Modeling eco-friendly house purchasing intention: a combined study of PLS-SEM and fsQCA approaches

• Date: 11 August 2023
• Pages: 123-157
• DOI: https://doi.org/10.1108/IJHMA-04-2023-0059
• Published date: 11 August 2023
• Subject Matter: Property management & built environment,Real estate & property,Housing markets
• Author: Razib Chandra Chanda,Ali Vafaei-Zadeh,Haniruzila Hanifah,Ramayah Thurasamy

Modeling eco-friendly house

purchasing intention: a combined

study of PLS-SEM and

fsQCA approaches

Razib Chandra Chanda,Ali Vafaei-Zadeh and Haniruzila Hanifah

Graduate School of Business, Universiti Sains Malaysia, Pulau Pinang, Malaysia, and

Ramayah Thurasamy

School of Management, Universiti Sains Malaysia, Pulau Pinang, Malaysia;

Department of Information Technology and Management, Daffodil International

University, Dhaka, Bangladesh; Department of Management, Sunway Business School,

Subang Jaya, Malaysia; Faculty of Economics and Business, Universitas Indonesia,

Depok, Indonesia; University Center for Research and Development (UCRD),

Chandigarh University, Chandigarh, India; Faculty of Business, Economics and

Social Development, Universiti Malaysia Terengganu, Terengganu, Malaysia;

Azman Hashim International Business School, Universiti Teknologi Malaysia,

Skudai, Malaysia and Fakulti Ekonomi dan Pengurusan (FEP),

Universiti Kebangsaan Malaysia, Bangi, Malaysia

Abstract

Purpose –The urgency to address climatechange and its devastating consequences has never been more

pressing. As societies become increasingly aware of the detrimental impact of traditional housing on the

planet, thereis a growing demandfor eco-friendly housing solutions that prioritizeenergy eff‌iciency, resource

conservation and reduced carbon emissions. Therefore, this study aims to investigate the factors that

inf‌luencecustomers’priority toward eco-friendly housepurchasing intention.

Design/methodology/approach –This study collected386 data using a quantitative research strategy

and purposive sampling method. This study uses a hybrid analysis technique using partial least squares

structural equation modeling(PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA)approaches

to identify the inf‌luencingfactors.

Findings –The PLS-SEM analysis found that attitude toward the eco-friendly house, subjective norms,

performance expectancy, environmental knowledge and environmentalsensitivity have a positive inf‌luence

on eco-friendly house purchasing intention. However, perceived behavioral control and willingness to pay

were found to have insignif‌icant effecton customers’intention to purchase eco-friendly houses. The fsQCA

resultsfurther revealed complex causal relationshipsbetween the inf‌luencing factors.

Practical implications –This research will not only contributeto academic knowledge but also provide

practical guidance to real estatedevelopers, policymakers and individuals looking to make environmentally

responsible choices. By understanding the factors that inf‌luence consumers’intentions to purchase eco-

friendlyhouses, we can pave the way for a more sustainable andresilient future.

Originality/value –This study has useda hybrid analysis technique, combiningPLS-SEM and fsQCA, to

enhance the predictive accuracy of eco-friendly house purchase intentions among individuals residing in

densely populatedand highly polluted developing countries,such as Bangladesh.

Keywords Eco-friendly house, Purchase intention, Environmental knowledge,

Environmental sensitivity, Performance expectancy, fsQCA

Paper type Research paper

Study of

PLS-SEM and

fsQCA

approaches

123

Received24 April 2023

Revised23 July 2023

Accepted27 July 2023

InternationalJournal of Housing

Marketsand Analysis

Vol.18 No. 1, 2025

pp. 123-157

© Emerald Publishing Limited

1753-8270

DOI 10.1108/IJHMA-04-2023-0059

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/1753-8270.htm

1. Introduction

Climate change has gained increasing recognition as a pressing global issue, with

widespread acknowledgment of its destructive nature (Zhang and Liu, 2022). This

heightened awareness has led to an amplif‌ied focus on daily practices that contribute to

climate change (Sia and Jose, 2019;Sadiq et al., 2021). Consequently, behavioral

scientists have directed their attention toward understanding and predicting personal

conservation behaviors, community actions and corporate-level sustainability initiatives

(Rasoolimanesh et al., 2019;Singh and El-Kassar, 2019;Zollo et al., 2021), underscoring

the growing signif‌icance of sustainability for global socio-economic progress over the

past few decades (Passoni et al., 2021).

The concept of sustainable development emerged in response to the need for social and

environmental sustainability following Second World War, with the term “sustainable

development”f‌irst introduced by the Bruntland Commission in 1987 (General Assembly of

the United Nations). Sustainability, as def‌ined by the World Commission on Environment

and Development (World Commission on Environment and Development (WCED),

1987), entails meeting present human needs while preserving the ability to meet future

needs (Hyun et al., 2021). Giventhe signif‌icant impact of climate change on the environment,

it stands as the foremost challenge of our time (Dilotsotlhe, 2021), necessitating a

global endeavor to curtail greenhouse gas emissions and avert future climate-related

catastrophes.

To address this imperative, policymakers worldwide established the f‌irst-ever global,

legally binding agreement aimed at limiting the average rise in global temperature to well

below 2°C, as it was prior to the industrial era. In December 2015, the objective of

maintaininga pre-industrial level temperature was set (Novais et al.,2020). Governmentsand

organizations worldwide have since collaborated to encourage pro-environmental behavior

and develop greenproducts and services to cater to environmentally responsible consumers.

In alignmentwith these efforts, realestate organizations areincreasingly directingtheir focus

toward constructing eco-friendlyhouses in support of governmentpolicies on environmental

sustainability.

The construction industry emerges as a prominent contributor to excessive energy

consumption and pollution (Bhairappanavar et al., 2021). Buildings account for

approximately 30%–40% of global primary energy consumption, with nearly one-third

of greenhouse gas emissions arising from building and construction-related activities

(Evin and Ucar, 2019;Passoni et al., 2021). Moreover, construction and operation

activities consume a substantial 40% of the world’s energysupply (Tan and Goh, 2018;

Bhairappanavar et al.,2021). Without intervention, greenho use gas emissions from the

construction sector are projected to nearly double within the next two decades (United

Nations Environment Programme, 2009).

Construction and housing have emerged as signif‌icant contributors to global carbon

emissions, underscoring the need for environmentally friendly alternatives in building

practices. Sustainable buildings are designed, constructed, operated and demolished with

eff‌icient resource utilization, grounded in the three pillarsof sustainability: social, economic

and environmental.By adopting such sustainable practices, real estatecompanies can play a

crucial role in reducing environmental pollution. The use of raw materials in the

construction industry is a major source of environmental pollution, making ecologically

sustainable buildingpractices vital for sustainable development (Tan and Goh, 2018;Amran

et al., 2021a). Eco-friendly building practices offer numerous benef‌its, including improved

eff‌iciency, well-beingand health for residents (Allen et al., 2015;Nakano and Washizu, 2018).

Notably, China, the world’s most populous country, has witnessed a steady increase in

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eco-friendly buildings (Li et al., 2021a). Given the escalating demand for housing in

Bangladesh, it presents a potential location for the construction of eco-friendly homes. The

motivation behind this study lies in the pressing need to address the environmental

challenges posed by climate change and unsustainable practices in the construction

industry. As awareness of the destructive nature of climate change grows, there is an

increasing demand for eco-friendly housing solutions that prioritize energy eff‌iciency,

resource conservation and reduced carbon emissions. Numerous studies have been

conducted on eco-friendly housing from variousperspectives. For instance, Liu et al. (2018)

investigated the psychological factors inf‌luencing Chinese residents’intentions to adopt

green construction practices. Salvi and Syz (2011)explored motivators for environmentally

friendly buildings and houses. Fuerst and McAllister (2011) examined the benef‌its of

eco-friendly buildingsin the USA. Additionally, Chan et al. (2018) focused on the adoption of

eco-friendly building technologies, whereas Darko et al. (2017) studied motivations for eco-

friendly homes. Other studieshave explored specif‌ic eco-friendly building materials. Amran

et al. (2021b) discussed the use of slag to create environmentally friendly, long-lasting

concrete, and Naderpour and Mirrashid (2020) researched eco-friendly concrete that uses

recycled coarse aggregates. Moreover, Novais et al. (2020) looked into the energetic and

acoustic performance of eco-friendly buildings. Further research has centered on attainable

green building materials. Jeon et al. (2019) investigated such materials, focusing on their

accessibility and applicability. Meanwhile, Evin and Ucar (2019) delved into residential

buildings with environmental eff‌iciency. Several studies also concentrated on specif‌ic

aspects of eco-friendly housing. Alphonsa Jose and Sia (2022) explored techniques for

building environmentally friendly houses, whereas Passoni et al. (2021) examined

sustainable building renovation. Although previous studies have explored the green home

purchasing intention of Malaysian Millennials(Masukujjaman et al., 2022) and residents in

Sabah (Lajuni et al., 2018) using the extended theory of planned behavior (TPB), these

studies focussed on understanding the factors inf‌luencing purchasing intentions among

Malaysians specif‌ically, considering their concerns about environmental pollution and

intention to purchase eco-friendly houses. However, the present study differs in several

ways. First, Malaysiancustomers generally have higher purchasing power than individuals

in other South Asian countries such as Bangladesh (Zahan et al., 2020). Second, pollution

levels and population density in Malaysia are considerably lower than in South Asian

countries such as India, Pakistan and Bangladesh (Rahman et al.,2020

). Finally, the living

standards of Malaysians are generallyhigher than those of Bangladesh (Zahan et al.,2020).

Since populationdensity, pollution intensity and purchasing powercan inf‌luence customers’

perceptions and intentions towardgreen purchasing, the f‌indings of this study will provide

valuable insights for other highly populated and severely polluted countries worldwide.

However, limited research hasbeen conducted to understand eco-friendly house purchasing

intentions among people living in highly polluted yet densely populated countries such as

Bangladesh. Therefore,to bridge this research gap, this study aims to investigate the factors

inf‌luencing customers’priorities toward eco-friendly house purchasing intentions in a

densely populated and heavily polluted developing country. The following research

question has been addressedto achieve this objective:

RQ1. What factors inf‌luencecustomers’priorities toward eco-friendly house purchasing

intention?

The f‌indings of this study hold signif‌icant theoreticalimplications as they contribute to our

understanding of consumers’behavioral intentions toward eco-friendly housing. By using

the TPB in its extended form and using a combined analysis of partial least squares

Study of

PLS-SEM and

fsQCA

approaches

125