Sustainable Practices & Marketing Strategies For Developing Countries

Sustainable practices & marketing
strategies for developing

countries
A multiple case study of international firms
operating on the Malaysian market
Authors: Heidi von Jahf 891104 Tutor: Dr. Setayesh Sattari

Master’s in Business Administration
with specialization in Marketing
Examiner: Prof. Anders Pehrsson
Paulina Huhtilainen 890905

Master’s in Business Administration Level and semester: Master’s Thesis,
with specialization in Marketing 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
Heidi von Jahf Paulina Huhtilainen

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
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
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Introduction
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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Introduction
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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Introduction
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
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Introduction
(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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Introduction
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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Introduction
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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Introduction
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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Introduction
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.
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Literature Review
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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Literature Review
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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Literature Review
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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Literature Review
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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Literature Review
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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Literature Review
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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Literature Review
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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Research Questions and Frame of Reference
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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Research Questions and Frame of Reference
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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Methodology
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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Methodology
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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Methodology
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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Methodology
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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Methodology
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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Methodology
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 Aiming to present international 1.1
Marketing marketing as an application of 1.2
Strategy marketing orientation and 1.3
marketing capabilities to 1.4
4.3
international business (Mühlbacher
4.4
et al., 2006).
Sustainable Works on a ‘Triple Bottom Line’ 2.1

Development i.e., people, planet, profit, and is 2.2
regarded as a long-term vision 2.3
dealing with the development of a 2.4
2.5
strategy based on ethical and moral
2.6
principles (Kumar et al., 2012; 3.3
Mokthsim & Salleh, 2014). 4.4
4.5
Comprises environmental, -
economic, - and social issues
(Mariadoss et al., 2014; Kumar et
al., 2012; Mokthsim & Salleh,
2014).
The Millennium Aiming to improve and better the 2.4
Development Goals lives of people in developing 2.6
countries through eight goals 3.1
established by the United Nations 3.2
3.3
(millenniemålen, 2015; Okpala &
4.4
Ekpemiro, 2012).
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Methodology
Sustainability Emphasizes added value to 2.2

Marketing Strategy customers as well as the 2.5
establishment of long-lasting 2.6
customer relationships, beneficial 3.3
for businesses, society and 4.1
environment (Kumar et al., 2012). 4.2
4.3
Implementing sustainable 4.4
development into organizations
business practices and strategies is
considered vital in order to achieve
competitive advantage (Kumar et
al., 2012).
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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Methodology
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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Methodology
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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Methodology
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.
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Methodology
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.
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Empirical Data Presentation
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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Data Analysis
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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Data Analysis
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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Data Analysis
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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Data Analysis
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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Data Analysis
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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Data Analysis
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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Data Analysis
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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Conclusions and Implications
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.
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Interviews
Assistant Manager, Toyota Material Handling International. [23-02-2015; 24-02-2015]
General Manager, Toyota Material Handling International. [25-02-2015]
Business Support Manager, UMW. [26-02-2015]
Sales Manager, UMW. [26-02-2015]
Business Development and Country Manager, Mölnlycke Healthcare. [06-03-2015]
Business Development Manager, Mölnlycke Healthcare. [02-03-2015; 03-03-2015]
Product Manager Wound Care Division, Mölnlycke Healthcare. [04-03-2015]
Sales Manager (1) Surgical Division, Mölnlycke Healthcare. [03-03-2015]
Sales Manager (2) Senior Product Specialist Wound Care Division, Mölnlycke Healthcare.
[03-03-2015]
Human Resource Manager, Factory, Mölnlycke Healthcare. [06-03-2015]
Environmental Health and Safety Manager, Mölnlycke Healthcare. [06-03-2015]
Finance Director, Neopharma Biotech Asia. [09-03-2015]
CEO/Managing Director, Camfil Malaysia. [24-03-2015]
Senior Human Resource Manager, Camfil Malaysia. [23-03-2015]
Operations Director, Camfil Malaysia. [23-03-2015]
Marketing Executive, Camfil Malaysia. [26-03-2015]
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|Page 74
Appendices
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?
|Page 75
Appendices
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?
|Page 76
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Sustainable practices & marketing

strategies for developing

Authors: Heidi von Jahf 891104 Tutor: Dr. Setayesh Sattari

Paulina Huhtilainen 890905

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

Heidi von Jahf Paulina Huhtilainen

Table of Contents

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

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

List of Tables

List of Figures

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

1.1.2 Malaysia as a developing country

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

1.2 Problem Discussion

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

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

1.3 Research gap and purpose

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

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

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

1.5 Outline of thesis

Ø Empirical Data Presentation

Ø Conclusions and Implications

2.1 International Marketing Strategy

2.1.1 International Marketing Strategy in developing countries

2.2 Sustainable Development

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

2.2.1 The Millennium Development Goals

2.2.2 Corporate Social Responsibility

2.2.3 Sustainable Development in developing countries

2.3 Sustainability Marketing Strategy in developing countries

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

2.4 Chapter summary

3.1 Proposed Research Model

Figure 1 - Proposed Research Model

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

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

3.2 Chapter summary

4.1 Research philosophy and approach

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

4.2 Practical methodology

4.2.1 Research approach

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

4.2.2 Research strategy and data collection method

4.2.3 Operationalization and measurement of variables

Concept Conceptual Definition Operational

Sustainable Works on a ‘Triple Bottom Line’ 2.1

Sustainability Emphasizes added value to 2.2

4.2.4 Sampling technique

4.2.5 Data analysis method

4.3 Ethical considerations

4.4 Quality criteria

4.4.1 Quality criteria for observations

4.4.2 Content validity

4.4.3 Construct validity

4.4.4 External validity

4.5 Chapter summary

5. Empirical Data Presentation

Appendix 1 -‐ Interview guide