Does Size Moderate Sustainability Practices and Performance of Construction Companies in Malaysia?

Abstract

This paper examined the moderating role of company size on the relationship between sustainability practices (social, environmental and economic) and performance of companies in the construction industry in Malaysia. A total of 247 out of 389 construction companies located in Kuala Lumpur and Selangor, Malaysia responded to the questionnaires. The study found that economic and environmental practices of sustainability were positively and significantly related to company performance. However, a social practice of sustainability has no relationship with company performance. Finally, the company size was found to have no moderating effect on the relationship between all sustainability practices (social, environmental and economic) and company performance. The unexpected results of the company size may be due to the lack of understanding and unwillingness of companies in the construction industry to change and adopt sustainability practices. In addition, inadequate enforcement in respect of laws and regulations may have contributed to the lack of sustainability practices implemented in construction industry.