sustainable practices & marketing strategies for ...817884/fulltext01.pdf · development and...

Sustainable practices & marketing

strategies for developing

countries

A multiple case study of international firms

operating on the Malaysian market

Authors: Heidi von Jahf 891104

Master’s in Business Administration

with specialization in Marketing

Paulina Huhtilainen 890905

Master’s in Business Administration

with specialization in Marketing

Tutor:

Dr. Setayesh Sattari

Examiner:

Prof. Anders Pehrsson

Level and semester: Master’s Thesis,

Spring 2015

Abstract

As the traditional role of corporate entities have been challenged by an increased number of

demands from society, companies are no longer just legal factors intended to generate profits

by supplying products or services. Instead, they are expected to play the role of responsible

co-citizens of the community, taking social and environmental responsibility for the

consequences of their actions. Implementing sustainable practices into business strategies is

considered beneficial for both organizations and society, as it brings organizations

opportunities for growth and development, as well as a more sustainable future for society.

One way for businesses to ensure their responsibilities regarding sustainability issues and

maintaining sustainable business practices has been depicted in the United Nation’s eight

goals termed the ‘Millennium Development Goals’ (MDGs).

Previous research argues that organizations must incorporate sustainable practices into their

different organizational strategies such as marketing, purchasing, and finance in order to

maintain organizational growth and contribute to sustainable development. This issue has

become especially important in developing countries as emerging markets compose great

opportunities for businesses in terms of growth and development. An emerging market and

developing country providing humongous growth opportunities for businesses is Malaysia.

However, limited research has been conducted connecting the concepts sustainable

development and marketing strategies, and how these may lead to an accelerated achievement

of the MDGs within developing countries.

In order to answer the purpose of the study, a qualitative approach using open, - and semi-

structured interviews together with observations was chosen as the most appropriate research

method. Four international firms operating on the Malaysian market participated in the study

and the findings indicated that having a well-developed sustainability marketing strategy and

striving for a sustainable future does bring organizations competitive advantage and growth

opportunities, and thereby an accelerated achievement of the MDGs.

Keywords: International Marketing Strategy (IMS), sustainable development, Millennium

Development Goals (MDGs), Sustainability Marketing Strategy, developing countries, Malaysia

Acknowledgements

This research was conducted during our last semester at the Master’s Program in Marketing in

spring of 2015. The process of writing the dissertation has been educational and given us an

increased knowledge and understanding within the field of subject. The experience has

endowed us with significant understanding and awareness regarding sustainability issues in

relation to marketing strategies formed in a developing country. The choice of conducting a

qualitative research based on observations, as well as semi-structured-, and open interviews

has facilitated the aim to gain in-depth knowledge regarding how international firms operating

on the Malaysian market employ sustainability practices into their marketing strategies. The

process of writing the dissertation and gather the empirical data based on fieldwork on the

Malaysian market has been a great opportunity for personal,- and professional development.

This dissertation would not have been possible without the assistance and support from

several people. We would like to thank the organization ’Styrelsen för Internationellt

Utvecklingssamarbete’ (SIDA) for providing us with scholarship and hence, giving us the

opportunity to conduct our research in Malaysia. We would also like to thank our tutor Dr.

Setayesh Sattari for the assistance and guidance during the process of developing and writing

the thesis, and for all valuable feedback and advice. Further, we would like to thank our

examiner Prof. Anders Pehrsson for the support throughout the research process, which

encouraged us to improve the quality of our research, and we also appreciate the guidance and

support from all our fellow students. Last but not least, we want to thank the four

organizations that made the research possible by sharing their experience and knowledge

regarding the subject, and for allowing us to gather the empirical data on site.

Linnaeus University

May 2015

Paulina Huhtilainen Heidi von Jahf

Table of Contents

Table of Contents 1. Introduction ........................................................................................................................ 11

1.1 Background ..................................................................................................................... 11

1.1.2 Malaysia as a developing country ............................................................................ 12

1.2 Problem Discussion ........................................................................................................ 14

1.3 Research gap and purpose .............................................................................................. 16

1.4 Delimitations .................................................................................................................. 17

1.5 Outline of thesis .............................................................................................................. 18

1.6 Chapter summary ............................................................................................................ 19

2. Literature Review ............................................................................................................... 20

2.1 International Marketing Strategy .................................................................................... 20

2.1.1 International Marketing Strategy in developing countries ....................................... 21

2.2 Sustainable Development ............................................................................................... 21

2.2.1 The Millennium Development Goals ....................................................................... 23

2.2.2 Corporate Social Responsibility .............................................................................. 23

2.2.3 Sustainable Development in developing countries .................................................. 24

2.3 Sustainability Marketing Strategy in developing countries ............................................ 25

2.4 Chapter summary ............................................................................................................ 26

3. Conceptual model ............................................................................................................... 27

3.1 Proposed Research Model .............................................................................................. 27

3.2 Chapter summary ............................................................................................................ 28

4. Methodology ....................................................................................................................... 29

4.1 Research philosophy and approach ................................................................................ 29

4.2 Practical methodology .................................................................................................... 31

4.2.1 Research approach ....................................................................................................... 31

4.2.2 Research strategy and data collection method ......................................................... 32

4.2.3 Operationalization and measurement of variables ................................................... 33

4.2.4 Sampling technique .................................................................................................. 35

4.2.5 Data analysis method ............................................................................................... 35

4.3 Ethical considerations ..................................................................................................... 36

4.4 Quality criteria ................................................................................................................ 37

4.4.1 Quality criteria for observations .............................................................................. 37

Table of Contents

4.4.2 Content validity ........................................................................................................ 38

4.4.3 Construct validity ..................................................................................................... 38

4.4.4 External validity ....................................................................................................... 39

4.4.5 Reliability ................................................................................................................. 39

4.5 Chapter summary ............................................................................................................ 39

5. Empirical Data Presentation ............................................................................................. 40

5.1 Case One – Toyota Material Handling International ...................................................... 40

5.1.1 International Marketing Strategy ............................................................................. 40

5.1.2 Sustainable Development ......................................................................................... 41


5.1.4 Sustainability Marketing Strategy ............................................................................ 43

5.2 Case Two – Mölnlycke Health Care ............................................................................... 44





5.3 Case Three – Neopharma Biotech Asia .......................................................................... 48





5.4 Case Four – Camfil Malaysia ......................................................................................... 51





5.5 Chapter summary ............................................................................................................ 55

6. Data Analysis ...................................................................................................................... 56

6.1 International Marketing Strategy .................................................................................... 56

6.2 Sustainable Development ............................................................................................... 57

6.3 The Millennium Development Goals ............................................................................. 59

6.4 Sustainability Marketing Strategy .................................................................................. 60

6.5 Chapter summary ............................................................................................................ 62

Table of Contents

7. Conclusions and Implications ........................................................................................... 63

7.1 Discussion ....................................................................................................................... 63

7.2 Theoretical Implications ................................................................................................. 65

7.3 Managerial Implications ................................................................................................. 66

7.4 Limitations ...................................................................................................................... 67

7.5 Suggestions for Future Research .................................................................................... 67

7.6 Chapter summary ............................................................................................................ 68

List of References ................................................................................................................... 69

Interviews ............................................................................................................................. 74

Appendices .............................................................................................................................. 75

Appendix 1 - Interview guide ............................................................................................... 75

List of Tables Table 1 - Operationalization ..................................................................................................... 34

List of Figures Figure 1 - Proposed Research Model ....................................................................................... 27

Introduction

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1. Introduction This chapter contains an introduction to the field of study, a presentation of the concept

‘sustainability’ and ’sustainable development’, ‘sustainability marketing strategy’ as well as

the Millennium Development Goals (MDGs). Further, the chapter provides background

information about the federation of Malaysia and continues with a problematization of the

field under study. Lastly, the study’s research gap and questions are stated together with the

purpose of the study, followed by delimitations and ending with an outline of the thesis.

1.1 Background Over 20 years ago the World commission on Economic Development (WCED) introduced a

concept known as ‘sustainability’ into business practices and scholarly research (Crittenden et

al., 2010). According to Crittenden et al. (2010) the concept includes a large assortment of

terms and management approaches such as; environmental responsibility, social

responsibility, sustainable development, and many more. The authors discuss that even

though these concepts have all been engaged in displaying business accountability to the

public, regardless of the term used, it is reasoned that the intention is to argue for business

responsibility among organizations. According to the International Institute for Sustainable

Development (IISD) the term ‘sustainable development’ is referred to as: “development that

meets the needs of the present without compromising the ability of future generations to meet

their own needs” (IISD, 2013). Furthermore, sustainability includes three dimensions; social,-

environmental,- and economical sustainability and authors argue that business practices

should address all three dimensions in order to be considered sustainable (Kumar et al., 2012).

One way for businesses to ensure their responsibilities regarding sustainability issues and

maintaining sustainable business practices has been depicted in eight goals termed the

‘Millennium Development Goals’ (MDGs) (Milleniemålen, 2015). These eight goals were

introduced by the United Nations (UN) and its 190 members in 2001, where governments

signing the declaration pledged to work towards the attainment of global development

(milleniemålen, 2015; Okpala & Ekpemiro, 2012). The authors argue that the main purpose of

the MDGs is to improve and better the lives of people in developing countries. Further, the

eight goals are all time bound targets with the aim to strive for local solutions in order to

strengthen the democracy, reduce poverty, prevent and solve conflicts or crises, while at the

Introduction

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same time work to prevent pollution and avert diffusion of HIV and AIDS. (milleniemålen,

2015; Okpala & Ekpemiro, 2012)

The notion of sustainability or, sustainable development, is reflected in different concepts

related to corporations and the concept ‘Corporate Social Responsibility’ (CSR) is one of

them (Idemudia, 2011). Idemudia (2011) also argues that the idea of CSR presumes that

businesses have certain obligations to society that go beyond profit-making and instead

involves the help to solve societal and ecological issues. Concerns related to sustainability

have come to be one of the more important aspects within developing countries since these

markets are in need of socio-economic stability within business environments, which as a

result may lead to the support of macro trends and growth strategies (Kumar et al., 2012). For

international companies doing business in these markets, the adoption of sustainable

development is a function of including diverse firm activities of which marketing has been

identified as one (Nkamnebe, 2011). ‘Sustainability marketing’ in regards to ‘sustainability

issues’ encompasses a broader scope of marketing and is described as forming and

maintaining sustainable customer relationships, the social environment and the natural

environment (Kumar et al., 2012). Furthermore, the market opportunity for organizations is

also considered vast within developing countries and the main drivers within emerging

markets are sustainability issues and growth opportunities (Lenssen & Wassenhove, 2012).

1.1.2 Malaysia as a developing country

Issues related to sustainability have become strategically important to managerial decision

makers as companies face increased scrutiny from both employees and stakeholders,

demanding companies to engage in sustainability initiatives (Zeriti et al., 2014). One country

that is facing this issue is Malaysia, an emerging market and a developing country that

according to Mokthsim and Salleh (2014) presents growth opportunities for international

organizations. The authors also mention that the Federation of Malaysia is one of the ten

nations in South-East Asia comprising 13 states spread across two large regions; Peninsular

Malaysia and East Malaysia on the Island of Borneo and the three federal territories, all

separated by the South China Sea. Further, the authors argue that Malaysia is an independent

nation state with parliamentary constitutional monarchy and a federal government hierarchy

and is known as one of the fastest growing ASEAN countries. The country is classified as a

middle-income country that has managed to transform itself from an agro-based economy into

a growing manufacturing economy (Mokthsim & Salleh, 2014).

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According to the American stock exchange ‘National Association of Securities Dealers

Automated Quotations’ (Nasdaq), Malaysia has come to be known as an important emerging

market and one of the developing countries providing humongous growth opportunities for

businesses. Moreover, Nasdaq (2015) states that Malaysia has often been overlooked by the

powerhouses Thailand and Vietnam, despite the fact that the country has managed to keep

expanding its economy regardless of the two air disasters from which it has suffered badly.

During the global economic crisis in 2008-2009, Malaysia also managed to keep a steady

growth while other Southeast Asian economies faltered (Nasdaq, 2015). Consequently, there

are several industries in Malaysia providing humongous growth opportunities, thus, licensing

or incorporating business in Malaysia is considered potentially profitable options

(Startupoverseas, 2015). Moreover, Malaysia has undergone rapid changes socially,

economically, and environmentally during the last few decades (Hezri & Hasan, 2006). The

pursuit of socio-economic progress and the unprecedented rate of change in the natural

environment have lead the government to adapt their responses in order to address the

emerging environmental situations (Hezri & Hasan, 2006).

Furthermore, the gross domestic product rate (GDP) for Malaysia expanded with a total of

2.10 percent in the fourth quarter of 2013 over the previous quarter (Trading Economics,

2015; Nasdaq, 2015). For many years Malaysia has been a trading partner with many

international organizations all over the world and large investments are constantly made in

areas such as IT and Telecom to attract foreign companies and invite them to be a part of the

development and growth of Malaysia (Trading Economics, 2015). Consequently, new

enterprises are continuously established and the business potential for international firms

continues to increase (Business-sweden (a), 2015; Swedenabroad, 2015). Moreover, Lenssen

and Wassenhove (2012) argue that by the year 2020, 70-75 % of organizations’ revenue will

come from developing countries and emerging markets. The authors further discuss that

sustainability issues have come to be one of the important drivers within these countries and

therefore, employing a market strategy that addresses these issues is vital. As a result, it is

claimed that developing countries will become engines of growth that may carry the world

economy in the future (Lenssen & Wassenhove, 2012).

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1.2 Problem Discussion As the traditional role of corporate entities have been challenged by an increased number of

demands from society, companies are no longer just legal factors intended to generate profits

by supplying products or services, but instead expected to create job opportunities (Schmeltz,

2014). As of today, corporate entities must play the role of responsible co-citizens of the

community, taking social and environmental responsibility for the consequences of their

actions (Schmeltz, 2014; Kumar et al., 2012). The expectations from society are high and in

order to survive and maintain organizational growth, companies must align their way of

working to the demands of society (Schmeltz, 2014). This requires organizations to

incorporate sustainable practices into their different organizational strategies such as

marketing, purchasing, and finance (Kumar et al., 2012). Furthermore, sustainability

marketing strategy is described as a concept that does not only result in added value to

customers but also in long term relationships with customers, which is considered beneficial

for both businesses, and society and ecology (Kumar et al., 2012). Hence, developing and

operating businesses in a responsible way is a procedure that all organizations should strive to

address in order to minimize the risk of compromising resources for the future (Azmat &

Samaratunge, 2009).

Governments, campaigners, and media have become experts at holding companies

responsible for the social consequences of their actions, and despite companies’ effort to

continuously work towards improving the social and environmental consequences of actions

taken, these attempts have not been nearly as effective as they could be (Porter & Kramer,

2006). This issue has become especially important in developing countries as emerging

markets compose great opportunities for businesses in terms of growth and development (Zou

et al., 1997; Schlager and Maas, 2013). Consequently, factors such as cultural and

environmental differences have an effect on international firms’ strategic choices in order for

organizations to claim a competitive role on the emerging market (Zou et al., 1997; Schlager

and Maas, 2013).

Regardless of whether companies that operate in developing countries choose to accept or

reject sustainability principles, it is argued that businesses have certain obligations to society

that go beyond revenue and profit-making, namely; to help and contribute to social and

ecological problems (Idemudia, 2011). While more international firms choose to operate in

developing countries there are many disagreements regarding the present and future

responsibilities of businesses in these areas (Idemudia, 2011). Lenssen and Wassenhove

Introduction

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(2012) argue that managing sustainability strategies is more than just an expense, a limitation

or an abundant deed, instead it may provide organizations with a source of innovation,

opportunity, and competitive advantage. Moreover, analyzing and evaluating marketing

strategies in terms of sustainability issues may also provide a unique objective for firms, and

therefore requires special attention (Kumar et al., 2012).

One major aspect related to sustainable development is the concept of corporate social

responsibility (CSR), which has shifted the attention towards a more social and environmental

repercussion of business operations (Giuliani, 2014; Kumar et al., 2012). Giuliani (2014)

reasons that firms are encouraged to adopt CSR practices as part of their sustainable

operations with the intention of positively contributing to society and the environment.

However, the author argues that this shift has resulted in an increased pressure for companies

operating in developing countries, as the awareness of including sustainable development into

business strategies has resulted in firms being exposed to international nongovernmental

organizations (NGOs) and the media. The amplified global demand has subsequently forced

organizations to implement codified set of laws, regulations and other CSR guidelines

(Giuliani, 2014). Further, the link between companies’ business ethics and NGOs has received

an increased amount of attention during the last decade, as a result of social and political

pressure (de Hond et al., 2015).

Moreover, as a reaction to the increased global pressure, organizations may use their

relationship with NGOs to their advantage in order to increase competitive advantage and

thereby strengthen legitimacy and reputation, while at the same time prevent negative actions

from stakeholders’ side (den Hond et al., 2015; Giuliani, 2014). The interaction is related to

CSR principles as NGOs have different ways of influencing, shaping, and measuring social

responsibilities of firms (de Hond et al., 2015).

Krishnan and Ganesh (2014) claim that organizations struggle to employ sustainable

development into their respective strategic processes. However, the relevance of employing

sustainable activities into an organization’s marketing strategy is increasing among business

communities as the endeavor to recognize the principles of sustainability is encouraged

(Krishnan & Ganesh, 2014). Operating in a socially and environmentally responsible way

may also minimize the risk of compromising possible resources for the future (Azmat &

Samaratunge, 2009). Nevertheless, only a few businesses have proved themselves successful

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in transforming their strategic ambitions into sustainable marketing practices (Krishnan &

Ganesh, 2014).

The primary role of marketing strategies is to achieve competitive advantage (Kumar et al.,

2012). However, Kumar et al. (2012) argue that designing an effective marketing strategy is a

complex task as each business objective requires a diverse set of marketing strategies,

together with a unique set of assessments. It is also argued that sustainability has become

crucial as it is a long-term vision dealing with the development of strategies based on ethical

and moral obligations (Kumar et al., 2012). Nevertheless, few studies have been conducted

that addresses the link between sustainability and marketing strategy in terms of issues related

to environmental, social and economic goals and objectives in an integrated manner (Kumar

et al., 2012; Lenssen & Wassenhove, 2012; Krishnan & Ganesh, 2014).

1.3 Research gap and purpose Previous research has illustrated that there is a research gap between sustainability issues and

organizations’ marketing strategy. Further, the recognized opportunity for company growth

and competitive advantage, and the increased global pressure have created a need to develop

strategies that deal with sustainability issues, while at the same time accelerate the

achievement of the MDGs. The research gap further highlights the relation between

Sustainable Development and manufacturing companies as organizations face increased

scrutiny from employees as well as stakeholders. This in turn, demands organizations to

engage in sustainable initiatives. Therefore the intention is to gain in depth knowledge

regarding the sustainability issues in relation to the accelerated achievement of the

Millennium Development Goals. As a consequence, the following research questions were

developed:

RQ1: How are international firms operating on the Malaysian market engaging in

sustainability issues?

RQ2: How are international firms supporting and contributing to Sustainable Development in

developing countries such as Malaysia?

RQ3: Does the employment of Sustainability Marketing Strategy lead to competitive

advantage and growth opportunity?

RQ4: Does the employment of Sustainability Marketing Strategy contribute to the

achievement of the MDGs?

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In order to answer the stated research questions, the purpose of the study is to:

Create an understanding of how international firms operating on the Malaysian market

employ sustainable practices into their marketing strategy.

1.4 Delimitations According to the National Association of Manufacturers, the manufacturing industry accounts

for a total of 12.0 percent of the world’s GDP (nam, 2015). For every $1.00 spent in

manufacturing, another $1.37 is added to the world economy, which makes the industry the

highest multiplier effect of any economic sector (nam, 2015), hence, due to the size of the

industry and its level of impact on society, sustainable manufacturing among industries has

become important. The pressure on the industry is high since manufacturers must increase

flexibility, speed of production systems, as well as supplier networks, while at the same time

reduce environmental impacts, energy consumption, and strive for a sustainable future (Mani

et al., 2014).

Furthermore, large international firms are considered powerful as they have the ability to

influence society in various ways in terms of social,- economic,- and environmental

sustainability (Kumar et al., 2012). Based on this background, the study will target four large

international manufacturing firms operating on the Malaysian market, holding more than 250

employees. International firms are chosen in order to gain knowledge in how sustainable

practices are employed into business processes and strategies within developing countries

such as Malaysia. Moreover, the four organizations chosen all operate within diverse

industries and markets and it is therefore considered interesting to gain insight into how they

formulate and adapt their sustainability marketing strategies based on the Malaysian market.

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1.5 Outline of thesis An illustration of the outline of the thesis is presented below to give an overview of the

structure of the paper.

Ø Introduction

Chapter one presents an introduction to the research field, with an explanation of the concepts

sustainable development, the Millennium Development Goals (MDGs) and Malaysia as the

country of focus. Furthermore, a problematization of the field is presented, together with the

study’s identified research gap and questions, purpose of the paper, delimitations, ending with

an outline of the thesis.

Ø Literature Review

Chapter two presents the conducted literature review with the concepts and definitions

international marketing strategy, sustainable development, the Millennium Development

Goals, Corporate Social Responsibility, all in relation to the developing country Malaysia.

Ø Conceptual model

Chapter three presents the study’s proposed research model as well as the authors’ developed

assumptions.

Ø Methodology

Chapter four presents a discussion and justification of the chosen methods including the

philosophic research approach, practical methodology comprising research approach and

strategy, and data collection method, followed by data collection instruments, sampling,

analysis method, ending in ethical considerations and quality criteria.

Ø Empirical Data Presentation

Chapter five presents the empirical data presentation collected for the study. The data was

collected from semi-structured and open interviews, as well as from observations.

Ø Data Analysis

Chapter six presents an analysis connecting the empirical data in relation to the theories

included in the literature review.

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Ø Conclusions and Implications

Lastly, chapter seven presents a discussion of the main findings and conclusions, together

with theoretical contributions and managerial implications, ending with limitations and

suggestions for future research.

1.6 Chapter summary Chapter one began with an introduction to the chosen topic and continued with a discussion

and problematization of the field under study. Further, the study’s research gap and questions

were presented, accompanied by a developed purpose of the study with the aim to create an

understanding of how international firms operating on the Malaysian market employ

sustainable practices into their marketing strategy, ending in delimitations and an outline of

the thesis.

Literature Review

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2. Literature Review This chapter presents the background of International Marketing Strategy as well as

sustainability and is followed by arguments from several researchers. A theory section is

included, based on the main concepts of this study, namely; International Marketing Strategy,

Sustainable Development, the Millennium Development Goals, and Sustainability Marketing

Strategy. Moreover, the literature review presents the research gaps in the abovementioned

areas that will be studied further.

2.1 International Marketing Strategy

There are various reasons and motivations to why firms should enter international markets

and be part of the increased business globalization (Rundh, 2003). One of them being the

market opportunities it presents and the other highlighting the chances for development

(Rundh, 2003; Kumar et al., 2012). Some studies present factors such as company core

capabilities and competencies as the major sources of international competitive advantage

(Rundh, 2003), while other authors argue that these factors change based on the company’s

international experience (Zou et al., 1997). Moreover, researchers argue about the definition

and intent of ‘International Marketing Strategy’ (IMS), of which one is that IMS goes beyond

export marketers and is more focused on the marketing surroundings in the specific countries

in which the company operates in (Keegan, 2002). Other research proposes that IMS is

aiming to present international marketing as an application of marketing orientation and

marketing capabilities to international business (Mühlbacher et al., 2006). Regardless of the

choice of definition one decides to accept, IMS involves numerous decisions across nation-

wide borders (Doole & Lowe, 2004). Moreover, at its most complex level it engages the firm

in establishing manufacturing amenities in foreign countries and organizing marketing

strategies across the globe (Doole & Lowe, 2004).

An extensive amount of academic research has been conducted covering questions such as

whether global companies should regulate and adapt to their current-/new market, or the

extent to which they should adjust their marketing strategies to international markets (Koku,

2005). Moreover, there are different motivations for firms to expand to international markets

and thus establish IMS; one being the increasing global business but also the aim to achieve

competitive advantage (Pehrsson, 2008). Nevertheless, even if a new market provides a

company with opportunities to utilize its competitive advantage, the time for change has been

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accelerated during the last couple of years due to an augmented globalization, and companies

have to alter to the pace (Koku, 2005; Schlager & Maas, 2013). This issue is recognized by

the business environment as there is obvious pressure from different economic and political

sources, which consequently influence and impact the choice of marketing strategies for

companies operating on an international level (Rundh, 2003).

2.1.1 International Marketing Strategy in developing countries

Studies concerning marketing approaches and growth have resulted in newly formed

strategies to distinguish the link between marketing activities and the economic, social,

political, as well as ecological environment (Kumar et al., 2012). Furthermore, some studies

support the perspective that the relationship between marketing and development is mutual

and that both shape and influence one another (Koku, 2005). However, international

marketing is also the procedure of focusing the capabilities and objectives of a firm on global

marketing opportunities (Rundh, 2003; Koku, 2005). It refers to the ability to adapt an

organization’s strategic activities in unity with the market, thus; due to continuous change in

the marketing,- and business environment, it is crucial to regulate a firms’ marketing

strategies accordingly (Rundh, 2003; Koku, 2005).

Schlager and Maas (2013) suggest that emerging markets within developing countries

compose great opportunities and is vital to uncover for the future of many organizations. Due

to cultural and environmental differences, international firms operating in developing

countries need to adjust their strategies in order to compete with the business pattern on the

emerging market (Zou et al., 1997; Schlager and Maas, 2013). Given that the environmental

circumstances differ tremendously between developing and developed countries, it is

recognized that variation in business opportunities, experience, and marketing strategies is

highly distinguished between the two (Iakovleva et al., 2011).

2.2 Sustainable Development

As time has witnessed different phases of marketing strategy, the concept of sustainability has

emerged as a key component of the field (Kumar et al., 2012). As of today, it is an area that is

explored by organizations for growth and development (Kumar et al., 2012; Mokthsim &

Salleh, 2014). Moreover, the notion of sustainability works on a ‘Triple Bottom Line’, i.e.,

people, planet, and profit, and is regarded as a long-term vision that deals with the

development of a strategy based on ethical and moral principles (Kumar et al., 2012;

Mokthsim & Salleh, 2014). The concept of sustainability is not only limited to environmental

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sustainability but also comprises economic and social issues (Mariadoss et al., 2011; Kumar

et al., 2012; Mokthsim & Salleh, 2014). Additionally, the main objective of sustainability is to

move societies beyond constant consumption at no more than an existence level, and doing

this without conceding the potential for the future (Khavul & Bruton, 2013). Mariadoss et al.

(2011) argue that Sustainable Development comprises sustainable consumption behavior on a

social, economic, and political level. The authors also mention that activities carried out at the

individual household,- community,- business,- and government levels will support and

encourage the consumption of goods and services that respond to basic needs and bring better

quality of life. This in turn may minimize the use of natural resources, toxic materials and

emissions of waste (Mariadoss et al., 2011). The vision of a future sustainable society is one

that invests more than it consumes, and passes to future generations at least as much as it

inherited from previous generations (Khavul & Bruton, 2013).

The concepts ‘Sustainability’, ‘Corporate Social Performance’, ‘Corporate Social

Responsibility’ (CSR), ‘Going Green’, and the ‘Triple Bottom Line’ all refer to organizations

increasing their long-term economic, environmental, and social performance (Galpin et al.,

2015). However, the term ‘development’ has undergone several phases, some more successful

than others (Lenssen & Wassenhove, 2012). Lenssen and Wassenhove (2012) explain that

before the 1960s development aid mostly consisted of an instrument used by nation states for

various geopolitical purposes, where the novel mind-set was “development through economic

growth”. The authors further discuss the following phase of the global development and that it

was grounded on the belief that growth would follow the satisfaction of basic material and

nonmaterial needs of people. During the 1990s, the theory of Sustainable Development

emerged and represented a new way of thinking (Lenssen & Wassenhove, 2012). The

Millennium Development Goals (MDGs) were also framed and adopted as a response and call

for global action (Lenssen & Wassenhove, 2012). Nowadays Sustainable Development, or

Sustainability, is regarded as a universal and multidimensional concept and is defined as a

type of development that meets the needs of the present, without compromising the capability

of forthcoming generations to meet their own needs (Mokthsim & Salleh, 2014; Gumeni &

Gorica, 2014). Despite much progress being made since the concept Sustainable Development

was established, researchers claim that due to the large scale of challenges faced, it might

already be a “little too late” (Lenssen & Wassenhove, 2012).

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The increased global demand has left several international institutions proposing a codified

set of laws, regulations, and other CSR guidelines in order to help organizations move

towards sustainable development (Giuliani, 2014). Several of these institutions are linked to

the United Nations through specific agreements and one of these guidelines is depicted in the

United Nations’ Millennium Development Goals (un.org., 2015).

2.2.1 The Millennium Development Goals

The Millennium Summit culminated when the Millennium Declaration established by the

United Nations (UN) and its 190 members was signed in year 2000 (millenniemålen, 2015).

By signing the declaration, world leaders pledged to “create an environment, at national and

global levels, conducive to development and to eliminate poverty” (Addo-Atuah, 2014;

millenniemålen, 2015; Akinboade & Kinfack, 2014). In order to facilitate the achievement of

the Millennium Declaration, eight goals known as the ‘Millennium Development Goals’ were

formed (Addo-Atuah, 2014). The main goal of the MDGs is to improve and better the lives of

people in developing countries (millenniemålen, 2015; Okpala & Ekpemiro, 2012). The eight

goals form a blueprint agreed to by all the world’s countries and development institutions

where efforts are made to meet the needs of the world’s poorest (un.org., 2015). Furthermore,

the MDGs are all interrelated; as one goal is reached, movement towards the next goal is

advanced as well (Akinboade and Kinfack, 2014). An illustration of this is given by the

authors, where access to clean and safe drinking water will have a positive impact on health-

related outcomes. Likewise, accomplishing universal primary education would in turn assure

greater gender equality as more girls are enrolled in school (Akinboade and Kinfack, 2014).

The enthusiasm, the newfound prominence, and the practically universal acceptance of the

value of the MDGs occasionally overshadow the importance of understanding the ways in

which the goals influence in shaping primacies, the actions of stakeholders, as well as the

following consequences (Fukuda-Parr et al., 2014).

2.2.2 Corporate Social Responsibility

Organizations’ increased focus on Corporate Social Responsibility (CSR) has not been

entirely voluntary; in fact, several industries and organizations awoke to it after having their

actions scrutinized by governments, activists, and the media (Porter & Kramer, 2006). The

notion of CSR presupposes that organizations have certain obligations to society that go

beyond profit-making and instead involves assistance in solving societal and ecological

problems (Idemudia, 2011). The underlying idea of CSR stems from the challenge that has

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been put on traditional organizations in terms of societal pressure and expectations (Schmeltz,

2014). As of today, organizations are not only considered legal entities intended to generate

profits and create job opportunities; instead they are required to play the role of responsible

co-citizens, conscious of social and environmental issues (Schmeltz, 2014). Furthermore,

CSR is described as discretionary business practices and contributions of corporate resources

intended to improve societal well-being (Korschun et al., 2014). Further, it is argued that

adopting CSR to organizations may facilitate the communication of underlying company

values, which in turn may lead employees to create an organizational identification to the idea

of CSR (Korschun et al., 2014; Schmeltz; 2014). This may also trigger organizational

benefiting behaviors as CSR becomes part of the business’ daily practices (Korschun et al.,

2014).

Porter and Kramer (2006) mention that CSR can be much more than a cost, a constraint, or

charitable act, it may in fact provide organizations with a source of opportunity, competitive

advantage, and innovation. Further, the construct of CSR bridges micro and macro levels and

has been found to positively impact employee performance, attractiveness to future

employees, commitment, identification with the organization, organizational citizenship,

creative involvement, and enhanced employee relationships (Glavas & Kelley, 2014).

Furthermore, Giuliani (2014) argues that the concept of CSR has shifted the attention towards

a more social and environmental repercussion of business operations, where firms are

encouraged to adopt CSR practices as part of their sustainable operations. The author further

mentions that this shift has resulted in an increased pressure for companies operating in

developing countries, as the awareness of including sustainable development into business

strategies has resulted in firms being exposed to NGOs and the media.

2.2.3 Sustainable Development in developing countries

An increasingly large number of organizations choose to enter and operate in developing

countries, and despite this fact there is still little agreement regarding the current and future

responsibilities of business in development (Lenssen & Wassenhove, 2012; Kumar et al.,

2012). Issues connected to food, poverty, health and education as well as issues regarding

corruption and bribery all demand urgent action (Lenssen & Wassenhove, 2012). Moreover, a

typical example of a sectoral aspect of Sustainable Development is provided by the

manufacturing industry, which is often active in sustainability debates across all three

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dimensions of sustainability; i.e., economic, social, and environmental (Luken & Castellanos-

Silveria, 2011). In recent years, the issue of maintaining a sustainable business development

in manufacturing has become a vital subject due to the various environmental impacts such as

earthquakes, terrorism, and hurricanes to name a few (Gunasekaran & Spalanzani, 2012). It is

no longer considered an option to be successful purely in one’s business, nowadays it has

become an obligation to protect the environment, as well as ensuring safety and welfare for

those alive today and for future generations (Gunasekaran & Spalanzani, 2012).

According to Mani et al. (2014) manufacturers must increase flexibility, supplier networks,

and speed of production systems while at the same time reduce energy consumption and

environmental impacts in order to remain globally competitive. Moreover, Lenssen and

Wassenhove (2012) argue that sustainable manufacturing is connected to the resources

required for meeting Asian energy requirements and consumption. The authors further discuss

that if manufacturing in Asia is formed in an unsustainable way, it will have a global impact

on demand and resource supply, distribution and energy generation, and market pricing.

Furthermore, as sustainability is directly linked to the natural environment and poverty issues

of developing countries, modeling sustainable manufacturing that minimizes the negative

environmental impact and conserves energy and natural resources are considered safe for

employees, communities and consumers, and is believed to be economically sound (Khavul

and Bruton, 2013; Mani et al., 2014).

2.3 Sustainability Marketing Strategy in developing countries The term ‘Sustainability Marketing Strategy’ emphasizes added value to customers as well as

the establishment of long-lasting customer relationships, beneficial for businesses, society and

environment (Kumar et al., 2012). As issues related to Sustainability and Sustainable

Development will become more of an obligation in the future, accompanied by the fact that

stakeholders increasingly influence organizations to adopt Sustainability in their marketing

strategies, authors argue that it is crucial to implement sustainable criteria into marketing

strategies in order to survive (Kumar et al., 2012).

As markets and organizations have come to understand the importance of acknowledging

sustainability issues and the influence theses have on companies’ marketing strategies, it also

becomes evident how forming activities in accordance to sustainability issues may lead to

competitive advantage (Beltz & Schmidt-Riediger, 2010). Many authors discuss

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Sustainability as a key factor that has emerged within marketing strategy and that has become

the focus of attention. It is widely argued that the main objective when forming marketing

strategies is to gain competitive advantage (Kumar et al., 2012; Lenssen & Wassenhove,

2012). However, as companies are urged to acknowledge that Sustainability is no longer an

option but instead a requirement; recognizing the importance of implementing sustainable

development into organizations’ business practices and strategies is considered vital in order

to achieve competitive advantage (Kumar et al., 2012). Regardless of the fact that many

authors highlight the link between marketing and Sustainability, limited research exists

presenting the relationship and link between the two. It is therefore considered vital to study

the connection between marketing strategies in relation to Sustainability and thus, understand

the difficulties linked to achieving environmental, social, and economic goals (Rundh, 2003;

Kumar et al., 2012; Zou et al., 1997).

Moreover, Lenssen and Wassenhove (2012) claim that developing countries may come to act

as an engine for growth that in turn may carry the world economy, provided that organizations

have a well-defined strategy. It is further argued that businesses’ contribution to the

transformative shift in the world economy may turn out to be the most essential driver for

development emphasized by the objectives of sustainable and inclusive growth (Lenssen &

Wassenhove, 2012).

2.4 Chapter summary This chapter has reviewed the existing literature on International Marketing Strategy (IMS),

Sustainable Development, the Millennium Development Goals (MDGs), Corporate Social

Responsibility (CSR), as well as Sustainability Marketing Strategy, all in relation to

developing countries. Based on the conducted literature review it is evident that societal

expectations are high and corporate entities are urged to play the role of responsible co-

citizens taking social and environmental responsibility for the consequences of their actions.

Implementing sustainable practices is considered beneficial for both organizations and

society, bringing companies opportunities for growth and development and a more sustainable

future for society. This has lead to an increased acknowledgement of the importance of

implementing sustainability issues into business practices and strategies. However, limited

research has been conducted connecting the concepts; marketing strategy and sustainability

issues, in relation to an accelerated achievement of the MDGs.

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3. Conceptual model This chapter includes the study’s proposed research model, established in order to present the

relationship between Sustainability Marketing Strategy, growth opportunity/competitive

advantage, and how these may lead to an accelerated achievement of the Millennium

Development Goals (MDGs).

3.1 Proposed Research Model

The literature review revealed that organizations may gain growth opportunities and

competitive advantage through the employment of sustainable marketing practices, however;

it is claimed that designing an effective marketing strategy is a complex task that requires a

diverse set of strategies and a unique set of assessments. Therefore, the purpose of this

research is to create an understanding of how international firms operating on the Malaysian

market employ sustainable practices into their marketing strategy.

The study’s proposed research model (see Figure 1) illustrates that employing Sustainability

Marketing Strategy in an organization’s business that addresses social,- economic,- and

environmental issues, may provide organizations with an increased growth opportunity and

competitive advantage, which in turn may accelerate the achievement of the Millennium

Development Goals.

Figure 1 - Proposed Research Model

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As a result of the previously conducted literature review, the following assumptions were

established and therefore studied in relation to the subject matter:

Ø Employing a Sustainability Marketing Strategy within an organization will lead to

growth opportunity and/or competitive advantage.

Ø Employing a Sustainability Marketing Strategy within an organization will lead to an

accelerated achievement of the MDGs.

3.2 Chapter summary This chapter presented the study’s proposed research model as well as the study’s stated

assumptions, all developed based on the previously conducted literature review. The proposed

conceptual model together with the created assumption will facilitate the investigation of

Sustainability Marketing Strategy, and how this type of strategy that addresses sustainability

issues may lead to an accelerated achievement of the MDGs. This will in turn allow the

purpose of the study to be met.

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4. Methodology In order to successfully conduct and interpret research within business, it is crucial to have

an understanding of the theoretical constructs and practical instruments of research. This

chapter will therefore cover the methods and approaches used to collect and analyze the

gathered data. Moreover, the philosophical standpoint within the study will be explained,

followed by a justification of the practical methodology used. Lastly, methods of data

collection, data analysis, and a discussion of quality criteria for qualitative research will be

presented.

4.1 Research philosophy and approach As the overall aim with this research is to create an understanding and a deeper knowledge

within the subject field, it is vital to elaborate and reflect upon the various philosophical

standpoints taken (Saunders et al., 2009).

Bryman and Bell (2011) as well as Saunders et al. (2009) mention that there are two major

philosophical standpoints within research, known as; ontology and epistemology. The authors

discuss that each of these standpoints contain important differences that will influence the

way in which the researcher thinks about the research process. The former is referred to

questions regarding what constitutes reality and how we can understand existence, while the

latter constitutes valid knowledge and how we can obtain that knowledge (Bryman & Bell,

2011; Saunders et al., 2009). The authors argue that there are two separate aspects discussed

within ontology known as objectivism and subjectivism. Objectivism holds the belief that

social entities exist in reality, external to social actors concerned with their existence.

Moreover, within subjectivism it is believed that social phenomenon stems from the

perceptions and consequential actions of the social actors concerned with their existence.

Moreover, epistemology is a branch of philosophy that constitutes acceptable knowledge

within a field of study and is concerned with the nature of reality itself (Bryman & Bell, 2011;

Saunders et al., 2009).

As the aim of this research is to gain deeper knowledge within the field of subject as well as

creating new knowledge, the study will hold an epistemological research approach.

Furthermore, there are three positions within epistemology known as; positivism,

interpretivism, and realism (Bryman & Bell, 2011; Saunders et al., 2009). According to the

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authors, positivism is one of the epistemological positions advocating the application of

methods of the natural sciences and implies that there is valid knowledge only in the obtained

knowledge. Moreover, positivism suggests that the physical world is functioned according to

general principles and laws (Bryman & Bell, 2011; Saunders et al., 2009). These laws imply

that knowledge is created through the gathering of data, which can be confirmed by the

senses, and that science has to be performed impartially (Bryman & Bell, 2011). Bryman and

Bell (2011) discuss interpretivism as a contrast to positivism and refers to the importance of

understanding the differences among humans and their role as social actors. The authors

further mention that interpretivists believe that reality is multiple and relative and the

knowledge gained within this discipline is socially constructed. In order to understand the

various causal relations the researcher is required to apply empathy and view the researched

field from the point of view of the social actors within the study (Bryman & Bell, 2011;

Saunders et al., 2009). The last position within epistemology is known as realism and is quite

comparable to positivism as it assumes a scientific approach to the development of knowledge

(Saunders et al., 2009). Moreover, realism is related to scientific enquiry and holds the belief

that what the senses show us as reality is the truth, and that the objects under study have an

existence that is independent of the human mind (Saunders et al., 2009).

The aim of this research is to create an understanding of how international firms employ

sustainable practices into their marketing strategy, and whether this may provide

organizations with an increased growth opportunity and competitive advantage. In order to

collect the appropriate data and answer the purpose of the study, actors within the selected

organizations holding valuable knowledge regarding the field of the study will be chosen.

Furthermore, primary data is data collected first hand by the researcher, while secondary data

is data gathered for some other intent rather than help solving the problem at hand (Bryman &

Bell, 2011). Both primary data in terms of verbal interviews and observations, as well as

secondary data with regards to analyzing transcripts and printed information, are significant

methods for data gathering and will be used in this research (Bryman & Bell, 2011).

Consequently, this research is based on a perspective that sees reality as a social conception,

with human beings as the creators and tries to comprehend how this reality is formed by

understanding language and transcripts through hermeneutic examination. This study will

therefore comprise a subjectivist and ontological approach as well as an interpretivist

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epistemology and realist epistemology as the aim is to study differences between social actors

with the basic belief that what the senses show us as reality is considered the truth.

4.2 Practical methodology

4.2.1 Research approach Inductive and deductive research comprises two types of theories, or approaches, that

consider the relationship between research and theory (Bryman & Bell, 2011). The authors

further explain that inductive research theory involves a “bottom up” approach where the

researcher moves from specific observations to broader generalizations and theories, while

deductive research represents the most commonly held view of the relationship between

theory and research. Further, the deductive process involves using already existing theories to

lay ground for formulating research questions and conclusions are drawn based on logic

reasoning (Bryman & Bell, 2011).

When investigating various methodological issues, there are two research methods available

that comprise two different research approaches; quantitative and qualitative research

(Bryman & Bell, 2011; Saunders et al., 2009). As the name suggests, the former focuses on

quantification and is often employed when the aim is to generalize the findings to the

population. The latter emphasizes words rather than quantification and is an in-depth

exploration of what people think, feel, or do (Bryman & Bell, 2011; Saunders et al., 2009).

Subsequently, this study will involve a deductive research approach where theory will lay the

foundation for the developed research questions and the conclusions drawn will be based on

logical reasoning. Moreover, the study will hold a qualitative nature, as the focus is to gain in-

depth knowledge within the field of subject.

Furthermore, it is vital to form a plan for the research design, providing a clear connection

between the empirical data and the study’s research questions (Yin, 2009). There are different

methods with regards to creating a research design (Malhotra & Birks, 2007; Gray, 2009),

however, this study will focus on an exploratory research design. The method of exploratory

design is generally implemented at the early stages of a study in order to specify the research

problem (Malhotra & Birks, 2007; Malholtra, 2010). Moreover, the authors argue that an

exploratory research design is helpful in order to gain deeper understanding and more in-

depth data of the problem under study, while descriptive design is used as a scientific method

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that includes observing and explaining a subject without modifying the surroundings in any

way.

As the aim of this study is to create an understanding of whether employment of sustainable

practices into a firm’s sustainability marketing strategy may give international firms a

competitive advantage and an increased growth opportunity, the study will comprise an

exploratory research design. Moreover, as the field of sustainability marketing strategy in

relation to the MDGs comprise a new and unexplored subject that may result in limited

theories, an exploratory research approach is considered most suitable in order to meet the

purpose of the study.

4.2.2 Research strategy and data collection method

The choice of research strategy is highly guided by the type of research questions and

objectives set, the philosophical foundation, the extent of existing knowledge, as well as the

amount of time and resources available (Bryman & Bell, 2011; Saunders et al., 2009).

Multiple case studies are often used when exploratory research design is employed and where

the aim is to gain in-depth understanding regarding a specific subject field (Saunders et al.,

2009). As the study aims at creating an understanding of how international firms employ

sustainable practices into their marketing strategies, and thereby gaining in-depth knowledge

of the context of the research, multiple case studies will be conducted.

Furthermore, there are several data collection methods available when conducting research

and it is considered crucial to choose one that is most suitable to the purpose of the study

(Bryman & Bell, 2011). Bryman and Bell (2011) argue that open, or unstructured interviews,

do not reflect any pre considered theories or ideas and are performed with limited or no

organization. Moreover, the authors discuss that while a structured interview follows a set of

pre-formulated questions, semi-structured interviews consist of a set of predetermined

questions that are especially formulated to cover the topics of the study. A semi-structured

interview allows for follow-up questions and creates a more open conversation between the

interviewer and the interviewee, which is fundamental when the aim is to gain in-depth

knowledge and understanding (Bryman & Bell, 2011; Saunders et al., 2009). This study will

use open,- and semi-structured interviews together with observations in order to meet the


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As a part of the ethnographic tradition, fieldwork will be conducted as the aim is to achieve an

understanding of others where interaction with the human targets in their respective home

ground is crucial (Van Maanen, 2011). It is also argued that conducting fieldwork

observations will provide the researcher with rich, concrete, as well as complex and truthful

accounts of the social setting under study (Van Maanen, 2011). Through the process of

fieldwork the primary sources of the data gathering are people’s experiences, attitudes, and

viewpoints on certain matters (Palmer et al., 2014).

This research focuses on triangulation as multiple data sources are employed with the aim to

produce in-depth understanding of the subject matter, as well as further increase the validity

of the study. This technique if often used within qualitative research in order to ensure that the

data gathered is comprehensive, rich, robust, and well developed (Bryman & Bell, 2011).

This study focuses on combining semi-structured,- and open interviews together with

observations at four international manufacturing firms operating on the Malaysian market.

Moreover, as the aim is to gain richer knowledge within areas such as international marketing

strategy and sustainability marketing strategy, personnel with extensive knowledge in

company strategies and sustainable development work, such as CEOs and managers, are

considered most suitable to answer the interview questions.

4.2.3 Operationalization and measurement of variables

The purpose of an operationalization is to connect the concepts presented in the literature

review into comprehensive words and thereby make the concepts measureable (Bryman &

Bell, 2011; Zikmund et al., 2011). Eliasson (2012) argue that in order for the study’s concepts

to be measureable, a decision must be made with regards to how they should be measured in

the study. This decision is made through various types of definitions (Eliasson, 2010).

Ghauri and Grønhaug (2010) argue that there are two types of definitions used in the

operationalization process known as conceptual and operational definition. The conceptual

definitions are those describing concepts through the use of other concepts (Ghauri &

Grønhaug, 2010). Operational definition is assessed through defining the concept in terms of

activities that are carried out when measuring the concept in question, and may also be

referred to as the questions used to collect the data (Bryman & Bell, 2011; Zikmund et al.

2011). Moreover, each definition must be clearly stated in order to ensure that all questions

are comprehensible to the respondents (Eliasson, 2010).

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Furthermore, the operational definition and measure was excluded from the operationalization

table (see Figure 2) as the conceptual definition of each concept stated in the literature review

will lay the foundation for the study.

Table 1 - Operationalization

Concept Conceptual Definition Operational Definition/Question (See Appendix 1)

International Marketing Strategy

Aiming to present international marketing as an application of marketing orientation and marketing capabilities to international business (Mühlbacher et al., 2006).

1.1 1.2 1.3 1.4 4.3 4.4

Sustainable Development

Works on a ‘Triple Bottom Line’ i.e., people, planet, profit, and is regarded as a long-term vision dealing with the development of a strategy based on ethical and moral principles (Kumar et al., 2012; Mokthsim & Salleh, 2014). Comprises environmental, - economic, - and social issues (Mariadoss et al., 2014; Kumar et al., 2012; Mokthsim & Salleh, 2014).

2.1 2.2 2.3 2.4 2.5 2.6 3.3 4.4 4.5

The Millennium Development Goals

Aiming to improve and better the lives of people in developing countries through eight goals established by the United Nations (millenniemålen, 2015; Okpala & Ekpemiro, 2012).

2.4 2.6 3.1 3.2 3.3 4.4

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Sustainability Marketing Strategy

Emphasizes added value to customers as well as the establishment of long-lasting customer relationships, beneficial for businesses, society and environment (Kumar et al., 2012). Implementing sustainable development into organizations business practices and strategies is considered vital in order to achieve competitive advantage (Kumar et al., 2012).

2.2 2.5 2.6 3.3 4.1 4.2 4.3 4.4

4.2.4 Sampling technique

The sampling for this specific research was in regards to international manufacturing

companies operating on the Malaysian market. In order to gain deeper knowledge regarding

how sustainable practices may be employed into a firm’s marketing strategy it was considered

most appropriate to select manufacturing companies as they operate in ways that may have an

immense impact on the environment. As Malaysia is a developing country, the focus was to

include medium and large-sized international firms, holding more than 250 employees, with

the intention of understanding how they may adapt their marketing strategies according to the

specific market. Furthermore, the sampling frame was prepared through the use of a

commercial list provided by the Ministry of Foreign Affairs in Sweden, which included

international firms operating on the Malaysian market (Swedenabroad, 2015).

Moreover, this research includes four case studies and the sample organizations are four

international manufacturing firms operating on the Malaysian market. Within the four

organizations, a few individuals were interviewed for which the list and details of the dates as

well as position can be found in the ‘List of References’ at the end of the dissertation.

4.2.5 Data analysis method

One of the main features describing qualitative research is the immense amount of data

gathered, which requires categorization and structuring of the data so that meaningful

inferences can be drawn from it (Bryman & Bell, 2011; Yin, 2009). The data gathering for

this specific research is mainly based on primary data in terms of fieldwork, observations, and

interviews, as well as secondary data in terms of reports, databases, Intranet, and Internet

sources. As the amount of gathered data for this specific study is rather large and complex, the

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choice of data analysis method is based on data reduction and crystallization, data display, as

well as conclusions drawing and pattern matching (Miles & Huberman, 1994).

The first method is called data reduction and crystallization which comprise choosing,

placing, shortening, conceptualizing, and lastly, transforming the gathered material (Miles &

Huberman, 1994). Data reduction and crystallization in regards to this research was conducted

through careful screening of all the empirical data gathered, as well as transforming the

gathered material into each defined concept. Moreover, according to Miles and Huberman

(1994) the next step within the data analysis method is data display, which includes the way

in which the data is presented and organized, for instance through the use of graphs, charts, or

matrices. This way, the gathered data is summarized in a composed way (Miles & Huberman,

1994). Finally, the last step in a qualitative data analysis method is conclusion drawing and

pattern matching which comprise the main analysis of the gathered data. Further, this step

requires the researcher to decide what the organized material signifies by observing

inconsistencies, consistencies, and patterns, as well as identifying fundamental streams in

order to draw conclusions (Miles & Huberman, 1994). The last step within the data analysis

method was conducted through a careful observation of inconsistencies and consistencies, as

well as pattern matching across all defined concepts of the study.

4.3 Ethical considerations Sque et al. (2014) argue that when conducting a qualitative study it is vital to consider ethical

considerations like for instance confidentiality, privacy, and respect for the people and the

company included in the research. These aspects are important to clarify in advance for those

participating in the study in order to avoid any misunderstandings (Sque et al., 2014). Miller

et al (2012) discuss various principles of ethical conduct that are significant to consider when

conducting research and the four key principles in this study refer to; do no harm, privacy and

anonymity, confidentiality, as well as informed consent. Do no harm is referring to the

participants in the study being in safe environments and situations during the research (Miller

et al., 2012). Furthermore, the authors mention that privacy and anonymity is referring to that

any individual or organization included in the study has the right to expect that privacy can be

guaranteed. Confidentiality is associated with the gathered information being treated in a

confidential manner and it is the researcher’s responsibility to keep the information

confidential and not to reveal sensitive information concerning the individual or the

organization (Miller et al., 2012). Lastly, informed consent is referred to the fact that

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individuals participating in the study have the right to be informed regarding the nature of the

study and may thereafter decide if they wish to participate in the research or not (Miller et al.,

2012).

The four organizations participating in this research have accepted the request to include the

firms’ names in the study. All participants were well informed about the subject matter and

the study’s aim before proceeding with the data collection. Furthermore, the participants were

given the option to stay anonymous in the study and confidentiality was guaranteed with

regards to the collected material.

4.4 Quality criteria A good qualitative study may help us “understand” a situation that would otherwise be

puzzling or perplex (Golafshani, 2003). Golafshani (2003) argues that the concept of ‘quality’

in qualitative research is with regards to the ability to create an understanding of the

phenomena studied. Furthermore, in order to reduce the possibility of getting an answer

wrong, attention must be put on two specific emphases of research design, namely; reliability

and validity (Bryman & Bell, 2011; Saunders et al., 2009; Ghauri & Grønhaug, 2010). These

are known as quality criteria that are considered prominent and important issues when

evaluating business and management research (Bryman & Bell, 2011). The first refers to the

consistency of a measure of a concept, meaning to what extent the techniques for data

collection and the analysis procedures will generate consistent findings. The latter is a concept

used for assessing whether a concept measures what it is intended to measure, meaning to the

extent to which the findings provide an accurate representation of the phenomena they are

intended to represent (Bryman & Bell, 2011; Saunders et al., 2009; Ghauri & Grønhaug,

2010).

To ensure that the quality criteria of the study is met in terms of semi-structured,- and open

interviews, reliability as well as content,- construct,- and external validity will be employed.

4.4.1 Quality criteria for observations Saunders et al. (2009) argue that when conducting observations it is important to define what

the aim of the fieldwork is, hence; making sure that the researcher observes and arranges the

observations during the right times, so that the outcome will meet the expectations. One way

to ensure that the expectations are met can be done through recording all observations in

terms of records, audio,- and video recordings, as well as photographs (Saunders et al., 2009).

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In order to ensure that the quality criteria for the observations were met, all interviews were

recorded, field notes were taken, and all factory visits were photographed and documented.

The main argument for using various data collection methods, i.e., triangulation, was based on

the need to check for consistency of the findings.

4.4.2 Content validity

Authors argue that content validity, or face validity, refers to the extent to which the measures

of a study represent all facets of a given social construct (Bryman & Bell, 2011; Ghauri &

Grønhaug, 2010). By exposing the study’s interview guide to experts within the field of

subject, and have these review how well the measurement instrument represent that measure

beforehand, content validity can be increased (Bryman & Bell, 2011; Ghauri & Grønhaug,

2010).

In order to assess the content validity of the study, an interview guide was sent out by e-mail

in order to pre-test the developed questions for the semi-structured interviews. Furthermore,

the interview guide was sent out to experts within the field of study who then reviewed the

stated questions and judged how well they responded to the research questions and the


4.4.3 Construct validity

According to Ghauri and Grønhaug (2010), construct validity is described as the degree to

which an operationalization measures the concept which it intents to measure. This is further

explained as the degree to which inferences can reasonably be made from the

operationalizations in a study to the theoretical constructs from which the operationalizations

are made (Bryman & Bell, 2011; Ghauri & Grønhaug, 2010).

In order to assess the study’s construct validity, the interview guide was sent out by e-mail to

four experts with good knowledge regarding the field of subject. The four experts were all

required to have good language skills in order to assess the appropriateness of the questions

stated, as well as the language and formulation used. Moreover, the experts were given a

reasonable timeframe to judge the interview guide and make suitable suggestions for

adjustment.

Methodology

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4.4.4 External validity

External validity is referred to as the degree to which generalizations can be made, thus it

addresses the study’s ability to be assessed and generalized in another social setting or with a

different population (Bryman & Bell, 2011; Saunders et al. 2009). However, Saunders et al.

(2009) also argue that as long as a researcher does not claim that the results, conclusions, or

theory of a conducted case study is generalizable, but instead made with the intention to

contribute to the understanding of the studied phenomena, external validity does not have to

be addressed in the same way.

In order to ensure the external validity of the study, multiple case studies were conducted and

the findings in this study are based on a cross-case analysis. Moreover, the study’s interview

guide was developed based on previous research which increases the external validity and

thereby the generalizability of the study. Additionally, the study’s chosen sample covers

several industries in order for the research to have good reliability in a qualitative context.

4.4.5 Reliability

The consistency of a research, meaning to what extent an experiment or test yields the same

results on repeated trials is known as ‘reliability’ (Bryman & Bell, 2011). The repeatability of

a study will be strengthened if the results remain the same and if a researcher can replicate the

same study again in another social setting without the results being affected (Bryman & Bell,

2011; Ghauri & Grønhaug, 2010). Without reliability researchers would be unable to draw

satisfactory conclusions, formulate theories, or make claims about the generalizability of the

study (Saunders et al., 2009). Furthermore, the reliability of the study was assessed by

conducting multiple case studies and interviews with the chosen firms, together with semi-

structured and unstructured interviews with several respondents at each firm, as well as

extensive fieldwork in terms of observations.

4.5 Chapter summary This study will hold a deductive nature and a qualitative research approach as already existing

theory will lay ground for the stated research questions, and as the aim is to create a deeper

knowledge and understanding within the field of subject. The study’s research strategy will

comprise multiple case studies as these are often employed when the aim is to gain in-depth

understandings of certain phenomenon. Additionally, open and semi-structured interviews

together will observations will be conducted.

Empirical Data Presentation

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5. Empirical Data Presentation This chapter presents the empirical data gathered at four international manufacturing firms

operating on the Malaysian market. Each company is introduced briefly, followed by a

presentation of the gathered data according to the study’s four main concepts; International

Marketing Strategy, Sustainable Development, the Millennium Development Goals (MDGs),

and Sustainability Marketing Strategy. Moreover, in consent with all four companies involved

in the study, company name and work titles of all respondents will be published. All

respondents’ and their respective position and work title is provided in the List of References.

5.1 Case One – Toyota Material Handling International Toyota Material Handling International (TMHI) is dedicated to manufacturing high quality

products and service. The company is situated in Shah Alam, Malaysia, and operates on a

global level. Toyota has a thriving history since 1956 and holds the belief that creativity and

innovation are the main drivers for the company in order to become the world’s leading

brand of material handling equipment. Today, Toyota has sales and service amenities in 90

countries spread all over the world, and over 2 million entities have been sold to satisfied

customers.

5.1.1 International Marketing Strategy

Regarding the concept ‘International Marketing Strategy’ (IMS), TMHI’s General Manager

considers it an incredibly large term used to describe different actions taken with regards to

how one markets ones business in different countries, cultures, and markets (Interview with

General Manager, 25-02-2015). Moreover, several respondents at TMHI agree with the

General Manager and also argue that IMS comprises different ways of doing things. Meaning,

different countries have different laws and regulations and diverse boundaries and thereby

different ways of managing business. It is therefore crucial that all marketing strategies are

adapted according to what country and culture the firm operates in (Interview with

respondents at TMHI, 23-02-2015; 24-02-2015).

With several offices spread across the world and one million trucks sold each year, TMHI has

divided its market into several regions, or as it terms it ‘divisions’. Each separate division

comprises its own IMS aimed at its particular market and needs. By separating the market into

divisions, TMHI has facilitated the structuring of each country’s market strategy and finds it

easier to manage each market (Interview with General Manager, 25-02-2015). Further,


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TMHI’s General Manager claims that having a well defined and structured IMS is crucial not

only due to the large amount of divisions the company holds, but also due to the high demand

and thereby increased production required. Moreover, the General Manager is responsible for

a total of seven countries, or divisions, and all market strategies are adapted to each respective

division according to culture, laws and regulations, and boundaries in each respective country

(Interview with General Manager, 25-02-2015).

Furthermore, each division is also required to adopt and follow the concept known as; Toyota

Production Systems (TPS), which is a socio-technical system comprising management

practices and philosophies and has its main focus on eliminating waste and use less

components to produce for example a truck in an efficient way (Interview with General

Manager, 25-02-2015). According to the General Manager, TPS has been incorporated within

the organization for many years and it is considered a part of the organization’s gene to

practice LEAN manufacturing. The system is also regarded as a type of international

marketing strategy as it gives all employees well-defined responsibilities in each production

step and calls each team member to strive for global improvements (Interview with General

Manager, 25-02-2015).

5.1.2 Sustainable Development

According to TMHI’s General Manager, issues related to sustainability and maintaining

Sustainable Development on the Malaysian market is a matter TMHI considers itself

passionate about and therefore highly involved in. The company holds 21 % of the global

automotive industry’s market share and as a market leader it is considered even more crucial

to not only portray ones company as sustainable, but to actually practice sustainable activities

within the company and to communicate these internally (Interview with General Manager,

25-02-2015). One way of showing company responsibility towards the natural environment

and society has been done through putting much emphasis on the importance of recycling the

materials used and thereby minimizing waste. Moreover, as observed at TMHI, green thinking

and sustainable development is communicated internally within the company in various

forms. One example of this is the Toyota ‘code of conduct’ where guiding principles at

Toyota, laws and regulations, activities carried out within the company involving actions

taken to preserve the environment, and research and development activities of various kinds

are presented. According to several respondents at TMHI it is claimed that green thinking and

sustainable development is communicated within the company to about 10-15% through


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Toyota’s code of conduct as well as through company leaflets and internal e-mails to staff

members (Interview with respondents at TMHI, 23-02-2015; 24-02-2015).

Furthermore, TMHI’s General Manager claims that nongovernmental organizations (NGOs)

have had a significant effect on the company as they pressure organizations to contribute to

Sustainable Development. Further, it is argued that for TMHI this has meant focusing on

LEAN production and incorporating the TPS as rules and guidelines for all employees to

follow (Interview with General Manager, 25-02-2015). Respondents at TMHI also claim that

the organization is involved in several activities with the aim at giving back to the

environment and society. One example of TMHI’s involvement in environmental issues and

its engagement in sustainable practices is its cooperation with BMW where experience is

shared and thereby new knowledge created on more ways to become sustainable. It is also

claimed that TMHI is continuously investing in research and development in order to learn

about new technologies that may minimize pollution and thereby preserve the natural

environment (Interview with respondents at TMHI, 23-02-2015; 24-02-2015).

TMHI’s distributor UMW Toyota Motor (UMW) owns a significant share of TMHI and due

to this fact, TMHI’s General Manager argues that it is of great important that UMW employs

sustainable practices in order for the two companies to be aligned with one another and to

share the same goals and visions. In order to ensure and maintain satisfactory cooperation, it

is considered vital to make sure that UMW’s values are aligned with TMHI’s (Interview with

General Manager, 25-02-2015). Furthermore, UMW claims that it is engaged in several

activities aimed at helping the natural environment and giving back to society (Interview with

respondents at UMW, 26-02-2015). However, according to TMHI’s General Manager, most

activities carried out on the behalf of UMW are not pre-planned or structured beforehand, but

instead an active reaction to various societal situations and issues. UMW also has a developed

Corporate Social Responsibility program incorporated in its business plan where several

activities to promote a Sustainable Development for the Malaysian market has been

undertaken (Interview with respondents at UMW, 26-02-2015).


All respondents at TMHI and its distributor UMW all claim to be unaware of the United

Nation’s Millennium Development Goals (MDGs) and its vision. However, once explained to

the respondents, both TMHI and UMW claim to work towards an accelerated achievement of


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the goals since they are highly involved in waste management, poverty issues, and sustainable

development. UMW’s developed CSR program is also an example of its engagement in

activities aimed at giving back to society and the natural environment (Interview with

respondents at TMHI and UMW, 26-02-2015).

5.1.4 Sustainability Marketing Strategy

TMHI claims to have a well-developed Sustainability Marketing Strategy but since the

majority of the sustainable practices and activities are carried out by its distributor there is not

enough time and resources put on developing it further and implementing it more efficiently.

However, both TMHI and UMW argue that having a well-developed Sustainability Marketing

Strategy does give the company a competitive advantage and increased growth opportunities

as it positions the company as sustainable and environmentally friendly; hence customers

become aware of its engagement in various societal issues and their ways to improve these

(Interview with respondents at TMHI and UMW, 24-02-2015; 26-02-2015).

Furthermore, the respondents at TMHI claim that there are many differences; advantages and

disadvantages by working in a developing country (Interview with respondents at TMHI, 24-

02-2015). Working in an already developed country and market and implementing various

types of strategies successfully is facilitated since all the cornerstones and knowledge needed

are already there. The priorities are also different in developing countries apart from already

developed countries. Within developing countries such as Malaysia, profit is claimed to be

many organizations number one priority, even at TMHI, while in richer and more developed

countries the aim may be to reduce pollution and work to prevent environmental degradation.

However, as argued by the General Manager and several respondents at TMHI, Malaysia has

the structure and all the components needed to become successful in the area of sustainable

development, but what the country needs is enforcement and knowledge regarding

implementation of sustainable practices (Interview with respondents at TMHI 24-02-2015).

Several respondents at both TMHI and UMW also argue that the MDGs should be more

enlightened in Malaysia so that not only organizations, but also Malaysian citizens become

aware of the goals and their vision. If more information regarding Sustainable Development

in general, the MDGS, as well as how to implement these within organizations and among

citizens were given, more knowledge would be created which may lead organizations and

citizens to adapt a more sustainable way of thinking (Interview with respondents at TMHI and

UMW, 26-02-2015).


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5.2 Case Two – Mölnlycke Health Care Mölnlycke Health Care is a world-leading manufacturer and provider of single-use surgical

and wound care products for customers, healthcare professionals, and patients. The company

develops innovative wound care and surgical products along the complete range of care -

from prevention to post-acute venues.


Mölnlycke’s Business Director and Country Manager (BDCM) describes International

Marketing Strategy (IMS) as a strategy used in order to open and enter new markets for

example when introducing new concepts (Interview with BDCM, 06-03-2015). It is further

mentioned that working with IMS in developing countries differs significantly since many of

these countries and markets are corrupt and it is often considered difficult to make the chosen

distributors work in the desired way. It is also claimed that organizations must learn about the

country and culture before entering a new market in order to successfully employ an

International Marketing Strategy (Interview with BDCM, 06-03-2015). Further, Mölnlycke’s

Business Development Manager (BDM) describes the concept of IMS as: “product, price,

place, and promotion” and argues that it differs depending on the country one operates in. In

Mölnlycke’s case the company works with all four parts of the marketing mix in terms of

manufacturing efficient wound care and surgical products along with offering reasonable

prices in the marketplace. The products are also applicable to all markets through global

marketing initiatives (Interview with BDM, 02-03-2015). Furthermore, Mölnlycke’s Sales

Manager also claims that a well-developed IMS gives Mölnlycke a chance to better

differentiate itself from competitors and thereby gives the organization the possibility to

position its products ahead of its competitors. Further, it is claimed that Mölnlycke has a well-

developed and structured IMS that brings the organization competitive advantage (Interview

with sales manager 1, 03-03-2015).


The respondents stress that Mölnlycke has a strategy for maintaining Sustainable

Development and mainly considers the concept to be a question of minimizing environmental

emissions. Aspects and actions taken with regards to Sustainable Development is firstly

managed from the organization’s headquarter in Gothenburg (Interview with respondents at

Mölnlycke, 03-03-2015; 04-03-2015; 06-03-2015). As observed, the sales department is

mostly dealing with the social aspect of Sustainable Development as their number one

mission is to educate and support patients and help them get the right medical attention


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needed. Mölnlycke’s BDM also argues that educating nurses is a big part of this since

education is what brings the company’s products to light (Interview with BDM, 02-03-2015).

By having educated nurses knowing the difference and health issues between using for

example old linen when taking care of wounds, in relation to Mölnlycke’s products that are

considered safer and more efficient, the company thereby contributes to a more sustainable

future. This is also considered a win-win situation on behalf of Mölnlycke as education of

nurses leads to hospitals using better materials and products when working and thereby

choose to buy better quality products (Interview with BDM, 02-03-2015). Further, the

respondents also mention that providing proper education and products that can live up to the

human development is crucial to the organization in order to consider itself sustainable

(Interviews with respondents at Mölnlycke, 03-03-2015; 04-03-2015).

All respondents agree that in order for the organization to move into the future and maintain

sustainable growth and at the same time sustain its market share, the company must look aside

the aspect of making profit and take responsibility for the future of upcoming generations

(Interviews with respondents at Mölnlycke, 03-03-2015; 04-03-2015). Moreover, it is

reasoned that without complying to local laws and regulations the company would not be

adopting a long-term approach to the issue of Sustainable Development. Additionally, in

order for Mölnlycke to be classified as a sustainable organization the requirement is that it

maintains its international certificates such as the IOS, EC, and FDA standards. These

certificates provide requirements, specifications, guidelines, and characteristics that may be

used in order to ensure that the materials and processes used, and products made, are safe,

reliable, and of good quality (Interviews with respondents at Mölnlycke, 03-03-2015; 04-03-

2015).

Based on observations, Mölnlycke also has a developed Intranet bringing news and

environmental reviews from the headquarters and the company encourages its employees to

always read through the news in order to stay updated on its work with Sustainable

Development. However, two of the Sales Managers claim that they do not receive sufficient

information and updates regarding what Mölnlycke’s initiatives for promoting Sustainable

Development are, which is also an aspect that the BDM claims to be aware of (Interview with

Sales Manager 1 and 2 and BDM, 03-03-2015; 02-03-2015). In order to strive and work for a

more sustainable future for Malaysia, Mölnlycke has a developed Corporate Social

Responsibility program and also manufactures all its own products. As raw materials are used


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within production, Mölnlycke believes it is of great importance to give back to the natural

environment by for instance planting more trees (Interviews with respondents at Mölnlycke,

03-03-2015; 04-03-2015).

When discussing Sustainable Development with the Human Resource Manager (HRM), and

the Environmental Health and Safety Manager (EHSM) at Mölnlycke’s local factory, it is

argued that the organization employs sustainable practices in its everyday work and within all

production processes. Products are recycled everyday and products that are bought are also

made sure to be manufactured ethically (Interview with HRM and EHSM, 06-03-2015). It is

further claimed that all production processes must comply with local requirements regarding

water consumption, materials used, and laws and regulations. Furthermore, raw materials such

as rubber latex are bought from professionally managed plantations that do not spoil forest.

Plastic, paper, and raw materials are also given to charity organizations free of charge, instead

of resold (Interview with HRM and EHSM, 06-03-2015). As explained by the HRM and

EHSM, these charity organizations sell the products from scratch and thereby make a profit

that goes directly to a center helping the poor. All these types of social responsibility are all

covered in the company’s various IOS, EC, and FDA certificates. The local factory staff also

believe that the issue of Sustainable Development is communicated internally to a high degree

through Corporate Social Responsibility reports and various objectives set (Interview with

HRM and EHSM, 06-03-2015). Mölnlycke’s BDM also mentions that the factory goes

through local inspections from time to time in order to make sure that all production processes

comply to local laws and regulations (Interview with BDM, 03-03-2015).


The majority of the respondents at Mölnlycke claimed to have heard of the United Nation’s

Millennium Development Goals (MDGs) and claim to contribute to an accelerated

achievement of these by fighting poverty, educating healthcare professionals and thereby

contributing to safer health care procedures (Interview with respondents at Mölnlycke, 03-03-

2015; 04-03-2015). Moreover, Mölnlycke’s BDM argues that the MDGs provide a standard

for countries to follow in terms of not abusing local laws and regulations. As Mölnlycke has

certain standards and certificates that the organization must follow, such as no use of child

labor, the organization thereby contributes to the achievement of the MDGs (Interview with

BDM, 03-03-2015). As observed, the company also provides certain volunteer programs for

employees to engage in with the aim to become more involved in societal issues of various


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kinds. According to the BDM, Mölnlycke sent one employee to Singapore last year to support

the Operation Smile foundation, a nongovernmental organization aiming to help children with

cleft lip and cleft palate. During these events, Mölnlycke also donated surgical gowns and

gloves (Interview with BDM, 03-03-2015).

Furthermore, staff members on the factory site have only read about the MDGs on the Internet

and believe it is closely tied to social accountability. The factory staff argue that the goals are

an efficient way to make sure that the organization is focusing on the right things when

developing the business. When explaining what the MDGs stand for and what the aim of

these are, factory staff claim that Mölnlycke directly contributes to the achievement of these

since the company allows no child labor and makes sure that all suppliers follow its

requirements. Additionally, maintaining environmental consciousness and not harm the

environment through production processes and materials used is an important issue to the

company (Interview with HRM, EHSM and factory staff, 06-03-2015).


The majority of the respondents at Mölnlycke claim that the company has a well-developed

Sustainability Marketing Strategy and constantly works to improve the way the company

operates. It is also argued that working with a well-developed Sustainability Marketing

Strategy does give the organization a competitive advantage against its competitors and an

increased growth opportunity (Interviews with respondents at Mölnlycke, 03-03-2015; 04-03-

2015). However, Mölnlycke’s BDCM and BDM agree on the fact that working in a

developing country and forming efficient Sustainability Marketing Strategies is extremely

different compared to working and forming strategies for an already developed country.

Issues such as pricing is one of the more complex tasks, as it is expensive to be

environmentally friendly and have other organizations follow the set standards. Additionally,

creating efficient budgets and knowing what to invest in and how much is an intricate task

and healthcare professionals in Malaysia do not have sufficient knowledge regarding wound

care and not enough resources to make a more substantial change (Interviews with BDCM

and BDM, 06-03-2015; 03-03-2015) Moreover, it is argued that the main difference lies in

understanding the alterations and modifications required when working with a developed

market compared to a developing market and country (Interview with BDCM 06-03-2015).

As argued by the BDCM, the main difference is also that the resources needed to make certain

changes are scarce in developing countries such as Malaysia, while developed countries have


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all the cornerstones needed to improve various societal issues. Forming strategies and

working with a Sustainability Marketing Strategy is therefore much more complex within

these markets (Interview with BDCM 06-03-2015). However, the company’s BDM mentions

that if the organization makes sure to follow certain global standards, the company will not go

wrong. This is one of the reasons to why Mölnlycke has quality managers within all markets,

to easier make sure that all global standards are followed and that all produced products are

traceable back to its initial source. The BDM also claims that the expectations from authority

is different within a developing country as it is desired that organizations support the

government in terms of minimum wages, number of employments, employee benefits, and

investments in factories (Interview with BDM, 03-03-2015). Moreover, Mölnlycke’s Sales

Manager explains that the main focus within developing countries is on profits and how to

make the organization grow from being number three to being number one, while in

developed markets the main focus is to maintain market share (Interview with Sales Manager

1, 06-03-2015).

5.3 Case Three – Neopharma Biotech Asia

Neopharma Biotech Asia is a company incorporated in Malaysia that aims to provide quality

products within the healthcare field and has a team of doctors, medical laboratory

technologists and marketing specialists. Furthermore, Neopharma delivers healthcare and

preventive medicine with In vitro diagnostic (IVD) products of high quality and standards, at

a competitive cost.


The Finance Director for Neopharma Biotech Asia (NBA), also the owner and shareholder of

the company, describes International Marketing Strategy (IMS) as a significant factor in order

to penetrate a new market (Interview with Finance Director, 09-03-2015). It is further argued

that forming clear marketing strategies can have a direct impact on how the products sell on

the new market. However, in the case of NBA, the Finance Director mentions that their

products are not in need of much introduction but speak for itself. The company has

certifications that highlight the company’s knowledge about the specific industry and business

in which it operates. NBA exports about 20 % of the products but the rest is sold through local

distributors. Therefore, the company’s international marketing strategy is not well-developed

(Interview with Finance Director, 09-03-2015).


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Although the company is classified as a manufacturing firm, NBA is only the brand owner as

the production part is outsourced to a manufacturing company with factory sites in Canada,

China, and Korea. The Finance Director mentions that the products are ready and finished

when delivered. Moreover, it is explained that the company has regular contact with its

manufacturer and visits the factories at least twice a year. Even though the communication is

on a regular basis, the Finance Director is very open to mentioning that NBA has no control

over the choices and decisions that the manufacturer makes. Since the manufacturer is a large

company, the Finance Director explains that it is hard to influence the choices that are being

made regarding working conditions, environmental issues and so on. However, it is also

stated that the conditions in the factories are highly developed and that the personnel are

working in good surroundings and under respectable circumstances. It is pointed out that the

manufacturer puts much effort into contributing to environmental issues and development,

and that NBA does the same. It is also noted that the company takes a lot of responsibility in

regards to environmental issues and that it deals with international standards as an important

aspect. If the manufacturer disagrees on these standards or social issues, NBA is forced to

discharge the collaboration and release the contract. Though it is clarified that the company

has had the same manufacturer for nearly ten years without any disputes or difficulties


Although NBA is outsourcing the production of its products, the company is still considered a

manufacturing firm. However, as all products are ready and finished once delivered, NBA

makes sure that the source of supply takes enough care to perform social responsibility up to

the point of selling. This is communicated well on a management level within the company,

however the Finance Director states that it needs to be communicated stronger on a staff level

as well as to the manufacturer (Interview with Finance Director, 09-03-2015).

According to the Finance Director at NBA, the company works in different ways in order to

contribute to environmental, social, and economic issues in Malaysia. One way of

contributing to these issues is by donating free samples of the company’s products in order to

help agencies in various ways, specifically; by providing drug tests to police and national drug

agencies with the aim to reduce criminality issues in the country (Interview with Finance

Director, 09-03-2015). Moreover, drug trafficking is a serious offence and a major problem in

Malaysia, an issue that NBA is assisting to minimize through providing drug strips and


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products that at the same time will help diminish corruption. The products will make sure that

collected samples will not be manipulated by the defendant or the offender. Since drug

trafficking in Malaysia is punishable by death, NBA is stating that it is extremely vital to

identify samples that are 100 % accurate and can prove that it belongs to the right offender.

The Finance Director also mentions that this can be understood as Corporate Social

Responsibility and is one approach to contributing to Sustainable Development. Furthermore,

the company collaborates with various nongovernmental organizations (NGOs) to form

awareness campaigns and at the same time gives away samples for pregnancy tests and so on



The Finance Director of NBA states that this is the first time hearing about the United

Nation’s Millennium Development Goals. Although after a description of what the goals

represent and what their aim is, the Finance Director explains that Malaysia is an emerging

country that aims at creating more awareness through continuously introducing new laws and

regulations connected to environmental issues (Interview with Finance Director, 09-03-2015).

It is further explained that Malaysia is much more developed today compared to a couple of

years ago when people threw toxic waste outside without understanding that it could run into

the drain, out to the river, and thereby kill thousands of fish. NBA’s Finance Director

mentions that as of today, people in Malaysia are more aware of the consequences of their

daily behavior – even though they still have a long way to go. During the last years, the

Malaysian government has introduced a ministry of welfare to minimize the environmental

issues in the country. It is further argued that the government encourages equal rights between

men and women, forbids child labor, and reassures good working conditions. However, the

Finance Director stresses that the country still has a long way to go before reaching the level

of the western countries (Interview with Finance Director, 09-03-2015).

NBA believes that the Malaysian society is getting cleaner and more transparent as people are

becoming more educated and thereby conscious of what happens around them. The issue of

corruption still exists but is diminishing as people in Malaysia are demanding more

transparency. NBA contributes to this issue by providing products that are necessary in order

to reduce criminality in relation to drug trafficking and the consumption of drugs, but also by

making sure that the right person is convicted for the crime (Interview with Finance Director,

09-03-2015).


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NBA claims to have a good Sustainability Marketing Strategy but not on paper. The company

believes that the strategy is communicated internally, first and foremost at management level,

and is not necessary to develop further in terms of a written strategy. The Finance Director

clarifies that the essential aspect is not to have the company’s Sustainability Marketing

Strategies written on paper but to incorporate them into the working culture and recognizing

that they exist in every decision made (Interview with Finance Director, 09-03-2015).

In terms of the dilemma related to enhance speed of production systems, but at the same time

reduce energy consumption, NBA considers this issue as a difficult balance as all companies

wish to increase revenue and sell more products. However, the Finance Director explains that

the manufacturers use raw material that is recyclable and does not harm the environment. The

company also aims at creating high quality products at low costs, and do not place too much

money on advertising and marketing (Interview with Finance Director, 09-03-2015).

Furthermore, NBA highlights that there are many differences between forming strategies for a

developing country in relation to an already developed country. One major difference is that a

developed country already has rules, regulations, policies, and guidelines, which has to be

followed. A developing country is lacking within these areas and therefore needs to start

looking into societal issues. There are many factors within developing countries that can

become hinders, like for instance corruption, but when understanding how to deal with these -

a developing country can also provide opportunities (Interview with Finance Director, 09-03-

2015).

5.4 Case Four – Camfil Malaysia

Camfil Group is a world leader in the development and production of clean air solutions and

air filters. The company is considered one of the most global air filtration specialists in the

world with a total of 26 production sites and R&D centers in six countries in the US, Europe,

South East Asia, and the Asia-Pacific region. Camfil Group’s business is to provide

customers with sustainable air filtration products and services throughout its four main

business units; filters, power systems, air pollution control (APC), and airborne molecular

contamination (AMC).


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The CEO of Camfil Malaysia defines International Marketing Strategy (IMS) as a concept

that describes the direction and approach that managers adopt in their daily work. It is a

perception and a strategic management approach that all companies need to embrace in order

to operate in a sustainable way. All respondents stress that Camfil Malaysia works with IMS

as part of its core philosophy, although the CEO’s own experience in relation to IMS is

limited (Interview with respondents and CEO at Camfil Malaysia, 23-03-2015; 24-03-2015;

24-03-2015). According to all respondents, Camfil Malaysia has a well-developed IMS that

brings competitive advantage to the firm. It is further argued that many of the company’s

products are exported globally and look the same in every market in terms of appearance and

performance (Interview with respondents at Camfil Malaysia, 23-03-2015).

Furthermore, as mentioned by the CEO, Camfil Malaysia is a market leader that sells products

to other market leaders and large companies around the world. As these companies also

operate on a global level it is important for Camfil to deliver the same quality products, with

the same look, and with the same presentation, every time and to all markets. Moreover,

having consistent products are considered crucial in order to stay competitive and keep a good

relationship with the customers. Furthermore, it is also vital to consider the local requirements

in terms of costs and regulations, while at the same time produce products that perform well.

However, these products are only produced and developed for the Malaysian market

(Interview with CEO, 24-03-2015).


Based on the fieldwork conducted, it is apparent that Camfil Malaysia incorporates

sustainability strategies and development in its business and the respondents emphasize how

important it is for the company and its customers. Moreover, Camfil Malaysia believes that

Sustainable Development is a concept highly important for all companies, especially those

that operate on emerging markets (Interview with CEO, 24-03-2015; 26-03-2015). All

respondents mention that it is essential for all companies to ensure that their activities are not

harming the environment in such ways that future generations will have to pay for (Interview

with respondents at Camfil Malaysia, 23-03-2015; 26-03-2015). The CEO underlines

numerous times how rigorous it is for Camfil Malaysia to work with Sustainable

Development, as its core business is to “clean up air”.


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Furthermore, as mentioned by the CEO, Camfil Malaysia has three key requirements related

to the products’ design that has to be achieved in order for the company to consider itself a

sustainable organization. The first element is with regards to the lifetime of the products,

specifically; to produce products that have long life cycles, in contrast to disposable products

that may have a negative effect on the environment. The second element comprises the use of

green components and refers to the use of raw material in the production process, for instance;

to use a plastic frame instead of a metal frame. Lastly, energy is an important element, for

instance with regards to the energy filters that the company uses (Interview with CEO, 24-03-

2015).

According to the Operations Director at Camfil Malaysia, the main focus during the last five

years has been on ways to improve Sustainable Development in its factories and throughout

the production processes. The improvements made are in relation to energy consumption at

the factory sites, the production of filters, waste and emission, as well as in regards to health

and safety aspects. It is further mentioned that the company has been awarded several

certifications and is continuously trying to motivate its employees to increase sales and work

more efficiently. Furthermore, the company provides numerous bonus systems and events in

order to enhance motivation and enthusiasm among the employees (Interview with Operations

Director, 23-03-2015). According to the Operations Director, this is considered to be a part of

Sustainable Development as the employees are the engine for improvements. It is further

argued that Camfil Malaysia operates in many ways with the intention of improving the

atmosphere for its staff members. One way of making sure that staff members are enjoying

work and satisfied with set rules and goals is by conducting numerous surveys in order to

establish what improvements are considered vital according to the employees (Interview with

Operations Director, 23-03-2015).

The respondents at Camfil Malaysia stated that the company contributes to society and the

environment in many different ways. According to the respondents, the company sponsors

orphanages with money every month and donates blood to hospitals (Interview with

respondents at Camfil Malaysia, 23-03-2015; 26-03-2015). Furthermore, the company offers

its employees health education where a doctor visits the company and educates the workers

regarding cancer and other diseases, but also about financial aspects such as retirement plans

(Interview with CEO, 24-03-2015). The CEO further explains that it is essential for Camfil

Malaysia to educate its workers and customers in areas that the company is not obligated to,


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but does anyhow as it can affect the lives of the employees along with the company.

Moreover, Camfil Malaysia supports its customers by investigating their energy consumption

and forming a detailed report with recommendations of how they can save energy when using

the company’s products (Interview with CEO, 24-03-2015).

Furthermore, Camfil Malaysia has signed off to United Nation’s Global Compact framework,

which is a global initiative encouraging organizations to adopt sustainable,- and socially

responsible policies. The Global Compact framework includes ten principles in the areas of

human rights, labor, the environment, and anti-corruption. The company is also part of the

“Electronics Industry Code of Conduct” (EICC), which has its focus on establishing standards

to ensure that working conditions in the electronics industry supply chain are safe, that

coworkers are treated with dignity and respect, and that business procedures are

environmentally responsible and conducted in an ethical way. When discussing sustainability

and CSR during interviews, it is evident that all respondents believe that these concepts and

issues are well communicated within the company. Moreover, Camfil Malaysia provides

sustainability reports that among other things include information concerning the amount of

waste the company is generating, as well as information about safety and other sustainability

issues. (Interview with respondents at Camfil Malaysia, 23-03-2015; 26-03-2015) Moreover,

the CEO states that: “the company’s core business is green” (Interview with CEO, 24-03-

2015).


None of the respondents at Camfil Malaysia had heard of the United Nation’s Millennium

Development Goals (MDGs) and were unaware of what the intention of the goals are.

However, after a description of what the eight goals represent, it was evident that the

company considers each one important. The respondents believe that it is important for all

companies to support the MDGs and continues by comparing the eight goals to the United

Nation’s Global Compact framework that includes ten principles of human right.

Furthermore, Camfil stresses the importance of supporting all issues concerning the

environment and human rights and consider itself contributing to the MDGs (Interview with

respondents at Camfil Malaysia, 23-03-2015).


Based on the conducted fieldwork and observations, it is noted that Camfil Malaysia operates

according to the Toyota Production Systems (TPS) and LEAN manufacturing. The


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philosophy is to operate in a structural way so as to eliminate waste in the manufacturing

process, while at the same time increase revenue and sell more products. All respondents

agree that LEAN manufacturing is an efficient way to balance the flexibility of being

environmentally friendly while at the same time increase revenue (Interview with respondents

at Camfil Malaysia, 23-03-2015; 26-03-2015). Moreover, the personnel at Camfil are well

responsive to the TPS way of working and have shown excessive growth in productivity since

the implementation of LEAN (Interview with CEO, 24-03-2015).

The company considers itself to have a well-developed Sustainability Marketing Strategy in

the sense where all Camfil Malaysia’s customers are aware of the fact that their products last

longer than the competitors’. Furthermore, Camfil Malaysia provides consultancy services

and analytic reports to its customers in order to highlight the beneficial aspects of using the

company’s products. The respondents also believe that this gives the company competitive

advantage (Interview with respondents at Camfil Malaysia, 23-03-2015; 26-03-2015). As

Malaysia is regarded as a developing country and an emerging market, it is stressed that the

strategies that are formed for that specific market is different from the ones formed for a

developed country. According to the CEO, Malaysia is a country where it is possible to “bend

the rules”, even though Malaysian laws are considered good – most people do not follow

them. Further, there are many great opportunities for companies operating in a country that is

still within a developing phase, however, there are also many issues organizations may

encounter, one of them being corruption (Interview with CEO, 24-03-2015).

5.5 Chapter summary This chapter presented the empirical data gathered from interviews and observations from the

four case studies. The empirical data included four manufacturing companies operating on the

Malaysian market and was presented separately according to the key concepts of this study,

namely; International Marketing Strategy (IMS), Sustainable Development, the Millennium

Development Goals (MDGs), and Sustainability Marketing Strategy. The empirical

investigation provides a foundation for the analysis in the next chapter.

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6. Data Analysis This chapter discusses the empirical data with regards to the theoretical concepts presented

in the literature review and is based on a cross-case analysis in order to facilitate

comparisons and differences between the cases. The data analysis is grounded in the concept;

International Marketing Strategy (IMS), Sustainable Development, the Millennium

Development Goals (MDGs), and Sustainability Marketing Strategy. Furthermore, the

analysis presents data comparisons across the four cases.

6.1 International Marketing Strategy Researchers argue about the definition and intent of International Marketing Strategy (IMS),

of which one is that IMS goes beyond export marketers and is more focused on marketing

surroundings in the specific countries in which the company is doing business (Keegan,

2002). The interviewees general perception of IMS was that it comprises different ways of

managing business, meaning; different countries have diverse laws and regulations and it is

therefore crucial that all marketing strategies are adapted according to what country and

culture the firm operates in. Furthermore, as evident from the empirical data gathered, all four

companies stress that the main objective when forming marketing strategies is to gain

competitive advantage, which is in accordance to the theory presented by Kumar et al. (2012)

arguing that forming efficient marketing strategies may bring organization's competitive

advantage and organizational development.

IMS involves several decisions across nation-wide borders and at its most complex level; it

engages the firm in establishing manufacturing amenities in foreign countries and organizing

marketing strategies across the globe (Doole & Lowe, 2004). All respondents mentioned that

working and forming International Marketing Strategies differs significantly when operating

in a developing country compared to an already developed country and market. The

respondents at Mölnlycke claimed that the biggest difference lies in the fact that many of the

developing markets are corrupt. Lenssen and Wassenhove (2012) also argue that as an

increasingly large number of organizations choose to enter and operate in developing

countries, issues connected to food, poverty, health and education as well as issues concerning

corruption and bribery, all demand urgent action.

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Furthermore, Rundh (2003) and Kumar et al. (2012) argue that there are several reasons and

motivations to why organizations enter international markets. One of them is the market

opportunity it presents and the other highlights the chances for organizational development.

All respondents claimed that having a well-developed and structured IMS brings the

organizations competitive advantage and opportunities for organizational development.

Nevertheless, even if a new market provides a company with growth opportunities and

competitive advantage, the time for change has been accelerated during the last couple of

years due to an augmented globalization (Koku, 2005; Schlager & Maas, 2013). This issue is

recognized by the business environment as there is obvious pressure from different economic

and political sources, which consequently influence and impact the choice of marketing

strategies for companies operating on an international level (Rundh, 2003). The increased

global demand has left numerous nongovernmental organizations (NGOs) and institutions

proposing a codified set of laws, regulations, and other CSR guidelines with the intention to

help organizations move towards Sustainable Development (Giuliani, 2014). Accordingly,

this pressure is well acknowledged by the majority of the firms as it is argued that

nongovernmental organizations have had a significant effect on the company as they pressure

organizations to contribute to Sustainable Development.

6.2 Sustainable Development According to Kumar et al. (2012) and Mokthsim and Salleh (2014) the notion of

Sustainability works on what is termed a ‘Triple Bottom Line’, i.e., people, planet, and profit.

The authors argue that Sustainability is regarded as a long-term vision that deals with the

development of a strategy based on ethical and moral principles. When analyzing the

empirical data gathered from all four case studies it is evident that Sustainable Development

and issues related to Sustainability are considered vital in order to manage business and

support development within emerging markets.

Theory states that Sustainability is not only limited to environmental sustainability but also

comprises economic and social issues (Kumar et al., 2012; Mokthsim & Salleh, 2014).

Nowadays, Sustainable Development, or Sustainability, is regarded as a universal and

multidimensional concept and is defined as a type of development that meets the needs of the

present without compromising the capability of forthcoming generations to meet their own

needs (Mokthsim & Salleh, 2014; Gumeni & Gorica, 2014). Further, theories regarding the

three dimensions of Sustainability highlights the importance of comprehending and

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incorporating all three in order to be considered a sustainable organization (Kumar et al, 2012;

Mokthsim & Salleh, 2014). However, when discussing ‘Sustainability’ during our interviews,

it becomes apparent that all firms mainly refer to it as environmental issues of various kinds.

The majority of the respondents believe that they only contribute to Sustainable Development

in an environmental sense. However, based on the conducted observations and interviews it is

apparent that the organizations included in the study are in fact contributing to all three

dimensions of Sustainability.

Furthermore, the empirical data gathered indicates that the majority of the organizations

concentrate on ways to improve Sustainable Development in its own factories and throughout

the production processes. This shows that the firms believe that Sustainable Development is a

process that begins internally. Mariadoss et al. (2011) argue that activities carried out at

community, business, and government levels will support and encourage the consumption of

goods and services that respond to basic needs and bring better quality of life. The authors

further discuss how this in turn may minimize the use of natural resources, toxic materials and

emissions of waste. It was also argued that the organizations mainly consider Sustainable

Development as being a concept of minimizing environmental emissions. Nevertheless, as

one of the case studies has outsourced its production, it has limited influence regarding the

choices that are being made concerning working conditions and environmental issues. The

conditions in the factories are said to be developed and sustainable in a social aspect,

however; this statement is based on a twice-a-year visit to the manufacturing site.

Gunasekaran and Spalanzani (2012) stress that it is no longer considered an option to be

successful purely in one’s business, instead, nowadays it has become an obligation to protect

the environment, as well as ensuring safety and welfare for those alive today and for future

generations. In accordance to the theory, the empirical data gathered shows that all four

organizations are involved in activities aiming at giving back to the environment and society.

One way is to cooperate with other companies in order to share experience and thereby create

new knowledge on more ways to become sustainable. Moreover, all organizations

continuously invest in research and development in order to learn about new technologies that

may minimize pollution and thus preserve the natural environment. For the organization

representing the healthcare sector, the aim is to educate and support medical staff and thereby

contribute to a more sustainable future through offering safer and more efficient products.

However, Mani et al. (2014) discuss the dilemma that manufacturers face in terms of the need

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to increase flexibility, supplier networks, and speed of production systems while at the same

time reduce energy consumption and environmental impacts in order to remain globally

competitive. One of the organizations mentioned that in order to maintain sustainable growth

and sustain market share, the company must look aside the aspect of making profit and take

responsibility for the future of upcoming generations. Additionally, the company argued that

complying with local laws and regulations is crucial in order to have a long-term approach to

the issue of Sustainable Development. According to previously conducted studies, it is stated

that if manufacturing in Asia is formed in an unsustainable way, it will have a global impact

on demand and resource supply, distribution and energy generation, and market pricing

(Lenssen & Wassenhove, 2012).

Furthermore, Korschun et al. (2014) discuss that through employing CSR within

organizations, communication of underlying company values may be facilitated, which in turn

may lead employees to create an organizational identification to the idea of CSR. The authors

also mention that this may trigger organizational benefiting behaviors, as CSR becomes part

of the business’ daily practices. All four organizations mentioned that having set objectives

with regards to CSR is vital for Sustainable Development, and it is also considered crucial

that these objectives are well communicated internally. Giuliani (2014) reasons that the

concept of CSR has shifted towards a social and environmental repercussion of business

operations, which has resulted in an increased pressure for organizations operating in

developing countries. The organizations included in the study have answered to this pressure

by including CSR as part of their daily business, and by continuously striving for progress

within this area.

6.3 The Millennium Development Goals

Two of the organizations included in the study were unaware of the United Nations developed

Millennium Goals and its vision. However, both companies claim to work towards an

accelerated achievement of the goals since they contribute to Sustainable Development by

their high involvement in waste management, poverty issues, and Sustainable Development.

One way of engaging in sustainability issues is shown through the organizations’ involvement

in developing CSR-programs, aimed at giving back to society and the environment.

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The theory states that the MDGs provide a blueprint agreed to by all the world’s countries and

development institutions where efforts are made to meet the needs of the world’s poorest, by

improving and bettering the lives of people in developing countries (Okpapa & Ekpemiro,

2012; un.org., 2015; millenniemålen, 2015). The organizations studied in this research argued

that the MDGs provide a standard for countries to follow in terms of not abusing local laws

and regulations. Furthermore, ways of contributing to sustainability issues has been done

through providing volunteer programs for employees to engage in, educating personnel and

customers, as well as donating money and products. However, it is stressed that as Malaysia is

an emerging market there is a need to create more awareness regarding how to contribute to

the MDGs and work towards Sustainable Development.

6.4 Sustainability Marketing Strategy

Sustainability Marketing Strategy emphasizes added value to customers as well as the

establishment of long-lasting customer relationships, beneficial for businesses, society and

environment (Kumar et al., 2012). The organizations included in the study claim that having a

well-developed Sustainability Marketing Strategy does bring competitive advantage and

increased growth opportunities as it positions the company as sustainable and environmentally

friendly. Beltz and Schmidt-Riediger (2010) highlight the importance of acknowledging

sustainability issues and the influence these have on companies’ marketing strategies. Further,

the authors argue that forming activities in accordance to sustainability issues may lead to

competitive advantage.

As Sustainability is directly linked to the natural environment and poverty issues of

developing countries, modeling sustainable manufacturing that minimizes the negative

environmental impact and conserves energy and natural resources are considered safe for

employees, communities and consumers, and is believed to be economically sound (Khavul

and Bruton, 2013; Mani et al., 2014). All organizations included in this study agree that

maintaining sustainable business practices that reduce environmental impacts is fundamental

in order to have a long-term approach to the issue of Sustainability. However, it is stressed

that the strategies that are formed for a developing country differs significantly from the ones

formed for a developed country. One of the organizations pointed out that Malaysia is a

country where it is possible to “bend the rules”, i.e., even though most of Malaysian laws are

considered good, most people do not follow them.

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Despite the fact that all four organizations argue that it is vital to contribute to Sustainable

Development, it is also mentioned that within developing countries such as Malaysia,

organizations often consider profit to be the number one priority. Further, Lenssen and

Wassenhove (2012) claim that developing countries may come to act as an engine for growth

that in turn may carry the world economy, provided that organizations have a well-defined

strategy. As Malaysia has the structure and the cornerstones needed in order to become

successful in the area of Sustainable Development, the country is in need of knowledge

regarding how to implement sustainable practices into their Sustainability Marketing Strategy.

All studied organizations argue that there are many differences when forming strategies for a

developing country compared to an already developed country and market. Some of these

differences are apparent within laws and regulations, issues concerning corruption, as well as

the pressure from NGOs, the government and media. Gunasekaran & Spalanzani (2012)

discuss other differences in relation to environmental impacts such as earthquakes, terrorism,

and hurricanes that have forced organizations to maintain a sustainable business development

in manufacturing. This is also due to the fact that it has become a moral obligation to protect

the environment and ensure welfare and safety for those alive today and for future generations

(Gunasekaran & Spalanzani, 2012). All four companies agree that it is crucial to form

strategies that deal with sustainability issues with regards to the specific country the

organization operates in.

It is widely known that manufacturers must increase flexibility, supplier networks, and speed

of production systems; while at the same time reduce energy consumption and environmental

impacts in order to remain globally competitive (Mani et al., 2014). This issue has been

acknowledged by all four organizations where the aim is to operate in a structural way so as to

eliminate waste in the manufacturing process, while at the same time increase revenue and

sell more products. The empirical data gathered showed that operating according to TPS and

LEAN manufacturing is another way of balancing the flexibility of being environmentally

friendly while at the same time increasing revenue. Nevertheless, due to cultural and

environmental differences, international firms operating in developing countries need to

adjust their strategies in order to compete with the business pattern on the emerging market

(Zou et al., 1997; Schlager and Maas, 2013).

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6.5 Chapter summary This chapter has presented an analysis of the empirical data gathered for all four organizations

included in the study, and was based on a cross-case analysis. Furthermore, the data was

examined and processed leaving useful information that highlighted important comparisons

and differences between the four cases. The analysis will provide a foundation for the next

chapter that will include a discussion with the aim to answer the study’s purpose and research

questions.

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7. Conclusions and Implications This chapter comprises a discussion of the main findings and conclusions drawn based on the

empirical data gathered with regards to each research question. Moreover, theoretical

contributions and managerial implications are presented, followed by limitations and

suggestions for future research.

7.1 Discussion

1. How are international firms operating on the Malaysian market engaging in

sustainability issues?

This study shows that the issue of sustainability and sustainable development is a process that

begins internally within the organizations’ factories and their respective production processes

and that sustainable development is a concept concerning minimizing environmental

emissions. Further, it is evident that sustainable development and issues related to

sustainability are considered vital in order to manage business and support development

within emerging markets.

The notion of sustainable development highlights the importance of comprehending and

incorporating all three dimensions of sustainability in order to be considered a sustainable

organization (Kumar et al, 2012; Mokthsim & Salleh, 2014). However, when discussing the

‘sustainability’ it becomes apparent that the interviewees consider it to be a concept mainly

connected to environmental issues. The organizations included in the study believe that they

primarily contribute to sustainable development in an environmental sense. Nevertheless, the

study also reveals that the organizations engage in all three dimensions of sustainability in

various ways, but are not fully aware of the extent of their contribution.

The interviewees of this study highlight that in order to maintain sustainable growth and

sustain market share, the company must look aside the aspect of making profit and take

responsibility for the future of upcoming generations. Moreover, having set objectives with

regards to CSR is vital in order to contribute to sustainable development, and it is also

considered crucial that these objectives are well communicated internally. Further, as a way of

answering to the increased pressure from society, NGOs, media, and the government, the

organizations have included CSR as a part of their daily business, and strive for continuous


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progress within the area. Additionally, it is argued that complying to local laws and

regulations is crucial in order to have a long-term approach to the issue of sustainable

development.

2. How are international firms supporting and contributing to sustainable

development in developing countries such as Malaysia?

All four organizations are involved in activities aiming at giving back to the environment and

society through cooperating with other companies in order to share experience and thereby

create new knowledge on more ways to become sustainable. Moreover, the research shows

that continuously investing in research and development in order to learn about new

technologies that may minimize pollution and thus preserve the natural environment is yet

another way to contribute to sustainable development. The organizations further believe that

educating and supporting staff members is another way of contributing to a more sustainable

future. Furthermore, other ways of participating in sustainability issues have been done

through providing volunteer programs for employees to engage in, developing CSR-

programs, educating personnel and customers, donating money and products, as well as

engaging in waste management and poverty issues. However, it is stressed that as Malaysia is

an emerging market there is a need to create more awareness regarding how to contribute to

the MDGs and work towards sustainable development.

3. Does the employment of sustainability marketing strategy lead to competitive

advantage and growth opportunity?

There are several reasons and motivations to why organizations enter international markets.

One of them is the market opportunities it presents and the other highlights the chances for

organizational development (Rundh, 2003; Kumar et al., 2012). Moreover, having a well-

developed marketing strategy is claimed to bring organizations competitive advantage and

opportunities for organizational development. The research also shows that the main objective

when forming marketing strategies is to gain competitive advantage. However, it is

considered vital to employ sustainable practices into firms’ marketing strategies in order to

form an effective sustainability marketing strategy that may contribute to sustainable

development for the Malaysian market.


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Beltz and Schmidt-Riediger (2010) highlight the importance of acknowledging sustainability

issues and the influence these have on firms’ marketing strategies. Further, the authors argue

that forming activities in accordance to sustainability issues may lead to competitive

advantage. The organizations included in the study claim that having a well-developed

sustainability marketing strategy does bring competitive advantage and increased growth

opportunities as it positions the company as sustainable and environmentally friendly.

4. Does the employment of sustainability marketing strategy contribute to the

achievement of the MDGs?

The study reveals that employing a sustainability marketing strategy into an organization’s

business does contribute to the achievement of the MDGs as sustainability is directly linked to

the natural environment and poverty issues of developing countries. Moreover, modelling

sustainable manufacturing that minimizes the negative environmental impact and conserves

energy and natural resources are considered safe for employees, communities and consumers,

and is believed to be economically sound (Khavul and Bruton, 2013; Mani et al., 2014).

Furthermore, the MDGs provide a blueprint and standard for countries to follow in terms of

not abusing local laws and regulations, hence, efforts are made to meet the needs of the

world’s poorest by improving and bettering the lives of people in developing countries.

Despite the fact that the organizations contribute to sustainability issues and the achievement

of the MDGs through activities such as volunteer,- and CSR-programs, it is stressed that as

Malaysia is an emerging market there is a need to create more awareness regarding how to

contribute to the MDGs and work towards sustainable development.

7.2 Theoretical Implications The purpose of this research was to create an understanding of how international firms

operating on the Malaysian market employ sustainable practices into their marketing strategy.

International marketing strategy (IMS), sustainable development, and sustainability marketing

strategy were put in relation to the United Nation’s Millennium Development Goals (MDGs)

in order to create an understanding of how these concepts may influence an accelerated

achievement of the MDGs. Kumar et al. (2012) and Mokthsim and Salleh (2014) argue that

by employing all three dimensions of sustainability, i.e., social, economic, and environmental

organizations can increase growth opportunity and competitive advantage that in turn


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accelerates the achievement of the MDGs. Moreover, the main theoretical contribution of this

study lies in the in-depth knowledge and understanding created within the field of subject.

The study further contributes with a new aspect to sustainability marketing strategy as it puts

the strategy in relation to the MDGs.

7.3 Managerial Implications

This study has provided numerous managerial implications, based on the findings presented in

the discussion. The presented managerial recommendations are formed particularly for the

four organizations included in this study. In order to gain competitive advantage and growth

opportunity, while contributing to sustainable development, these following recommendations

ought to be taken into concern.

• Employing sustainability marketing strategy is necessary in order to contribute to

sustainable development on the Malaysian market. However it is vital to communicate

sustainable practices strategies internally in order to form effective sustainability

strategies in all business decisions. This point to the fact that all staff members should

have knowledge about the area of sustainable development.

• Given that Malaysia is a developing country, the organizations are advised to expand

and broaden their understanding regarding sustainability marketing strategy, and how

employing such strategies may affect the company and the market in terms of

economic,- social,- environmental issues. Mainly since issues related to sustainability

have become strategically important to managerial decision makers as companies face

increased pressure from employees and stakeholders.

• Furthermore, the Millennium Development Goals were set as a response and call for

global action and the organizations are recommended to develop their understanding

regarding the eight goals and thus, form strategies in order to contribute to

sustainability practices in Malaysia. Increased knowledge about the subject will help

accelerate the achievement of the MDGs.

• Communication is crucial and starts internally, hence; the organizations are advised to

improve their communication within the firm and ensure that staff and managers are

all aware of the company’s sustainability marketing strategy. Adopting CSR to


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organizations can facilitate the communication of underlying company values, which

in turn may lead employees to create an organizational identification to the idea of

CSR. This may also trigger organizational benefiting behaviors as CSR becomes part

of the business’ daily practices.

7.4 Limitations

As ethnographies are shaped by the different traditions and disciplines from which they are

launched, the theoretical position an author takes (or resists) regarding aspects such as culture,

its characteristic forms, and its consequences, it believed to have an affect the results of the

ethnography. The pretext assumptions carried by the researchers is also believed to highly

affect the way in which the research sees, hears, and portrays what is being observed. These

are also aspects that in turn will affect the generalizability of the ethnographic material.

Moreover, the limitations of this qualitative study were therefore mainly concerned with the

cultural differences and language barriers encountered. In terms of cultural differences, these

often lead to misunderstandings between the researchers and the organizations under study

regarding aspects such as interview questions and scheduled meetings.

7.5 Suggestions for Future Research For further research on how international firms may employ sustainable practices into their

marketing strategy, some suggestions are offered below that should be taken into

consideration.

• Sustainable development is related to economic,- social,- environmental issues. As the

awareness regarding these concepts is increasing globally, we suggest that a similar

research is carried out at a later time in order to compare the findings of this study

with that of a future research to underline potential development on the Malaysian

market.

• This study is based on four international manufacturing firms operating on the

Malaysian market. A proposal is to include other industries in the research or to form a

research based on local companies in order to investigate if they contribute to

sustainable development and thus, in what way.


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• Moreover, the study may be converted into a quantitative research with the aim to

create a broad understanding about the subject and hence, include a large sampling

frame. The study’s purpose and research questions could be reformulated into a

hypothesis which then would result in a generalized conclusion.

• This study is focusing on the Malaysian market as a developing country; however, we

propose that a similar research is conducted in a developed country with the aim to

create a comparison study. Further, a suggestion is carry out a cross-case analysis to

identify distinctions between the employment of sustainability practices for an

organization operating in a developing country as opposed to a developed country.

• Finally, it would be of interest to investigate sustainability issues in relation to the

accelerated achievement of the MDGs in several developing countries. This would

result in a comparison study between numerous developing countries with the aim to

identify possible differences.

7.6 Chapter summary This chapter has provided a discussion of the result in relation to the purpose of this study.

The preliminary aim was to answer the four research questions with regards to the key

concepts of this dissertation, namely; International Marketing Strategy, sustainable

development, the Millennium Development Goals, and sustainability marketing strategy.

Further, this study’s result has contributed to the existing literature by addressing the research

gaps presented in the literature review, which is clarified in the theoretical contributions.

Thereafter, the authors provided the organizations with numerous managerial implications and

recommendations on how to benefit from the findings of this research, ending in a discussion

regarding various limitations connected to the study. Finally, the chapter concluded with

suggestions for future.

List of References

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education and practice in the context of the Millennium Development Goals

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729

Akinboade, O.A. & Kinfack, E.C. (2013). An Econometric Analysis of the Relationship

Between Millennium Development Goals, Economic Growth and Financial

Development in South Africa. Social Indicators Research. vol. 118, No. 2, pp.

775-795

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Appendices

Appendix 1 -‐ Interview guide

General information

Position of the respondent:

Years of employment:

Keyword 1: International Marketing Strategy (IMS)

1.1 How do you define IMS?

1.2 What is your experience regarding IMS?

1.3 How would you describe your daily work with IMS?

1.4 Do You believe that the company has a well-developed IMS that brings the firm competitive

advantage and/or growth opportunities?

Keyword 2: Sustainable Development 2.1 How do You define Sustainable Development?

2.2 How important is it for the company to work with Sustainable Development?

2.3 What requirements does the company have in order to consider itself a sustainable

organization?

2.4 What is Your perception of Sustainability, CSR, Corporate Social Performance, Green

Marketing, and Triple Bottom Line (people à planet à profit)?

2.5 Is Sustainability and CSR communicated internally within the company? If yes, in what

way?

2.6 Does the company work with environmental,- social,- or economic issues related to the

Malaysian market?

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Keyword 3: The Millennium Development Goals

3.1 Have You heard of the United Nation’s Millennium Development Goals? If yes, what is Your

perception regarding the goals?

3.2 If no: in the year 2000 several governments signed the Millennium Declaration and pledged to

create an environment, at national and global levels, conducive, to development and to eliminate

poverty (Millenniemålen, 2015) What is your perception of the MDGs now that you have heard of

them?

3.3 How do You believe that the company is contributing to the achievement of the MDGs?

Keyword 4: Sustainability Marketing Strategy

4.1 It is widely known that manufacturers must increase flexibility, supplier network, and speed of

production systems; while at the same time reduce energy consumption and environmental impacts

in order to remain globally competitive (Mani et al., 2014).

How does the company tackle this dilemma?

4.2 Are there any specific strategies for dealing with this dilemma?

4.3 Does the company have a developed Sustainability Marketing Strategy, or any strategies

related to Sustainability?

4.4 Malaysia is considered a developing country and a huge emerging market. How would You

describe the differences between forming strategies for a developing country in relation to

developed markets?

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