iv
TABLE OF CONTENTS PAGE
DECLARATION DEDICATION
ABSTRACT i
ABSTRAK ii
ACKNOWLEDGEMENTS iii
TABLE OF CONTENTS iv
LIST OF TABLES vii
LIST OF FIGURES x
LIST OF APPENDICES xi
LIST OF ABBREVIATIONS xii
LIST OF PUBLICATIONS xv
CHAPTER 1. INTRODUCTION
1
1.1 Preliminary
1 1.2
Sustainability in manufacturing 4
1.3 Research motivation
10 1.4
Research questions 16
1.5 Research objectives
16 1.6
Research scope 17
1.7 Research significance
17 1.8
Thesis organization 19
2. LITERATURE REVIEW 21
2.1 Preliminary
21 2.2
Sustainability and sustainable manufacturing SM 21
2.3 Sustainable manufacturing practice SMP
25 2.3.1 Internal sustainable manufacturing practice Internal SMP 30
2.3.2 External sustainable manufacturing practice External SMP
34 2.4
Innovation 39
2.4.1 Innovation performance IP 43
2.5 Theoretical foundation
47 2.5.1 Resource-based view RBV theory
47 2.5.2 Stakeholder theory
49 2.6
Theoretical framework 52
2.6.1 Sustainable manufacturing practice SMP and sustainability performance SP
54 2.6.1.1 Sustainable manufacturing practice SMP and
economic sustainability 57
2.6.1.2 Sustainable manufacturing practice SMP and environmental sustainability
62 2.6.1.3 Sustainable manufacturing practice SMP and
social sustainability 64
2.6.2 SMP, innovation performance IP and sustainability performance SP
66
v 2.6.2.1 Sustainable manufacturing practice SMP and
innovation performance IP 69
2.6.2.2 Innovation performance IP and sustainability performance SP
72 2.6.2.3 Innovation performance IP as a mediator
76 2.7
Summary 78
3. RESEARCH METHOD 79
3.1 Preliminary
79 3.2
Research process 80
3.3 Item measure development
83 3.3.1 Exogenous latent variables
84 3.3.2 Endogenous latent variables
93 3.4
Questionnaire development 101
3.4.1 Construction of initial questionnaire 101
3.4.2 Pre-test 101
3.4.3 Pilot test 102
3.5 Survey administration
104 3.5.1 Survey plan
104 3.5.2 Survey implementation
106 3.5.3 Response analysis
108 3.6
Data analysis 112
3.6.1 Descriptive analysis 112
3.6.2 PLS-SEM 113
3.6.2.1 Measurement model validation 114
3.6.2.2 Structural model analysis 116
3.6.2.3 Structural model 1 through structural model 9 119
3.7 Summary
126
4. RESULT AND DISCUSSION 127
4.1 Preliminary
127 4.2
Descriptive analysis of respondent 127
4.3 Measurement model validation
132 4.3.1 Exogenous variables
133 4.3.2 Endogenous variables
141 4.4
Descriptive analysis of variable 149
4.5 Structural model analysis
152 4.5.1 Hypothesis 1 results SMP→SP
154 4.5.2 Hypothesis 2 results SMP→IP→SP
157 4.5.3 Validated model
171 4.6
Discussion 174
4.6.1 The level of SMP, SP and IP 174
4.6.2 The impact of SMP on SP 177
4.6.2.1 The impact of SMP on economic sustainability 178
4.6.2.2 The impact of SMP on environmental sustainability
181 4.6.2.3 The impact of SMP on social sustainability
182 4.6.3 Mediating effect of IP on SMP-SP linkage
184 4.6.3.1 Mediating effect of product innovation on SMP-
SP linkage 185
vi 4.6.3.2 Mediating effect of process innovation on SMP-
SP linkage 187
4.6.3.3 Mediating effect of organizational innovation on SMP-SP linkage
189 4.6.3.4 Mediating effect of marketing innovation on
SMP-SP linkage 190
4.6.4 Validated model 192
4.7 Summary
194
5. CONCLUSION AND FUTURE RESEARCH 196
