Sustainable manufacturing practices in Malaysian palm oil mills: Priority and current performance

Abstract

Purpose

The purpose of this paper is to investigate the implementation of sustainable manufacturing practices in Malaysian palm oil mills (POMs) by comparing the status of their current achievements and the levels of priority placed on their practices.

Design/methodology/approach

A questionnaire survey was used to collect data about 20 sustainable manufacturing practices from 51 POMs located in Malaysia. A five-point Likert scale was considered for recording variations in priorities and current practices with regard to sustainable manufacturing. A Cronbach’s α reliability test and a binomial test were undertaken to assess the internal consistency and the validity of the survey data. Spearman’s ρ correlation analysis was employed to determine the linear correlation between each of the sustainability practices identified. Factor analysis was conducted to reduce the number of sustainable manufacturing practices based on factor loading and to derive a clustering of these factors.

Findings

The results showed that employees’ well-being has the highest level in terms of both priority and current achievement. However, for other sustainable manufacturing practices, there was a difference where the current achievement of these practices in the Malaysian POMs was seen to be slightly lower than the priority given to them. Strong correlation of significant value was observed between the minimization of production waste and pollution prevention practices. From factor analysis, 15 practices of high factor loading were grouped into a proactive sustainability strategy and a preventive sustainability strategy.

Research limitations/implications

The study was still relatively exploratory. Future studies could investigate the barriers to the implementation of sustainable manufacturing practices at Malaysian POMs. The sample, which consisted of 51 Malaysian POMs, represented an important sector of the Malaysian economy. Reliance on stated, rather than revealed, preferences may limit the implications of the analysis undertaken for this study, but it does represent a major step forward in understanding the past in what was a highly recommended sector for investigation due to the paucity of extant data. A more broadly based, random sample of POMs from other countries would provide a better understanding of issues related to sustainable manufacturing practices.

Practical implications

The results of this study can be used by practitioners to adjust the sustainable manufacturing practices currently applied and further studies may go on to examine the reasons and implications for discrepancies between priorities and desired sustainability goals in more detail.

Originality/value

The survey conducted about sustainable manufacturing practices amongst Malaysian POMs was focussed on the three dimensions of sustainability, namely, the economic, environmental, and social elements involved.

Citation

Abdullah, I., Wan Mahmood, W.H., Md Fauadi, H.F., Ab Rahman, M.N. and Mohamed, S.B. (2017), "Sustainable manufacturing practices in Malaysian palm oil mills: Priority and current performance", Journal of Manufacturing Technology Management, Vol. 28 No. 3, pp. 278-298. https://doi.org/10.1108/JMTM-09-2016-0128