Proceedings of the 18th International Academic Conference, London

THE ANTECEDENTS OF CORPORATE SUSTAINABILITY PERFORMANCE

SALINA DAUD

Abstract:

Climate change and global warming are major challenges for Malaysia as well as for companies. Companies are fronting growing pressure to become greener or more environmentally friendly. Due to pressure from consumers and government, companies need to review their production processes. Consequently, they have to apply the concept of sustainable development in their policies and plans. The objective of this study is to examine three dimensions, mainly, knowledge management, eco-innovation and corporate sustainability performance to support sustainability environment. Creating sustainability environment is one of the main agendas in Malaysia Plan. The study focuses on examining the effect of knowledge management strategy on eco-innovation; the effect of knowledge management strategy on corporate sustainability performance; the effect of eco-innovation on corporate sustainability performance; and the mediating effect of eco-innovation on knowledge management strategy and corporate sustainability performance. Halal pharmaceutical companies were chosen as a sample in the study. Data were collected using survey questions and were analysed using Smart PLS. Results show that strategic KM contributes significantly to eco-innovation but does not contribute significantly to corporate sustainability performance. Eco-innovation significantly affects corporate sustainability performance and it mediates the relationship between strategic knowledge management and corporate sustainability performance. It is suggested that pharmaceutical companies in the study need to enhance the creating, sharing and utilizing of implicit and explicit knowledge in order to enhance companies’ corporate sustainability performance.

Keywords: Knowledge management, codification, personalization, eco-innovation, corporate sustainability performance.

DOI: 10.20472/IAC.2015.018.031

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