Greening Malaysian MSMES: An Exploration of Environmental Sustainability Practices

Abstract

Environmental sustainability (ES) is increasingly crucial in contemporary business, driven by mimetic, normative, and coercive pressures. As a mandatory element in the Triple-Bottom-Line concept, ES is integral to business performance. Environmental degradation poses significant challenges to businesses and society, highlighting the importance of MSMEs' engagement in ES practices. Despite their economic significance, MSMEs have not been widely recognized for their involvement in ES initiatives. Understanding their motivations, influenced by mimetic, normative, and coercive pressures, is essential to foster greater participation. This qualitative study explores ES practices among Malaysian MSMEs and elucidates the underlying reasons driving their engagement. Semi-structured interviews with 22 MSME owners in the Klang Valley region revealed that MSMEs primarily engage in ES practices due to mandatory requirements driven by coercive pressures, focusing on basic energy conservation and waste management. These findings contribute to the literature and provide insights for policymakers to design incentives and programs aimed at promoting greater MSME involvement in environmental sustainability.