- Investigation of Shariah Compliant Green Firm Performance Using Eco-Efficient Infrastructure and Green Organizational Capabilities:
The Intervening Role of Shariah Compliant Sustainable Production.
Keywords:
Eco-Efficient infrastructure, Green Organizational Capabilities, Shariah Compliant Sustainable Production, Shariah Compliant Firm Green Performance
Abstract
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The primary goal of this study is to investigate the impact of eco-efficient infrastructure and organizational capabilities on shariah compliant shariah compliant green organizational performance, with shariah compliant sustainable production serving as a moderator. To achieve the study's goal, data were collected from 528 respondents in the manufacturing sector using a stratified sampling technique. The findings showed that a firm's eco-efficient infrastructure and organizational capabilities play an important role in achieving green performance; additionally, Shariah-Compliant Sustainable Production plays an important mediating role. This study contributes to the development of policies for organizations to improve their green performance and theoretically eco-efficient infrastructure, which has been overlooked in previous literature.
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References
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Al-Haddad, A. A., & Rahmad, D. (2016). Integrating Islamic values into corporate social responsibility reporting: An empirical study. Journal of Business Ethics, 139(2), 243-265.
Ahmed, R. R., Akbar, W., Aijaz, M., Channar, Z. A., Ahmed, F., & Parmar, V. (2023). The role of green innovation on environmental and organizational performance: Moderation of human resource practices and management commitment. Heliyon, 9(1).
Ahmed, R. R., Streimikiene, D., & Zheng, X. (2021). The impact of proactive environmental strategy on competitive and sustainable development of organizations. Journal of Competitiveness.
Akgün, A. E., Keskin, H., & Byrne, J. (2009). Organizational emotional capability, product and process innovation, and firm performance: An empirical analysis. Journal of Engineering and Technology Management, 26(3), 103-130.
Awaysheh, A., & Klassen, R. D. (2010). The impact of supply chain structure on the use of supplier socially reSCSPonsible practices. International Journal of Operations & Production Management, 30(12), 1246-1268.
Babu, S., Das, A., Singh, R., Mohapatra, K., Kumar, S., Rathore, S. S., . . . Panwar, A. (2023). Designing an energy efficient, economically feasible, and environmentally robust integrated farming system model for sustainable food production in the Indian Himalayas. Sustainable Food Technology, 1(1), 126-142.
Berl, A., Gelenbe, E., Di Girolamo, M., Giuliani, G., De Meer, H., Dang, M. Q., & Pentikousis, K. (2010). Energy-efficient cloud computing. The computer journal, 53(7), 1045-1051.
Bertassini, A. C., Ometto, A. R., Severengiz, S., & Gerolamo, M. C. (2021). Circular economy and sustainability: The role of organizational behaviour in the transition journey. Business Strategy and the Environment, 30(7), 3160-3193.
Bleischwitz, R., & Hennicke, P. (2004). Eco-efficiency, regulation, and sustainable business: towards a governance structure for sustainable development: Edward Elgar Publishing.
Bocken, N. M., Niessen, L., & Short, S. W. (2022). The sufficiency-based circular economy—an analysis of 150 companies. Frontiers in Sustainability, 3, 899289.
Boesch, D. F. (2006). Scientific requirements for ecosystem-based management in the restoration of Chesapeake Bay and Coastal Louisiana. Ecological engineering, 26(1), 6-26.
Cai, W., Wang, L., Li, L., Xie, J., Jia, S., Zhang, X., . . . Lai, K.-h. (2022). A review on methods of energy performance improvement towards sustainable manufacturing from perSCSPectives of energy monitoring, evaluation, optimization and benchmarking. Renewable and Sustainable Energy Reviews, 159, 112227.
Chew, M. Y., Conejos, S., & Azril, F. H. B. (2019). Design for maintainability of high-rise vertical green facades. Building Research & Information, 47(4), 453-467.
du Bois, A., & Sabri, N. A. (2016). The evolution of Islamic stakeholder theory: A review of the literature. Journal of Business Ethics, 139(2), 187-206.
Duque Ciceri, N., Garetti, M., & SCSPerandio, S. (2010). From product end-of-life sustainable considerations to design management. Paper presented at the Advances in Production Management Systems. New Challenges, New Approaches: IFIP WG 5.7 International Conference, APMS 2009, Bordeaux, France, September 21-23, 2009, Revised Selected Papers.
Fitzgerald, J. (2010). Emerald cities: Urban sustainability and economic development: Oxford University Press.
Freudenreich, B., Lüdeke-Freund, F., & Schaltegger, S. (2020). A stakeholder theory perSCSPective on business models: Value creation for sustainability. Journal of Business Ethics, 166, 3-18.
Garvare, R., & Johansson, P. (2010). Management for sustainability–a stakeholder theory. Total quality management, 21(7), 737-744.
Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner Production, 114, 11-32.
Giannakis, M., & Papadopoulos, T. (2016). Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, 455-470.
Hassan, M., & Ali, M. I. (2014). Islamic perspective on corporate social responsibility and stakeholder theory: A critical review. Journal of Business Ethics, 123(4), 629-648.
Hair, J., Joe F, Sarstedt, M., Matthews, L. M., & Ringle, C. M. (2016). Identifying and treating unobserved heterogeneity with FIMIX-PLS: part I–method. European business review, 28(1), 63-76.
Henningsson, S., Hyde, K., Smith, A., & Campbell, M. (2004). The value of resource efficiency in the food industry: a waste minimisation project in East Anglia, UK. Journal of Cleaner Production, 12(5), 505-512.
Hörisch, J., Freeman, R. E., & Schaltegger, S. (2014). Applying stakeholder theory in sustainability management: Links, similarities, dissimilarities, and a conceptual framework. Organization & Environment, 27(4), 328-346.
Jayamaha, D. L. (2007). Energy-efficient building systems: Mcgraw-hill publishing Company.
Khan, U., & Liu, W. (2023). Does environmental reSCSPonsible effect human resources management practice on firm effectiveness and green technology innovation? Environmental Science and Pollution Research, 30(13), 36160-36175.
King, A. A., & Lenox, M. J. (2001). Does it really pay to be green? An empirical study of firm environmental and financial performance: An empirical study of firm environmental and financial performance. Journal of industrial ecology, 5(1), 105-116.
Kujala, J., Heikkinen, A., & Blomberg, A. (2021). Stakeholder Engagement in a Sustainable Circular Economy: Theoretical, methodological and practical perSCSPectives.
Kumar, A. DESIGN OF A SUSTAINABLE HABITAT.
Lages, L. F., Catarino, N., Gomes, E., Toh, P., Reis-Marques, C., Mohr, M., . . . Grosso, N. (2023). Solutions for the commercialization challenges of Horizon Europe and earth observation consortia: co-creation, innovation, decision-making, tech-transfer, and sustainability actions. Electronic Commerce Research, 1-43.
Lee, V.-H., Ooi, K.-B., Chong, A. Y.-L., & Seow, C. (2014). Creating technological innovation via green supply chain management: An empirical analysis. Expert Systems with Applications, 41(16), 6983-6994.
Li, Y., Li, Z., Xing, B., Li, H., Ma, Z., Zhang, W., . . . Wang, S. (2021). Green conversion of bamboo chips into high-performance phenol adsorbent and supercapacitor electrodes by simultaneous activation and nitrogen doping. Journal of analytical and applied pyrolysis, 155, 105072.
Lopes de Sousa Jabbour, A. B., Jabbour, C. J. C., Godinho Filho, M., & Roubaud, D. (2018). Industry 4.0 and the circular economy: a proposed research agenda and original roadmap for sustainable operations. Annals of Operations Research, 270, 273-286.
Mastini, R., Kallis, G., & Hickel, J. (2021). A green new deal without growth? Ecological Economics, 179, 106832.
Mathivathanan, D., Agarwal, V., Mathiyazhagan, K., Saikouk, T., & Appolloni, A. (2022). Modeling the pressures for sustainability adoption in the Indian automotive context. Journal of Cleaner Production, 342, 130972.
Molina‐Azorín, J. F., Claver‐Cortés, E., López‐Gamero, M. D., & Tarí, J. J. (2009). Green management and financial performance: a literature review. Management decision, 47(7), 1080-1100.
Mondal, S., & Sahu, T. N. (2023). Do green initiatives and green performance affect firm performance? Empirical evidence from India. Asian Journal of Business Ethics, 1-17.
Montalván Burbano, N. (2020). La Gestión de los Grupos de Interés y el desarrollo de capacidades en la empresa: Estudio sobre la Innovación Organizativa y la Gestión Ambiental en el sector hotelero en el Ecuador.
Nguyen, X. H., Nguyen, K. L., Nguyen, T. V. H., Nguyen, T. T. H., & Ta, V. L. (2023). The Impact of Green Organizational Capabilities on Competitive Advantage of Construction Enterprises in Vietnam: The Mediating Role of Green Innovation. Sustainability, 15(16), 12371.
Omer, A. M. (2008a). Energy, environment and sustainable development. Renewable and Sustainable Energy Reviews, 12(9), 2265-2300.
Omer, A. M. (2008b). Green energies and the environment. Renewable and Sustainable Energy Reviews, 12(7), 1789-1821.
Rashed, A.-A. A., & Abdallah, A. A. M. (2016). Islamic perspectives on stakeholder management: A conceptual framework. Journal of Business Ethics, 139(2), 225-242.
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of applied psychology, 88(5), 879.
Rahman, M., Abd Wahab, S., & Latiff, A. S. A. (2023). The Underlying Theories of Organizational Sustainability: The Motivation PerSCSPective. Journal of Business and Management Studies, 5(1), 181-193.
Rasoolimanesh, S. M. (2022). Discriminant validity assessment in PLS-SEM: A comprehensive composite-based approach. Data Analysis PerSCSPectives Journal, 3(2), 1-8.
Ringle, C. M. (2005). SmartPLS 2.0 (M3). http://www. smartpls. de.
Saroop, S. H., & Allopi, D. (2016). The use of eco efficient criteria in the design of infrastructure projects. International Journal of Sustainable Development and Planning, 11(1), 15-22.
Singh, R., Khan, S., & Dsilva, J. (2023). A framework for assessment of critical factor for circular economy practice implementation. Journal of Modelling in Management, 18(5), 1476-1497.
Su, L., & Swanson, S. R. (2019). Perceived corporate social reSCSPonsibility's impact on the well-being and supportive green behaviors of hotel employees: The mediating role of the employee-corporate relationship. Tourism management, 72, 437-450.
Veleva, V., & Ellenbecker, M. (2001). Indicators of sustainable production: framework and methodology. Journal of Cleaner Production, 9(6), 519-549.
Waddock, S. A., Bodwell, C., & Graves, S. B. (2002). ReSCSPonsibility: The new business imperative. Academy of management perSCSPectives, 16(2), 132-148.
Wang, Z., Yang, L., Yin, J., & Zhang, B. (2018). Assessment and prediction of environmental sustainability in China based on a modified ecological footprint model. Resources, Conservation and Recycling, 132, 301-313.
Xie, S., & Hayase, K. (2007). Corporate environmental performance evaluation: a measurement model and a new concept. Business Strategy and the Environment, 16(2), 148-168.
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.
Yang, M., Chen, L., Msigwa, G., Tang, K. H. D., & Yap, P.-S. (2022). Implications of COVID-19 on global environmental pollution and carbon emissions with strategies for sustainability in the COVID-19 era. Science of the Total Environment, 809, 151657.
Al-Haddad, A. A., & Rahmad, D. (2016). Integrating Islamic values into corporate social responsibility reporting: An empirical study. Journal of Business Ethics, 139(2), 243-265.
Ahmed, R. R., Akbar, W., Aijaz, M., Channar, Z. A., Ahmed, F., & Parmar, V. (2023). The role of green innovation on environmental and organizational performance: Moderation of human resource practices and management commitment. Heliyon, 9(1).
Ahmed, R. R., Streimikiene, D., & Zheng, X. (2021). The impact of proactive environmental strategy on competitive and sustainable development of organizations. Journal of Competitiveness.
Akgün, A. E., Keskin, H., & Byrne, J. (2009). Organizational emotional capability, product and process innovation, and firm performance: An empirical analysis. Journal of Engineering and Technology Management, 26(3), 103-130.
Awaysheh, A., & Klassen, R. D. (2010). The impact of supply chain structure on the use of supplier socially reSCSPonsible practices. International Journal of Operations & Production Management, 30(12), 1246-1268.
Babu, S., Das, A., Singh, R., Mohapatra, K., Kumar, S., Rathore, S. S., . . . Panwar, A. (2023). Designing an energy efficient, economically feasible, and environmentally robust integrated farming system model for sustainable food production in the Indian Himalayas. Sustainable Food Technology, 1(1), 126-142.
Berl, A., Gelenbe, E., Di Girolamo, M., Giuliani, G., De Meer, H., Dang, M. Q., & Pentikousis, K. (2010). Energy-efficient cloud computing. The computer journal, 53(7), 1045-1051.
Bertassini, A. C., Ometto, A. R., Severengiz, S., & Gerolamo, M. C. (2021). Circular economy and sustainability: The role of organizational behaviour in the transition journey. Business Strategy and the Environment, 30(7), 3160-3193.
Bleischwitz, R., & Hennicke, P. (2004). Eco-efficiency, regulation, and sustainable business: towards a governance structure for sustainable development: Edward Elgar Publishing.
Bocken, N. M., Niessen, L., & Short, S. W. (2022). The sufficiency-based circular economy—an analysis of 150 companies. Frontiers in Sustainability, 3, 899289.
Boesch, D. F. (2006). Scientific requirements for ecosystem-based management in the restoration of Chesapeake Bay and Coastal Louisiana. Ecological engineering, 26(1), 6-26.
Cai, W., Wang, L., Li, L., Xie, J., Jia, S., Zhang, X., . . . Lai, K.-h. (2022). A review on methods of energy performance improvement towards sustainable manufacturing from perSCSPectives of energy monitoring, evaluation, optimization and benchmarking. Renewable and Sustainable Energy Reviews, 159, 112227.
Chew, M. Y., Conejos, S., & Azril, F. H. B. (2019). Design for maintainability of high-rise vertical green facades. Building Research & Information, 47(4), 453-467.
du Bois, A., & Sabri, N. A. (2016). The evolution of Islamic stakeholder theory: A review of the literature. Journal of Business Ethics, 139(2), 187-206.
Duque Ciceri, N., Garetti, M., & SCSPerandio, S. (2010). From product end-of-life sustainable considerations to design management. Paper presented at the Advances in Production Management Systems. New Challenges, New Approaches: IFIP WG 5.7 International Conference, APMS 2009, Bordeaux, France, September 21-23, 2009, Revised Selected Papers.
Fitzgerald, J. (2010). Emerald cities: Urban sustainability and economic development: Oxford University Press.
Freudenreich, B., Lüdeke-Freund, F., & Schaltegger, S. (2020). A stakeholder theory perSCSPective on business models: Value creation for sustainability. Journal of Business Ethics, 166, 3-18.
Garvare, R., & Johansson, P. (2010). Management for sustainability–a stakeholder theory. Total quality management, 21(7), 737-744.
Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner Production, 114, 11-32.
Giannakis, M., & Papadopoulos, T. (2016). Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, 455-470.
Hassan, M., & Ali, M. I. (2014). Islamic perspective on corporate social responsibility and stakeholder theory: A critical review. Journal of Business Ethics, 123(4), 629-648.
Hair, J., Joe F, Sarstedt, M., Matthews, L. M., & Ringle, C. M. (2016). Identifying and treating unobserved heterogeneity with FIMIX-PLS: part I–method. European business review, 28(1), 63-76.
Henningsson, S., Hyde, K., Smith, A., & Campbell, M. (2004). The value of resource efficiency in the food industry: a waste minimisation project in East Anglia, UK. Journal of Cleaner Production, 12(5), 505-512.
Hörisch, J., Freeman, R. E., & Schaltegger, S. (2014). Applying stakeholder theory in sustainability management: Links, similarities, dissimilarities, and a conceptual framework. Organization & Environment, 27(4), 328-346.
Jayamaha, D. L. (2007). Energy-efficient building systems: Mcgraw-hill publishing Company.
Khan, U., & Liu, W. (2023). Does environmental reSCSPonsible effect human resources management practice on firm effectiveness and green technology innovation? Environmental Science and Pollution Research, 30(13), 36160-36175.
King, A. A., & Lenox, M. J. (2001). Does it really pay to be green? An empirical study of firm environmental and financial performance: An empirical study of firm environmental and financial performance. Journal of industrial ecology, 5(1), 105-116.
Kujala, J., Heikkinen, A., & Blomberg, A. (2021). Stakeholder Engagement in a Sustainable Circular Economy: Theoretical, methodological and practical perSCSPectives.
Kumar, A. DESIGN OF A SUSTAINABLE HABITAT.
Lages, L. F., Catarino, N., Gomes, E., Toh, P., Reis-Marques, C., Mohr, M., . . . Grosso, N. (2023). Solutions for the commercialization challenges of Horizon Europe and earth observation consortia: co-creation, innovation, decision-making, tech-transfer, and sustainability actions. Electronic Commerce Research, 1-43.
Lee, V.-H., Ooi, K.-B., Chong, A. Y.-L., & Seow, C. (2014). Creating technological innovation via green supply chain management: An empirical analysis. Expert Systems with Applications, 41(16), 6983-6994.
Li, Y., Li, Z., Xing, B., Li, H., Ma, Z., Zhang, W., . . . Wang, S. (2021). Green conversion of bamboo chips into high-performance phenol adsorbent and supercapacitor electrodes by simultaneous activation and nitrogen doping. Journal of analytical and applied pyrolysis, 155, 105072.
Lopes de Sousa Jabbour, A. B., Jabbour, C. J. C., Godinho Filho, M., & Roubaud, D. (2018). Industry 4.0 and the circular economy: a proposed research agenda and original roadmap for sustainable operations. Annals of Operations Research, 270, 273-286.
Mastini, R., Kallis, G., & Hickel, J. (2021). A green new deal without growth? Ecological Economics, 179, 106832.
Mathivathanan, D., Agarwal, V., Mathiyazhagan, K., Saikouk, T., & Appolloni, A. (2022). Modeling the pressures for sustainability adoption in the Indian automotive context. Journal of Cleaner Production, 342, 130972.
Molina‐Azorín, J. F., Claver‐Cortés, E., López‐Gamero, M. D., & Tarí, J. J. (2009). Green management and financial performance: a literature review. Management decision, 47(7), 1080-1100.
Mondal, S., & Sahu, T. N. (2023). Do green initiatives and green performance affect firm performance? Empirical evidence from India. Asian Journal of Business Ethics, 1-17.
Montalván Burbano, N. (2020). La Gestión de los Grupos de Interés y el desarrollo de capacidades en la empresa: Estudio sobre la Innovación Organizativa y la Gestión Ambiental en el sector hotelero en el Ecuador.
Nguyen, X. H., Nguyen, K. L., Nguyen, T. V. H., Nguyen, T. T. H., & Ta, V. L. (2023). The Impact of Green Organizational Capabilities on Competitive Advantage of Construction Enterprises in Vietnam: The Mediating Role of Green Innovation. Sustainability, 15(16), 12371.
Omer, A. M. (2008a). Energy, environment and sustainable development. Renewable and Sustainable Energy Reviews, 12(9), 2265-2300.
Omer, A. M. (2008b). Green energies and the environment. Renewable and Sustainable Energy Reviews, 12(7), 1789-1821.
Rashed, A.-A. A., & Abdallah, A. A. M. (2016). Islamic perspectives on stakeholder management: A conceptual framework. Journal of Business Ethics, 139(2), 225-242.
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of applied psychology, 88(5), 879.
Rahman, M., Abd Wahab, S., & Latiff, A. S. A. (2023). The Underlying Theories of Organizational Sustainability: The Motivation PerSCSPective. Journal of Business and Management Studies, 5(1), 181-193.
Rasoolimanesh, S. M. (2022). Discriminant validity assessment in PLS-SEM: A comprehensive composite-based approach. Data Analysis PerSCSPectives Journal, 3(2), 1-8.
Ringle, C. M. (2005). SmartPLS 2.0 (M3). http://www. smartpls. de.
Saroop, S. H., & Allopi, D. (2016). The use of eco efficient criteria in the design of infrastructure projects. International Journal of Sustainable Development and Planning, 11(1), 15-22.
Singh, R., Khan, S., & Dsilva, J. (2023). A framework for assessment of critical factor for circular economy practice implementation. Journal of Modelling in Management, 18(5), 1476-1497.
Su, L., & Swanson, S. R. (2019). Perceived corporate social reSCSPonsibility's impact on the well-being and supportive green behaviors of hotel employees: The mediating role of the employee-corporate relationship. Tourism management, 72, 437-450.
Veleva, V., & Ellenbecker, M. (2001). Indicators of sustainable production: framework and methodology. Journal of Cleaner Production, 9(6), 519-549.
Waddock, S. A., Bodwell, C., & Graves, S. B. (2002). ReSCSPonsibility: The new business imperative. Academy of management perSCSPectives, 16(2), 132-148.
Wang, Z., Yang, L., Yin, J., & Zhang, B. (2018). Assessment and prediction of environmental sustainability in China based on a modified ecological footprint model. Resources, Conservation and Recycling, 132, 301-313.
Xie, S., & Hayase, K. (2007). Corporate environmental performance evaluation: a measurement model and a new concept. Business Strategy and the Environment, 16(2), 148-168.
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.
Yang, M., Chen, L., Msigwa, G., Tang, K. H. D., & Yap, P.-S. (2022). Implications of COVID-19 on global environmental pollution and carbon emissions with strategies for sustainability in the COVID-19 era. Science of the Total Environment, 809, 151657.
Published
2023-12-28
How to Cite
kashif, uzma. (2023). - Investigation of Shariah Compliant Green Firm Performance Using Eco-Efficient Infrastructure and Green Organizational Capabilities:. Islamic Banking and Finance Review, 10(2), 86-111. Retrieved from https://journals.umt.edu.pk/index.php/IBFR/article/view/5330
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