Drivers of Sustainable Environmental Manufacturing Practices and Financial Performance among Food and Beverages Companies in Malaysia

This study investigates the direct influence of the drivers of sustainable environmental manufacturing practices, sustainable environmental manufacturing and financial performance. Quantitative research design was employed in conducting this study. Primary data was collected through questionnaire which was delivered by hand to 257 respondents including the managers, executives/senior executives of food and beverages companies in Malaysia. 115 questionnaires were returned and used for the analysis. Structural equation modeling was employed to analyze the collected data using Amos 16. A fit model was achieved from the confirmatory factor analysis after eliminating few items recognized as errors by the modification indices verification showing the goodness of fit model (Ratio = 1.196; P-value = 0.05; GFI =0.860; TLI = 0.921; RMSEA = 0.042). Based on this, it was found that stakeholder pressure and perceived benefits are significantly related to financial performance.