Integrating extended theory of planned behaviour and norm activation model to examine the effects of environmental practices among Malaysian companies

Abstract

Purpose Objectively, this study aims to recognise the antecedents that influence the managers’ environmental practices behavioural intention and its impact on their companies’ performance, namely, environmental and perceived future financial performance. Design/methodology/approach Standardised structured questionnaires are distributed through the investor relations department where the targeted respondents must be ranked manager position and above. A total of 107 usable responses were collected. To analyse the data collected, partial least square structural equation modelling is use. Findings Empirically, subjective and corporate norms are positively influencing the managers’ environmental practices intention. Corporate norm has the greatest effects among the antecedents. Furthermore, managers’ environmental practices intention is also found influential to their behaviour. Subsequently, the managers’ environmental practices behaviour is also positively influencing both environmental and perceived future financial performance. In which, managers’ environmental practices behaviour has a larger effect on their companies’ environmental performance. Finally, environmental performance is also positively influencing the perceived future financial performance. Research limitations/implications This study enhance the theoretical framework by integrating the extended theory of planned behaviour and norm activation model and extend the original theory of planned behaviour. Also, the greatest effect on corporate norm suggests companies to embrace corporate responsibilities internally to protect the environment. Practically, this study also provides few suggestions to the management so that they can cultivate environmentally friendly behaviour among the employees. Originality/value This study is integrating the extended theory of planned behaviour and norm activation model to examine the antecedents to the environmental practices intention among managers of the Malaysia listed companies and extends the original theory of planned behaviour to examine the impact of environmental practices behaviour to companies’ performance.