Light Emitting Diode (LED) Usage in Organizations: Impact on Environmental and Economic Performance

Abstract

Environmental sustainability is receiving serious attention from organizations. Green practices and the use of green technologies such as Light Emitting Diode (LED) among organizations can reduce energy consumption, besides providing numerous benefits to the environment as well as organizations. Using the Belief–Action–Outcome framework, the stakeholder and social contract theory, this study aims to investigate the external and internal factors that influence LED usage, and the subsequent impact this may have on organizational outcomes. Data were collected from 300 Malaysian organizations that were LED users. Findings showed that social expectation had a significant positive influence on organizations’ environmental concern while stakeholder pressure and organizations’ environmental concern had a direct significant positive influence on LED usage. The findings further revealed that LED usage has a positive impact on organizations’ environmental and economic performance. This study contributes to the green and sustainability literature by identifying the relationship between specific macro level and micro level factors, and its link to organizations’ use of LED, and the subsequent impact on organizational outcomes. The identification of the antecedents and consequences of LED usage can help managers to formulate strategies that contribute to green climate within organizations, thereby supporting green technology usage and environmental sustainability.