SUSTAINABILITY IN SMALL BUSINESS: FACTOR AFFECTING GREEN MANAGEMENT ADOPTION IN KOTA KINABALU SABAH

Abstract

Environmental sustainability is increasingly vital in today’s global business environment, driven by growing concerns over climate change, resource scarcity, and ecological degradation. In the hospitality industry, foodservice establishments especially coffee shops play a notable role in contributing to environmental impacts through excessive energy consumption, waste generation, and dependence on non-renewable resources. In response, coffee shops are increasingly expected to implement green management practices to reduce their ecological impact and support sustainable development goals. This study critically investigates the factors influencing the intention to adopt green management practices among coffee shop operators in Kota Kinabalu, Sabah. Employing a quantitative research approach, data were collected via a structured survey questionnaire featuring closed-ended items measured on a 5-point Likert scale. The target population, including coffee shop operators, registered with the Kota Kinabalu City Council, either currently practicing or intending to adopt green initiatives. Out of 428 registered coffee shops identified in the council’s registry, 150 operators agreed to participate in the study, providing a robust sample for analysis. The findings revealed that trialability, compatibility, and tangible environmental products were significant positive predictors of adoption intention, while complexity and perceived lack of relative advantage acted as barriers. Notably, environmental saving showed a strong negative effect, suggesting that sustainability messaging must be reframed to emphasize practical and economic benefits. These insights contribute to the broader discourse on sustainable practices in the foodservice industry and inform policy and strategic interventions aimed at promoting green innovation among SMEs.