Description
I’m working on a finance project and need a sample draft to help me learn.
As a part of my thesis, need to solve to separate equations in STATA
Equation-1: Dependent Variable is “Corporate loan”, Independent variable is “Green Disclosure” and the control Variables are “Growth rate”, “Cash Holding”, Asset Tangibility”, “ROA”, “Investment Expenditure”, “Corporate Size”, “Financial Leverage”, “Ownership concentration”, “Management Holding”, “Agency cost”.
Corporate Loan(i,t) = β0 + β1Green Disclosure(i,t) + γ1Growth Rate(i,t) + γ2Cash Holding(i,t) + γ3Asset Tangibility(i,t) + γ4ROA(i,t) + γ5Investment Expenditure(i,t) + γ6Corporate Size(i,t) + γ7Financial Leverage(i,t) + γ8Ownership Concentration(i,t) + γ9Management Holding(i,t) + γ10Agency Cost(i,t) + μ(i)+ε(i,t).
Equation-2: Dependent Variable is “Corporate loan”, Independent variable is “Green Innovation” and the control Variables are “R&D Investment”, “General Innovation Performance”.
Corporate Loan(i,t) = β0 + β1Green Innovation(i,t) + γ1R&D Investment(i,t)+ γ2 General Innovation performance(i,t)+ μ(i)+ε(i,t).
Assignment procedure must as follows:
1. Collecting all the required data for the period 2018-2022. (Green disclosure , green innovation, corporate loan, and all the other control variables data need to be collected).
2. Arranging the data in the excel sheet
3. Conducting the hasuman test.
4. Conducting the Linear panel regression analysis for both the equations separately in STATA
5. All the results along with the complete data in the excel sheets for the period 2018-2022 must be provided along with the result.
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Effect of Corporate Environmental Performance on access to
bank loans and green credit: Evidence from Indonesia
FINAL PROJECT
In partial fulfilment of the requirements
for the master’s degree
from Institut Teknologi Bandung
By
SRINIVAS PENDYALA
Student ID: 29122701
(Master of Business Administration Program)
Master of Business Administration Program
School of Business and Management
Institut Teknologi Bandung
2024
Effect of Corporate ESG Performance on access to
bank loans and green credit: Evidence from Indonesia
SRINIVAS PENDYALA
NIM: 29122701
Date of Passing of Final Test ()
Date of Graduation Ceremony ()
Master of Business Administration, Institut Teknologi Bandung, 2024
Thesis Counsellor: Yunieta Anny Nainggolan, S.E, M.Com., Ph.D.
ABSTRACT
After the famous Paris agreement on Climate Change and Global warming all the participants
including Indonesia made an agreement on Nationally determined Contribution (NDC) with
the goal to reduce the Green House Gas emissions by 29% with their own effort and 49% with
International Support. In order to achieve the goal government of Indonesia making efforts to
make Sustainable finance. As mandate in the article 28H and Article 33 paragragh 3 and 4 of
the 1945 Constitution of the Republic of Indonesia which states that “The state is obliged to
guarantee that every citizen has the right to obtain a proper environment, and the national
economy is organized according to principles, among others sustainability and does not cause
adverse impact on the environment.”
Indonesian Government is supported by Financial Services Authority (OJK) to develop the
Sustainable finance in Indonesia. As a first step, OJK issued a regulation requiring financial
service institutions, issuers, and public companies to apply sustainable finance principles in
carrying out their business activities, namely OJK Regulation (POJK) No.51/POJK.03/2017. In
addition, OJK also issued POJK 60/POJK.04/2017 which regulates the development of
securities used to finance environmentally friendly activities. To implement sustainable
finance, commercial banks are required to prepare an action plan which is submitted to OJK at
the end of the year known as the Sustainable Finance Action Plan (RAKB). RAKB includes
things that will be carried out to produce financial products and or services that meet the
principles of sustainable finance accompanied by a time limit for its implementation. In
addition, commercial banks are required to prepare sustainable reports. The report is published
to the public and also submitted to OJK. The percentage comparison between KUBL credit and
total credit is defined as green credit. The companies also inorder to utilize benefits from the
Green Credit policy the companies need to implement internal green innovations in their
companies and have better external environmental disclosures. This study undertook a
quantitative research approach to investigate the interplay between the Green Credit Policy,
corporate access to bank loans, environmental disclosure, and green innovation in the context
of Indonesian commercial banks. The primary aim was to analyze the relationships among
these variables, considering them as they stood in the past. The Green Credit Policy,
implemented by Indonesian authorities, was explored regarding its influence on corporate
access to bank loans. The policy’s impact was assessed retrospectively, focusing on how it
affected corporations’ ability to secure loans from banks. In conjunction with the Green Credit
Policy, the study also delved into the role of environmental disclosure in shaping corporate
access to bank loans. It investigated how companies past levels of environmental disclosure
had impacted their loan acquisition process, considering whether greater transparency about
environmental practices had facilitated improved loan access. Furthermore, the research
ii
examined the link between green innovation and corporate access to bank loans. The
investigation focused on past instances to understand if a history of green innovation had
positively affected companies’ ability to secure bank loans, demonstrating the value that
innovation in environmentally friendly practices brought to financial considerations. The
backdrop for this study was the landscape of Indonesian commercial banks. By using historical
data, the research aimed to establish a comprehensive understanding of the relationships
explored. The data was analyzed to discern patterns and correlations in the past interactions
between the Green Credit Policy, environmental disclosure, green innovation, and corporate
access to bank loans. The results shed light on the intricate dynamics that prevailed. It was
observed that the Green Credit Policy had played a pivotal role in influencing corporate loan
accessibility. Moreover, companies prioritizing environmental disclosure seemed to have
experienced more favorable loan acquisition outcomes. Similarly, a history of green innovation
was linked with enhanced corporate access to bank loans.
Keywords: Green Credit Policy, External Environmental disclosure, Internal Green Innovation,
corporate loan accessibility
iii
Effect of Corporate ESG Performance on access to
bank loans and green credit: Evidence from Indonesia
SRINIVAS PENDYALA
NIM: 29122701
Tanggal Kelulusan Sidang () Tanggal Wisuda ()
Magister Administrasi Bisnis, Institut Teknologi Bandung, 2024
Pembimbing Tugas Akhir: Yunieta Anny Nainggolan, S.E, M.Com., Ph.D.
ABSTRAK
Setelah kesepakatan Paris yang terkenal tentang Perubahan Iklim dan Pemanasan Global
semua peserta termasuk Indonesia membuat kesepakatan tentang Kontribusi yang Ditentukan
secara Nasional (NDC) dengan tujuan untuk mengurangi emisi Gas Rumah Kaca sebesar 29%
dengan usaha mereka sendiri dan 49% dengan Dukungan Internasional. Untuk mencapai
tujuan tersebut pemerintah Indonesia melakukan upaya untuk membuat Keuangan
Berkelanjutan. Sebagaimana amanat dalam pasal 28H dan Pasal 33 ayat 3 dan 4 UndangUndang Dasar Negara Republik Indonesia Tahun 1945 yang menyatakan bahwa “Negara
wajib menjamin bahwa setiap warga negara berhak memperoleh lingkungan hidup yang layak,
dan terselenggaranya perekonomian nasional. sesuai prinsip, antara lain berkelanjutan dan
tidak menimbulkan dampak buruk terhadap lingkungan.”
Pemerintah Indonesia didukung oleh Otoritas Jasa Keuangan (OJK) untuk mengembangkan
Keuangan Berkelanjutan di Indonesia. Sebagai langkah awal, OJK mengeluarkan peraturan
yang mewajibkan lembaga jasa keuangan, emiten, dan perusahaan publik untuk menerapkan
prinsip keuangan berkelanjutan dalam menjalankan kegiatan usahanya, yaitu Peraturan OJK
(POJK) No.51/POJK.03/2017. Selain itu, OJK juga menerbitkan POJK 60/POJK.04/2017
yang mengatur tentang pengembangan surat berharga yang digunakan untuk pembiayaan
kegiatan ramah lingkungan. Dalam rangka penerapan keuangan berkelanjutan, bank umum
wajib menyusun rencana aksi yang disampaikan kepada OJK pada akhir tahun yang dikenal
dengan Rencana Aksi Keuangan Berkelanjutan (RAKB). RAKB memuat hal-hal yang akan
dilakukan dalam rangka menghasilkan produk dan atau jasa keuangan yang memenuhi prinsip
keuangan berkelanjutan disertai dengan batas waktu pelaksanaannya. Selain itu, bank
komersial wajib menyusun laporan berkelanjutan. Laporan tersebut dipublikasikan kepada
publik dan juga disampaikan kepada OJK. Persentase perbandingan antara kredit KUBL dan
total kredit ditetapkan sebagai kredit hijau. Perusahaan juga untuk memanfaatkan manfaat
dari kebijakan Green Credit, perusahaan perlu menerapkan inovasi hijau internal di
perusahaan mereka dan memiliki pengungkapan lingkungan eksternal yang lebih baik. Studi
ini melakukan pendekatan penelitian kuantitatif untuk menyelidiki interaksi antara Kebijakan
Kredit Hijau, akses perusahaan ke pinjaman bank, pengungkapan lingkungan, dan inovasi
hijau dalam konteks bank komersial Indonesia. Tujuan utamanya adalah untuk menganalisis
hubungan antara variabel-variabel ini, dengan mempertimbangkannya seperti yang terjadi di
masa lalu. Kebijakan Kredit Ramah Lingkungan yang diterapkan oleh otoritas Indonesia
dieksplorasi pengaruhnya terhadap akses korporasi terhadap pinjaman bank. Dampak
kebijakan tersebut dinilai secara retrospektif, dengan fokus pada bagaimana kebijakan
tersebut memengaruhi kemampuan korporasi untuk mendapatkan pinjaman dari bank.
Sehubungan dengan Kebijakan Kredit Ramah Lingkungan, studi ini juga menyelidiki peran
pengungkapan lingkungan dalam membentuk akses perusahaan terhadap pinjaman bank. Ini
menyelidiki bagaimana tingkat pengungkapan lingkungan perusahaan di masa lalu telah
memengaruhi proses akuisisi pinjaman mereka, dengan mempertimbangkan apakah
iv
transparansi yang lebih besar tentang praktik lingkungan telah memfasilitasi akses pinjaman
yang lebih baik. Selanjutnya, penelitian ini menguji keterkaitan antara inovasi hijau dan akses
korporasi terhadap pinjaman bank. Investigasi berfokus pada contoh masa lalu untuk
memahami jika sejarah inovasi hijau telah secara positif memengaruhi kemampuan
perusahaan untuk mendapatkan pinjaman bank, menunjukkan nilai inovasi dalam praktik
ramah lingkungan yang dibawa ke pertimbangan keuangan. Latar belakang penelitian ini
adalah lanskap bank umum Indonesia. Dengan menggunakan data historis, penelitian ini
bertujuan untuk membangun pemahaman yang komprehensif tentang hubungan yang
dieksplorasi. Data dianalisis untuk membedakan pola dan korelasi dalam interaksi masa lalu
antara Kebijakan Kredit Ramah Lingkungan, pengungkapan lingkungan, inovasi hijau, dan
akses korporasi ke pinjaman bank. Hasilnya menjelaskan dinamika rumit yang berlaku.
Terlihat bahwa Kebijakan Kredit Ramah Lingkungan telah memainkan peran penting dalam
mempengaruhi aksesibilitas pinjaman korporasi. Selain itu, perusahaan yang memprioritaskan
pengungkapan lingkungan tampaknya mengalami hasil akuisisi pinjaman yang lebih baik.
Demikian pula, sejarah inovasi hijau dikaitkan dengan peningkatan akses perusahaan ke
pinjaman bank.
Kata Kunci: Kebijakan Green Credit, External Environmental Disclosure, Internal Green
Innovation, Aksesibilitas Pinjaman Perusahaan
v
VALIDATION PAGE
Effect of Corporate ESG Performance on access to
bank loans and green credit: Evidence from Indonesia
By:
SRINIVAS PENDYALA
NIM: 29122701
Master of Business Administration Program
School of Business and Management
Institut Teknologi Bandung
Approved, Bandung,
Final Project Advisor
Yunieta Anny Nainggolan, S.E, M.Com., Ph.D.
vi
DECLARATION OF NON-PLAGIARISM
Plagiarism is:
Taking, using, and submitting a work of another, including an idea, writing, or
invention, as if it was her or his own.
Plagiarism includes (but not limited to):
1. quoting verbatim the work of another without acknowledgement of the
source.
2. paraphrasing the work of another without acknowledgement of the
source.
3. using the idea of another without acknowledgement of the source.
4. submitting the work of another without identifying clearly who did the
work.
5. colluding by submitting the work of another as her or his own with
consent from the other.
I understand that Plagiarism is wrong, a breach of academic integrity, and
against Program, School, and University’s Policy and Regulation.
I declare that all material in this Final Project is original, my own
work, and does not involve plagiarism.
I have not allowed, and will not allow, another to copy my work with the
intention of submitting it as her or his own work.
Name: Srinivas Pendyala
Student ID:
Signed
Date
29122701
vii
FOREWORD
The very first gratefulness is delivered to Almighty God for His blessings and grace in writing this final
project to complete study at Master of Business Administration program at School of Business
Management, Institut Teknologi Bandung (MBA ITB). With His guidance, the author is capable to
complete this final project. In this opportunity, the author would like to express gratitude toward some
important people who gave supports and prayers during the writing process of this final project:
1. My beloved family, especially my parents and my wife who always supports and encourages
me during the writing of this final project.
2. Mrs. Yunieta Anny Nainggolan, S.E, M.Com., Ph.D., as my supervisor who teaches me many
knowledges and sensible ideas for the goodness of my final project.
3. All of the company’s colleagues for the valuable discussion and sharing the information.
4. Lecturers and staffs from MBA ITB who teaches many knowledge and experiences which is
very beneficial for the authors.
5. All of my classmates of SBM-ITB_KPC Batch-3 who motivates me in completing this final
project.
The author already done her best in completing this final project. Nevertheless, the author realizes that
there are some oversights in this final research. Suggestions and constructive criticism are expected for
improving this final project. Hope that this final project could be beneficial for the readers in the future.
Bandung,
Srinivas Pendyala
29122701
viii
TABLE OF CONTENTS
ABSTRACT ………………………………………………………………………………………………………………………….. ii
ABSTRAK …………………………………………………………………………………………………………………………… iii
VALIDATION PAGE ……………………………………………………………………………………………………………. iv
DECLARATION OF NON-PLAGIARISM……………………………………………………………………………………………………….. v
FOREWORD ……………………………………………………………………………………………………………………….. vi
LIST OF FIGURES ………………………………………………………………………………………………………………… 3
LIST OF TABLES …………………………………………………………………………………………………………………. 4
LIST OF APPENDICES …………………………………………………………………………………………………………. 5
CHAPTER I ………………………………………………………………………………………………………………………….. 6
INTRODUCTION …………………………………………………………………………………………………………………. 6
1.1. Background …………………………………………………………………………………………………………………. 6
1.2. Business Overview ……………………………………………………………………………………………………….. 9
1.2.1. Company Profile ……………………………………………………………………………………………………. 9
1.2.2. Company Vision and Mission …………………………………………………………………………………. 10
1.2.3. Organizational Structure ……………………………………………………………………………………….. 10
1.3. Business Issue ……………………………………………………………………………………………………………. 11
1.4. Research Questions …………………………………………………………………………………………………….. 15
1.5. Research Objective ……………………………………………………………………………………………………… 15
1.6. Research Scope and Limitation …………………………………………………………………………………….. 15
1.7. Systematic Writing ……………………………………………………………………………………………………… 16
CHAPTER II ……………………………………………………………………………………………………………………….. 17
BUSINESS ISSUE EXPLORATION ……………………………………………………………………………………… 17
2.1.
Literature Review …………………………………………………………………………………………………… 17
2.1.1. Consumer Behavior Model …………………………………………………………………………………….. 17
2.1.2. Purchase Intention ……………………………………………………………………………………………….. 19
2.1.3. Brand Equity ……………………………………………………………………………………………………….. 20
2.1.4. Marketing Mix Elements………………………………………………………………………………………… 21
2.1.5. Previous Research ………………………………………………………………………………………………… 22
2.2. Conceptual Framework ……………………………………………………………………………………………….. 25
2.2.1. Selected Marketing Mix Elements as Antecedents of Brand Equity Elements ………………… 26
2.2.2. Selected Brand Equity Elements as Antecedents of Purchase Intention ………………………… 27
2.2.3. Research Hypothesis …………………………………………………………………………………………….. 28
2.3. Research Methodology ………………………………………………………………………………………………… 31
2.3.1. Research Design…………………………………………………………………………………………………… 31
2.3.2. Research Method ………………………………………………………………………………………………….. 32
2.3.3. Operational Variable and Questionnaire Design………………………………………………………. 34
1
2.3.4. Population ………………………………………………………………………………………………………….. 35
2.3.5. Sample ………………………………………………………………………………………………………………… 36
2.3.6. Validity Test…………………………………………………………………………………………………………. 37
2.3.7. Reliability Test……………………………………………………………………………………………………… 38
2.3.8. Partial Least Square-Structural Equation Modelling (PLS-SEM) ……………………………….. 38
2.4. Analysis of Business Situation ……………………………………………………………………………………… 39
2.4.1. Internal Analysis…………………………………………………………………………………………………… 40
2.4.2. External Analysis………………………………………………………………………………………………….. 59
2.4.3. Conclusion of Business Analysis …………………………………………………………………………… 105
CHAPTER III…………………………………………………………………………………………………………………….. 121
BUSINESS SOLUTION ……………………………………………………………………………………………………… 121
3.1. Business Solution Alternatives ……………………………………………………………………………………. 121
3.1.1. TOWS Matrix……………………………………………………………………………………………………… 121
3.1.2. Internal-External (IE) Matrix ……………………………………………………………………………….. 135
3.2. Analysis of Alternatives …………………………………………………………………………………………….. 137
CHAPTER IV…………………………………………………………………………………………………………………….. 140
CONCLUSION AND IMPLEMENTATION PLAN ………………………………………………………………. 140
4.1. Conclusion ……………………………………………………………………………………………………………….. 140
4.2. Implementation Plan………………………………………………………………………………………………….. 141
4.2.1. Action Plan, Resources, and Timeline ……………………………………………………………………. 142
LIST OF FIGURES
Figure 1. 1 Market Share of Tobacco Industry in Indonesia (Source: Tobacco Atlas) ……………………… 7
Figure 1. 2 Company Structure Based on Role and Region (Source: Internal Company)………………….. 9
Figure 1. 3 Organizational Chart of CV MSS (Source: Internal Company) …………………………………… 10
Figure 1. 4 Revenue and Target Achievement (Source: Internal Company) ………………………………….. 13
Figure 2. 1 Consumer Behavior Model (Source: Kotler & Keller, 2012) ……………………………………… 17
Figure 2. 2 Five-Stages Model of Buying Decision Process (Source: Kotler & Keller, 2012)………….. 18
Figure 2. 3 Conceptual Framework of Brand Equity by Yoo, et.al., (2000) (Source: Adapted by
Authors)………………………………………………………………………………………………………………………………. 20
Figure 2. 4 Aaker’s Brand Equity Model (Source: Aaker, 1991) …………………………………………………. 21
Figure 2. 5 Four Ps of Marketing Mix Elements (Source: Kotler & Armstrong, 2017) …………………… 22
Figure 2. 6 Conceptual Framework of the Research ………………………………………………………………….. 26
Figure 2. 7 Research Design ………………………………………………………………………………………………….. 31
Figure 2. 8 Existing Distribution Area of Supreme Bold ……………………………………………………………. 43
Figure 2. 9 Consumer Marketing Channel (Source: Kotler & Keller, 2012) …………………………………. 44
Figure 2. 10 Prevalence (%) of Current Tobacco Use Among Adults (Source: WHO, 2020) ………….. 62
Figure 2. 11 Gender Distribution of Smokers in Indonesia (Source: Riskesdas, 2018) …………………… 63
Figure 2. 12 Gender and Age Distribution of Smokers in Indonesia (Source: Dinas Komunikasi dan
Informatika Majalengka, 2019)………………………………………………………………………………………………. 63
Figure 2. 13 Modern and Traditional Buying Channel Preferences (Source: Deloitte Consumer
Insight, 2019) ………………………………………………………………………………………………………………………. 64
Figure 2. 14 Perceptual Map ………………………………………………………………………………………………….. 75
Figure 2. 15 Gender of Respondents ……………………………………………………………………………………….. 78
Figure 2. 16 Age of Respondents ……………………………………………………………………………………………. 79
Figure 2. 17 Current Residence of Respondents………………………………………………………………………… 79
Figure 2. 18 Last Education of Respondent………………………………………………………………………………. 80
Figure 2. 19 Current Occupation of Respondent ……………………………………………………………………….. 81
Figure 2. 20 Monthly Income of Respondents ………………………………………………………………………….. 81
Figure 2. 21 Most Important Factors to Buy Cigarettes ……………………………………………………………… 82
Figure 2. 22 Most Frequently Bought Cigarette Price/Pack ………………………………………………………… 82
Figure 2. 23 Most Frequent Place to Buy Cigarette …………………………………………………………………… 83
Figure 2. 24 Average Cigarette Daily Consumption ………………………………………………………………….. 83
Figure 2. 25 Reason to Consume Cigarettes……………………………………………………………………………… 84
Figure 2. 26 Most Frequently Seen Promotion Activities …………………………………………………………… 84
Figure 2. 27 Most Frequently Bought Cigarettes Brand……………………………………………………………… 85
Figure 2. 28 PLS-SEM Model Group 1……………………………………………………………………………………. 98
Figure 2. 29 PLS-SEM Model Group 2………………………………………………………………………………….. 104
Figure 3. 1 Gudang Garam Retail Community (Source: Google.com)………………………………………… 129
Figure 3. 2 Sampoerna Retail Community (Source: Google.com) ……………………………………………… 129
Figure 3. 3 Djarum Retail Partnership (Source: Google.com)……………………………………………………. 129
Figure 3. 4 IE Matrix …………………………………………………………………………………………………………… 135
3
LIST OF TABLES
Table 1. 1 Percentage of Smokers Population by Province …………………………………………………………… 7
Table 1. 2 Tiering for Cigarettes Manufacturers …………………………………………………………………………. 8
Table 1. 3 Market Share of Supreme Cigarettes in Majalengka Regency ……………………………………… 12
Table 1. 4 Product Performance of CV MSS in Majalengka Regency………………………………………….. 14
Table 2. 1 Previous studies in term of main objectives and findings related to this research. …………… 23
Table 2. 2 Data Finding Process in Qualitative Research……………………………………………………………. 33
Table 2. 3 Data Finding Process in Quantitative Research ………………………………………………………….. 33
Table 2. 4 Operational Variable ……………………………………………………………………………………………… 34
Table 2. 6 PLS-SEM Evaluation and Criteria …………………………………………………………………………… 39
Table 2. 7 Product Specification of CV MSS in West Java…………………………………………………………. 41
Table 2. 8 Supreme Bold Accumulated Quantity Sold……………………………………………………………….. 42
Table 2. 9 Accumulated Percentage of Wholesalers and Retailers……………………………………………….. 46
Table 2. 10 Supreme Price Detail from CV MSS to Customers…………………………………………………… 48
Table 2. 11 Historical Marketing Expenditure of CV MSS…………………………………………………………. 53
Table 2. 12 Segmentation, Targeting, Positioning of Supreme Bold in Majalengka ……………………….. 58
Table 2. 14 Excise Tax Revenue Component……………………………………………………………………………. 67
Table 2. 15 4P Marketing Mix Benchmarking ………………………………………………………………………….. 73
Table 2. 16 Validity Test Result ……………………………………………………………………………………………… 77
Table 2. 17 Reliability Test Result ………………………………………………………………………………………….. 78
Table 2. 18 Residence of Respondents by Group………………………………………………………………………. 80
Table 2. 19 Reason not Interested to Buy…………………………………………………………………………………. 86
Table 2. 20 Product Descriptive Statistics ………………………………………………………………………………… 87
Table 2. 21 Price Descriptive Statistics ……………………………………………………………………………………. 87
Table 2. 22 Place Descriptive Statistics……………………………………………………………………………………. 88
Table 2. 23 Promotion Descriptive Statistics…………………………………………………………………………….. 89
Table 2. 24 Perceived Quality Descriptive Statistics ………………………………………………………………….. 89
Table 2. 25 Brand Awareness Descriptive Statistics ………………………………………………………………….. 90
Table 2. 26 Purchase Intention Descriptive Statistics…………………………………………………………………. 91
Table 2. 27 Means Overall Gap………………………………………………………………………………………………. 91
Table 2. 28 Normality Test Result…………………………………………………………………………………………… 92
Table 2. 29 Two-Sample Test Result ………………………………………………………………………………………. 93
Table 2. 30 First Phase Loading Factor Table Group 1………………………………………………………………. 94
Table 2. 31 Average Variance Extracted Value Group 1 ……………………………………………………………. 95
Table 2. 32 Second Phase Cross-Loading Table Group 1 …………………………………………………………… 96
Table 2. 33 Composite Reliability, Cronbach’s Alpha Group 1…………………………………………………… 96
Table 2. 34 R Square and Predictive Relevance Group 1……………………………………………………………. 97
Table 2. 35 Hypothesis Testing Group 1………………………………………………………………………………….. 98
Table 2. 36 First Phase Loading Factor Table Group 2…………………………………………………………….. 100
Table 2. 37 Average Variance Extracted Value Group 2 ………………………………………………………….. 101
Table 2. 38 Second Phase Cross-Loading Table Group 2 …………………………………………………………. 101
Table 2. 39 Composite Reliability, Cronbach’s Alpha Group 2…………………………………………………. 102
Table 2. 40 R Square and Predictive Relevance Group 2………………………………………………………….. 102
Table 2. 41 Hypothesis Testing Group 2………………………………………………………………………………… 103
Table 2. 42 IFE Matrix Strengths ………………………………………………………………………………………….. 106
Table 2. 43 IFE Matrix Weaknesses………………………………………………………………………………………. 106
Table 2. 44 EFE Matrix Opportunities …………………………………………………………………………………… 112
Table 2. 45 EFE Matrix Threats ……………………………………………………………………………………………. 112
4
LIST OF APPENDICES
APPENDIX 1 – Questionnaire ……………………………………………………………………………………………… 160
APPENDIX 2 – Validity Test Result …………………………………………………………………………………….. 166
APPENDIX 3 – Reliability Test Result …………………………………………………………………………………. 170
5
CHAPTER I
INTRODUCTION
1.1. Background
Worldwide society has seen an increase in concern for environmental sustainability
and its incorporation into economic activity in recent years. This paradigm change has
compelled governments, businesses, and finan
