Examining sustainable business performance determinants in Malaysia upstream petroleum industry
Sustainable business performance involving financial performance, social performance, and environmental performance has been a significant issue in the last decade. However, most studies in the past focused on financial performance instead of sustainable business performance at large. This is even m...
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| Format: | Thesis |
| Language: | English |
| Published: |
2022
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| Subjects: | |
| Online Access: | http://eprints.utm.my/108321/1/SriyantaHadiPAHIBS2022.pdf.pdf |
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| Summary: | Sustainable business performance involving financial performance, social performance, and environmental performance has been a significant issue in the last decade. However, most studies in the past focused on financial performance instead of sustainable business performance at large. This is even more significant for the upstream petroleum industry whereby the industry is not only affected by financial performance due to oil price instability but has also been accused of being a major contributor to environmental issues. Nevertheless, the industry plays a very important role in Malaysia as well as worldwide. Hence, identifying determinants that support an effective change to understand sustainable business performance phenomenon is essential. Accordingly, the objectives of this research are: to identify the determinants associated with sustainable business performance, to examine the mediating effect of sustainable business practices and digital organizational culture, and to determine the moderating effect of oil market turbulence on sustainable business performance in the upstream petroleum industry. Guided by the positivist research paradigm, a quantitative research design was opted to examine the proposed research framework employing PLS-SEM statistical method and cross-sectional data. 220 samples are collected through a snowball sampling strategy involving 21 companies in Malaysia upstream petroleum industry. The empirical findings indicate that organizational learning culture positively and significantly influences sustainable business performance both directly and indirectly. Concurrently, indirect positive and significant influence by digital organization culture is channeled through the mediation effect of sustainable business practices. Sustainable business practices effectively mediate the influence of organizational learning culture and digital organizational culture on sustainable business performance. However, the moderation effect of oil market turbulence on the relationship between sustainable business practices and sustainable business performance is not significant. Deploying the Theory of Performance as underpinning theory, this research explains organization learning culture roles in achieving sustainable business performance beside enrichment in the literature on sustainable business performance and also strengthens understanding of organizational learning culture, digital organizational culture, sustainable business practices, and oil market turbulence in a less explored oil and gas research context. This research provides insights to managers and policymakers in their future decision-making endeavors. The research also has highlighted limitations and suggestions for future research. |
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