DETERMINING IMPACT OF INSTITUTIONAL PRESSURES ON ENERGY SAVING BEHAVIOR OF PAKISTAN’S MANUFACTURING INDUSTRY

Abstract

Industrial sector in Pakistan is the second largest consumer of energy. Industries, especially those with huge usage of energy, are reflected as main segment towards energy utilization. In our research, we precisely built and tested a model to determine the impact of different institutional pressures, involvement of topmanagement support and adequate amount of financial-slack towards the tendency of manufacturing industry energy-saving behavior (ESB). Keeping in view in order to acquaint our self we empirically examined our research hypothesis using survey data collected from three types of manufacturing industries (i.e. automotive, textile and cement industry) in Pakistan. Results from SPSS indicate that command-and control instrument (CCI), incentive instrument, mimetic pressure and normative pressure directly influence industry ESB. Whereas, the involvement of top management positively moderates the interaction of CCI and mimetic pressure to industry ESB. However the effect of financial slack only positively moderates the relationship between mimetic pressure to industry ESB. Based on study outcomes, some essential policy implications regarding industry ESB are discussed.