Sustainable value chain practice adoption to improve strategic environmentalism in ICT-based industries

Abstract

Purpose This paper aims to investigate the current value chain activities grounded on Porter’s value chain theory and to examine the drivers of strategic environmentalism that influence sustainable value chain adoption. This study further constructs a prescriptive model to reveal the extent to which information communication technology (ICT)-based industries are adopting sustainable value chain practices. Design/methodology/approach Data were collected using questionnaire from selected ISO 14000/14001-certified ICT-based firms in Malaysia and analyzed using partial least square-structural equation modeling. Findings Results reveal that the primary activities positively influence sustainable value chain. Moreover, results indicate that support activities significantly influence sustainable value chain adoption in ICT-based firms. Results further show that strategic environmentalism drivers have an impact on sustainable value chain adoption. Research limitations/implications Data were collected from ICT-based industries in Malaysia only. Additionally, this research extends the body of knowledge and offers theoretical implications for ICT-based industries in Malaysia and other emerging economies in adopting sustainable value chain activities. Practical implications Practically, this study assists ICT-based industries to change their current paradigm from the traditional operations to a more holistic approach toward supporting practitioners to simultaneously achieve social responsibility, environmental and economic growth. Social implications This study offers social implications for ICT-based industries to implement cleaner operations by decreasing CO2 emission, lessening energy usage, diminishing cost incurred and minimizing usage of natural resources, thereby increasing product recovery and recycle-ability of IT hardware. Originality/value This study is one of the first to address the issue related to sustainable value chain in ICT-based industry by providing a roadmap on how practitioners can implement sustainable initiatives or more significantly, how to infuse these initiatives in their current chain, while concurrently enhancing competitiveness. Furthermore, this paper examines the current activities implemented by practitioners toward sustainable value chain adoption and explores the correlation of the drivers of strategic environmentalism with regard to sustainable value chain.