Sustainable technologies and organizational performance in an emerging country SMEs

Abstract

Systematic reviews have investigated and assessed the impact of technology on firm’s performance, yet sustainable technology adoption (STA) in SMEs remains a largely neglected topic of research. There is consequently, justification to enhance our understanding about factors that affect STA and how they impact SMEs’ performance. Drawing on TRA and TPB, the main purpose of this study is to develop and test a theoretical model examining the attitudes driving adoption of sustainable technology and the impact on the economic, social and environmental performance of Malaysian SMEs. The data were collected using the survey method comprising 297 answers given by Malaysian SMEs, which are analyzed using the PLS-SEM technique. The major findings indicate that affective attitudes, altruism, government support, and government subsidies significantly influence the adoption of sustainable technology. The findings have strategic and profound implications for sustainable technology in the growing Malaysia’s growing SME sector. The government should devise and implement policies, regulations, and support infrastructure for SMEs in implementing their sustainable technology adoption program. The outcomes of this research have important ramifications for designing appropriate strategies for addressing the challenges posed by rapid changes occurring in contemporary Malaysian society. The results of this research is unique because it reinforces the claim that affective attitude, altruism, government support, and government subsidies significantly influence the adoption of sustainable technology. Outcomes of this research contribute to a better theoretical explanation of the antecedents of adopting sustainable technology in Malaysia’s emerging market economy. The integrated model devised and tested here provides useful insights into the adoption of sustainable technology in the Malaysian SME sector where such a finding is scant.