DYNAMIC CAPABILITY, ENVIRONMENTAL MANAGEMENT PRACTICES, AND GOVERNMENT SUPPORT AS FACTORS INFLUENCING GREEN ENTREPRENEURSHIP SUCCESS IN MALAYSIAN TOURISM SECTOR
DOI:
https://doi.org/10.35631/IJEMP.933029Keywords:
Dynamic Capability, Environmental Management Practices, Government Support, Green Entrepreneurship Success, Medium-Sized EnterprisesAbstract
The importance of green entrepreneurship as a method of enhancing sustainable development within the Malaysian tourism sector has continued to increase. However, even though numerous national sustainability efforts have been executed, the medium-sized tourism enterprises continue experiencing structural, business, and ability-associated issues that hinder the realization of green entrepreneurial triumphs. To address this gap, the present study considers the success of green entrepreneurship through the consideration of medium-sized enterprises in the Malaysian tourism sector. The data will be collected by use of a cross-sectional research design, where the researcher will concentrate on 373 companies by administering an online survey. This research study will take place with SPSS version 30.0 to perform descriptive analysis and version 4.0 of Partial Least Squares Structural Equation Modelling (PLS-SEM) version 4.0 to examine the correlation between the constructs. This study aims to discover the key antecedents of the success of green entrepreneurship empirically and explain how they are related to each other to generate evidence-based results that can enhance the process of policymaking, strategic decision-making at the enterprise level, and overall transition of Malaysia to a more resilient and sustainable tourism ecosystem.
Downloads
References
Adamchak, R. (2025). organic farming. https://www.britannica.com/topic/organic-farming?utm_source=chatgpt.com
Ali, Q., Salman, A., & Parveen, S. (2022). Evaluating the effects of environmental management practices on environmental and financial performance of firms in Malaysia: the mediating role of ESG disclosure. Heliyon, 8(12). https://doi.org/10.1016/j.heliyon.2022.e12486
Anghel, G. A., & Anghel, M. A. (2022). Green Entrepreneurship among Students—Social and Behavioral Motivation. Sustainability (Switzerland), 14(14). https://doi.org/10.3390/su14148730
Aslam, S., Elmagrhi, M. H., Rehman, R. U., & Ntim, C. G. (2021). Environmental management practices and financial performance using data envelopment analysis in Japan: The mediating role of environmental performance. Business Strategy and the Environment, 30(4), 1655–1673. https://doi.org/10.1002/bse.2700
Barney Jay. (1991). Firm Resources and Sustained Competitive Advantages. Journal of Management , 17(1). https://doi.org/10.1177/014920639101700108
Borah, P. S., Dogbe, C. S. K., & Marwa, N. (2025). Green dynamic capability and green product innovation for sustainable development: Role of green operations, green transaction, and green technology development capabilities. Corporate Social Responsibility and Environmental Management, 32(1), 911–926. https://doi.org/10.1002/csr.2993
Chuong, H. N., Uyen, V. T. P., Ngan, N. D. P., Tram, N. T. B., Han, N. D. M., & Duyen, P. H. K. (2025). The impact of globalization, renewable energy, and labor on sustainable development: A cross-country analysis. PLoS ONE, 20(2 February). https://doi.org/10.1371/journal.pone.0315273
de Andrade, R. D., Benfica, V. C., de Oliveira, H. V. E., & Suchek, N. (2025). Investigating green jobs and sustainability in SMEs: Beyond business operations. Journal of Cleaner Production, 486, 144477. https://doi.org/10.1016/j.jclepro.2024.144477
Deshmukh, P., & Tare, H. (2023). Green marketing and corporate social responsibility: A review of business practices. Multidisciplinary Reviews, 7(3), 2024059. https://doi.org/10.31893/multirev.2024059
Expro. (2024). Leading with integrity and sustainability.
Fan, P., Ren, L., & Zeng, X. (2024). Resident Participation in Environmental Governance of Sustainable Tourism in Rural Destination. Sustainability, 16(18), 8173. https://doi.org/10.3390/su16188173
Fan, Z., Long, R., & Shen, Z. (2024). Regional digitalization, dynamic capabilities and green innovation: Evidence from e-commerce demonstration cities in China. Economic Modelling, 139, 106846. https://doi.org/10.1016/j.econmod.2024.106846
Garrido, I. L., Kretschmer, C., de Vasconcellos, S. L., & Gonçalo, C. R. (2020). Dynamic capabilities: A measurement proposal and its relationship with performance. Brazilian Business Review, 17(1), 46–65. https://doi.org/10.15728/BBR.2020.17.1.3
Hair, J. F., Hult G. Tomas M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM).
Hällerstrand, L., Reim, W., & Malmström, M. (2023). Dynamic capabilities in environmental entrepreneurship: A framework for commercializing green innovations. Journal of Cleaner Production, 402. https://doi.org/10.1016/j.jclepro.2023.136692
Hart, S. L. (1995). A Natural-Resource-Based View of the Firm. Academy of Management Review, 20(4), 986–1014. https://doi.org/10.5465/amr.1995.9512280033
Khaddage-Soboh, N., Yunis, M., Imran, M., & Zeb, F. (2024). Sustainable practices in Malaysian manufacturing: The influence of CSR, transformational leadership, and green organizational culture on environmental performance. Economic Analysis and Policy, 82, 753–768. https://doi.org/10.1016/j.eap.2024.04.001
Li, L., Patwary, A. K., & Mengxiang, L. (2024). Measuring Green Performance in Hotel Industry Through Management Environmental Concern: Mediated by Green Product and Process Innovation. Sage Open, 14(4). https://doi.org/10.1177/21582440241255278
Li, R., & Li, H. (2024). The Impact of Food Packaging Design on Users’ Perception of Green Awareness. Sustainability, 16(18), 8205. https://doi.org/10.3390/su16188205
MEGTWM. (2017). Green-Technology-Master-Plan-Malaysia-2017-2030.
MIDA. (2025). Malaysia’s Path to Sustainable Growth. https://www.mida.gov.my/malaysias-path-to-sustainable-growth/
Mondal, S., & Singh, S. (2025). A bibliometric and thematic analysis of green entrepreneurship in business research: current status and future research directions. In Environment, Development and Sustainability. Springer Science and Business Media B.V. https://doi.org/10.1007/s10668-023-03905-7
MOTAC. (2023). Tourist Accommodation Premises. https://www.motac.gov.my/en/services/registration/tourist-accommodation-premises/category/16-green-hotel
OECD. (2025). OECD 2025. https://www.oecd.org/en/topics/sub-issues/greening-smes/green-entrepreneurship.html
Olubusola Odeyemi, Favour Oluwadamilare Usman, Noluthando Zamanjomane Mhlongo, Oluwafunmi Adijat Elufioye, & Chinedu Ugochukwu Ike. (2023). Sustainable entrepreneurship: A review of green business practices and environmental impact. World Journal of Advanced Research and Reviews, 21(2), 346–358. https://doi.org/10.30574/wjarr.2024.21.2.0461
Pham, K., Andereck, K. L., & Vogt, C. A. (2025). Stakeholders’ involvement in an evidence-based sustainable tourism plan. Journal of Sustainable Tourism, 33(4), 673–696. https://doi.org/10.1080/09669582.2023.2259117
Putri, A. N. A., Hermawan, P., Mirzanti, I. R., Meadows, M., & Sadraei, R. (2025). Unpacking green growth in SMEs: A framework for dynamic capabilities, value co-creation, and sustainable performance. Sustainable Futures, 10, 100840. https://doi.org/10.1016/j.sftr.2025.100840
RMK12. (2021). 2O21-2025 a prosperous, inclusive, sustainable malaysia.
Schaltegger, S., & Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: Categories and interactions. Business Strategy and the Environment, 20(4), 222–237. https://doi.org/10.1002/bse.682
Sendawula, K., Turyakira, P., Akileng, G., & Vincent, B. (2024). Environmental knowledge, regulatory compliance mechanisms, and environmental sustainability practices of manufacturing small and medium enterprises (SMEs) in Uganda. Journal of Innovation and Entrepreneurship, 13(1), 75. https://doi.org/10.1186/s13731-024-00426-z
Sukaris, Hartini, S., Mardhiyah, D., Suwardana, H., & Baskoro, H. (2021). Rural Tourism Sustainable Business Performance: Dynamic Capability Perspective. https://doi.org/10.2991/assehr.k.211020.059
Sulich, A., & Sołoducho-Pelc, L. M. (2025). Sustainable development in production companies: integrating environmental strategy and green management style. Discover Sustainability, 6(1), 434. https://doi.org/10.1007/s43621-025-01152-6
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Teruel-Sanchez, R., Briones-Peñalver, A. J., Bernal-Conesa, J. A., & de Nieves-Nieto, C. (2025). Values of the entrepreneur as a driver of sustainable tourism entrepreneurship. Journal of International Entrepreneurship. https://doi.org/10.1007/s10843-025-00381-0
Wang, H., Khan, M. A. S., Anwar, F., Shahzad, F., Adu, D., & Murad, M. (2021). Green Innovation Practices and Its Impacts on Environmental and Organizational Performance. Frontiers in Psychology, 11. https://doi.org/10.3389/fpsyg.2020.553625
Wang, S., & Zhang, H. (2024). Green entrepreneurship success in the age of generative artificial intelligence: The interplay of technology adoption, knowledge management, and government support. Technology in Society, 79. https://doi.org/10.1016/j.techsoc.2024.102744
Yin, C., Salmador, M. P., Li, D., & Lloria, M. B. (2022). Green entrepreneurship and SME performance: the moderating effect of firm age. International Entrepreneurship and Management Journal, 18(1), 255–275. https://doi.org/10.1007/s11365-021-00757-3
Yusof, R. (2024). The Impact of Economic Innovation and Government Support towards Sustainable Performance of Tourism Entrepreneur in Malaysia. International Journal of Academic Research in Business and Social Sciences, 14(12). https://doi.org/10.6007/IJARBSS/v14-i12/23311
