The Relationship between Sustainability Practices and Business Performance: A Case Study

Abstract

Sustainability has emerged as a critical imperative in the food sector owing to escalating worries around resource utilization, waste management, and environmental repercussions. Despite increasing awareness, the extent of sustainability practice implementation among small and medium enterprises (SMEs), particularly in Malaysia’s food sector, remains underexplored. This study aims to examine the level of sustainability practices adopted by a selected food SME in Melaka, RG Food Industries and analyse the relationship between sustainability practices and business performance. This study employs a qualitative case study approach. Data were collected through structured interviews with management, direct observations, and analysis of internal company documents, including monthly sales records. The data were analysed using NVivo software to identify key themes and evaluate the level of sustainability practices. The findings reveal that RG Food Industries exhibits a moderate level of sustainability practices, with implementation largely concentrated on basic environmental and social initiatives. However, these practices remain unsystematic due to limitations in financial resources, technological capability, and managerial expertise. The analysis further indicates that sustainability practices did not demonstrate a direct effect on business performance, as sales performance was predominantly influenced by pricing strategies and product quality rather than sustainability initiatives. Nevertheless, sustainability practices demonstrate potential to enhance long-term business performance through improved corporate reputation and organisational resilience. Overall, this study provides practical insights for SME managers in formulating effective sustainability strategies and contributes to the limited empirical literature on sustainability practices among food sector SMEs in Malaysia, particularly in relation to SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).