Abdulsalam Mas’ud, Nor Aziah Abd Manaf and Natrah Saad
The investment climate is one of the key factors considered by foreign investors while deciding their investment destination. This paper aims to attempt at validating the…
Abstract
Purpose
The investment climate is one of the key factors considered by foreign investors while deciding their investment destination. This paper aims to attempt at validating the second-order model of oil and gas projects’ investment climate. Examination of the relationship between the dimensions of oil and gas projects’ investment climate; strategy, participants/operating environment and risk/return; and the overall latent construct was conducted. The study also evaluates the goodness of fit of the second-order model using relevant fit indices.
Design/methodology/approach
Oil and gas experts in Malaysian marginal oil fields subsector were deployed, through whom responses were collected that formed the data set used in the analysis. Then, the data were used for confirmatory factor analysis, evaluation of the second-order model through path analysis and for model fit evaluation.
Findings
The finding revealed that the second-order model of oil and gas projects’ investment climate is valid and reliable. It also revealed that all the three dimensions, strategy, participants/operating environment and risk/return, have significant effects on the formation of the oil and gas projects’ investment climate. Finally, the goodness of fit of the second-order model satisfied the relevant fit indices.
Research limitations/implications
The findings present valuable insights to policymakers on the extent of the influence each of the dimensions has on the overall latent construct. The validity and reliability analysis suggests the measurements of the second-order model of oil and gas projects’ investment climate construct, and its dimensions are valid, reliable and fit for future empirical research. Thus, it calls for replication in other oil and gas settings.
Originality/value
The findings from the results of this study are pioneering. Extant literature falls short in attempting the validation of the second-order oil and gas projects’ investment climate scale, as well as relating each of the dimensions with the overall latent construct.
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Keywords
Yusuf Abdulkarim Daiyabu, Nor Aziah Abd Manaf and Hafizah Mohamad Hsbollah
The purpose of this study is to deploy and expand the theory of planned behaviour (TPB) model with application to renewable energy investment by incorporating the component of tax…
Abstract
Purpose
The purpose of this study is to deploy and expand the theory of planned behaviour (TPB) model with application to renewable energy investment by incorporating the component of tax incentives (TIN). This will serve as an additional measure in understanding the conventional energy stakeholders’ investment intention into renewable energy in Nigeria.
Design/methodology/approach
Data was collected from 357 individual key conventional energy stakeholders in Nigeria using survey questionnaires. The research model was tested using structural equation modelling.
Findings
The results from the study revealed the applicability of the TPB in predicting the conventional energy stakeholders’ investment intention into renewable energy. The result indicates that attitude and subjective norm are significantly associated with investment intentions.
Research limitations/implications
The outcome implies that the integration of tax incentives can improve the predictive power of the model as the introduced variable demonstrates a significant impact on the conventional energy stakeholders’ investment intention into renewable energy.
Practical implications
This study extends on the well-established TPB model by integrating tax incentives in understanding investment intentions and the outcome implies a significant association of tax incentives with investment intention and moderated the influence of attitude and subjective norm over the conventional energy stakeholders’ investment intention.
Originality/value
TPB has been widely deployed and even extended to predict intention in numerous fields of study. Available literature presents the lack of such empirical research that focuses on investment in Nigeria and specifically regarding energy investment. The outcome highlighted the significant influence of tax incentives, thus the need for policymakers to suggest and implement various tax incentives to attract private investment into renewable energy for electricity generation that will consequently assist in achieving SDG-7 and mitigate climate change.