PERTANIKA JOURNAL OF SCIENCE AND TECHNOLOGY

This study investigates the sway of stakeholder integration and green investment on Environmental Sustainability Practices (ESP), as well as the moderating role of Green Technology Adoption (GTA) in Bangladesh Textile small and medium enterprises (SMEs). A questionnaire has been used to collect data from 140 textile SMEs and analysed using the quantitative survey method. The findings have revealed that Buyer Pressure (BP), Governmental regulations (GR), and Green Investment (GI) have significant effects on ESP, but not Supplier pressure (SP). The study has also evidenced the insignificant moderating influence of GTA on the relationships among BP, GR, GI, except SP. This study makes a conceptual contribution by highlighting the relationships among these constructs and confirming the lack of stakeholder integration. The findings of the research extend the understanding and comprehensiveness of Stakeholder theory (ST) and Transaction Cost Economics (TCE) theory by providing empirical insights from the firm level. Consequently, the outcomes promote environmental practices and offer food for thought for policymakers, compliance managers, entrepreneurs, and relevant stakeholders.

• Adedeji, B. S., Ong, T. S., Uzir, M. U. H., & Hamid, A. B. A. (2020). Corporate governance and performance of medium-sized firms in Nigeria: Does sustainability initiative matter? Corporate Governance: The International Journal of Business in Society, 20(3), 401-427. https://doi.org/10.1108/CG-09-2019-0291

• Ahmed, W., Ahmed, W., & Arsalan, N. (2018). Developing and analysing framework for understanding the effects of GSCM on green and economic performance. Management of Environmental Quality, 29(4), 740-758. https://doi.org/10.1108/MEQ-11-2017-0140

• Ardito, L., Carrillo‐Hermosilla, J., del Río, P., & Pontrandolfo, P. (2018). Corporate social responsibility and environmental management invite contributions for a special issue on ‘Sustainable innovation: Processes, strategies, and outcomes’. Corporate Social Responsibility and Environmental Management, 25(1), 106-109. https://doi.org/10.1002/csr.1487

• Awan, U. (2017). Mediation analysis of environmental training: Perceived stakeholder pressure and environmental supply chain management practices. International Journal of Research Studies in Management, 6(1), 1-21. https://doi.org/10.5861/ijrsm.2016.1656

• Bangladesh Textile Mills Association. (n.d.). List of yarn manufacturing member mills of BTMA. http://www.btmadhaka.com/downloads/A-Yarn-Manufacturing-Spinning-Mill-List-2017-Final-List.pdf

• Bhanot, N., Rao, P. V., & Deshmukh, S. G. (2017). An integrated approach for analysing the enablers and barriers of sustainable manufacturing. Journal of Cleaner Production, 142(4), 4412-4439. https://doi.org/10.1016/j.jclepro.2016.11.123

• Birken, S. A., Bunger, A. C., Powell, B. J., Turner, K., Clary, A. S., Klaman, S. L., Yu, Y., Whitaker, D. J., Self, S. R., Rostad, W. L., Chatham, J. R. S., Kirk, M. A., Shea, C. M., Haines, E. E., & Weiner, B. J. (2017). Organizational theory for dissemination and implementation research. Implementation Science, 12(1), 1-15. https://doi.org/10.1186/s13012-017-0592-x

• Bollinger, B. (2015). Green technology adoption: An empirical study of the Southern California garment cleaning industry. Quantitative Marketing and Economics, 13(4), 319-358. https://doi.org/10.1007/s11129-015-9163-0

• Brace, I. (2018). Questionnaire design: How to plan, structure and write survey material for effective market research. Kogan Page Publishers.

• Busi, E., Maranghi, S., Corsi, L., & Basosi, R. (2016). Environmental sustainability evaluation of innovative self-cleaning textiles. Journal of Cleaner Production, 133, 439-450. https://doi.org/10.1016/j.jclepro.2016.05.072

• Chong, P., Ong, T., Abdullah, A., & Choo, W. (2019). Internationalisation and innovation on balanced scorecard (BSC) among Malaysian small and medium enterprises (SMEs). Management Science Letters, 9(10), 1617-1632. http://dx.doi.org/10.5267/j.msl.2019.5.025

• Ciravegna, L., Fitzgerald, R., & Kundu, S. (2013). Operating in emerging markets: A guide to management and strategy in the new international economy (1st ed.). FT Press.

• Clarkson, M. (1995). Stakeholder framework for analysing and evaluating corporate social performance. Academy of Management Review, 20(1), 92-117.

• Cohen, W. M., & Levin, R. C. (1989). Empirical studies of innovation and market structure Handbook of Industrial Organization, 2, 1059-1107. https://doi.org/ 10.1016/S1573-448X(89)02006-6

• Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16, 297-334. https://doi.org/10.1007/BF02310555

• D’Amato, D., Korhonen, J., & Toppinen, A. (2019). Circular, green, and bio economy: How do companies in land-use intensive sectors align with sustainability concepts? Ecological Economics, 158, 116-133. https://doi.org/10.1016/j.ecolecon.2018.12.026

• Datta, R. (2019). Sustainability: Through cross-cultural community garden activities. Local Environment, 24(8), 762-776. https://doi.org/10.1080/13549839.2019.1641073

• Dey, P. K., Petridis, N. E., Petridis, K., Malesios, C., Nixon, J. D., & Ghosh, S. K. (2018). Environmental management and corporate social responsibility practices of small and medium-sized enterprises. Journal of Cleaner Production, 195, 687-702. https://doi.org/10.1016/j.jclepro.2018.05.201

• Eyraud, L., Clements, B., & Wane, A. (2013). Green investment: Trends and determinants. Energy Policy, 60, 852-865. https://doi.org/10.1016/j.enpol.2013.04.039

• Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177%2F002224378101800104

• Fraj-Andrés, E., Martinez-Salinas, E., & Matute-Vallejo, J. (2009). A multidimensional approach to the influence of environmental marketing and orientation on the firm’s organizational performance. Journal of Business Ethics, 88(2), 263. https://doi.org/10.1007/s10551-008-9962-2

• Freeman, R. E. (2015). Stakeholder theory. Wiley Encyclopedia of Management, 1-6. https://doi.org/10.1002/9781118785317.weom020179

• González, J. d. B., & Barba-Sánchez, V. (2020). The mediating effect of environmental proactivity on the influence of stakeholder pressure and environmental strategy of wineries in Spain. International Journal of Environmental Research, 1-13. https://doi.org/10.1007/s41742-020-00281-2

• Gouda, S. K., & Saranga, H. (2020). Pressure or premium: What works best where? Antecedents and outcomes of sustainable manufacturing practices. International Journal of Production Research, 58(23), 7201-7217. https://doi.org/10.1080/00207543.2020.1717010

• Grover, V., & Malhotra, M. K. (2003). Transaction cost framework in operations and supply chain management research: Theory and measurement. Journal of Operations Management, 21(4), 457-473. https://doi.org/10.1016/S0272-6963(03)00040-8

• Hafezi, M., & Zolfagharinia, H. (2018). Green product development and environmental performance: Investigating the role of government regulations. International Journal of Production Economics, 204(C), 395-410. https://doi.org/10.1016/j.ijpe.2018.08.012

• Hall, J. (2006). Environmental supply chain innovation. In J. Sarkis (Ed.), Greening the supply chain (pp. 233-249). Springer. https://doi.org/10.1007/1-84628-299-3_13

• Helmig, B., Spraul, K., & Ingenhoff, D. (2016). Under positive pressure: How stakeholder pressure affects corporate social responsibility implementation. Business and Society, 55(2), 151-187. https://doi.org/10.1177%2F0007650313477841

• Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.

• Hossain, M. I., San, O. T., Ling, S. M., & Said, R. M. (2020). The role of environmental awareness and green technological usage to foster sustainable green practices in Bangladeshi manufacturing SMEs. International Journal of Advance Science and Technology, 29(7s), 3115-3124. http://sersc.org/journals/index.php/IJAST/article/view/17392/8789

• Hossain, S., Rahman, M. A., Chowdhury, M. A., & Mohonta, S. K. (2021). Plastic pollution in Bangladesh: A review on current status emphasizing the impacts on environment and public health. Environmental Engineering Research, 26(6), 210-231. https://doi.org/10.4491/eer.2020.535

• Iamrenew. (2019, July 2). Bangladesh’s polluted waters: Rivers dying due to dyeing. https://www.iamrenew.com/environment/bangladeshs-polluted-waters-rivers-dying-due-to-dyeing/

• Islam, M. A., & Deegan, C. (2008). Motivations for an organisation within a developing country to report social responsibility information: Evidence from Bangladesh. Accounting, Auditing and Accountability Journal, 21(6), 850-874. https://doi.org/10.1108/09513570810893272

• Jajja, M. S. S., Asif, M., Montabon, F. L., & Chatha, K. A. (2019). The influence of institutional pressures and organization culture on Supplier Social Compliance Management Systems. International Journal of Physical Distribution & Logistics Management, 49(5), 552-574. https://doi.org/10.1108/IJPDLM-11-2017-0359

• Kasbun, N. F., Teh, B. H., & Ong, T. S. (2016). Sustainability reporting and financial performance of Malaysian public listed companies. Institutions and Economies, 8(4), 78-93.

• Klassen, R. D., & Whybark, D. C. (1999). The impact of environmental technologies on manufacturing performance. Academy of Management Journal, 42(6), 599-615. https://doi.org/10.5465/256982

• Kumar, D., & Rahman, Z. (2015). Sustainability adoption through buyer supplier relationship across supply chain: A literature review and conceptual framework. International Strategic Management Review, 3(1-2), 110-127. https://doi.org/10.1016/j.ism.2015.04.002

• Lamming, R., & Hampson, J. (1996). The environment as a supply chain management issue. British Journal of Management, 7, S45-S62. https://doi.org/10.1111/j.1467-8551.1996.tb00147.x

• Liu, P., Zhou, Y., Zhou, D. K., & Xue, L. (2017). Energy Performance Contract models for the diffusion of green-manufacturing technologies in China: A stakeholder analysis from SMEs’ perspective. Energy Policy, 106, 59-67. https://doi.org/10.1016/j.enpol.2017.03.040

• Matthews, R. L., Tse, Y. K., Wallis, M. O., & Marzec, P. E. (2019). A stakeholder perspective on process improvement behaviours: Delivering the triple bottom line in SMEs. Production Planning and Control, 30(5-6), 437-447. https://doi.org/10.1080/09537287.2018.1501809

• Meixell, M. J., & Luoma, P. (2015). Stakeholder pressure in sustainable supply chain management: A systematic review. International Journal of Physical Distribution & Logistics Management, 45(1/2), 69-89. https://doi.org/10.1108/IJPDLM-05-2013-0155

• Ministry of Industries. (2016). National Industrial Policy 2016. http://projectsprofile.com/info/Policy_Industry%202016%20Final.pdf

• Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853-886. https://doi.org/10.5465/amr.1997.9711022105

• Ogiemwonyi, O., Harun, A. B., Alam, M. N., Karim, A. M., Tabash, M. I., Hossain, M. I., Aziz, S., Abbasi, A., & Ojuolape, M. A. (2020). Green product as a means of expressing green behaviour: A cross-cultural empirical evidence from Malaysia and Nigeria. Environmental Technology & Innovation, 20, 101055. https://doi.org/10.1016/j.eti.2020.101055

• Ong, T. S., & Teh, B. H. (2009). Factors influencing the design and use of performance measurement systems in the Malaysian electrical and electronics industry. International Journal of Economics and Management, 2(2), 437-457. http://eprints.intimal.edu.my/id/eprint/205

• Ong, T. S., Lee, A. S., & Teh, B. H. (2021). Turning environmental strategies into competitive advantage in the Malaysian manufacturing industry: Mediating role of environmental innovation. Pertanika Journal of Social Science and Humanities, 29(2), 1293-1312. https://doi.org/10.47836/pjssh.29.2.29

• Ong, T. S., Lee, A. S., Teh, B. H., & Magsi, H. B. (2019). Environmental innovation, environmental performance and financial performance: Evidence from Malaysian environmental proactive firms. Sustainability, 11(12), 3494. https://doi.org/10.3390/su11123494

• Parker, C. M., Redmond, J., & Simpson, M. (2009). A review of interventions to encourage SMEs to make environmental improvements. Environment and Planning C: Government and Policy, 27(2), 279-301. https://doi.org/10.1068/c0859b

• Partalidou, K., & Kodra, A. (2017). Do markets reward green investing? [Master’s thesis, Lund University]. https://lup.lub.lu.se/student-papers/search/publication/8912392

• Plaza-Úbeda, J. A., de Burgos-Jiménez, J., & Carmona-Moreno, E. (2010). Measuring stakeholder integration: Knowledge, interaction and adaptational behavior dimensions. Journal of Business Ethics, 93(3), 419-442. https://doi.org/10.1007/s10551-009-0231-9

• Przychodzen, W., Gómez-Bezares, F., & Przychodzen, J. (2018). Green information technologies practices and financial performance – The empirical evidence from German publicly traded companies. Journal of Cleaner Production, 201, 570-579. https://doi.org/10.1016/j.jclepro.2018.08.081

• Rahman, K. M., & Chowdhury, E. H. (2020). Growth trajectory and developmental impact of ready-made garments industry in Bangladesh. In Bangladesh’s economic and social progress (pp. 267-297). Palgrave Macmillan. https://doi.org/10.1007/978-981-15-1683-2_9

• Rao, P., & Holt, D. (2005). Do green supply chains lead to competitiveness and economic performance? International Journal of Operations and Production Management, 25(9), 898-916. https://doi.org/10.1108/01443570510613956

• Reza, A. K., Islam, M. S., & Shimu, A. A. (2017). Green industry in Bangladesh: An overview. Environmental Management and Sustainable Development, 6(2), 124-143. https://doi.org/10.5296/emsd.v6i2.11027

• Romero, S., Ruiz, S., & Fernandez‐Feijoo, B. (2019). Sustainability reporting and stakeholder engagement in Spain: Different instruments, different quality. Business Strategy and the Environment, 28(1), 221-232. https://doi.org/10.1002/bse.2251

• Roxas, B., & Chadee, D. (2012). Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines. Social Responsibility Journal, 8(2), 208-226. https://doi.org/10.1108/17471111211234842

• Sakamoto, M., Ahmed, T., Begum, S., & Huq, H. (2019). Water pollution and the textile industry in Bangladesh: Flawed corporate practices or restrictive opportunities? Sustainability, 11(7), 1951. https://doi.org/10.3390/su11071951

• Sarkar, A., Qian, L., & Peau, A. K. (2020). Overview of green business practices within the Bangladeshi RMG industry: Competitiveness and sustainable development perspective. Environmental Science and Pollution Research, 27(18), 22888-22901. https://doi.org/10.1007/s11356-020-08816-y

• Saudi, M. H. M., Sinaga, G. O., & Zainudin, Z. (2019). The effect of green innovation in influencing sustainable performance: Moderating role of managerial environmental concern. International Journal of Supply Chain Management, 8(1), 303-310.

• Saunders, M., Lewis, P., & Thornhill, A. (2016). Research methods for business students (7th ed.). Pearson.

• Schaltegger, S., Hörisch, J., & Freeman, R. E. (2019). Business cases for sustainability: A stakeholder theory perspective. Organization and Environment, 32(3), 191-212. https://doi.org/10.1177%2F1086026617722882

• Shumon, R., Halim, Z., Rahman, S., & Ahsan, K. (2019). How do suppliers address stringent environmental requirements from buyers? An exploratory study in the Bangladesh ready-made garment industry. International Journal of Physical Distribution and Logistics Management, 49(9), 921-944. https://doi.org/10.1108/IJPDLM-08-2018-0305

• Simpson, A. (2007). The environment–energy security nexus: Critical analysis of an energy ‘love triangle’in Southeast Asia. Third World Quarterly, 28(3), 539-554. https://doi.org/10.1080/01436590701192710

• Simpson, D., Power, D., & Klassen, R. (2012). When one size does not fit all: A problem of fit rather than failure for voluntary management standards. Journal of Business Ethics, 110(1), 85-95. https://doi.org/10.1007/s10551-011-1149-6

• Taghizadeh-Hesary, F., & Yoshino, N. (2019). The way to induce private participation in green finance and investment. Finance Research Letters, 31, 98-103.

• Tatoglu, E., Bayraktar, E., & Arda, O. A. (2015). Adoption of corporate environmental policies in Turkey. Journal of Cleaner Production, 91(C), 313-326. https://doi.org/10.1016/j.jclepro.2014.12.039

• Tran, T., Do, H., Vu, T., & Do, N. (2020). The factors affecting green investment for sustainable development. Decision Science Letters, 9(3), 365-386. http://dx.doi.org/10.5267/j.dsl.2020.4.002

• Uddin, M. A., Biswas, S. R., Bhattacharjee, S., Dey, M., & Mahmood, M. (2021). Inspiring employees’ ecological behaviors: The roles of corporate environmental strategy, biospheric values, and eco‐centric leadership. Business Strategy and the Environment, 1-15. https://doi.org/10.1002/bse.2751

• Uddin, N., & Miah, M. (2020). Effects of green technology on firms’ profitability and solvency: A study on textiles industry of Bangladesh. Asian Business Review, 10(2), 109-114. https://doi.org/10.18034/abr.v10i2.472

• Wang, J., Zhang, Y., & Goh, M. (2018). Moderating the role of firm size in sustainable performance improvement through sustainable supply chain management. Sustainability, 10(5), 1654. https://doi.org/10.3390/su10051654

• Waste Concern. (2016, May 2). Prospects of plastics waste recycling in Bangladesh. https://wasteconcern.org/prospects-of-plastics-waste-recycling-in-bangladesh/

• Williamson, O. E. (2008). Outsourcing: Transaction cost economics and supply chain management. Journal of Supply Chain Management, 44(2), 5-16. https://doi.org/10.1111/j.1745-493X.2008.00051.x

• Wong, V., Turner, W., & Stoneman, P. (1996). Marketing strategies and market prospects for environmentally‐friendly consumer products 1. British Journal of Management, 7(3), 263-281. https://doi.org/10.1111/j.1467-8551.1996.tb00119.x

• Yacob, P., Wong, L. S., & Khor, S. C. (2019). An empirical investigation of green initiatives and environmental sustainability for manufacturing SMEs. Journal of Manufacturing Technology Management, 30(1), 2-25. https://doi.org/10.1108/JMTM-08-2017-0153

• Yang, Y., Lau, A. K., Lee, P. K., & Cheng, T. C. E. (2020). The performance implication of corporate social responsibility in matched Chinese small and medium-sized buyers and suppliers. International Journal of Production Economics, 230, 107796. https://doi.org/10.1016/j.ijpe.2020.107796

• Yu, Y., & Huo, B. (2019). The impact of environmental orientation on supplier green management and financial performance: The moderating role of relational capital. Journal of Cleaner Production, 211, 628-639. https://doi.org/10.1016/j.jclepro.2018.11.198

• Zhang, X., Jin, Y., & Shen, C. (2020). Manufacturers’ green investment in a competitive market with a common retailer. Journal of Cleaner Production, 276, 123164. https://doi.org/10.1016/j.jclepro.2020.123164

• Zhu, Q., & Sarkis, J. (2006). An inter-sectoral comparison of green supply chain management in China: Drivers and practices. Journal of Cleaner Production, 14(5), 472-486. https://doi.org/10.1016/j.jclepro.2005.01.003