalid Salim Al Shanfari, 2025. "Impact of Supply Chain Risk Management on Product Innovation Performance of Omani SMEs: Synergetic Moderation of Technological Turbulence and Entrepreneurial Networking," Sustainability, MDPI, vol. 17(7), pages 1-21, March.
    4. Erin Octaviani & Ilyas Masudin & Amelia Khoidir & Dian Palupi Restuputri, 2025. "Material Flow Analysis for Demand Forecasting and Lifetime-Based Inflow in Indonesia’s Plastic Bag Supply Chain," Logistics, MDPI, vol. 9(3), pages 1-27, August.

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