Does Environmental Collaboration Matter? Evidence on Environmental and Financial Performance of Malaysian Manufacturing Sector

Abstract

The financial performance of business organisations is increasingly being affected by the societal needs to protect the environment. Collaboration with various stakeholders, including suppliers, customers/consumers and communities, enables firms to achieve their strategic outcomes as well as performance. This study focuses on environmental collaboration with various stakeholders as a capability for enhancing the firms’ environmental and financial performance. In total, 124 completed questionnaires were received from proactive environmental manufacturing companies in Malaysia. The findings show that all relationships of the hypotheses are significant. The significant linkage between collaboration with various stakeholders and environmental performance is a pathway for the former to an excellent financial performance. The novel and beneficial impact of environmental collaboration with various stakeholders on firm performances are also unearthed in this study.