Green Practices, Green Innovation, and Green Performance in Malaysian automotive industry

The purpose of this study is to investigate the structural relationship between Green Practices (GP), Green Innovation (GI), and Green Performance (GPM). This quantitative study developed a model for the Malaysian automotive industry which incorporates the three variables. A survey through questionnaire was conducted to determine the level of GP implementation, GI as well as GPM measurement. A number of 230 sets of questionnaire were successfully collected from Malaysian automotive companies which yielded a 57.5% response rate. Structural equation modeling technique was used to test the statistical analysis of the data required in the study. Exploratory factor analysis, confirmatory factor analysis and reliability analysis to test construct validity, reliability, and measurements loading were performed. The testing and confirmation results reveal that GI does not affect the relationship between GP and GPM. However, the study suggests that GI assists in improving GPM when coupled with GP. In short, the impact of GP implementation on GPM increases with a mediating of GI practices in the Malaysian automotive industry. This study also contributes to the knowledge on green management and practical guidelines for automotive practitioners to improve their green performance.