EXPLORING GREEN-DIGITAL INTEGRATION AND FIRM PERFORMANCE IN MALAYSIA'S AUTOMOTIVE INDUSTRY: A CONCEPTUAL FRAMEWORK
DOI:
https://doi.org/10.35631/AIJBES.828039Keywords:
Automotive Industry, Digital Technology Capabilities, Dynamic Capability View (DCV), Green Resources, Resource-Based View (RBV)Abstract
This article examines the relationship between green resources, digital technology capabilities, and firm performance within the Malaysian automotive industry. Despite growing attention to sustainability, the industry continues to operate under a linear “take-make-dispose” model. Consequently, contributes substantially to greenhouse gas emissions through material and energy consumption. This conceptual article draws from the underpinning theories, the Resource-Based View (RBV) and the Dynamic Capabilities View (DCV). The green resources encompassing eco-friendly materials, waste recovery, water and energy conservation, green technology, and skilled personnel represent valuable, rare, inimitable, and non-substitutable (VRIN) characteristics. However, their potential to enhance firm performance remains partially absent without suitable activation mechanisms. We argue that digital technology capabilities (sensing, learning, integrating, and coordinating) serve as a mediating enabler that transforms static green resources into dynamic performance outcomes. A framework and four testable hypotheses are developed and contribute to the sustainability literature by bridging the RBV and DCV in an emerging economy context. This study offers practical insights for managers and policymakers seeking to align digital transformation with circular economy goals.
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