Factors influencing sustainable practices adoption among food and beverage SMEs in Peninsular Malaysia
SMEs in manufacturing sector has a crucial role in contributing to Malaysian economy specifically, the food and beverages sector in fulfilling the increasing demand for food in Malaysia. However, there is a rising concern regarding issues on the environmental degradation caused by the aforementio...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2019
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/84002/1/FP%202019%2046%20-%20ir.pdf |
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| Summary: | SMEs in manufacturing sector has a crucial role in contributing to Malaysian economy
specifically, the food and beverages sector in fulfilling the increasing demand for food in
Malaysia. However, there is a rising concern regarding issues on the environmental
degradation caused by the aforementioned sector. Sustainable manufacturing practices
have been identified as an approach to minimize the effect of manufacturing activities
towards environmental degradation.
Thus, the specific objectives of this study were to examine the sustainable manufacturing
practices undertaken by the SMEs manufacturers; to identify the association between
business profile of SMEs manufacturers and the adoption of sustainable manufacturing
practices; to determine the factors that motivate SMEs manufacturers to adopt
sustainable manufacturing practices and to predict the most influential factors influencing
the SMEs manufacturers towards the adoption of sustainable manufacturing practices.
A total of 378 food and beverages SMEs were selected as respondents and the
questionnaires were distributed. Only 375 of the questionnaires were used for analysis,
while three questionnaires were discarded due to the incomplete information. The data
was analysed using several statistical analyses, namely descriptive analysis, mean
ranking analysis, Chi-Square analysis, factor analysis, and logistic regression analysis.
Based on the descriptive analysis, majority of the food and beverages SMEs participated
in this research have annual sales turnover between RM300000 to RM15 Millions, which
are categorized as small SMEs. Mean ranking analysis showed that most of the SMEs
reasoned they have never received summons on environmental problems as the basis to
not adopt sustainable practices. Chi-square analysis was conducted to investigate the association between business profile of food and beverages SME‟s and the adoption of
sustainable practices. The result showed that adoption of sustainable practices has
positive significant association with region of SMEs.
The factor analysis revealed four main factors that influenced the adoption of sustainable
practices, namely knowledge, economic benefit, stakeholder demand, and financial
incentives. Finally, the logistic regression analysis indicated that knowledge, annual sales
turnover, and region were the most influential factors that influenced the adoption of
sustainable practices among food and beverages SMEs. Based on the findings from the
present study, it is highly recommended to involve related agencies to improve the
adoption of sustainable practices by providing training programmes to extend the
knowledge on sustainable practices among food and beverages SMEs. |
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