Green resources, digital capabilities, and firm performance: evidence from Malaysia’s automotive industry

Anna, Arokia Nathen (2026) Green resources, digital capabilities, and firm performance: evidence from Malaysia’s automotive industry. PhD thesis, UTAR.

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Abstract

The automotive industry has undergone significant transformation due to increasing environmental pressure, particularly in alignment with the Paris Agreement (COP21). In Malaysia, the adoption of electrified vehicles (EVs) has gradually increased, driven by the need for resource-efficient and sustainable solutions. Despite the National Automotive Policies (NAPs) providing strategic direction, challenges persist due to the dominance of internal combustion engine vehicles and linear production approaches that cause persistent carbon emissions. This study investigates the effect of green resources (GR) usage on automotive firm performance (FP), the role of digital technology capabilities (DC) in this relationship, and the mediating effects of DC on firm performance (FP). Underpinning the Resource-Based View (RBV) and Dynamic Capability View (DCV), this study employs a quantitative, explanatory approach using a survey strategy. Data were collected from Malaysian automotive firms that target managerial employees. A sample size of 178 responses was analysed using Structural Equation Modelling (PLS-SEM) with Smart PLS 4.0. These findings reveal that GR and DC significantly enhance FP, with GR exerting a stronger direct effect. Additionally, DC partially mediated the relationship between GR and FP, emphasising its complementary role. From the RBV perspective, green resources are valuable but require dynamic capabilities to be leveraged effectively. The study emphasises the need for continuous investment in R&D, human capital upskilling, and the strategic integration of digital technologies to sustain competitiveness. While this study offers robust quantitative evidence, its regional focus and reliance on survey data limit its broader generalisability. Future research should employ qualitative methods and extend investigations to other sectors to uncover industry-specific challenges and opportunities. Additionally, exploring external mediators and firm size as a moderator would provide deeper insights into the interplay between green resources, digital technology capabilities, and firm performance.

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