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Article

Structural Equation Model of Factors Influencing the Selection of Industrial Waste Disposal Service in Cement Kilns

by
Ukrit Suksanguan
1,
Somsak Siwadamrongpong
1,
Thanapong Champahom
2,
Sajjakaj Jomnonkwao
3,
Tassana Boonyoo
4 and
Vatanavongs Ratanavaraha
3,*
1
Program in Energy and Logistics Management Engineering, School of Mechanical Engineering, Institute of Engineering, Suranaree University of Technology, Nakhon Ratchasima 30000, Thailand
2
Department of Management, Faculty of Business Administration Rajamangala, University of Technology Isan, Nakhon Ratchasima 30000, Thailand
3
School of Transportation Engineering, Institute of Engineering, Suranaree University of Technology, Nakhon Ratchasima 30000, Thailand
4
Traffic and Transport Development and Research Center (TDRC), King Mongkut’s University of Technology Thonburi, Bangkok 10140, Thailand
*
Author to whom correspondence should be addressed.
Sustainability 2022, 14(7), 4109; https://doi.org/10.3390/su14074109
Submission received: 7 March 2022 / Revised: 24 March 2022 / Accepted: 28 March 2022 / Published: 30 March 2022
(This article belongs to the Special Issue Strategies toward a Green Deal and Circular Economy)

Abstract

:
Industrial waste disposal in a cement kiln is an operation that includes waste disposal as well as the conversion of waste into renewable energy, which is a cement industry in many countries. This research studied business factors related to the intention to use co-processing industrial waste disposal service in cement kilns by surveying the data with questionnaires from 1251 customers nationwide. The objectives of this research were to study the relationship of business factors by using structural equation modeling to analyze factors influencing the selection of industrial waste disposal service in cement kilns. The study results found that customer attitude towards the following factors, including perceived ease of use, perceived usefulness, disposal price, service provider location, promotion, people, and a service provider’s infrastructure, influenced intention to use the service. The variables that customers gave importance to were the industrial waste disposal with zero wastes to landfill and the use of industrial waste relevant to the circular economy by using the industrial waste, which has a quality of renewable fuel in cement kiln as the renewable fuel of the cement furnace. According to the research results, service providers in cement kilns can potentially plan service strategies to achieve sustainability for further business operations in a highly competitive market.

1. Introduction

There have been various methods of industrial waste disposal, such as industrial wastes [1,2], sewage sludge [3,4,5], and hazardous waste [6,7]. Concurrently, there are studies on reducing industrial waste generation with the principle of waste management hierarchy [8,9,10,11]. Incidentally, reducing industrial waste is ineffective; however, industrial waste requires disposal. Nowadays, using sanitary landfills [12] and incineration [13] are disposal methods: however, they do not get benefits from industrial wastes [14]. At present, contrary to the old concept of merely eliminating the wastes, in addition to using waste more than conventional incinerator waste [15], the concept of sustainable waste management with a circular economy is the management of wastes from production and consumption by bringing produced and consumed raw materials into a new production process. With a circular economy waste management approach, this process creates value by turning from industrial wastes to converting waste to energy [14]. Its technology covers the utilization of heat from waste incineration and that of converting waste into renewable fuels in cement kilns, or the main fuels for electricity generation of waste-to-energy power plants.
Cement manufacturing companies potentially provide waste and industrial waste disposal services called “co-processing in a cement kiln”. The industrial waste which has a quality of renewable fuel in cement kiln is used as the renewable fuel of the cement furnace. It consequently reduces the use of coal, conserves resources, and simultaneously disposes of industrial wastes [16]. Moreover, the disposal does not have an impact on the environment [1]. It is a good choice for industrial waste disposal, environmental friendliness, and landfill reduction [2], being the renewable energy of the cement industry in many countries [17].
In Thailand, under strategic energy planning, the Ministry of Energy has prepared five energy master plans during B.E. 2558–2579. According to the declared plan, a promotion of using renewable energy in generating electricity results in more waste-to-energy power plants [18] which potentially manage industrial waste disposal. According to Commission [18], they have an advantage in transportation distances due to their proximity to industrial sites. Thus, the waste-to-energy power plants are abundantly built and they subsequently scatter throughout the country.
Industrial waste is sewage or unused materials produced by industrial plants. It requires disposal technology methods with specially designed management systems. Therefore, the hiring cost of industrial waste disposal is higher than that of ordinary waste. Such high management prices consequently cause the high competitive industrial waste disposal business in Thailand [19]. The cement kilns co-processing industrial waste disposal service providers are the early groups in the industrial waste disposal business. In addition, they are service providers potentially handling the tasks in large quantities with an international standardized management system [20]. However, due to more competitors increasingly entering the market, the former customers have switched to use the new competitors’ service.
From the previous studies, there have been studies on the feasibility of using different types of co-processing industrial waste disposal in cement kilns [4,21]. In reference to the literature review, the research studied the probability of using waste as a renewable fuel in cement kiln. Referring to literature review, it was found that there is experimental research where the waste has a calorific value equivalent to coal and is brought to replace the coal trial in cement kiln. In parallel, there have been studies on the impacts of industrial waste disposal on cement quality [22], and on the environment in industrial waste disposal management as well [3,7]. While Emmerich et al. [23] and Ndebele [24] conducted a study on the acceptance of renewable energy technologies without mentioning co-processing technology in cement kilns, there were some studies on waste disposal in terms of business, such as municipal solid waste in landfill [25]. However, these did not mention the co-processing of industrial waste disposal in the cement kiln business. As mentioned above, there have never been studies on factors influencing the selection of the co-processing industrial waste disposal in cement kilns services. The industrial waste disposal of cement companies use industrial waste as a renewable fuel to reduce coal consumption due to the coal shortage probability in the future [22]. In addition, waste disposal potentially yields a return on disposal costs [20]. Owing to the mentioned benefits, more competitors have been progressively emerging [19]. Thus, from the research gap, this research will supportively fulfill the related factors in terms of business by studying the relationship between the factors and the intention to use co-processing industrial waste disposal in cement kiln service using structural equation modeling. The research results potentially acknowledge the causal relationship of factors influencing service selection. With customers’ empirical data compared to the established model, the service providers can subsequently take these results to plan the business strategies for their business sustainability in the future.

2. Literature Review

2.1. Theoretical Framework

Due to the limited research on the causal factors related to the intention to use the service of co-processing industrial waste disposal in cement kilns, to find the solution, this research has studied a literature review and built a research framework starting from the large to the small one to find the factors. Beginning at the literature review, we divided its results into three main conceptual framework groups. The first group studied renewable technology acceptance, such as Ndebele [24], Bronfman et al. [26], and Park and Ohm [27], and studied using factors including intention to use renewable technology, renewable technology acceptance, perceived risk acceptance, perceived reward, and trust. The second group studied waste management, such as Cole et al. [11], Ghalehkhondabi et al. [28], and Vassanadumrongdee and Kittipongvises [29], using factors including waste disposal service providers, trust, perceived benefit of service usage, and waste disposal knowledge. The third group studied the waste-to-energy, such as Vassanadumrongdee et al. [29], Vrabie [30], and Jaworski and Kajda-Szcześniak [31], using factors including acceptance and benefit of usage. These conceptual framework groups are summarized and widely studied using theoretical frameworks including marketing mix, Theory of Planned Behavior, and the Technology Acceptance Model.

2.2. Marketing Mix

The main goals of this research are to study, discuss, and explain the casual business factors influencing the intention to use cement kilns co-processing industrial waste disposal service. The service providers can use the research results to plan the strategic business. Similar to the research of Xu et al. [32], it stated the cement kiln co-processing of industrial waste disposal should be concurrently considered a potential business in addition to the balance of the various types of industrial waste disposal. Many researchers have studied business factors: for example, Wonglakorn et al. [33] studied customer loyalty in logistics services [33] and Kwok et al. [34] argued that business operation must start from positioning the business in the market to differentiate through the use of marketing mix theory in management. This is similar to the study of Salman et al. [35], which additionally explained that applying the marketing mix theory into management would increase the business competitiveness. In the meantime, Othman et al. [36] and Pomering and Johnson [37] added that the marketing mix theory, consisting of factors including product, price, place, promotion, people, physical, process, corresponded to [38]. Moreover, there are several examples of researchers such as Wongleedee [39] who studied the marketing mix theory of selling products, while Bukova et al. [40] applied the marketing mix into service jobs by taking the mentioned theory to establish hypothesis and test with structural equation modeling (SEM). The research results found that the marketing mix theory resulted in the business operation success. Nowadays, the researchers increasingly use the marketing mix theory along with a structural equation modeling. For example Bukhari et al. [41], Lee and Jin [42], and Sheau-Ting et al. [43] used the marketing mix theory together with the structural equation modeling in merchandising and discovered that the customer purchase intention depends on the product. Menegaki [44] studied the renewable energy business and found that the customer intention to use service depends on the product, service, and price. Similar to Oflac et al. [45], they discovered that the customer’s intention to use service depends on service, price, place, promotion, physical, people, and process. Corresponding to Bukova et al. [40] and Blut et al. [46], they stated that the marketing mix is a fundamental tool for controlling the success in business operations. Therefore, it can be concluded that from the marketing mix theory, the frequently used factors comprising price, place, promotion, people, and physical are normally studied with structural equation modeling (SEM).

2.3. Theory of Planned Behavior (TPB)

The Theory of Planned Behavior (TPB) is the application of the limitation of The Theory of Reasoned Action (TRA)) [47] proposed by Ajzen [48]. He defined that the planned behavior resulted from the intention comprising three influencing factors, including attitudes towards behaviors [49], subject norm, and perceived behavioral control. Attitude towards behavior is an assessment of an individual’s overall behavior and its consequences. Weber et al. [50] added that the behavioral expression included both positive and negative aspects. In addition, Cheunkamon et al. [51] added that an individual’s positive behavior will lead to their positive attitudes towards behaviors. On the other hand, their negative behavior will result in their bad attitudes towards behaviors. Subject norm is an individual perception of a need or social expectations which put an impact on an individual. It can be a group of close people or an influencing group which has an impact on that person. Corresponding to [52,53] and Ali et al. [54], they described that the tendency of behavioral expression increases when an individual assesses that the influencing group requires it. Based on this concept, Nduneseokwu et al. [55] and Lou et al. [56] used the Theory of Planned Behavior (TPB) to study waste management. Ali et al. [54], Apipuchayakul, and Vassanadumrongdee [57] studied this theory with the intention to buy energy-saving equipment. In addition, Cheunkamon et al. [51] applied the Theory of Planned Behavior (TPB) to the structural equation modeling (SEM) to consider personal factors affecting the intention to use technology social media. In conclusion, with the Theory of Planned Behavior, the researchers collaboratively studied the factors, including attitudes toward behaviors, subject norm, and intention with structural equation modeling (SEM).

2.4. Technology Acceptance Mode (TAM)

Davis [58] developed the Technology Acceptance Model (TAM) from Ajzen’s TRA theory Ajzen [48], of which the introduction and development began in 1975. Later in 1985, the additional factors of belief and perceived behavioral control in decision-making were announced and consecutively developed to be the Theory of Planned Behavior (TPB) in 1989. The subsequent improvement grew into the theory of information technology acceptance and became the Technology Acceptance Model (TAM) [59]. This theory addresses the factors affecting the acceptance or use of technology. It consists of perceived ease of use, perceived usefulness, and attitude. Weber et al. [50] further explained that it is an expression of acceptance for forecasting personal attitudes among various current technologies corresponding to [60,61]. Cheunkamon et al. [51] clarified that it is a widely accepted and prevalent theory for researchers to explore the intention to use technology. In terms of application, there is a variety of studies using it. For example, Alam et al. [47] used this model to study households’ intention to use solar power, while Zhang et al. [62] and Chin et al. [60] studied this theory in the field of energy business. In terms of the factors that the researchers used to study in Technology Acceptance Model (TAM) [47], Cheunkamon et al. [51] and Chin et al. [60] used attitude, subject norm, perceived ease of use, and perceived usefulness. From the Technology Acceptance Model, it can be concluded that the factors the researchers generally used to study in the research with structural equation modeling (SEM) consisted of attitude, perceived ease of use, and perceived usefulness.

2.5. Structural Equation Modeling (SEM)

Kline [63] and Hair [64] defined structural equation modeling (SEM) as the causal and correlation analysis with multivariate analysis that combines variable correlation techniques, variance, and correlation coefficient. The variables in structural equation modeling can be both independent and dependent variables. They can also examine the established model compared with the actual data. In this study, the business factors emerged from the reviewed literature were taken to formulate the hypotheses and subsequently tested by using a structural equation modeling entitled “Structural equation model of factors influencing the selection of industrial waste disposal service in cement kilns”. It consists of a measurement model, which describes the linear relationship of factors and exogenous variables, while using structural equation to confirm the structural correlation, which is established from the literature review compared to the empirical data to investigate whether they were consistent or not. The results will be further discussed.

2.6. Integration of Theories (Marketing Mix, TPB, TAM)

The relationship between TPB and TAM theories has been accepted and widely applied with their similarities. Regarding attitude, which provided both positive and negative results, the TAM theory also complements the TPB theory on perceived ease of use that affected satisfaction and intention [51]. Consistent with Alam et al. [47], they stated that the use of TAM impossibly reflects the total environment to be studied. Along with perceived ease of use and perceived usefulness factors to forecast attitude, it should simultaneously use the TPB theory with attitude and social norm to predict intention. The study is also consistent with Ali et al. [54], who believed that predicting intention must be used together with attitude and social norm. In addition, Mustafa et al. [65] had the same agreeable direction. Bukhari et al. [41] added that forecasting customer intention required to supportively study with attitude, social norm, price, and people. Furthermore, in terms of business, the researchers must study together with the marketing mix theory, which consists of the factors of price, place, promotion, people, and physical [43,44,45].
Therefore, this study concluded that the researchers have taken the literature review results to study the factors of price, place, promotion, people, and physical (the marketing mix theory) for explaining the causal relationship with the intention to choose the service. The factors of intention to choose this service has been collaboratively studied with social norm and attitude (Theory of Planned Behavior). In addition, with the structural equation modeling (SEM), the researchers studied the factors of perceived ease of use and perceived usefulness (Technology Acceptance Model) to describe a causal relationship with attitude structural equation modeling (SEM) to determine the causal and path relationship.

2.7. The Service Providers of Co-Processing in Cement Kilns in Thailand

Waste disposal is a challenging issue due to the increasing amount of waste generated by the population and daily activities [66], specifically, industrial waste produced by sewage or unused industrial products. Waste disposal requires specially assembled machinery and technology, with high investment costs as well as standardized management [32], leading to higher outsourcing costs than normal waste. Industrial waste disposal businesses in Thailand are highly competitive due to such high bills. According to the data from the Department of industrial works [19] and Commission [18], the existing nine service providers of co-processing waste disposal in cement are cement factories, with the majority of them located in Central Thailand. Currently, there are 137 service providers across the country’s Department of industrial works [67], including central waste treatment plants, covering central waste incineration plants (Incineration/Co-incineration). Therefore, the goal of this research is to design services according to customer needs to achieve sustainability in co-processing industrial waste disposal services under intense competition.

2.8. Hypothesis Development

Perceived ease of use is the simplicity of sending industrial waste disposal in the cement kilns because the group of service providers for co-processing industrial waste disposal service in cement kilns has a continually standard developed management system. The Department of industrial works has given service providers access to the Auto E-License system. Customers can use such a system to automatically send waste or unused materials out of the factory via an electronic system (Auto E-License). Through this way, customers can remove industrial waste disposal from the factory by reducing the waiting time for approval from the Department of Factory from 30 days in the case of ordinary permission to only two working days due to the standard waste disposal service specified by the Department of Factory, with a reference to the list of service providers. The list of service providers can refer to the Department of industrial works [67].
Perceived usefulness: the strength of co-processing industrial waste disposal in cement kilns is its perceived usefulness. According to Viczek et al. [2], industrial waste disposal in the cement kilns would be the raw materials for production, leaving no residues (zero wastes to landfills). Stafford et al. [68] demonstrated that the management of co-processing industrial waste disposal is standard. Furthermore, it is a disposal method of zero waste to landfills. Thus, it can simultaneously recycle industrial waste into renewable energy and industrial waste disposal as the delivery of waste disposal by the Auto E-License system interacts positively with perceived usefulness.
Subjective norm: According to Bukhari et al. [41], this is a personal decision based on other related parties, like a group of people or close friends, whereas Wan et al. [53] demonstrated that social norms and attitudes influence intention. Weber et al. [50] added that a social norm is a social drive to make something conformable or unacceptable.
Attitudes toward service use: Tu et al. [49] stated that purchase intention is an opportunity caused by personal factors linked with attitudes and social norms. Ali et al. [54] emphasized that attitudes are feelings depending on individual factors or circumstances.
Price: According to Kwok et al. [34], one of the marketing mixes is the price factor. It accomplishes this by setting prices that cover the business’s cost and added profits. For the highest profitability achievement, the set price should allow for customer acceptance. When a customer recognizes the value of the goods or services they receive, they feel that the price is worthwhile. However, the disposal cost must be profitable for the disposal service providers and affordable for the service users.
Place: The industrial waste disposal service organizations are the cement kiln companies, where most in Thailand have factories located in the central region, not near the industrial sites of the customers’ companies that produce the waste and scatters in all regions of the country. On the contrary, considering the positive aspects of the location, the service providers have factories located in the country’s central region with convenient transportation routes. In addition, many customer factories still use the service to transport industrial waste from distant locations.
Promotion: The promotion factor needs to be simultaneously combined with the price and place of service providers to attract service users through a communication channel to induce customers to utilize the service [43,45,69], stating that building a business image, not having an impact on the environment, potentially increases the customers’ confidence and their intention to use the service.
People of Service providers: Oflac et al. [45] stated that the personnel of service providers are an indispensable part of any organization that requires development. Daily servicing and continuous learning by those specialized people potentially builds credibility for customers and distinctiveness for business. Koľveková et al. [70] illustrated that customers considered the selection of a service based on the provider’s personnel. Hence, service providers should focus on service quality strategies.
Physical: physical factors, such as products or the service provider’s infrastructure systems, are tangible for customers. They potentially demonstrate the service quality and reflect the service provider image (Kwok et al.) [34]. Considering the co-processing industrial waste disposal service in cement kilns, it is a technology widely accepted and employed across the globe.
Based on the literature review in Table 1, price, place of service provider, promotion, people, physical, attitude, subject norm, perceived ease of use, and perceived usefulness are factors to be evaluated in this research. At this point, the connection between each factor was analyzed and hypotheses were formulated based on the research objectives for factors impacting the selection of industrial waste disposal service in cement kilns. The following are the results and details of the hypothesis.
Hypothesis 1 (H1).
Perceived ease of use influences perceived usefulness positively.
Hypothesis 2 (H2).
Perceived usefulness has a positive impact on attitudes toward the service.
Hypothesis 3 (H3).
Perceived ease of use influences attitudes toward service utilization positively.
Hypothesis 4 (H4).
Subjective norm has a positive effect on attitudes toward service use.
Hypothesis 5 (H5).
Subjective norm has a favorable impact on the service use intention.
Hypothesis 6 (H6).
An attitude toward service utilization has a positive influence on the intention to use service.
Hypothesis 7 (H7).
Price has a positive influence on the intention to use the service.
Hypothesis 8 (H8).
Place influences the intention to use service positively.
Hypothesis 9 (H9).
Promotion has a positive impact on the intention to use the service.
Hypothesis 10 (H10).
People have a positive influence on the intention to use the service.
Hypothesis 11 (H11).
Physical influences the intention to use service positively.

3. Materials and Methods

3.1. Data Collection

An online questionnaire in the Google form was used in this survey. The Customer Service Department and sales representative’s questionnaires (Table A1) via email and application lines to customers were acquired from the customer list of an industrial waste disposal service provider, who is the leader in co-processing waste management in cement kilns. The target groups are current customers and those who employ the service, including industrial plants, warehouses, companies, government agencies, and educational institutions covering all regions of Thailand. The surveyed data collection was between April 2021 and July 2021.

3.2. Data Analysis

First, the literature reviews yielded a model specification [75] which included the following factors: price, place, promotion, people and physical, attitude, subject norm, perceived ease of use, and perceived usefulness in-service use.
Second, take the factors to create a path diagram showing the correlation between the variables relevant to the research hypotheses to test the causal relationship [33], as depicted in Figure 1.
Third, checking the data distribution from the questionnaire according to Kline [76], the skewness should be less than three, and the kurtosis must be less than ten. The maximum likelihood estimate can estimate the model parameters in the case of the normally distributed data.
Fourth, model estimate [51]. In this research, the regression coefficient estimation, factor loadings, variance, and covariance were analyzed with the program Mplus seven using maximum likelihood estimate [51,75,77,78,79].
Fifth, check the goodness-of-fit model, as detailed in Table 2, to explain how well the hypothesis model is consistent with the empirical data by examining the following values, including (1) the ratio between ( χ 2 /df) should not exceed 3, (2) the Root Mean Square Error of Approximation (RMSEA) should be less than 0.05, (3) Standardized Root Mean Square Residual (SRMR) should not exceed 0.05, (4) Comparative Fit Index (CFI) should be greater than 0.95, and (5) the test results of goodness-of-fit model with Tucker–Lewis Fit Index (TLI) must be greater than 0.95. If the results of the goodness-of-fit model can pass all requirements, it can confirm consistency between the model and the empirical data.
The data from the questionnaire requires reliability and validity test before analyzing with the structural equation modeling. The reliability test employed Cronbach’s alpha, as shown in Equation (1) [84], assessed the internal consistency. In other words, it checke whether the respondents consistently answer the same subjects or not. The responses are consistent if the reliability test result is more than 0.7 [85]. The formula is as follows:
α = K K 1   ( 1 i = 1 k σ y i 2 σ x 2 )
where K denotes the number, σ x 2 represents the mean of the variance of the questions, and σ y i 2 , shows the mean of the covariance of the questions.
The next process is to examine the Average Variance Extraction (AVE) and Constructed Reliability (CR) [86], which are the index values for the same factor’s capacity. When checking the threshold, the CR value should be higher than 0.7 and the AVE value should be greater than 0.5 [58,85]. The formulas are as follows:
AVE = ( i = 1 n λ i ) n
CR = ( i = 1 p λ i ) 2 ( i = 1 p λ i ) 2 + i p V ( δ )
where λ i = completely standardized loading for the ith indicator, V(δi) = variance of the error term for the ith indicator, p = number of indicators.

4. Results

4.1. Descriptive Statistics

According to the data from Table 3 and Table 4, the skewness value should be less than three and the kurtosis must be less than 10 when testing the data distribution. The skewness for all observed values ranged from −0.796 to 1.565, and the kurtosis values ranged from 0.411 to 0.896. Due to the acceptable range, it confirms the normal distribution data and potentially performs parameter estimation in the subsequent model based on these values. The data from the questionnaire, the complete questionnaires obtained from 1251 samples were divided by their characteristics into 687 (55%) males and 564 (45%) females. For respondents’ age, 293 (23%) respondents were between the ages of 20 and 30, 489 (39%) were between the ages of 31, and 40, 369 (29%) were between the ages of 41–50, 98 (7.8%) were between the ages of 51–60, and 2 (0.2%) were over 61. For the education level of the respondents, 4 respondents (0.3%) graduated from high school/vocational certificate, 91 samples (7%), 362 samples (29%) had vocational diploma/technical certificate/diploma, 791 samples (63%) had a bachelor’s degree, 362 samples (29%) had a Master’s degree, and 2 samples (0.2%) had a Doctoral degree.

4.2. Reliability and Validity

The test findings for each factor found the Cronbach’s alpha values between 0.739 and 0.931, confirming the data consistency. The test results of each factor showed the CR value ranging from 0.969 to 0.995, and the AVE value was between 0.912 and 0.985. Thus, the statistical results confirmed that the data passed the criteria.

4.3. Measurement Model

Table 5 depicts the results of the data measurement model from the questionnaires comprising 10 factors and 31 observed variables. The obtained findings confirmed the goodness-of-fit of the structural equation model of factors, influencing the intention to use co-processing industrial waste disposal service in cement kilns.
The measurement model results can show that the model is consistent with the empirical data and confirms that the exogenous variables from the questionnaire can indicate the independent variables obtained from the literature review. All the observed variables are statistically significant (p < 0.001). The first three highest factor loadings and the least factor loadings are as follows:
  • The factors of intention to use industrial waste disposal service in cement kilns measured from three observed variables (ITU1, ITU2, ITU3) found that the variable ITU1, “Have the intention to continue using co-processing industrial waste disposal in cement kilns”, had the highest factor loading value (Factor loading = 0.896).
  • The physical factor of the industrial waste disposal service provider measured by three observed variables (PHY1, PHY2, PHY3) found that the variable PHY1 “The waste disposal service providers can help and give advice in industrial waste disposal”, had the second factor loading value (Factor loading = 0.851).
  • The physical factor of the industrial waste disposal service provider, measured by three observed variables (PHY1, PHY2, PHY3) found that the variable PHY 3 “The industrial waste transportation system is ready and the monitoring system of vehicle condition is available” had the third factor loading (Factor loading = 0.833).
  • The factor with the least factor loadings is the price factor of the industrial waste disposal cost, measured by four observable variables (PRI1, PRI2, PRI3, PRI4), which found that the variable PRI4 “Price is the first consideration in selecting the industrial waste disposal service provider” had the lowest factor loading (Factor loading = 0.610).

4.4. Structural Model

The results are shown in Figure 2 and Table 6. The values of the model fit are as follows: = 745.239, df = 287, p < 0.01, χ 2 /df = 2.595, RMSEA = 0.036, CFI = 0.980, TLI = 0.968, and SRMR = 0.031. Therefore, this can confirm that the empirical data matches the hypothetical model. Based on the results of eleven research hypotheses, the hypothesis testing results found that the perceived ease of use has a positive influence on the perceived usefulness (Factor loading = 0.814, p < 0.05), supporting the Hypothesis H1. Instantaneously, the perceived usefulness of service use had a positive influence on the attitude towards service use (Factor loading = 0.693, p < 0.05). The obtained result supported the Hypothesis H2. This is in line with the attitude towards service use, which was positively influenced by the perceived ease of use (Factor loading = 0.388, p < 0.05), supporting the Hypothesis H3. Regarding the social norm hypothesis and attitude towards the intention to use service, the social norm factor had a positive influence on the customer attitude towards the service providers (Factor loading = 0.162, p < 0.05), supporting the H4 hypothesis, but it was not consistent with the intention to use factor that was also positively influenced by the social norm factor (Factor loading = 0.054, p > 0.05), but not statistically significant, thus rejecting the Hypothesis H5. From the hypothesis on attitude to intention to use service, it was found that it was positively influenced by the attitude towards service use (Factor loading = 0.532, p < 0.05), thus supporting the Hypothesis H6. The price factor had a positive influence on the intention to use the service (Factor loading = 0.136, p < 0.05), thus supporting the Hypothesis H7. This was consistent with the factor of service provider’s place, which had a positive influence on intention to use service (Factor loading = 0.018, p < 0.05), thus supporting the hypothesis H8. This was in line with the factor of service providers’ promotion which had a positive influence on intention to use service (Factor loading = 0.326, p < 0.05), thus supporting the Hypothesis H9. In addition, the intention to use factor was positively influenced by the factor of people of the co-processing service providers in cement kilns (Factor loading = 0.748, p < 0.05), thus supporting the Hypothesis H10. In addition, the service provider’s physical factor had a positive influence on the intention to use service (Factor loading = 0.386, p < 0.05), thus supporting the Hypothesis H11.

5. Discussion

Hypothesis H1, perceived ease of use of the service, had a positive influence on the perceived usefulness with a factor loading = 0.814. Therefore, the findings of this research confirm the results in line with [47,51,71], which revealed that the perceived ease of use factor has a positive impact on the perceived usefulness factor.
Hypothesis H2, perceived usefulness, has a beneficial influence on attitudes toward service providers, with factor loading = 0.693. The research results are the same as the customers’ recommendations from the questionnaire, providing that “co-processing industrial waste disposal can assist reduce the usual fuel consumption of cement kilns”. In the terms of perceived usefulness and attitude, the association between perceived usefulness and attitude was also consistent with the work of [49,65,73]. Hence, it can be concluded that this study results potentially confirmed the findings were consistent with [47,49,51,60,65,72], discovering that the perceived usefulness influences attitude factor positively.
Hypothesis H3, perceived ease of use, has a positive influence on attitudes toward service use with a factor loading of 0.388. From the questionnaires, the customers commented that “the first choice for selection of the co-processing waste disposal in cement kilns is good servicing with full-service management”. As a result, the study verified the findings consistent with [47,49,60,65,73], which revealed that the perceived ease of use factor has a positive influence on the attitude factor.
Hypothesis H4 aimed to determine whether a social norm has a positive influence on attitudes toward service providers. With factor loading = 0.16., the customers’ opinions from questionnaires stated that “this waste disposal method can compete with others”. Therefore, the result of this study confirmed the findings of [41,50,53], which discovered that a social norm has a positive impact on attitude.
Hypothesis H5, subjective norm, influences the intention to use service positively with a factor loading of 0.054. The results revealed that it positively influenced the intention to use the service, but it was not statistically significant, as customers want to hire a disposal contractor who can accept all sorts of customers’ waste since the waste disposal or unused industrial waste contain various types, including office waste, canteen waste, and waste. In other words, the decision to utilize the service depends on each company, not the subjective norms mentioned above. When considering the group of waste disposal service providers in the country, there are many groups such as landfills, kilns, and waste power plants. Some brokers accept all forms of waste, sort it, and find a legal disposal contractor, while industrial waste disposal in cement kilns cannot. Thus, the study results contradict [47,49], and it was discovered that the social norm is statistically significant and influences intention to use.
Hypothesis H6: attitude toward service application has a positive influence on the intention to use service. According to the study results, the relationship between these two factors had a factor loading = 0.532, relevant to the customer feedback from the questionnaire stating that “this approach is reliable, and take waste to beneficially utilize in cement kilns”. Therefore, it can conclude that the results of this study confirmed the findings of [49,51,54], discovering that the intention to use had a causal connection with the attitude factor.
Hypothesis H7, with factor loading = 0.136, was that the price factor was statistically significant on the intention to use the service. Consistent with the customer’s proposal and suggestions from the questionnaire, it stated that “In the case of covering the customer’s waste, the high price is acceptable”. Studies have shown that price was statistically important with in-service decision-making. Relevant to [46,93], this research finding confirmed the results consistent with [28,34,41], discovering that the price factor influences the intention to use.
Hypothesis H8, the place factor, has a positive effect on the intention to use the service, with factor loading = 0.018. Similar to customers’ recommendations from the questionnaire, they denoted to “set up an intermediary, organize marketing promotion to reduce transportation distances, and leverage every cement plant in Thailand to benefit every kiln, every trademark”. As a result, it concluded that the study result confirmed the findings compatible with [43,44,46], discovering that the place of the service providers influences the intention to utilize service.
Hypothesis H9, Promotion, had a positive influence on the intention to use service, with factor loading = 0.326. Similar to the recommendations from the customer in the questionnaire “the service providers should promote the co-processing waste disposal via online to increase the customer perceptions and understandings”. Therefore, it can be concluded that the finding of this research confirmed the results consistent with [43,44,45,69], discovering that promotion has a positive impact on the intention to use factor.
Hypothesis H10, the study result, indicated that people have a positive influence on the intention to use service, with factor loading = 0.748. Comparable with the customers’ recommendation from questionnaires, they illustrated that “there are various waste types. In terms of the quality of the sludge itself, industrial waste disposal in a cement kiln is limited. Hence, the sales representatives have to closely collaborate with the factories to dispose of industrial waste without any obstacles”. The mentioned reasons confirmed that the intention to use is positively influenced by the service providers’ people. As a result, it can be concluded that this research finding confirmed similar results with [45,70,94], discovering that people influenced the intention to use factor.
Hypothesis H11, Physical, has a positive impact on the intention to utilize service, with factor loading = 0.386. This fact is also related to customer recommendations from a questionnaire, stating that “call for the service provider to receive a variety of waste and a higher daily amount”. Therefore, it can be concluded that the research result confirmed the consistent findings with [34,35,94], which found an effect between physical factors and the intention to use.

6. Conclusions

The study found that customers’ intention to utilize the service from factor customers gave importance to being a waste disposal with zero waste to landfill in cement kiln and used the service because of its relevance to the circular economy by using wastes as renewable fuels in cement kilns. The procedures for building a strategic plan to employ cement kilns’ industrial waste disposal services are as follows.
First, the research results revealed that customers perceived ease of use of service offered by the service providers as starting from the clear standard for considering industrial waste, allowing customers to know the waste types that can or cannot be disposed of in the cement kilns. The communication channels and their coordination are convenient with the service providers’ standardized management for reducing the request time for permission to remove the customers’ industrial waste from the factory with the Auto E-License system. Only a few service providers of co-processing industrial waste disposal service in cement kilns receive this privilege. The system allows customers to reduce the time it takes to remove waste out of the factory from one month to less than two business days. The study results confirmed that the mentioned reasons have a positive influence on the perceived usefulness of service use. Consequently, service providers must focus on the business strategy, quick response, and continually improve developmental support and customer assistance. When customers perceive ease of use, they will get perceived usefulness from applying the service to maintain existing customers and acquire new customers.
Second, customers perceived the usefulness of industrial waste disposal services in cement kilns because the industrial waste disposal can be renewable fuel and will not cause waste to be disposed of (zero waste to landfill), according to the research findings. Customers’ attitudes toward using the service are influenced by such strength. When more waste is disposed of in the cement kilns, it helps to highly reduce the waste from landfills and the environmental impact, as waste disposal in cement kilns has environmentally friendly disposal. Based on research findings, service providers have to use a strategy building that emphasizes distinctiveness by focusing on niche markets that prefer to dispose of waste in a zero-waste-to-landfill method. Waste disposal in cement kilns can be called a win-win solution, since the customers can get rid of waste without harming the environment, and service providers benefit from industrial waste as renewable fuels. Moreover, the research results also indicate that those profits must be promoted to acknowledge customers’ strong points, which are considered the selling point of this disposal method to expand the increasing number of customers.
Third, the perceived ease of use of the service and the perceived usefulness from utilizing the service, as mentioned above, had a beneficial influence on positive attitudes toward using the service. Customers’ attitude toward the effective method of co-processing industrial waste disposal in cement kilns and the service provider’s image in terms of waste management was confirmed by the experiment results. As a result, to enhance their business growth, service providers have to use a proactive growth business strategy to develop services and communicate strengths to customers to gain their confidence, expand the number of customers, and build further business growth.
Fourth, attitude is the most influential factor positively influencing intention to use service according to the research results. From the various strategies mentioned to increase customers, service providers must keep in mind and pay attention to maintaining the loyalty of old customers. It is based on actual service satisfaction when compared to the service expectations, as well as the service values. Due to the current economic recession, service providers must use a stable business strategy. Thus, it is essential to maintain the existing customer base by improving the efficiency of service providers’ internal processes.
This research is not with limitations. Although considerable factors were uncovered in terms of their influence on the selection of industrial waste disposal service in cement kilns in Thailand, other differently relevant factor, such as technology acceptances of industrial waste disposal service, transport distances, trust in technology, and customer’s trust in industrial waste disposal service providers, should be considered for further research in other regions of service providers from different countries. Therefore, future research may use the current study as a basis for improving the investigation of factors, influencing the selection of industrial waste disposal service in cement kilns by additionally considering the above-mentioned factors.

Author Contributions

Conceptualization, V.R.; Validation, T.B.; conceptualization, S.S.; writing—original draft preparation, U.S.; writing—review and editing, T.C.; supervision, S.J. All authors have read and agreed to the published version of the manuscript.

Funding

This work was supported by (i) Suranaree University of Technology (SUT), (ii) Thailand Science Research and Innovation (TSRI), and (iii) National Science Research and Innovation Fund (NSRF) (Grant number: RU-7-706-59-03).

Institutional Review Board Statement

This research has been approved by the Human Research Ethics Committee at Suranaree University of Technology, Code COA No13/2564.

Informed Consent Statement

Not applicable.

Data Availability Statement

Not applicable.

Acknowledgments

The authors would like to thank the Suranaree University of Technology.

Conflicts of Interest

The authors declare no conflict of interest.

Appendix A

Table A1. Questionnaires.
Table A1. Questionnaires.
VariablesIndicators
PRI1The cost of transportation is reasonable for the transportation distance.
PRI2The price of industrial waste disposal is appropriate when compared to quality and service.
PR13Price is the first consideration in selecting an industrial waste disposal service carrier.
PRI4Price is the first consideration in selecting the industrial waste disposal service provider.
PLA1Transportation distance is one of the factors you consider selecting the service use.
PLA2Consider selecting the service, you consider selecting the waste disposal nearby your entrepreneurs.
PLA3The place of co-processing waste disposal in cement kilns of service providers is appropriate.
PROM1Communicate the industrial waste disposal types which can be disposed of in the co-processing in cement kilns.
PROM2Helpful advice on the co-processing industrial waste disposal in cement kilns.
PROM3Auto E-License system can reduce the time for requesting the permission of taking industrial waste disposal out of the factory.
PEO1Sales representatives have knowledge and expertise in industrial waste management.
PEO2Carriers are skillful and professional.
PEO3Employees of the disposal plant are skillful and professional.
PHY1The waste disposal service providers can help and advice on industrial waste disposal.
PHY2The disposal plants have physical characteristics ready to dispose of industrial waste.
PHY3The industrial waste transportation system is ready, and the monitoring system of vehicle conditions is available.
ITU1Have the intention to continue using the co-processing industrial waste disposal service in cement kilns.
ITU2Have the intention to use the co-processing industrial waste disposal service in cement kilns in the future.
ITU3Will return to use the co-processing industrial waste disposal service in cement kilns.
ATT1The service providers of co-processing in cement kilns can remove industrial waste effectively.
ATT2The use of co-processing industrial waste disposal in cement kilns is more cost-effective than other industrial waste disposal methods.
ATT3Your company will have a better image of waste disposal if you use co-processing industrial waste disposal in cement kilns.
SJN1Choose the co-processing if the business groups similar to yours chose it.
SJN2Choose the co-processing if the entrepreneurs nearby yours chose it.
SJN3Choose co-processing if its technology is in a trend of a large number of users.
PU1Can take the industrial waste out of the factory with the Auto E-License system.
PU2Can reuse the industrial waste as renewable energy.
PU3Can manage Zero wastes to landfill.
PEOU1Have a clear standard for industrial waste disposal.
PEOU2Reduce the time for requesting permission to take the industrial waste with Auto E-License system.
PEOU3Ease of coordination and asking for industrial waste disposal information.

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Figure 1. A research hypothesis model.
Figure 1. A research hypothesis model.
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Figure 2. Result from structure equation model (Note: ** Significant at p < 0.05).
Figure 2. Result from structure equation model (Note: ** Significant at p < 0.05).
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Table 1. Research hypotheses.
Table 1. Research hypotheses.
Hypothesis/RelationshipPrevious Studies
H1:Perceived ease of use -> Perceived UsefulnessCheunkamon et al. [51], Tian et al. [71], Alam et al. [47], Al-Rahmi et al. [72]
H2:Perceived Usefulness -> AttitudeCheunkamon et al. [51], Alam et al. [47], Tu et al. [49], Chin et al. [60], Al-Rahmi et al. [72], Mustafa et al. [65]
H3:Perceived ease of use -> AttitudeAlam et al. [47], Chin et al. [60], Tu et al. [49], Mustafa et al. [65], Müller [73]
H4:Subjective norm -> AttitudeBukhari et al. [41], Wan et al. [53], Weber et al. [50]
H5:Subjective norm -> Intention to useTu et al. [49], Alam et al. [47]
H6:Attitude -> Intention to useCheunkamon et al. [51], Tu et al. [49], Ali et al. [54]
H7:Price -> Intention to useBukhari et al. [41], Sheau-Ting et al. [43], Menegaki [44], Oflac et al. [45], Kwok et al. [34], Ghalehkhondabi et al. [28]
H8:Place -> Intention to useSheau-Ting et al. [43], Menegaki [44]
H9:Promotion -> Intention to useSheau-Ting et al. [43], Oflac et al. [45], Choi et al. [69]
H10:People -> Intention to useOflac et al. [45], Koľveková et al. [70], Chonsalasin et al. [74]
H11:Physical -> Intention to useKwok et al. [34], Salman et al. [35]
Table 2. Model fit indicated.
Table 2. Model fit indicated.
Model Fit IndicatedTarget
χ 2 /df<3
SRMR0.05
RMSEA0.05
CFI>0.95
TLI>0.95
Note: Reference; [63,75,77,79,80,81,82,83].
Table 3. Sample characteristics.
Table 3. Sample characteristics.
CharacteristicsCategoryFrequency
GenderMale687
Female564
Age20–30293
31–40489
41–50369
51–6098
>612
EducationHigh school/vocational4
Vocational Certificate/Technical Certificate/Diploma91
Bachelor’s degree791
Master’s degree362
Doctoral degree2
Table 4. Descriptive statistics.
Table 4. Descriptive statistics.
ItemAdapted fromVariablesMeanSDSkewnessKurtosis
Price[35]PRI14.020.023−0.5830.111
[39]PRI24.110.026−0.6540.286
[45]PR133.950.027−0.8260.416
[87]PR143.980.024−0.8290.375
Place[88]PLA13.940.024−0.6090.102
[89]PLA23.920.029−0.397−0.696
[34]PLA33.730.026−0.7100.688
Promotion[90]PROM13.990.023−0.6600.654
[44]PROM23.980.031−0.8691.565
[43]PROM34.250.025−0.9060.638
[88]PEO14.200.020−0.481−0.407
People[88]PEO24.180.028−0.492−0.534
[88]PEO34.200.020−0.447−0.494
Physical[43]PHY14.280.020−0.614−0.102
[91]PHY24.290.021−0.7710.217
[92]PHY34.250.023−0.7130.087
Intention to use co-processing[55]ITU14.220.030−0.495−0.536
[47]ITU24.300.027−0.658−0.465
[54]ITU34.230.024−0.557−0.399
Attitude[6]ATT14.270.020−0.52−0.475
[32]ATT24.210.021−0.564−0.308
[74]ATT34.230.020−0.47−0.51
Subjective
Norm
[53]SJN14.120.022−0.6950.508
[53]SJN24.020.025−0.8470.685
[53]SJN34.070.024−0.6500.076
Perceived
usefulness
[61]PU14.200.023−0.8980.747
[20]PU24.330.022−0.9930.805
[1]PU34.390.020−0.9680.483
Perceived
Ease of use
[68]PEOU14.280.020−0.646−0.123
[51]PEOU24.220.023−1.0171.451
[74]PEOU34.210.021−0.420−0.796
Table 5. Measurement model results.
Table 5. Measurement model results.
ItemVariablesLoadingt-ValueError-
Variance
Cronbach’s
Alpha
CRAVE
PricePRI10.757 45.2670.0170.8200.9920.971
PRI20.819 60.7790.013
PR130.772 49.7490.016
PR140.61029.5230.021
PlacePLA10.72125.5480.0270.7050.9890.969
PLA20.74222.3950.031
PLA30.71222.6470.027
PromotionPROM10.62716.3160.0320.7510.9690.912
PROM20.51111.8990.035
PROM30.62118.5630.033
PEO10.72224.5850.0260.8640.9840.952
PeoplePEO20.71823.9320.025
PEO30.70921.7820.026
PhysicalPHY10.851 86.9390.0100.8590.9950.984
PHY20.790 64.4740.012
PHY30.833 78.8080.011
Intention to use co-processingITU10.896 96.8080.0090.9310.9940.985
ITU20.825 72.0140.011
ITU30.789 61.0270.013
AttitudeATT10.781 40.2950.0190.8740.9880.966
ATT20.779 46.6440.017
ATT30.695 22.5410.024
Subjective
Norm
SJN10.832 74.8800.0110.8830.9940.981
SJN20.760 52.9960.014
SJN30.814 67.6670.012
Perceived
usefulness
PU10.697 33.0560.0210.8310.9880.966
PU20.679 38.0470.018
PU30.812 45.4750.018
Perceived
Ease of use
PEOU10.808 41.8090.0190.8510.9860.961
PEOU20.706 31.8990.022
PEOU30.617 29.3060.021
Table 6. Testing hypotheses results with structural equation modeling.
Table 6. Testing hypotheses results with structural equation modeling.
HypothesisRelationshipLoadingStandard
Error
t-ValueResult
H1Perceived ease of use -> Perceived Usefulness0.814 **0.02335.205Supported
H2Perceived Usefulness -> Attitude0.693 **0.0967.239Supported
H3Perceived ease of use -> Attitude0.388 **0.0824.753Supported
H4Subjective norm -> Attitude0.162 **0.0423.864Supported
H5Subjective norm -> Intention to use0.0540.4570.118Not Supported
H6Attitude -> Intention to use0.532 **0.1064.997Supported
H7Price -> Intention to use0.136 **0.0831.635Supported
H8Place -> Intention to use0.018 **0.0101.855Supported
H9Promotion -> Intention to use0.326 **0.1841.775Supported
H10People -> Intention to use0.748 **0.3592.081Supported
H11Physical -> Intention to use0.386 **0.1253.088Supported
Note: ** Significant at p < 0.05.
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Suksanguan, U.; Siwadamrongpong, S.; Champahom, T.; Jomnonkwao, S.; Boonyoo, T.; Ratanavaraha, V. Structural Equation Model of Factors Influencing the Selection of Industrial Waste Disposal Service in Cement Kilns. Sustainability 2022, 14, 4109. https://doi.org/10.3390/su14074109

AMA Style

Suksanguan U, Siwadamrongpong S, Champahom T, Jomnonkwao S, Boonyoo T, Ratanavaraha V. Structural Equation Model of Factors Influencing the Selection of Industrial Waste Disposal Service in Cement Kilns. Sustainability. 2022; 14(7):4109. https://doi.org/10.3390/su14074109

Chicago/Turabian Style

Suksanguan, Ukrit, Somsak Siwadamrongpong, Thanapong Champahom, Sajjakaj Jomnonkwao, Tassana Boonyoo, and Vatanavongs Ratanavaraha. 2022. "Structural Equation Model of Factors Influencing the Selection of Industrial Waste Disposal Service in Cement Kilns" Sustainability 14, no. 7: 4109. https://doi.org/10.3390/su14074109

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