Developing sustainable technological innovation is more than a goal for the future. It is a survival approach that will inform and ensure the long-term survival of humanity as well as make improvements in humans’ daily lifestyles. Research proves that the acquisition of sustainable technology will eventually reduce the possibility of environmental degradation, pollution and climate change (Parrish, 2007; Guerra et al., 2016; Irandoust, 2016; Moon et al., 2016; Fu et al., 2018; Meijeret al.,2019).Sustainability is a form of development that meets the needs of the present without compromising the ability of future generations to meet their needs (Berardi, 2013). Despite its prominence, this definition does not provide a clear description from an organizational and technological innovation standpoint. As such, organizations often find it difficult, with their roles and their perspective to produce new technological innovation that contributes to sustainability (Gmelin&Seuring, 2014). Therefore, sustainable technological innovation can be best defined as the innovation that has the potential in reducing long-term risks associated with resource depletion, fluctuations in energy costs, product liabilities, pollution, waste management and treatment (Shrivastava, 1995; Gmelin&Seuring, 2014; Choet al.,2019; Adnan et al., 2019).
In today’s world, the development and implementation of sustainable technology is not only an unavoidable social and environmental issue; it is also a major challenge for many companies (Goeppet al.,2014; Xia et al., 2019). Technological innovation implementation should balance both economic progress and natural resource consumption, without endangering the ecosystem (Bohnsacket al., 2014; Ion & Gheorghe, 2014; Xia et al., 2019). Thus, sustainable development and new technological innovation are nowadays recognized as the most important source of economic, social and environmental growth. With the aim of decreasing the cost of usability, many industries are consequently benefiting from this, prompting new technologies that are widely adopted (Maet al.,2009; Talukder, 2019). As mentioned by Carrigan, Moraes and Leek (2011), the question that needs answering is: can SMEs contribute to sustainability? Their core ability and role in fostering societal change towards a more sustainable and environment-friendly mode of living is still being explored.
This research fills a gap in the literature on sustainable technology adoption within SMEs context in a developing country such as Malaysia. The study aims to provide an evaluation of each contributory antecedent created by the technology to assist SMEs to achieve their objectives. Previous research on innovation management focused more on the external factors of the adoption process (i.e. management, government, social and organization factors). Conversely, there is less research focusing on the internal factors (attitudes, persuasions and ethical belief) of adoption (Boonset al., 2013; Brunkeet al.,2014; Longet al.,2016; Fu et al., 2018; Adnan et al., 2019). Thus, this research focuses on organizational attitudes, persuasions and ethical belief, and their effects on the adoption process of sustainable technology. The key issues surrounding sustainable innovations have expanded, where ethical values and organizations’ concerns shift between greater or lesser inclination towards the environmental concern. In order to test organizational attitudes, persuasions and ethical belief, four main theories were executed and expand. The theory of reasoned action (TRA) and theory of planned behavior (TPB) are the theory that best explain attitudes. Attribution theory (AT) will further explain the persuasions, whilst Thompson and Barton’s Environmental Attitudes Model (EAM) will explain individuals’ belief. All four theories are used and expanded to explain the current phenomenon of organizational attitudes towards sustainable technology.
Sustainable technology is attributed to the deep connection between organizations’ beliefs, actions, decisions and practices in their everyday lives. This will allow the expansion of the theoretical model in innovation management, filling in the gap in the current theoretical framework. Fewer studies have considered the possibility of creating opportunities for increased organizational performance through sustainable technology. Furthermore, antecedents to measure the levels of sustainable technology adoption are also scarce. Therefore, this research can elucidate an organization’s perceptions of and expectations from the possible outcomes of adopting the sustainable technology. This expectation outcome were derived and expended from the three bottom line model (TBL) that consist of economy (profit), social (people) and environment (planet) (Quazi& Talukder, 2010; Agamuthu& Victor, 2011; Carrigan et al., 2011; Nagalingamet al., 2013; Bohnsacket al.,2014; Bourlakiset al.,2014; Chen & Tung, 2014; Iveroth& Bengtsson, 2014; Bachoket al., 2015; Adnan et al, 2019; Meijeret al.,2019). Hence, the objective of the study is to investigate the impact of human attitudes, human persuasion and human ethical belief impact on the organizational decision to adopt sustainable technology. The study also explains the impact of moderating variables (Organizational size, duration of business and industry sector) on perception and adoption.
1.1.1 Literature review, theory and model
Radical innovation is defined as the foundational creations that serve as the basis of many subsequent technical developments (Datta & Jessup, 2013; Choiet al.,2016). An alternative meaning for the term is the involvement of product commercialization, based on the significant leaps made in technological development. This generates the potential for entirely new features and improved performance or cost, compared with the existing choices, offering a substantial increase in consumer benefits (Vowleset al., 2011; Changet al.,2012; Pinoet al.,2016). Radical innovation needs to be unique, novel and original to impact on future technology development (Datta & Jessup, 2013; Keupp& Gassmann, 2013).
Radical innovation is essential for any organization or nations’ economic growth and prosperity and solving environmental problems (Buschgenset al.,2013; Choiet al.,2016). Research has shown that adopting radical innovation can only bring about a small percentage of success; therefore, organizations tend to not take the risk of implementing it (Buschgenset al.,2013; Talukder, 2014). Corporations that cannot emulate this form of innovation will find it difficult to stay in the market for a longer period of time, despite their need to survive in order to maintain future markets.
This research proposes the adoption of sustainable technology which is categorized as a radical technology because organizations need to change and develop a new set of processes and operations for the creation of products and services. Due to its radical nature, the adoption of sustainable technology is a change that needs the full cooperation of various levels of stakeholders such as employees, management, suppliers, customers and clients. To contribute to sustainability, innovation serves as an important means of implementing new and significantly improved products, processes, marketing methods and organizational methods in business practices, organizational workplaces and external relations (Nagalingamet al.,2013; Klewitz& Hansen, 2014).
One of the main reasons for organizations undertaking sustainable technology approach is to reduce operating costs and minimize the environmental impacts of business process (Mishraet al.,2014). Organizations encounter a major task on supplying sustainable development accordingly to the demand of clients, consumers and the society (Liuet al, 2012). Excelling on social and environmental dimensions may improve business performance, especially in the current social status where the consumers possess greater awareness on their social responsibility (Achabou&Dekhili, 2013). In achieving sustainable technological innovations, there are four main keys of development such as sustainable living, sustainable resource, sustainable process, and sustainable product that need to be taken from both individuals and organizations to ensure the success of sustainable business (Achabou&Dekhili, 2013; Huijtset al.,2014; Gmelin&Seuring, 2014; Xia et al., 2019).
Our study designs an enhanced model of sustainable technology adoption considering the strengths and limitations of the relevant theories existing in the extant literature. Details of the relevant theories are as follows:
1. The theory of reasoned action (TRA), (Fishbein &Ajzen, 1980)posits that attitudes towards behavior are described as an individual’s positive or negative feelings (evaluating effect) about performing that behavior. Attitudes are sets of beliefs about a certain object or an act, which may translate into the intention to carry out the act.
2. The theory of planned behavior (TPB), (Ajzen, 1991.This theory is based on the arguments that the assumption made is that people make rational choices by evaluating and weighing the perceived positive and negative expected outcomes, thus focusing on attaining their goals. This theory also proposes that the intention to behave captures the motivation to exert certain behavior, and hence influences the behavior. TPB uses the same construct as TRA, with the additional construct of perceived behavior control, which is considered a component that controls organizations behavior through their ‘ethical belief’. The salient points of this theory are an organization’s own attitude, subjective norms, perceived behavioral control, intentions and behavior.
3. Attribution theory (AT) (Heider, 1958). The main premise of this theory is that it highlights the importance of both internal and external on organization attitudes. Theory explains that an organization’s action is defined by their inner and outer traits. An organization’s personality and situation can be attributed to the actions they have taken; actions are taken if the organization has synchronized both their inner and outer attributes. An organization’s attitude is the internal factor that influences certain behaviors, while persuasion is the external factor. Theory is used to find the causative factor of a certain incident or action, bringing out in organization’s direct or indirect involvement.
4. Environmental attitude model (EAM) (Thompson & Barton, 1994). This theory is based on the arguments that there are two types of ethical attitudes towards the environment: eco-centric and anthropocentric. These ethical attitudes serve as an organization’s moral reasoning towards an environmental dilemma, which is perceived as the human relationship with the environment. Organization awareness of environmental values should be the main focus in creating a more sustainable society. This referred to anthropocentrism as the belief in human superiority over the environment. Thompson and Barton (1994) agreed with this notion; they describe organizations who value the environment for the material and physical benefits it provides, and who argue for the benefits of adopting sustainability.
The enhanced and comprehensive model includes several modifications that these existing models lack. The human attitudes (affective, cognitive and behavioral) and human persuasion (credibility, persuasion and sentiment) elements are based on TRA, TPB and AT. The third category, human ethical belief (anthropocentrism, eco-centrism and altruism)is explained by Thompson and Barton’s (1994) EAM.
The human attitudes reflect that an individual’s intention to adopt a new technology is influenced by their personality (attitudes) and surroundings (subjective norms). Attribution theory describes the surrounding that affects an individual’s decision as situational (persuasion), whereby the organization’s situation will act as the trigger for their intention to adopt new technology. Both attitudes and persuasion are essential in explaining the function of human attitudes towards sustainable technology adoption. Both are integrated into the research to acknowledge the top management opinions of the environmental issues that can influence its adoption of sustainable technology in the SMEs context.
The third category is human ethical belief, derived from Thompson and Barton’s (1994) EAM. Researchers who have utilized this model identified ethical belief as an element, as it explains how an organization makes ethical decisions about the environment. It helps explain the individual perception of environmental values, which is why it is considered an essential inclusion for the research model. It will explain why organizations base their acceptance of sustainable technology on their ethical beliefs concerning the environment.
Organizational demographic characteristics are also added into the model outlined below in Fig. 1 which will be used as a control variable of the research to explain the level of adoption from different organizations. These include the size of the SMEs, duration in the business and the industry sectors.
1.1.2. Hypothesis development and their justification of their selection
Human attitudes
Research reveals that human attitudes have strong impact on the adoption of sustainable technology (Juvan&Dolnicar, 2014; Burcharthet al.,2014; Juvan&Dolnicar, 2014; Adnan et al, 2019). Creating organizational awareness toward sustainability affects the decision-making process by triggering emotions, beliefs and actions in the organization (Iveroth& Bengtsson, 2014; Jeonget al.,2014). When an organization emphasizes to change the beliefs and emotions of its employees, then the employees will re-evaluate their responsibilities toward the environment and society (Burcharthet al.,2014).Emotional state of an individual employee can lead to an attachment, a feeling of respect, responsibility and joy towards the environment. According to Sanchez, Sanchez andHyder (2014), individuals’ behaviour plays an essential role as their action determines the outcome of the environment. Social and personal norm have also been found to have a strong impact on individuals’ behavior (Hirsh, 2014; Fu et al., 2018). Based on the above deliberations, it would be justified to present the following hypotheses for testing:
H1:Affective attitude has a positive impact on the adoption of sustainable technology.
H2: Cognitive attitude has a positive impact on the adoption of sustainable technology.
H3: Behavioral attitude has a positive impact on the adoption of sustainable technology.
Human persuasion
Extant research suggests that although individuals’ attitudes can affect their behavior towards certain things, if given times and effort, most people can be persuaded through many ways (Shrumet al.,2012). A study by Matthes, Wonnebergerand Schmuck (2014) shows that emotional and reasoned persuasion can attract different types of individuals about sustainability. Credibility in enforcing values, images and strong impressions towards sustainability also helps to persuade individuals’ attitude towards innovation (Salvadoet al.,2014). Gossling& Buckley (2014) suggested that persuasive communication plays an important role in creating awareness and affecting individuals’ moral responsibility towards the environment. Persuasions are meant to influence individuals to accept a certain practice or routine. Through these strategies, one can influence individual’s thinking, feeling and action (Higgins & Walker, 2012; Adnan et al., 2019). Therefore, the following hypotheses are worthy testing:
H4: Credibility persuasion has a positive impact on the adoption of sustainable technology.
H5: Sentiment persuasion has a positive impact on the adoption of sustainable technology.
H6: Reasoned persuasion has a positive impact on the adoption of sustainable technology.
Human ethics
Anthropocentrism and Eco-centrism are two different attitudes which individuals’ have towards the environment. Anthropocentrism individuals feel that the environment needs to be protected because of its value to improve human quality of life while Eco-centric individuals feel that nature deserves to be protected because of its intrinsic value (Thompson & Barton, 1994). Different types of environmental attitudes may provide different types of approach and appeal. Research suggested that the attitudes showed by present generation lean more towards the anthropocentrism in which individuals value the environment as something that can generate profit and it should be well maintained for a long-term investment (Kopnina, 2014). Individuals that have high awareness towards the climate change and environmental issue are more inclined to have the Eco-centrism attitudes which makes them prefer to preserve the environment (Kontenkamp & Moore, 2001). Every decision that the organizations make will always affect the people around them. On the other hand, the development of altruistic attitude tends to rely on misfits of others. Individuals that acquire this attribute are affected more on their surroundings rather than themselves. Each decision that they made will always be considerate towards the peoples around them; how does they fair; will the decision benefits others, does it bring misfortune to others. These questions will always play in the mind of an altruistic individual (Verdugo et al., 2009; Hirsh, 2014; Moraes&Millani, 2014; Fu et al., 2018). Therefore, the following hypotheses are proposed:
H7: Anthropocentric attitude has apositive impact on the adoption of sustainable technology.
H8: Eco-centrism attitude has apositive impact on the adoption of sustainable technology.
H9: Altruism attitude has apositive impact on the adoption of sustainable technology.
SMEs Demographics
The characteristic of an organization provides a substantial indicator to measure the capability of a certain organization in adopting innovation or a new practice. In terms of sustainability, the capacity of an organization needs to be analyzed whether they have sufficient time, resources or information to make an adoption (Bourlakiset al.,2014). The capability for an organization to survive in the current market can be identified as an important aspect to measure organizational behavior and attitudes (Stamm&Lubinski, 2011). The SMEs size, duration in business and industry sector can determined the capability for the organization to make business decision and strategic development for the environmental sustainability (Eggerset al.,2013). Therefore, the following hypothesis has been proposed:
H10:SMEs’characteristic has a moderating impact on the adoption of sustainable technology.