Ahmad Faizal Rahim Ahmad Faizal Rahim
University of Malaysia Kelantan

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ESG Practices, Access to Finance, and Firm Performance among Malaysian SMEs: A Trust-Based Capability Perspective Nur Aina Hamzah Nur Aina Hamzah; Siti Farhana Ismail Siti Farhana Ismail; Ahmad Faizal Rahim Ahmad Faizal Rahim
Oikonomia Review: A Journal of Applied Management, Accounting, and Business Strategy Vol. 1 Núm. 1 (2025): Oikonomia Review: Journal of Economics, Management, and Accounting
Publisher : Kalam Practica Media

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Abstract

This study examines how ESG practices relate to SME performance in Malaysia, focusing on the enabling role of access to finance and the moderating influence of market turbulence. Drawing on the Resource-Based View and stakeholder-oriented trust mechanisms, we conceptualize ESG as an organizational capability that can strengthen legitimacy and reduce perceived risk, thereby improving financing outcomes and operational performance. Survey data were collected from 402 Malaysian SMEs across manufacturing, services, and agribusiness sectors. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the analysis indicates that ESG practices are positively associated with firm performance, with access to finance operating as a partial mediator. The relationship strengthens under higher market turbulence, suggesting that ESG operates as a resilience-enhancing capability when external volatility increases. The study contributes to ESG literature by explaining performance pathways in the SME context and offering an ASEAN-relevant perspective on how sustainability-related capabilities translate into tangible outcomes. The findings suggest that policy initiatives supporting ESG adoption—especially those linked to green financing and disclosure assistance—may improve both firm competitiveness and financial inclusion among SMEs.
Green Supply Chain Collaboration, Cost Efficiency, and Export Readiness among Indonesian Manufacturing SMEs: The Mediating Role of Process Standardization Ahmad Faizal Rahim Ahmad Faizal Rahim; Sokha Chan Sokha Chan
Oikonomia Review: A Journal of Applied Management, Accounting, and Business Strategy Vol. 1 Núm. 2 (2025): Oikonomia Review: Journal of Economics, Management, and Accounting
Publisher : Kalam Practica Media

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Abstract

Manufacturing SMEs in Southeast Asia face growing pressure to demonstrate environmental responsibility as buyers incorporate sustainability criteria into procurement and export supply chains. While green supply chain practices are often framed as compliance costs, collaboration with upstream and downstream partners can create efficiency benefits when environmental goals are embedded in process routines and shared standards. This study examines how green supply chain collaboration influences cost efficiency and export readiness among Malaysian manufacturing SMEs through process standardization. Drawing on relational view and operations capability logic, the model conceptualizes collaboration as joint problem solving, information sharing, and coordinated environmental practices with suppliers and customers. Survey data were collected from 412 Malaysian manufacturing SMEs across food processing, textiles, and light manufacturing. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to test direct effects and mediation. Results indicate that green collaboration is positively associated with both cost efficiency and export readiness, with process standardization operating as a partial mediator. The findings suggest that SMEs can convert environmental collaboration into economic advantage when shared routines stabilize quality, reduce waste, and improve documentation demanded by export buyers. Policy implications emphasize capability-building programs that support standard adoption, supplier engagement, and documentation tools suitable for SME constraints.