Risk management implementation and its efficacy towards green innovation: a conceptual framework for Malaysian solar photovoltaic industry

Abstract

Purpose This study aims to propose a conceptual framework to examine the impact of risk management implementation on green innovation in the Malaysian solar photovoltaic (PV) manufacturing industry. Design/methodology/approach The study is based on primary data to be collected from 30 Malaysian solar PV manufacturing companies through a questionnaire that incorporates the five-point Likert scale. The exploratory factor analysis (EFA) is proposed to be performed using SPSS 24.0 and confirmatory factor analysis (CFA) is suggested to be conducted using AMOS.21 software to explore the factors and reliability of the items and to confirm the factorial structure of risk management implementation and green innovation. Furthermore, partial least square-structural equation modeling (PLS-SEM) is proposed to investigate relationships between constructs and latent variables. Findings The proposed framework is based on the stakeholder's theory and suggests that the comprehensive implementation of risk management has a significant and positive impact on green innovation in the Malaysian solar PV manufacturing industry. Practical implications This study provides insight into formulating strategies for enhancing green innovation in the solar PV manufacturing sector and serves as a valuable resource for stakeholders. Originality/value The significance of the proposed conceptual framework lies in its ability to enhance the workability of the stakeholder's theory and to create value for stakeholders through the implementation of risk management to drive green innovation. This study adds to the existing literature by exploring the relationship between risk management and green innovation in the solar PV manufacturing industry.