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Beyond Executive Mandates: Financial Resources and Environmental Orientation as Core Drivers of Sustainability in Malaysian Manufacturing

Author

Listed:
  • Erna Masfiza Mohamed Ramli
  • Mohamed Said Aly Amin
  • Nabawiyah Binti Abdul Hadi
  • Noor Idayu Ismail

Abstract

Malaysia’s manufacturing sector faces mounting pressure to integrate sustainable practices amid rising environmental concerns, resource constraints, and regulatory demands. Despite government initiatives, many firms struggle to align profitability with environmental and social responsibility, hindered by limited resources, uneven managerial commitment, and varying levels of internal environmental orientation. This study examines the key drivers of sustainable manufacturing in this context, focusing on the influence of financial resources, managerial support, and internal environmental orientation on sustainability performance. Grounded in the Natural Resource-Based View (NRBV) theory, it investigates how these determinants shape environmental, social, and economic outcomes. A quantitative approach was adopted, using a cross-sectional survey of senior executives from medium and large manufacturing firms, yielding 330 valid responses. Partial Least Squares Structural Equation Modelling (PLS-SEM) was applied to test the proposed relationships. The findings reveal that financial resources and internal environmental orientation significantly enhance sustainability performance, whereas managerial support does not show a significant effect. This suggests that while resource allocation and a sustainability-oriented culture are critical enablers, the practical impact of managerial support may be constrained by organizational or cultural barriers. The study extends NRBV theory to the Malaysian manufacturing context, providing empirical evidence on strategic drivers of sustainability and highlighting the need for targeted investments and internal capability development.

Suggested Citation

  • Erna Masfiza Mohamed Ramli & Mohamed Said Aly Amin & Nabawiyah Binti Abdul Hadi & Noor Idayu Ismail, 2025. "Beyond Executive Mandates: Financial Resources and Environmental Orientation as Core Drivers of Sustainability in Malaysian Manufacturing," Information Management and Business Review, AMH International, vol. 17(3), pages 1-13.
    • Handle: RePEc:rnd:arimbr:v:17:y:2025:i:3:p:1-13
    DOI: 10.22610/imbr.v17i3(I)S.4554
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    References listed on IDEAS

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    1. Graça Miranda Silva & Paulo J. Gomes & Helena Carvalho & Vera Geraldes, 2021. "Sustainable development in small and medium enterprises: The role of entrepreneurial orientation in supply chain management," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3804-3820, December.
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