A Structural Equation Model of Factors Influencing Sustainability of Chemical Industry in Thailand
Keywords:sustainability, transformational leadership, organizational culture, corporate social responsibility
Objective: The purpose of the study is to study a structural equation model of factors influencing the sustainability of the chemical industry in Thailand and to study the direct, indirect, and combined influence of factors on the sustainability of the chemical industry in Thailand.
Method: A total of 317 responses were collected from the chemical industry in Thailand using a multi-stage sampling technique. In the relationship analysis among the variables, AMOS is the main program to use, and another is Pearson’s correlation coefficient. The factors of the structural equation model as basic data.
Results: We found that the factors influencing sustainability the most were Transformational Leadership, followed by organizational culture, and corporate social responsibility. The factors that had the most influence on corporate social responsibility were transformational leadership, followed by organizational culture. Transformational leadership must dedicate and foster the organizational culture and corporate social responsibility to address obstacles.
Conclusion: It is important for the organization to define long-term vision and strategies, clear missions, and objectives related to corporate social responsibility, and to provide goals and direction to employees. Therefore, the chemical industry needs a leader who uses the transformational leadership style by shifting the organizational culture to a solid culture to differentiate itself when incorporating corporate social responsibility. Different from previous research on sustainability, this research aims to create a model showing the linkage of three independent latent variables influencing the sustainability of the chemical industry in Thailand.
Bateman, T., & Snell, S. (2019). Management: Leading & Collaborating in Competitive World (13ed.). McGraw Hill.
Bedaduri, R., & Pradhan, S. K. (2023). Post Covid-19: Eco-Friendly Women Entrepreneurs Sustainability Development on TBL Components. Journal of Law and Sustainable Development, 11(2), e632. https://doi.org/10.55908/sdgs.v11i2.632
Begum, S., Xia, E., Mehmood, K., Iftikhar, Y., & Li, Y. (2020). The impact of CEOs’ transformational leadership on sustainable organizational innovation in smes: A three-wave mediating role of organizational learning and psychological empowerment. Sustainability, 12(20), 8620.
Bhatti, K. K., & Negi, A. (2018). Determinants of Green Marketing Leading to Sustainable Competitive Advantage for Retailers Within the Delhi Region. Indian Journal of Marketing, 48(8). https:// doi: 10.17010/ijom/2018/v48/i8/130540
Burns, J. M. (1978). Leadership. Harper & Row.
Cabana Villca, R., & Pino Castillo, C. J. (2020). Sustainable management model to strengthen competitiveness in “Supermarket” retail companies in the region of Coquimbo, Chile. Contaduría y administración, 65(2).
Carroll, A. B. (2004). Managing ethically with global stakeholders: A present and future challenge. Academy of Management Perspectives, 18(2), 114-120.
Cronbach, L. J. (1949). Essentials of psychological testing. Harper & Row.
Dhote, T., & Zahoor, D. (2017). Framework for Sustainability in E - Commerce Business Models : A Perspective Based Approach. Indian Journal of Marketing, 47(7). https:// doi: 10.17010/ijom/2017/v47/i4/112681
Edgar H. Schein, B. S., Richard O. Mason, Ian Mitroff. (1985). Organizational Culture and Leadership: A Dynamic View (The Jossey-Bass Business & Management Series) 1st Edition. Jossey-Bass.
Elkington, J. (1994). Towards the sustainable corporation: Win-win-win business strategies for sustainable development. California management review, 36(2), 90-100.
Gareth Jones, J. G. (2019). Essentials of Contemporary Management (8th ed.). McGraw- Hill Education.
Garman, A. (2006). Diagnosing and changing organizational culture: Based on the competing values framework. Personnel Psychology, 59(3), 755.
Heizer, J., Reder, B., & Muson, C. (2016). Operations Management: Sustainability and Supply Chain Management JAY. Pearson.
Industry, K. o. C. (2013). Riegel's Handbook of Industrial Chemistry. Springer Science & Business Media.
Jorge Luis Pena Acevedo, D. X. A. A. (2021). Employee happiness and corporate social responsibility: The role of organizational culture. Employee Relations: The International Journal, 43(3), 609-629.
Kang, B., & Sivadas, E. (2018). Corporate Social Responsibility and Word - of - Mouth Intentions. Indian Journal of Marketing, 48(4). https:// doi: 10.17010/ijom/2018/v48/i4/122622
Kitkamolwat, S. (2018). Trends in Triple Bottom Line Reporting in Thailand. Journal of Business Administration The Association of Private Higher Education Institutions of Thailand, 7(special), 133 - 134.
Lewis, P. S., Goodman, S.H., Fandt, P.M., & Michlitsch, J.F. . (2007). Management: Challenges for Tomorrow’s Leaders (5th ed.). Thomson South-Western.
Madaan, G., Kaur, M., Gowda, K. R., Gujrati, R., & Uygun, H. (2023). Business Responses Towards Corporate Social Responsibility and Sustainable Development Goals During Covid-19 Pandemic. Journal of Law and Sustainable Development, 11(1), e0309. https://doi.org/10.37497/sdgs.v11i1.309
Meher, K. C., & Hamato, G. G. (2022). Strategizing Marketing Mix for Business Sustainability of Ethiopian MSEs. Indian Journal of Marketing, 52(3). https:// doi: 10.17010/ijom/2022/v52/i3/168655
Ministry of Industry, D. o. I. W. (2021). Cumulative statistics of the number of factories that are allowed to operate (Open for operation) according to the Factory Act 1992, classified by major industries by type as of the end of 2020.
Moaaz, A. (2017). A ‘Green’Strategy for Triple Bottom Line Corporate Sustainability: A Case Study of a Major Manufacturer in the UAE. The University of Liverpool (United Kingdom).
Nahavandi, A. (2015). The art and science of leadership. Pearson Education Limited.
Nations, U. (1987). Report of the World Commission on Environment and Development Our Common Future. Oxford University Press.
Purwanto, E., Ate, J. P., & Ifa, M. (2023). The Importance of Transformational Leadership and Job Resources to Increase Lecturer Engagement: Learned from Indonesia Case. Journal of Law and Sustainable Development, 11(2), e558. https://doi.org/10.55908/sdgs.v11i2.558
Premi, H., Sharma, M., & Dangayach, G. S. (2021). Green Marketing : A Systematic Literature Review. Indian Journal of Marketing, 51(8). https:// Doi: 10.17010/ijom/2021/v51/i8/165761
Ramamurthi, R., Saxena, R., Krishnamoorthy, B., & Saini, G. (2021). Measuring the Degree of Internationalization of Indian Manufacturing Companies. Indian Journal of Marketing, 51(10). https:// doi: 10.17010/ijom/2021/v51/i10/166438
Ranjit, G. (2020). Effect of transformational leadership on job performance: testing the mediating role of corporate social responsibility. Journal of Advances in Management Research, 17(5), 605-625.
Saju, B., & Rajan, K. R. (2014). Impact of corporate social responsibility on customer loyalty and the mediating role of affective identification. Indian Journal of Marketing, 44(9), 7-19. doi: https://doi.dx.org/10.1002/csr.1288
Schein, E. H. (1996). Culture: The missing concept in organization studies. Administrative science quarterly, 229-240.
Severo, E. A., & De Guimarães, J. C. F. (2022). The Influence of Product Innovation, Environmental Strategy and Circular Economy On Sustainable Development in Organizations in Northeastern Brazil. Journal of Law and Sustainable Development, 10(2), e0223. https://doi.org/10.37497/sdgs.v10i2.223
Shahzad, M., Qu, Y., Ur Rehman, S., Zafar, A. U., Ding, X., & Abbas, J. (2020). Impact of knowledge absorptive capacity on corporate sustainability with mediating role of CSR: Analysis from the Asian context. Journal of Environmental Planning and Management, 63(2), 148-174.
Singh, H., Saufi, R.A., & Hassan, A. A. (2017). Export market orientation strategy, external environment, and export performance of SMEs in Malaysia. Indian Journal of Management, 10(12), 32–49. https://doi.org/10.17010/pijom/2017/v10i12/119979
Srisathan, W. A., Ketkaew, C., & Naruetharadhol, P. (2020). The intervention of organizational sustainability in the effect of organizational culture on open innovation performance: A case of thai and chinese SMEs. Cogent business & management, 7(1), 1717408.
Swink, M., Melnyk, S., Cooper, M. B., & Hartley, J. L. (2020). Managing Operations Across the Supply Chain. Mc Graw Hill Education.
How to Cite
Copyright (c) 2023 Suradetch Wangthong, Nuttawut Rojniruttikul
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
2. The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
3. The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
4. The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
5. Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 internacional, which allows the work to be shared with recognized authorship and initial publication in this journal.
6. Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
7. Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html
• 8. Authors are able to use ORCID is a system of identification for authors. An ORCID identifier is unique to an individual and acts as a persistent digital identifier to ensure that authors (particularly those with relatively common names) can be distinguished and their work properly attributed.