International Journal of Business and Economy (IJBEC) eISSN: 2682-8359 | Vol. 5 No. 1 [March 2023]
Journal website: http://myjms.mohe.gov.my/index.php/ijbec
PROMOTING STAKEHOLDER'S GREEN ENGAGEMENT BEHAVIOR FOR ADOPTING GREEN BUILDING TECHNOLOGY IN THE CONSTRUCTION INDUSTRY
Md Shaharul Islam1*, Abu Bakar Sade2, Norizan Mat Saad3, Syed Shah Alam4 and Md. Uzir Hossain Uzir5
1 2 3 Department of Marketing, Putra Business School, Universiti Putra Malaysia, Seri Kembangan,
MALAYSIA
4 Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, MALAYSIA
5 Faculty of Business Economics and Social Development, Universiti Malaysia Terengganu, Kuala Nerus, MALAYSIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 15 February2023 Revised date : 22 February 2023 Accepted date : 27 February 2023 Published date : 8 March 2023
To cite this document:
Islam, M. S., Sade, A. B., Mat Saad, N., Alam, S. S., & Hossain Uzir, M. U.
(2023). PROMOTING STAKEHOLDER'S GREEN ENGAGEMENT BEHAVIOR FOR ADOPTING GREEN BUILDING TECHNOLOGY IN THE
CONSTRUCTION INDUSTRY.
International Journal of Business and Economy, 5(1), 73-83.
Abstract: The construction sector is a significant contributor to most nations' economies and plays a vital role in every nation's sustainable economic growth worldwide. However, the construction industry is identified as the primary contributor to environmental degradation. This study aims to identify the influencing factors that influence the adoption of GBTs. This study integrates three theories, the diffusion of innovation (DOI) theory, resource-based view (RBV) theory, and resource dependence theory (RDT), to make a conceptual model to show the understanding of developers' behavioral intentions to adopt GBTs based on previous literature. The adoption rate of GBTs in developing nations is slower than in developed countries. In response, this study also presents key factors that influence the adoption of green building technology in the construction industry. This study is one of the earliest studies that provides a systematic review of previous studies on GBT adoption from developers' perspectives. This study also expands the body of knowledge in green building literature.
Keywords: Perceived GBTs advantage, Stakeholders' GBTs Readiness, Organizational GBTs Resource, Green Engagement.
1. Introduction
Real estate and construction businesses are increasingly important for any region's economic development and sustainable development plans. In addition, the construction sector is a significant contributor to most nations' economies and plays a vital role in every nation's sustainable economic growth worldwide. However, the construction industry is identified as the primary contributor to environmental degradation. According to previous statistics, this industry is the most significant contributor to energy consumption (40%) and overall greenhouse gas (GHG) emissions (30%) (Darko, 2019; Li et al., 2019). Also, the construction industry has been labeled as a "resource-intensive industry." It is responsible for consuming 40% of the raw materials (stone, sand, and gravel), 16% of the water, and 25% of the timber annually (Shi et al., 2017). The construction activities produce considerable quantities of dust, noise, solid waste, smoke, and wastewater; as a result, it directly impacts human health. To solve these problems, people began investigating the construction industry, moving away from conventional buildings and toward sustainable development's social, economic, and environmental elements (Yin et al., 2018). Green building technology adoption in the construction industry is the most acceptable solution worldwide because it can deal with the construction the awful thing can do to the environment and contribute to sustainable development (Wang et al., 2018b). In addition, green building has many advantages in reducing energy consumption compared with the conventional building type, such as managing materials wastage, natural resources, and environmental pollution (Wang et al., 2019). For this reason, green building is enthusiastically embraced by many governments and pushed as a technique for decreasing the negative environmental consequences of the construction sector.
Many researchers and organizations have shown that GBT adoption could significantly help the construction industry achieve sustainable development (Wang et al., 2018a).
Most scholars have focused on GBT adoption from various countries and of different dimensions in recent years. The real estate and construction industry has undertaken multiple policies for sustainable development, but the adoption of GBTs is still in its infancy (Darko et al., 2018). There is a lack of literature on adopting green building technologies, especially in emerging countries(Blouin, 2020). Also, there is a need for a better understanding of GBTs adoption in the real estate industry.
The current study proposes a conceptual framework for these issues, including moderating variables. Also, discuss the data collection methods and scales of prior studies used to examine GBT adoption strategies.
2. Literature Review
Technological innovation is using existing technology to create a new product or service (Birkinshaw & Mol, 2006). Technological innovations enable new ideas, objects, or procedures to take place or be updated for alternative use (Rogers, 1995). Technological change enables human lives to be changed by scientific knowledge. In this paper, the conceptual model proposed includes different environmental conditions, thereby taking a behavioral model approach. It is important to acknowledge different environmental factors of an organization's intention to adopt new technology, particularly technological innovations like green building technology.
While most of the previous studies used different theoretical frameworks to explain an organization's intention to adopt GBTs, such as the technology acceptance model (TAM), theory of planned behavior (TPB), and Decomposed theory of planned behavior (DTPB), however, this study used the Diffusion of Innovation theory (DOI), the theory of Resource- based View (RBV), and the Resource Dependence Theory (RDT) as the theoretical framework in this paper. The three theories integrated approaches apply to technological innovations. The integrated model is the conceptual framework for adopting GBTs in the construction industry.
Therefore, this study used the DOI, RBV, and RDT as the most appropriate theory to examine the developer company owners' or managers' perception of green practices. The next section discusses the conceptual model based on three theories as it allows an understanding of how an organization adopts GBTs.
2.1 Resource Dependence Theory (RDT)
RDT is a well-known theory in the social sciences that are used to describe the interactions between organizations and their surrounding environments. It depends on the relationships between the internal and external resources of the company. RDT originated using two primary concepts about how organizations and their environments interact (Pfeffer & Salancik, 2003).
The first opinion of RDT highlights an organization's operational activities and outcomes. RDT concentrates on an organization's dependence on its surrounding environment, particularly on people who have control over the resources the company requires. According to the idea, the types of resource dependencies can, to some extent, anticipate how an organization will respond to external pressures.
Second, the RDT postulates that an organization's social environment may have multiple effects on it and specifies the environmental hierarchy in terms of the system of affiliated organizations as a whole, a group of organizations or people with whom the organization interacts, and the organizations themselves.
Using RDT suggests the possibility of understanding and predicting construction developers' GBT adoption actions through an analysis of their environment regarding reliance on external resources. For example, government incentives, project partners' green building resources, financial institutions' support, green building suppliers' readiness, and clients' green building demand (Pfeffer & Salancik, 2003). The developers' perceived dependency on external resources might have potential positive or negative impacts on their decision on GBT adoption.
From this angle, this study investigates the influence of organizational GBTs resources and drawbacks on construction developers' decision to adopt GBTs.
2.2 Resource-Based View Theory (RBV)
RBV has its roots in the context of planning and organizational structure. It recommends that organizations develop and create values based on unique, beneficial, and not easily replicable resources, as well as the managerial competencies regarding the combination, control, utilization, and distribution of such resources by top leaders (Barney, 1991). Such organizational resources include tangible resources, for example, plant technology, capital, machinery, and raw materials, and intangible resources, such as business processes, structures, individual employees' skills, experiences, patents, and brand names (Teece, 2000). Integrating organizational resources and management competency creates an administrative capacity to achieve the desired objective(Teece et al., 1997). From this angle, this study investigates the
influence of green engagement and its drawbacks on construction developers' decision to adopt GBTs in their present and future projects.
2.3 Diffusion of Innovation Theory (DOI)
DOI is a notion that describes how, when, and at what rate new technology is used to understand better users'/organizations' proclivity for innovation adoption and decision-making within a social environment (Rogers et al., 2014). DOI describes diffusion as "the process by which an invention gets conveyed through specified channels throughout time among the members of a social system" from an evolutionary standpoint" (Rogers et al., 2014).
The features or attributes of innovation, the characteristics of decision-making units, and the characteristics of the external social and political context are three main groups of factors that, from a DOI viewpoint, frequently explain the adoption of innovations successfully (Dearing &
Cox, 2018). Individuals or organizational units determine whether or not to proceed to the following stages of innovation adoption by forming their subjective attitude toward the change.
Such as relative advantage, compatibility, complexity, trialability, and observability. From this angle, this study investigates the influence of perceived GBTs benefits and drawbacks on construction developers' decision to employ GBTs.
Therefore, the DOI, RBV, and RDT were the most acceptable theories to utilize in this study to assess how owners or managers perceived using green practices. Combining RDT, RBV, and DOI suggests the possibility of understanding and predicting the actions of construction developers regarding GBT adoption through an evaluation of the developers' perceived dependency on their key green building resource providers. This study describes the roles of advantage of GBTs, organizational resources, and stakeholders' green building readiness for green building in construction developers' decision to adopt GBTs.
3. Method
As was said above, it is hoped that combining three theories, the DOI, RBV, and RDT, can more effectively describe how developing nations decide whether to embrace GBT from a technological, organizational, and environmental standpoint. This study will examine the procedures involved in adopting GBTs and the significant factors influencing the concept's acceptance by development companies in Bangladesh's construction sector. This conceptual model has three independent variables, and one dependent variable (intention to adopt GBTs).
Based on the existing literature on GBT adoption and the relevant theories of innovation adoption, the present study describes GBT adoption as construction developers' intention to adopt and implement GBTs into their current and future building projects.
Previous scholars theoretically and empirically justified the proposed constructs. Hence, these constructs are reliable in understanding developers' adoption intention of GBTs within the construction industry. Therefore, to measure their adoption intention of GBTs, additional constructs should be considered to extend the integrated model: perceived GBTs advantages, Organizational GBTs Resource, Stakeholders' GBTs Readiness, and intention to adopt GBTs.
3.1 Conceptual Model and Proposition Development
After reviewing the literature, we noticed that most studies examined the adoption of GBTs from individual perspectives (engineers, contractors). Therefore, the proposed conceptual framework of this study concentrates only on adoption strategies from the construction developer's perspective. The proposed conceptual framework of this study depends on two studies (Saleh & Al-Swidi, 2019; Tran et al., 2020b). According to (Tran et al., 2020b), the framework of the independent variables is directly related to the hypothesized dependent variable (intention to adopt GBTs). The independent variables of the proposed conceptual framework of this study are perceived GBTs advantage, organizational GBTs resource, and stakeholders' GBTs readiness. At the same time, green engagement is hypothesized to moderate the linkage between independent variables (Perceived GBTs advantage, Organizational GBTs resource, Stakeholders' GBTs readiness with intention to adopt GBTs).
The proposed constructs were proven both theoretically and empirically by previous studies.
Thus, the initial theoretical model is established (See Figure 1). The three independent variables and one moderating variable are operationalized in the following sections.
Figure 1: A Proposed Conceptual Framework Integrated by DOI, RBV, and RDT on Construction Industry Behavioral Intention
3.1.1 Perceived GBTs Advantage (Ad)
The literature indicates that GBTs have several relative benefits, such as improved business profile and prestige, improved marketability, improved building value, better return on investment, and comparative advantages (Tran et al., 2020a). Adoption activities for GBTs cover the entire life cycle of the whole project, including concept, planning, installation, and service (Alkhalidi & Aljolani, 2020). Building developers who deliberately promote GBTs in their construction projects because of their commitment to stress corporate social responsibility. To achieve more governmental benefits and high customer confidence while increasing advertising, corporate credibility, and market share(Tran et al., 2020b).
The literature steadily acknowledged that marketing incentives are one of the most significant considerations in determining whether or not to use GBTs (Teng et al., 2019). Green features can act as an effective marketing instrument for real estate companies. Furthermore, property developers will have an immense opportunity to easily open up their new market, generate more rental income, make greater investment returns, and reap more economic benefits by accepting and adding unique green elements to distinctive green products (Devine & Kok, 2015). These give a key strategic edge to construction developers allowing them to compete in and invest in the green building industry.
Furthermore, features of decision-making units, as indicated by overall organizational socio- economic status, individual characteristics, and internal communication behavior, are significant elements influencing innovation strategy adoption decision-making at the initial stage of the process (Rogers, 2010). Perceived GBTs advantage is included in the theory of TOE because various studies have concluded the importance of benefits in adopting green building technologies (GBTs). Therefore, perceived GBT's advantage is an essential factor in attitudes influencing the adoption of GBTs. This argument leads to the first proposition:
Proposition 1: Providing more GBT advantages directly affects the developers' attitude toward adopting GBTs.
3.1.2 Stakeholder GBTs Readiness
Stakeholders' GBTs readiness refers to the expertise, experiences, and capability of external project participants in green growth, such as vendors, subcontractors, planners, project managers, oversight advisors, and upstream technology providers (Quangdung Tran & Sajjad Nazir, 2020). As a result, external stakeholders (project partners) with green building competence, skill, and capabilities, such as service providers, subcontractors, policy-makers, project management specialists, supervising consultants, and upstream technology suppliers, may be enlisted to assist with green building preparation (Tran et al., 2020a). In general, construction developers must collaborate with their external project partners to acquire the tools they need to complete their GB projects (Tran et al., 2020a). The literature repeatedly recognizes that all project partners must have very high planning regarding infrastructure, labor capital, administrative and financial capability, and marketability to ensure the practical introduction of GBTs (Tran et al., 2020a); (Wang et al., 2018c). Observational research in China found that the GB preparation of relevant stakeholders positively affects construction developers' perceived ease of use of GBTs.
Furthermore, the researcher found that other stakeholders' lack of GB awareness may negatively impact developers' green building adoption in the Western sense. Hence, based on the above discussion, stakeholders' readiness is an essential factor in perceived behavioral control that can influence the adoption of GBTs. Therefore, Stakeholder GBTs readiness is important and can affect the adoption GBTs. Based on the above arguments and the importance of top management leadership, this leads to the third proposition:
Proposition 2: Stakeholder GBTs readiness directly affects developers’ intention to adopt GBTs.
3.1.3 Organizational GBTs Resources
The available stocks kept or maintained by developers' businesses to successfully incorporate GBTs into building projects are called GBTs organizational resources. According to the literature, GBTs resources should comprise a GB construction project unit and a GB key project competency, GB staff knowledge, GBTs database, technical specifications, and procedures on GB, and budget availability (Rajaee et al., 2019; Tran et al., 2020a). Project team members must be aware of professional knowledge and expertise relevant to GB themes, such as technical standards, green purchase, the GBT marketplace, social and cultural issues, and environmental and safety issues to ensure the successful adoption of GBTs (Addy et al., 2020;
Tran et al., 2020a). In addition, according to Darko (2019), GBTs databases and associated technical standards available within an organization are significant to enhance the GB awareness of the whole organization for ensuring the success of the adoption. Participants in the GB project need to continuously improve their experience, expertise, and green building(Tran et al., 2020a). Therefore, organizational resources act as an essential factor in subjective norms that can influence on adoption GBTs.
The available stocks kept or maintained by construction developers to effectively incorporate GBTs into building projects are referred to as GBTs organizational resources. GBTs capabilities, according to the literature, should include a GB project management unit, a GB project team, individuals with GB expertise, a GBT database, GB operational requirements and procedures, and funding availability(Li et al., 2019). Therefore, organizational GBTs resource is an important predictor of the intention to adopt GBTs.
Proposition 3: Available organizational GBT resources positively impact on developers’
intention to adopt GBTs.
3.1.4 Green Engagement
In the present study, green engagement is considered a moderator between Perceived GBTs Advantage, Organizational GBTs Resource, Stakeholders' GBTs Readiness, and adoption intention of GBTs. Many governments have acknowledged the need for environmental consideration in the context of long-term sustainability, and businesses, organizations, and people have reacted accordingly (Ofori et al., 2000). In contrast, Hollebeek et al. (2014, p. 6) describe consumer brand engagement as "the level of a customer's motivational, brand-related and context-dependent state of mind characterized by specific cognitive, emotional and behavioral levels activity in brand interactions." Previous studies indicate that engagement comprises cognitive, emotional, and behavioral factors and is related to job success (Husnain
& Toor, 2017). In the survey, Motyka (2018) found that high levels of green involvement may enhance organizational and individual performance.
Industrial regulation is shifting away from establishing procedures that address small-scale environmental issues to building processes that are part of a broader ecological agenda (KHAN et al., 2020). Addy et al. (2020) state that the critical impediments to the market's development are a lack of stakeholder engagement, education, and fiscal incentives. Future studies may consider other intervening variables such as green engagement climate, green perceived organizational support, and organizational identification (Aboramadan, 2020). In this study, green engagement has a moderating role between Perceived GBTs Advantage, Organizational GBTs Resource, Stakeholders' GBTs Readiness, and adoption intention of GBTs.
Several environmental studies have investigated the role of green engagement as a moderator (Asif et al., 2018; Rustam et al., 2020). However, most studies employed sustainable awareness as the key construct of consumers' behavior intention (Addy et al., 2020). To date, no evidence is associating the moderating effect of green engagement on the relationship between Perceived GBTs Advantage, Organizational GBTs Resource, Stakeholders' GBTs Readiness, and adoption intention of GBTs.
Furthermore, Le et al. (2019) believed that stakeholders' engagement in using green tools and goods would promote sustainability while still resolving environmental concerns. Based on the importance of green engagement, the following propositions are proposed:
Proposition 4: Green engagement moderates the relationship between perceived GBTs advantages and construction developers' intention to adopt GBTs (IB), such as the relationship is stronger when green engagement is high than low.
Proposition 5: Green engagement moderates the relationship between Stakeholders' GBTs Readiness and construction developers' intention to adopt GBTs (IB), such as the relationship is stronger when green engagement is high than low.
Proposition 6: Green engagement moderates the relationship between Organizational GBTs resources and construction developers' intention to adopt GBTs (IB), such as the relationship is stronger when the employees' engagement is high than low.
4. Discussion and Implications
This study aims to develop a conceptual framework based on a literature review on adopting GBTs from developers' perspectives. A total of 37 studies were identified through our narrative review of main academic databases. More importantly, this paper proposes a research framework to explore the moderator and outcomes of adoption strategies from the developers' point of view.
The findings of this study have provided valuable knowledge concerning various factors that influence purchase behavior in respect of green building technology in the Bangladesh context.
Hence, from the theoretical point of view, this study provided a clear understanding of how the factors studied influence the adoption of GBTs. Second, this research can serve as a reference to examine the applicability and validity of the integrated model in the construction developers' behavioral context of adopting GBTs in Bangladesh. It is recommended that all interested parties and GBT authorities refer to the extended model.
Therefore, this research aimed to examine the applicability of the proposed conceptual framework in Bangladesh, a developing country with a high risk of air pollution. Third, the proposed framework contributes to the existing literature on sustainable development or green building, which may help decision-makers to consider these factors in their development plans and, in turn, accelerate the adoption of GBT in Bangladesh.
The results of the proposed framework may be helpful to consultants, contractors, and high- ranking government officials in Bangladesh and elsewhere in encouraging building projects to take a more green and sustainable approach. This paper is a valuable resource for those working on green building projects and those who want to learn how to effectively sell their services
and how organizations may embrace green building technologies more quickly. Furthermore, this framework would assist policy-makers in regulating the development plans, which may stimulate GBT practice in Bangladesh. Finally, it would augment the perception of both construction practitioners and academicians of green building adoption and accomplishment while leading the stakeholders to the rapid implementation of green building technologies in the construction industry.
5. Limitations and Future Directions of the Study
This study has some limitations, which can be addressed in future research. The current study is a conceptual study that needs to focus on empirical surveys in the future. This research concentrated on Ad, SR, OGR, and IB. Therefore, incorporating other variables (e.g., regulations, green technology, green management) may enhance the understanding of the existing phenomena and need further empirical study. However, our research is limited by our inability to establish causal relationships between the variables.
6. Conclusions
This study provides the developers' behavioral intention of adopting GBTs in the Bangladesh construction industry. The literature reviewed in this paper supports the propositions suggested by the conceptual model. The same conceptual model presented in this article may be used in various kinds of technologies to investigate an individual's behavioral intentions to use GBTs.
A construction developer is considered to have GBTs adoption intention if, presently or in the immediate plan: (1) Green building has been integrated into their business strategy; (2) GBTs have been adopted more and more in terms of type and quantity; (3) They have a clear plan to open different categories of building projects that will adopt GBTs; and (4) Green building culture has been becoming one of the unique characteristics of their organizational culture.
Acknowledgements
The study presented herein stems from an ongoing Doctor of Philosophy (Ph.D.) thesis titled
"Factors influencing Green Building Technologies Adoption in the Construction Industry Bangladesh: the moderating impact of green engagement" at the department of marketing Putra Business School, UPM, Malaysia. The authors would like to thank the marketing Department of Putra Business School, Malaysia, for facilitating and supporting this research.
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