The influence of institutional pressures on the implementation of sustainability risk management in Malaysian palm oil mills

Sustainability risk management (SRM) has emerged as an important management control system in recent years and serves as a means to reduce sustainability issues arising as a consequence of a company’s operations. Despite the increasing interest, the implementation of SRM remains scarce, and Malaysia...

Full description

Bibliographic Details
Main Authors: Abdul Razak, Shazrul Ekhmar, Mustapha, Mazlina, Mohammed Shah, Sabarina
Format: Article
Language:English
Published: Universiti Putra Malaysia 2025
Online Access:http://psasir.upm.edu.my/id/eprint/120962/
http://psasir.upm.edu.my/id/eprint/120962/1/120962.pdf
_version_ 1848868259570384896
author Abdul Razak, Shazrul Ekhmar
Mustapha, Mazlina
Mohammed Shah, Sabarina
author_facet Abdul Razak, Shazrul Ekhmar
Mustapha, Mazlina
Mohammed Shah, Sabarina
author_sort Abdul Razak, Shazrul Ekhmar
building UPM Institutional Repository
collection Online Access
description Sustainability risk management (SRM) has emerged as an important management control system in recent years and serves as a means to reduce sustainability issues arising as a consequence of a company’s operations. Despite the increasing interest, the implementation of SRM remains scarce, and Malaysia is no exception. This paper aims to provide useful insight by investigating the influence of institutional pressures on the implementation of SRM by Malaysian companies. Drawing on institutional theory, this paper aims to examine the influence of regulatory, competitive, and normative pressures on the implementation of SRM in Malaysian palm oil mills. A survey questionnaire was distributed to 407 managers of palm oil mills across Malaysia between July and December 2020, with a response rate of 28.9%. The data from 118 usable questionnaires were analysed using partial least squares structural equation modelling (PLS-SEM). The findings highlight that regulatory pressure and competitive pressure significantly influence the implementation of SRM. The findings contribute to institutional research by understanding the reasons behind SRM implementation in developing country settings. Practically, the findings provide useful insights for policymakers to initiate the implementation of SRM to address sustainability issues.
first_indexed 2025-11-15T14:49:33Z
format Article
id upm-120962
institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T14:49:33Z
publishDate 2025
publisher Universiti Putra Malaysia
recordtype eprints
repository_type Digital Repository
spelling upm-1209622025-10-17T01:15:24Z http://psasir.upm.edu.my/id/eprint/120962/ The influence of institutional pressures on the implementation of sustainability risk management in Malaysian palm oil mills Abdul Razak, Shazrul Ekhmar Mustapha, Mazlina Mohammed Shah, Sabarina Sustainability risk management (SRM) has emerged as an important management control system in recent years and serves as a means to reduce sustainability issues arising as a consequence of a company’s operations. Despite the increasing interest, the implementation of SRM remains scarce, and Malaysia is no exception. This paper aims to provide useful insight by investigating the influence of institutional pressures on the implementation of SRM by Malaysian companies. Drawing on institutional theory, this paper aims to examine the influence of regulatory, competitive, and normative pressures on the implementation of SRM in Malaysian palm oil mills. A survey questionnaire was distributed to 407 managers of palm oil mills across Malaysia between July and December 2020, with a response rate of 28.9%. The data from 118 usable questionnaires were analysed using partial least squares structural equation modelling (PLS-SEM). The findings highlight that regulatory pressure and competitive pressure significantly influence the implementation of SRM. The findings contribute to institutional research by understanding the reasons behind SRM implementation in developing country settings. Practically, the findings provide useful insights for policymakers to initiate the implementation of SRM to address sustainability issues. Universiti Putra Malaysia 2025 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/120962/1/120962.pdf Abdul Razak, Shazrul Ekhmar and Mustapha, Mazlina and Mohammed Shah, Sabarina (2025) The influence of institutional pressures on the implementation of sustainability risk management in Malaysian palm oil mills. International Journal of Economics and Management, 19 (2). pp. 149-165. ISSN 1823-836X; eISSN: 2600-9390 http://www.ijem.upm.edu.my/vol19no2/1)%20The%20Influence%20of%20Institutional%20Pressures.pdf 10.47836/ijeam.19.2.01
spellingShingle Abdul Razak, Shazrul Ekhmar
Mustapha, Mazlina
Mohammed Shah, Sabarina
The influence of institutional pressures on the implementation of sustainability risk management in Malaysian palm oil mills
title The influence of institutional pressures on the implementation of sustainability risk management in Malaysian palm oil mills
title_full The influence of institutional pressures on the implementation of sustainability risk management in Malaysian palm oil mills
title_fullStr The influence of institutional pressures on the implementation of sustainability risk management in Malaysian palm oil mills
title_full_unstemmed The influence of institutional pressures on the implementation of sustainability risk management in Malaysian palm oil mills
title_short The influence of institutional pressures on the implementation of sustainability risk management in Malaysian palm oil mills
title_sort influence of institutional pressures on the implementation of sustainability risk management in malaysian palm oil mills
url http://psasir.upm.edu.my/id/eprint/120962/
http://psasir.upm.edu.my/id/eprint/120962/
http://psasir.upm.edu.my/id/eprint/120962/
http://psasir.upm.edu.my/id/eprint/120962/1/120962.pdf