The Role of Traditional Knowledge Due to Climate Change Adaptation and Economic Wellbeing in Island Communities: A Case Study of Terengganu, Malaysia

Abstract

Traditional knowledge pertaining to Islands is crucial in combating climate change. Many scholars have examined the usage of traditional knowledge amongst Island communities. However, studies regarding traditional knowledge from the stance of Island dwellers on monitoring and responding to climate change in Terengganu, Malaysia, are scarce. Therefore, this study assessed the mediating impact of adaptive capacity on the relationship between traditional knowledge use (i.e., cultural beliefs, cultural practises, and personality traits) and the economic wellbeing of Island residents in Terengganu in light of climate change. This cross-sectional study deployed the survey questionnaire method by involving 354 Redang and Perhentian Island communities selected via purposive sampling. The two Islands were selected due to their size and topographical features. The collected data were analysed via structural equation modelling–partial least square (SEM-PLS) by using descriptive and inferential statistical analyses. The findings revealed that two traditional knowledge dimensions (i.e., cultural belief and cultural practice) were correlated in a significantly positive manner with the economic wellbeing of the two Island communities due to climate change, while personality traits did not exert any impact. Next, adaptive capacity mediated the link between the personality traits and the economic wellbeing of the communities in the two Islands. In conclusion, this research work succeeded in examining the use of traditional knowledge and the mediating impact of adaptive capacity on the correlation between traditional knowledge and economic wellbeing of the communities dwelling in Redang and Perhentian Islands in view of climate change.

1. Introduction

Island communities often have unique ecosystems, cultural practices, and economic systems that can be particularly sensitive to climate change. The isolation of islands can amplify the impact of environmental changes. Also, Island communities are frequently considered highly vulnerable to climate change due to factors such as rising sea levels, extreme weather events, and limited resources. These vulnerabilities can have significant social, economic, and environmental implications. Understanding how traditional knowledge systems within these communities contribute to climate change adaptation strategies is essential for developing effective resilience measures. Traditional knowledge, accumulated over generations, often holds valuable insights and practices that can enhance community resilience in the face of environmental stressors. In many island communities, indigenous and local knowledge systems have been developed and refined over centuries to adapt to their unique environments. Documenting and understanding these traditional practices can provide valuable lessons for climate change adaptation not only within the studied community but also for similar island communities worldwide. Investigating the intersection between traditional knowledge and economic wellbeing sheds light on the socio-economic dynamics of island communities. Economic activities in these regions are often closely tied to natural resources and environmental conditions. Understanding how traditional knowledge contributes to economic resilience and sustainable livelihoods can inform policies and interventions aimed at enhancing economic opportunities while preserving environmental integrity.

In Malaysia, the global warming average temperatures from 2011 to 2020 saw a rise of 1.1 °C when compared to that from 1850 to 1900 [1]. The recorded temperature is inching towards the temperature limit set in the Paris Climate Agreement by 2040, which climate scientists believe will lead to irreversible changes in climate conditions [2]. In 2019, the manufacture and combustion of plastics emitted more than 850 million tons of greenhouse gases (GHGs) into the air, equating to the amount of pollution generated by 189 new 500-megawatt power plants fuelled by coal. The increasing worldwide plastic industry, which is fuelled by inexpensive natural gas from hydraulic fracturing, is deleterious to human health and the environment. This growing plastic industry not only hampers efforts to minimise our carbon footprint but also leads to horrific calamities.

The GHG emitted at each phase of the lifecycle of plastic (from its fossil fuel origin and manufacturing to its destruction at the final phase), as depicted by the Centre for International Environmental Law, has a massive adverse impact on climate [3]. Climate change is a hazardous challenge threatening public health and progress in Malaysia. Hence, the Eleventh Malaysia Plan 2016–2020 was devised to curb factors that lead to natural disasters and climate change through the implementation of strategic plans [4].

Coastal region dwellers are affected by climate change when the rising sea levels cause flooding. Such cases of flooding cause death due to drowning and other indirect impacts, including outbreaks of vector-borne and infectious diseases, hampered food and water supplies, as well as disruption to the ecosystem [5]. Among the members of the Association of Southeast Asian Nations (ASEANs), Malaysia suffered the most from floods from July 2012 until January 2019 [6]. About 9% of Malaysia’s land area is flood-prone, and 4.8 million people reside in such areas [7]. Crop and property damages, death toll, outbreak of diseases, and other significant losses are ascribable to floods in Malaysia that occur on an annual basis. Flash floods and monsoons are the most common climate-related natural disasters encountered in Malaysia [8]. Terengganu, Malaysia, is particularly relevant as a case study due to its geographical features and cultural diversity. Terengganu encompasses both mainland and island communities, offering a diverse landscape for studying the role of traditional knowledge in climate change adaptation and economic wellbeing. Additionally, Malaysia’s rich cultural heritage and history of traditional practices provide a fertile ground for exploring the relevance of indigenous knowledge in contemporary environmental and economic contexts.

Climate change is attributable indirectly or directly to human activities, which modifies the global atmosphere composition or the variability of natural climate over a certain duration [9]. The two impacts of climate change are physical impact (affects supply chain and property) and economic impact (to meet carbon-free goal) [10]. As reported by Mangai Balaseragam [11] in The Star, Malaysia ranked last in the Global Climate Change Performance Index by comparing the performances of climate change among countries responsible for emitting 90% of the GHGs. While Malaysia dropped to 56th place (bottom 10 countries) in 2021, Thailand and Indonesia rose to 26th and 24th positions, accordingly. Hence, it is indeed time to take drastic measures because it is imminent to ensure that the emission of carbon dioxide is reduced by half by 2030. The years 2011 until 2015 were the warmest period recorded by the World Meteorological Organisation (WMO), which registered extreme weather conditions (e.g., heat waves) due to climate change [12]. In fact, the initial six months in 2016 were the warmest months recorded [13].

Some ill effects of climate change in Malaysia exacerbate inequality and poverty among low-income earners whose economic activities heavily rely on the condition of the climate, including marine, fisheries, agriculture, and other informal sectors [14]. According to Zabawi et al. [15], an 80% decrease in rice yield was noted when the temperature or rainfall rose by 15%. Singh et al. [16] reported that although the production of rice in Malaysia ranged at 3–5 MT/hectare and the average rice yield stood at 7.2 MT/hectare, the national rice yield declined by 4.6% to 6.1% as a result of a 1% temperature increment. This poses a threat to national food security and the economic contribution of the agricultural sector. The risk of conflict due to climate change may intensify economic shock and poverty levels in low-income and developing countries because the populations have no means to migrate despite the extreme weather [17]. The World Heritage Sites have a crucial role in demonstrating and sharing their work to mitigate climate change with all communities. In 2015, the General Assembly of States Parties to the World Heritage Convention outlined the strong effects of climate change that led to catastrophic events and amplified the importance of preserving World Heritage assets—a resource that strengthens the capacity of community and their properties for hindering, absorbing, and recovering from climate change effects [18].

Experience, observation, and culture are the foundations of traditional knowledge. Ecosystem and community resilience, which are crucial to ascertain sustainability, derive from both local knowledge and modern ideas generated from institutions [19]. Traditional knowledge denotes practises, knowledge, and innovations of worldwide local and indigenous communities, which have evolved from centuries of accumulated experience and are adapted to the local environment and culture. Collectively owned traditional knowledge comes in the form of local language, stories, community laws, songs, cultural values, rituals, folklore, beliefs, proverbs, as well as husbandry development. Revolving around natural practice, traditional knowledge is rich in inputs about forestry, agriculture, horticulture, and fisheries domains [20]. Indigenous people are experts in managing the uncertainty and risks of climate change, as climate change is indicated by extreme weather conditions and increased variability [21,22]. Climate change is interpreted and responded to accordingly by the indigenous communities by depending on both cutting-edge technology and traditional knowledge. One way used to manage risk is by using agricultural land as dispersed plots by deploying a universal risk-spreading strategy [23]. Indigenous people have a wealth of indicators to predict the weather and climate change, including astronomical, animal, and plant indicators [24]. Thus, this study assessed the use of traditional knowledge by Island dwellers to adapt to the impacts of climate change on their economic wellbeing. The two dimensions used to explain the traditional knowledge of coastal communities are external factors (cultural beliefs and cultural practices) and internal factors (personality traits) of individuals.

The phrase ‘cultural beliefs’ refers to the behavioural patterns (i.e., actions, thoughts, and manners) passed by society members to the next generation, while also influencing the decisions made by the members [25]. Past studies have examined the impact of religious beliefs on one’s ability or willingness to adapt to climate change, whereby embedding such beliefs can shed light on the acceptable practises within the religious boundary and attain a better comprehension of the demands of the community [26]. The grove survived all this time only because of the strong religious or cultural beliefs of the local people, as well as the spiritual, religious, and cultural ties to the grove. This strong cultural practice is beneficial as it promotes community participation to conserve natural resources, as well as spread positive awareness of nature and human–nature interactions [27,28]. Nunn et al. [29] disclosed that strong religious beliefs in connection to nature generated opportunities for mediating adaptation actions in the Pacific Island communities, whereas environment-friendly religious beliefs had a direct link with one’s ability and willingness towards climate change adaptation.

The integration of meteorological data and traditional knowledge enables agriculturists to predict changes in the environment, thus making adaptations to their practices that ensure livelihood sustainability in the case of climate change [30,31,32]. Strengthened by cultural practices and inspired by cultural values, people have begun adapting to their ecosystem by incorporating world visions in line with efforts made in other segments [33]. As humanity is bound to face a critical period until 2030, when the world’s population can set the course through collective action to prevent catastrophic climate change, culture remains a crucial aspect to successfully adapt to climate change [34].

Personality is the characteristic pattern of thoughts, feelings, and behaviour that one displays [35], thus forming a core component of the person’s motivation, beliefs, values, and attitudes [36]. Hence, personality is a strong and pervasive antecedent to the variances in one’s pro-environmental behaviour and attitude [37]. A study on personality revealed that one’s impact on the environment includes repetitive behavioural aspects in various scenarios over a lengthy period [38]. Projects infused with creativity offer innovative and relevant responses to climate change challenges, given that informal practices of cultural and social innovations are adopted by many across the globe to retain a balance among urban planning, human needs, and natural resources while simultaneously seeking a balance among contemporary creativity, environmental protection, social inclusion, and participation by citizens [33]. Both the Paris Agreement and the Sustainable Development Goals (SDGs) reckon that cultural heritage facilitates decisions made to encourage human actions in support of sustainability and resilience—resulting in 35 climate-resilient pathways [18].

Vulnerability refers to the degree to which a system, community, or individual is susceptible to harm or adverse effects from external stressors, such as natural disasters, economic fluctuations, or social unrest. It encompasses factors such as exposure to hazards, sensitivity to their impacts, and the capacity to cope or adapt. Vulnerability often results from a combination of social, economic, environmental, and institutional factors and can vary across different scales and contexts. Besides that, adaptive capacity refers to the ability of systems, institutions, people, and other organisms to adapt to potential harm, take advantage of opportunities, and respond to consequences [17]. Adaptation also involves overcoming challenges to existing beliefs and worldviews [39]. As a key component of dynamic capabilities [40], adaptability links social ties with organisational performance. Adaptive capacity is a crucial aspect of long-term adaptation to climate change and is the focus of a rapidly growing body of research as it involves the introduction of new knowledge and approaches, as well as culture migration. Apart from preventing methodological progress, adaptive capacity may, however, cause fragmentation and limit the translation of academic knowledge into climate change adaptation practice [41]. Lack of access to resources and a low voice in the policies that control these resources of traditional knowledge denote the struggle encountered by poor communities in addressing climate change.

Based on the discussion above, this study assessed the development needs sought by Malaysia via SDGs outlined by the United Nations (UN) towards achieving healthy growth that strikes a balance between community welfare and needs [42]. Global policy debates and extensive studies have demonstrated the contribution of the knowledge system in mitigating climate change based on SDG 13 (Climate Action) and rural livelihoods based on SDG 15 (Live on Land) by detecting the traditional knowledge that responds and adapts to the impacts of climate change. Hence, traditional knowledge supports global adaptation actions. Additionally, this study increases the collection of data on traditional knowledge to improve its adaptation for future generations and prevents traditional knowledge from dying out because it is not made available to the present generation.

A comprehensive framework was generated by the convention so that all efforts made by the intergovernmental parties can be channelled effectively to tackle climate change challenges. Under the United Nations Framework Convention on Climate Change (UNFCCC) in Article 4, the Parties are obligated to promote awareness and education about climate change, besides encouraging vast participation throughout the process. In the convention, non-governmental organisations are required to facilitate the accessibility of the public to information about climate change and its deleterious impacts, participation by the public in tackling climate change, as well as the development of sufficient responses and training programs for managerial, scientific, and technical personnel. Enhancing public awareness, education, and training pertaining to the impacts of climate change is imminent to promote public participation. Public awareness is of utmost importance to successfully deploy climate change adaptation and mitigation strategies, as well as to effectively erase related misconceptions [43].

2. Conceptual Framework

2.1. Underpinning Theory

The three theories employed in the framework in order to gain better insight are the knowledge-based view (KBV), attributes, and sustainable development theories. First, the KBV theory was applied to assess the effect of climate change on traditional knowledge usage. The variables included in this study as the underlying dimensions of traditional knowledge are cultural beliefs, cultural practises, and personality traits. Essentially, the KBV theory was deployed to examine the expectation of using traditional knowledge concerning climate change impacts. The KBV theory states that creating value through the creation, transfer, and incorporation of knowledge is crucial for the process of using and discussing various organisational knowledge resources, which can be transformed into tangible resources for a product or process innovation [44,45]. Traditional knowledge denotes the ability to create value or the value created by the past generation and passed on to the next generation. Incorporating knowledge is imminent as a tangible resource in the innovation process in order to overcome climate change impacts. Traditional knowledge generates value through adaptation as a vital prerequisite to mitigate the impacts of climate change on economic wellbeing. The KBV theory has been used in many studies in light of numerous aspects, such as strategy, innovation, and knowledge. Thus, the KBV theory was adopted to guide, improve, and simplify this study.

The next theory applied in this framework refers to the attribute theory. This study investigated how external and internal factors of the individual motivated them to use traditional knowledge in mitigating the impacts of climate change on economic wellbeing [46]. The attribute theory explains that people have a fundamental need to understand and explain the causes of their behaviour through either internal or external factors [47,48]. The external factor examined in this study is traditional knowledge (cultural belief, cultural practice, and personality traits) influenced by the knowledge transmission of the past generation that affects the acceptance of traditional knowledge used in this modern era exposed to technology instead of technology manual knowledge. The internal factor in this study is adaptive capacity—one’s internal dimension that affects traditional knowledge adaptation to overcome climate change impacts on economic wellbeing.

The sustainability theory, which upholds traditional knowledge as a valuable resource, was deployed in this study. Sustainability theory portrays sustainability as a balance among the economic, social, and environmental sectors to create a harmonious environment while incorporating the business aspects of risk management, transparency, strategy, and culture [49]. By examining the congruence of the traditional knowledge dimensions (cultural beliefs, cultural practises, and personality traits) and adaptive capacity in light of climate change impacts upon the economic wellbeing of coastal communities, a better insight into understanding how to overcome the impacts of climate change is provided. This information may serve as a reference for the sustainability of community economic wellbeing and environmental sectors in future [50]. It is vital to preserve valuable traditional knowledge in order to soften the effects of climate change on the next generation. The integration of the three theories presents the best way to manage traditional knowledge and tackle climate change impacts on economic wellbeing.

2.2. Hypotheses Development

Population growth, human health, and biodiversity are the three primary climate change impacts on the environment [51]. Previous studies revealed that traditional knowledge is divided into cultural practises, cultural beliefs, and adaptive capacity, thus underpinning the ability of a tribe to adapt to climate change impacts. Adaptive capacity is evident in local migration and architecture, whereas cultural beliefs are expressed in the form of taboos and spells. Cultural practices include weather forecasting, traditional fishing methods, traditional medicine, aquaculture, and cultural astronomy [52]. Hence, the following hypothesis is proposed.

Hypothesis 1 (H1): 

Cultural beliefs have a measurable positive influence on the impact of climate change due to economic wellbeing.

The community of Swinomish Indian tribal, residing in the Pacific Northwest, demonstrated a strong initiative concerning climate change by completing an impact assessment in 2009 and executing a climate change adaptation plan in 2010. Part of the plan was devising operative adaptation measures based on traditional environmental and spiritual knowledge shared by the elders with the youth [53]. Previous studies have highlighted theories related to cultural beliefs in light of gender to assess ways structural and gender roles create connections that verify cultural beliefs. Gender inequality and labour division between sexes rely on the social value of gender variances in characteristics and skills, as well as cultural beliefs, prioritising men over women [54]. A common cultural belief embedded in a community’s worldview is the concept of time. Despite being aware of the negative effects of climate change, communities tend to ignore this fact. The lack of motivation to use traditional knowledge is due to limited risk perception to understand the impacts of climate change [55].

Hypothesis 2 (H2): 

Cultural practice has a measurable positive influence on the impact of climate change due to economic wellbeing.

Because of their centuries of experience, agriculturists reckon with the changes that happened in the past in comparison to the present condition and the environment in the near future. Magni [56] stated that local knowledge and practises have helped people mitigate the effects of climate change and form the basis for modern adaptations. Some studies [57,58,59] found that traditional environmental knowledge assisted agriculturists in properly managing their pastures, preparing fodder, and relocating their animals to a better place in order to strengthen their livelihood and ecological resilience against climate change effects [60]. Despite their poor comprehension regarding climate change and global warming, the tribe did sense the impacts of seasonal variations in rainfall patterns that were decreasing, higher sunshine intensity, and increasing temperature in the air. Similarly, another study reported a decline of 22.2% in average annual rainfall and a gradual 1.3 °C or 4.3% increase in average maximum temperatures from 1961 to 2006 based on traditional environmental knowledge to tackle climate change across rural regions [61].

Hypothesis 3 (H3): 

Personality traits have a measurable positive influence on the impact of climate change due to economic wellbeing.

Researchers have found that personality factors can influence the likelihood of a person engaging in environmentally conscious behaviour, which has led to the Big Five personality model being the most widely accepted psychological theory on personality traits [62]. Kunzendorf et al. [62] reported the reinforcement of positive social norms on attitudes, with high scores recorded for several traits. Thus, an environment-friendly attitude improves rapidly with increased social norms that resemble peers displaying high scores on certain traits. When people with higher importance engage in activities that mitigate climate change, it yields a positive image with a better quality of life. People with high levels of certain traits demonstrated better pro-environmental behaviour when compared to those with low-level attitudes, regardless of their level of environmental awareness. Given that pro-environmental attitude stems from psychology, one’s personality traits have a positive impact on environmental concerns, including climate change [63].

Hypothesis 4 (H4): 

Adaptive capacity measurable mediates the relationship between cultural beliefs and the impact of climate change due to economic wellbeing.

Adaptive capacity in dealing with climate-related concerns has been associated with equity and sustainable development because adaptive capacity is the foundation of sustainable development [64]. The adaptive capacity of communities varies due to varied and place-reliant development pathways, which result from different historical economic drivers, settlement patterns, as well as the evolution of local institutions and socio-cultural values [65]. Chryssochoidis et al. [66] found that adaptability mediated the relationship between competitive strategies and performance, given that performance was positively affected by adaptability, and the influence of competitive strategy was controlled to assess the mediator. Next, Zhu, Su, and Shou [67] found that the mediating impact of adaptability was stronger with high demand uncertainty than when it was low, signifying the importance of adaptability as a mediator that can yield performance from strategy commitment. Adaptation and vulnerability share an inverse correlation. Thus, vulnerability is a latent variable of adaptation—enhancing adaptive capacity denotes better coping with environmental concerns [68]. In this way, hypotheses can encompass economic, environmental, social, and political aspects; ideology and knowledge that cultures develop to be flexible and adaptive; as well as to continuously learn and change in the face of a changing and unknown future [69]. Based on prior studies that deployed usage conditions as the mediator variable, the mediating impact of adaptive capacity on the connection between traditional knowledge and climate change impact due to economic wellbeing was explored in this study. Thus, the following hypotheses are proposed.

Hypothesis 5 (H5): 

Adaptive capacity measurably mediates the relationship between cultural practice and the impact of climate change due to economic wellbeing.

Hypothesis 6 (H6): 

Adaptive capacity measurably mediates the relationship between personality traits and the impact of climate change due to economic wellbeing.

Referring to the discussion above, Figure 1 illustrates the research framework proposed in this study.

3. Methods and Materials

3.1. Design of the Study

The quantitative research approach was deployed to determine the impact of climate change on economic wellbeing through traditional knowledge adaptation. The quantitative method relies on the interpretation of statistics or figures. The three primary research purposes are hypothesis testing, exploratory, and descriptive [70]. Exploratory research seeks what is going to gain new insights, poses important questions, and views a set of phenomena from a new stance. Descriptive research explains an accurate profile of events, organisations, and circumstances. As for hypotheses testing, this type of research work determines and infers causal relationships among selected variables. By using the survey questionnaire method, the study data were collected from two Island communities in Terengganu, Malaysia. This cross-sectional study gathered personal and social information, beliefs, and attitudes of the respondents [71]. A total of 50 questions were embedded into the self-completed questionnaire to gather the required data.

The instrument for Traditional Knowledge (TK), which consists of Cultural Belief (CB), Cultural Practice (CP), and Personality Traits (PT), was adapted from Jooste et al. [72], Colombi and Smith [73], and Issa et al. [74]. Next, Adaptive Capacity (AC) was adapted from Lohmann [75], while Economic Wellbeing (EW) was adapted from Drews and van den Bergh [76].

3.2. Data Collection and Research Instruments

Both primary and secondary data were collected to gain better insight into the study and to support the theoretical aspect of this study. The study respondents comprised inhabitants of Pulau Redang and Pulau Perhentian in Terengganu, Malaysia. The two islands were selected for this study because climate change might have affected the island biota in numerous ways. Climate change and rising sea levels might be the main changes observed with the occurrences of extreme weather events at higher intensity and frequency, such as hurricane, drought, and storm surge (see Figure 2) [77]. This population was selected because the islanders apply traditional knowledge in their lives. The census in Malaysia is conducted every 10 years, and the Malaysian government conducted the 2020 census at the time of this study; thus, the result was not yet released.

As observed by the researchers, the total population of the two selected islands increased on an annual basis. Referring to the Malaysian Census [78], the populations of Pulau Perhentian and Pulau Redang were 2023 and 2013, respectively—a total of 4036 Island dwellers. A large sample size is crucial for improving the generalizability of the study outcomes and drawing more accurate conclusions. Bougie and Sekaran [79] explained that the sample size of a study should be 351–324 if the total population is between 4000 and 4500 people. Hence, 354 respondents were sought with a 95% confidence interval and 5% error margin. The purposive sampling technique was administered to select respondents from the two Islands. The inclusion criteria are inhabitants with experience and knowledge of the practice of traditional knowledge in the Redang and Perhentian Islands.

The data collection involved the distribution of the final questionnaire to the sample (Island community). The instruments for each variable used in this study were retrieved from past studies [see Appendix A]. After developing and reviewing the questionnaire, a pre-test was performed, and final changes were made prior to the actual survey. The study questionnaire required the respondents to choose from a list of five response options, with the number that best described the respondents’ opinion on the scale (Likert Scale). In this context, a Likert scale with multiple items was considered an appropriate interval scale for measuring the selected variables, as prescribed by Covin and Slevin [80]. This approach offers a standardised format, ensuring that respondents interpret and answer questions in a consistent manner. Also, this approach can reduce the ambiguity in responses and facilitate more straightforward data interpretation. Items that measured the climate change impact deployed the five-point Likert scale that ranged from 1 (strongly disagree) to 5 (strongly agree).

3.3. Data Analysis

Descriptive statistical analysis (i.e., standard deviation, frequency, mean, and percentage) was deployed for data analysis. Data screening, cleaning processes, and descriptive statistics analyses were conducted by using the Statistical Package for Social Sciences (SPSS-25) and inferential statistics involving measurement and structural model assessments, as well as hypotheses testing, were performed via SmartPLS 3.3. Partial Least Squares (PLSs) is a soft modelling approach for Structural Equation Modelling (SEM), which does not assume the data distribution [81]. While a measurement model explains the reliability and validity of the constructs, it is evaluated by using composite reliability (CR) [82]. Next, indicator reliability is determined based on indicator loading. As for cross-loading, convergent validity, Heterotrait–Monotrait ratio (HTMT) of correlation, and Fornell-Larcker test are assessed by using average variance extracted (AVE) [83]. All item loadings for the measurement model must exceed 0.7, AVE must be 0.5 or higher [82,83], and CR should be 0.7 or higher [83]. According to Ramayah et al. [82], it is only appropriate to drop an indicator when the reliability of the indicator is weak and excluding the indicator enhances the composite efficiency of the indicator. Also, Hajjar [84] stated that acceptable Cronbach’s Alpha ranges are 0.6–0.8. Besides supporting convergent validity, the results were valid and reliable for Cronbach’s Alpha, factor loading, and CR, as they exceeded the threshold values [82,83,85]. The HTMT ratio was examined to determine discriminant validity [85]. Some authors suggest a threshold of 0.85 [86], and Gold et al. [87] prescribed a value below 0.90. The HTMT criterion was used for this purpose so that the interpretation of the causal effect in the modelling analysis would not stray/mislead.

A structural model simultaneously provides bivariate correlation and regression analyses to determine the relationships and effects between constructs, which is more effective. A structural assessment model consists of coefficient determination, effect size, predictive relevance, and impact of predictive relevance. Upon adhering to Cohen’s rule of thumb [88], R-squared values at 0.26, 0.13, and 0.02 denote high, moderate, and low, respectively, for predictive accuracy. As recommended by Cohen [88], f² values above 0.35 denote large effect size, values 0.15–0.35 signify medium effect size, values from 0.02 to 0.15 represent small effect size, and values below 0.02 have nil effect. Some researchers have used such a rating in PLS analysis [89], in which the effect size (f²) and the impact of predictive relevance (q²) for this study emerged as small. The PLS can manage complex models, such as the two-step and repeated indicator approaches [90]. This study assessed the correlations among four variables: the independent variable is traditional knowledge (cultural beliefs, cultural practises, and personality traits), and the dependent variable is the impact of climate change on economic wellbeing. The other variable is one-dimensional, which refers to the mediating variable as one-dimensional (first-order construct) and consists of adaptive capacity. The mediation mechanism was adopted from Hayes [91], who stated that a significant direct effect signifies neither mediation nor intervention.

4. Results

4.1. Descriptive Statistical Analysis

All 225 distributed questionnaires were returned, but one was dismissed as it was incomplete. In the full data analysis, subjects with missing values were excluded from the analysis to avoid biased estimation [92]. Sufficient questionnaires were gathered to perform the subsequent analysis. The data screening process revealed missing data cases in a small percentage. The demographic profile of the respondents is tabulated in

Table 1. Demographic profile of respondents.

Demography	Category	Frequency	Percentage
Gender	Male	111	49.6
	Female	113	50.4
Age (year)	Below 18	5	2.2
	18–30	75	33.5
	31–40	66	29.5
	41–50	50	22.3
	51 and above	28	12.5
Occupation	Student	11	4.9
	Housewife	76	33.9
	Self-employed	76	33.9
	Government Staff	12	5.4
	Private Staff	20	8.9
	Unemployed	25	11.2
	Others	4	1.8
Education Level	Primary/Secondary School	188	83.6
	Certificate/Diploma	28	12.5
	Bachelor’s degree	5	2.2
	Master/Doctorate	3	1.3
Religion	Islam/Muslim	224	100.0
Marital Status	Single	61	27.2
	Married	158	70.5
	Divorced	4	1.8
Income	Below RM3000 [USD674.00]	218	97.3
	RM3001–RM5000 [USD674.01–USD1124]	5	2.2
	RM5001–RM7000 [USD1124.01–USD1573.00]	1	0.4
Ethnicity	Malay	224	100.0

.

Table 1 shows that the proportion of female respondents (n = 113, 50.4%) exceeded that of male respondents (n = 111, 49.6%). Most of the respondents (n = 75, 33.5%) were 18–30 years and this was followed by 66 respondents (29.5%) who were 31–40 years. Only a handful of respondents were 41–50 years (22.3%), above 50 years (12.5%), and below 18 years (2.2%). Most of the respondents were housewives and self-employed (n = 76, 33.9% for each category), followed by unemployed (n = 25, 11.2%) and private employees (n = 20, 8.9%). The minority of the respondents were government employees, students, and others, with 12, 11, and 4 respondents at 5.4%, 4.9%, and 1.8%, respectively. As most of the respondents lived in a village on an island in Terengganu, they became homemakers and did not work. A total of 158 respondents (70.5%) were married, 61 (27.2%) were single, and only four (1.8%) respondents were divorced/widowed. Hence, most of the respondents in this study were married.

All the respondents were Malays as the questionnaires were collected from villages in Terengganu Islands. Most of the respondents had primary or secondary education (n = 188, 83.9%). This was followed by those who held a diploma/certificate, accounting for 12.5% of this study with 28 respondents. Next, five respondents (2.2%) possessed a Bachelor’s degree. Only three respondents (1.3%) earned a postgraduate education level. In terms of monthly income, most of the respondents (n = 218, 83.9%) earned less than MYR 3000 [USD 674.00]. This was followed by the income group of MYR 3001–5000 [USD 674.01–1124] with five respondents (2.2%). The next income group was MYR 5001–7000 [USD 1124.01–1573.00] with a single respondent (0.4%). The results for income appear logical because most of the respondents were 18–30 years old, housewives, and had low education levels. The mean value was applied as a measure of central tendency. The results of descriptive statistics for this study are presented in

Table 2. Results of the descriptive statistics (mean and standard deviation) for the variables.

Constructs	Mean	Standard Deviation	Level
Cultural Belief (CB)	3.40	0.988	Medium
Cultural Practice (CP)	3.47	0.977	Medium
Personality Traits (PT)	3.46	0.969	Medium
Adaptive Capacity (AC)	3.90	1.062	High
Economic Wellbeing (EW)	3.64	0.976	Medium

.

Table 2 shows the descriptive statistics (mean and standard deviation) for the studied variables. Notably, the level of cultural belief (mean = 3.40, std. dev = 0.988), cultural practice (mean = 3.47, std. dev = 0.977), personality traits (mean = 3.46, std. dev = 0.969), and economic wellbeing (mean = 3.64, std. dev = 0.976) was medium. Meanwhile, adaptive capacity (mean = 3.90, std. dev = 1.062) displayed a high level.

4.2. Inferential Statistical Analysis

4.2.1. Assessment of Measurement Model

The analysis of the measurement model includes internal consistency, indicator reliability, discriminant validity, and convergent validity of the reflective model. The results of the construct validity and reliability are in

Table 3. Construct validity and reliability.

Construct	Code	Factor Loading	CR	AVE	Cronbach’s Alpha
Cultural Belief	CBF2	0.71	0.808	0.512	0.682
	CBF3	0.743
	CBF4	0.718
	CBF7	0.69
Cultural Practice	CPC1	0.654	0.818	0.532	0.704
	CPC2	0.833
	CPC3	0.721
	CPC5	0.697
Personality Traits	PST1	0.699	0.845	0.523	0.773
	PST4	0.655
	PST5	0.737
	PST6	0.778
	PST7	0.739
Adaptive Capacity	AC1	0.766	0.882	0.600	0.832
	AC2	0.751
	AC3	0.825
	AC4	0.815
	AC7	0.746
Economic Wellbeing	EW1	0.726	0.84	0.513	0.765
	EW2	0.756
	EW3	0.658
	EW4	0.751
	EW5	0.686

below.

Table 3 shows the validity and reliability of the measurement model. Nine items (CBF1, CBF5, CBF6, CBF8, CPC4, PST2, PST3, AC5, and AC6) were removed from the recycling constructs due to low factor loading. In order to achieve AVE, items with a loading of 0.400 were removed; all other items in this study had adequate indicator reliability. Items with factor loading values ranging 0.654–0.833 were retained, whereas AVE values that range from 0.513 to 0.600 demonstrated the measurement model reliability. The convergent validity of the remaining items had AVE exceeding 0.5 (0.513–0.600). Values of Cronbach’s alpha that fell between 0.682 and 0.832 displayed construct values exceeding 0.7, except for cultural belief that scored below 0.7 (i.e., 0.682). When an item loads more on its construct (than on other structures), discriminant validity is evaluated. Thus, this study uses HTMT to evaluate discriminant validity.

As presented in

Table 4. Results of discriminant validity test using Heterotrait–Monotrait (HTMT) ratio.

Construct	AC	CB	CP	EC	PT
Adaptive Capacity (AC)	1.000
Cultural Belief (CB)	0.750	1.000
Cultural Practice (CP)	0.738	0.724	1.000
Economic Wellbeing (EC)	0.736	0.754	0.72	1.000
Personality Traits (PT)	0.732	0.697	0.863	0.677	1.000

, the HTMT outcomes of the latent constructs in the model ranged between 0.677 and 0.863 or below the threshold value of 0.90. This means the overall constructs in this study met the discriminant validity.

4.2.2. Assessment of Structural Model

The structural model of the study assessed the model relationships of the basic constructs through the analyses of variance, path coefficients, p-value, and t-statistics. The significance of the paths was determined by using the bootstrapping technique on the basis of 240 cases and 5000 replicate samples at a 5% level of significance. The predictive power of the model was examined by testing the hypotheses.

Table 5. Results of coefficient determination, effect size, predictive relevance, and impact of predictive relevance.

Construct	R2	f2	Q2	q2
Adaptive Capacity	0.489	0.035	0.282	0.078
Economic Wellbeing	0.470		0.221

lists the analytical outcomes.

Table 5 shows that the R-squared values of adaptive capacity and economic wellbeing are 0.483 and 0.470, respectively, depicting that ~47% of the variance in economic wellbeing was explained by four predictors (i.e., cultural belief, cultural practice, personality traits, and adaptive capacity). The R-squared values of this study were high, exceeding 0.26. The Q² values for adaptive capacity and economic wellbeing were 0.282 and 0.221, respectively. These values (>0) support the claim that this study model has adequate predictive ability and relevance for the endogenous construct.

4.2.3. Hypotheses Testing

This section reports the results of hypotheses testing (direct effect) to examine the relationships between traditional knowledge dimensions (i.e., cultural belief, cultural practice, and personality traits) and climate change impacts due to economic wellbeing.

Table 6. Results of hypothesis testing (direct effect).

	Original Sample (O)	Standard Deviation (STDEV)	T Statistics (|O/STDEV|)	Sig. (1-Tailed)	Decision
Cultural Belief -> Economic Wellbeing	0.232	0.073	3.181	0.000	Supported
Cultural Practice -> Economic Wellbeing	0.183	0.083	2.204	0.016	Supported
Personality Traits -> Economic Wellbeing	0.138	0.087	1.592	0.056	Not Supported

tabulates the outcomes.

Referring to Table 6, two traditional knowledge dimensions (i.e., cultural belief and cultural practice) displayed a significantly positive relationship with the economic wellbeing of the selected Island communities due to climate change. The original sample regression coefficient of cultural belief was 0.232 with a standard deviation of 0.073, t-statistics at 3.181, and significant at the level of p < 0.001. Thus, an increment in cultural belief by 1.0% increased economic wellbeing by up to 23.2%. The cultural practice original sample regression coefficient was 0.183 with a standard deviation of 0.083, t-statistics at 2.204, and significant at the level p < 0.01. An increase in cultural practice by 1.0% increased economic wellbeing by as much as 18.3%. However, personality traits had no significant impact on the economic wellbeing of the communities in Redang and Perhentian Islands. The indirect effect of traditional knowledge practice on climate change impact due to economic wellbeing via adaptive capacity was examined in this study. In this study, personality traits had no significant effect on the economic wellbeing of the Island communities.

Table 7. Results of hypothesis testing (mediating effect).

	Original Sample (O)	Standard Deviation (STDEV)	T Statistics (|O/STDEV|)	Sig.	Decision
Personality Traits -> Adaptive Capacity -> Economic Wellbeing	0.087	0.034	2.564	0.010	Supported

lists the outcomes of the mediation analysis.

The results tabulated in Table 7 show that adaptive capacity mediated the relationship between personality traits and the economic wellbeing of the Island communities due to climate change. In detail, the original sample regression coefficient of personality traits was 0.087 with a standard deviation of 0.034, t-statistics at 2.564, and significance at p < 0.01. Thus, an increment in personality traits by 1.0% increased the economic wellbeing of the respondents up to 8.7%.

5. Discussion

This study demonstrated that traditional knowledge had a significantly positive effect on climate change among the communities in Pulau Redang and Pulau Perhentian. As for the key impact of traditional knowledge dimensions (i.e., cultural belief, cultural practice, and personality traits), the mean value for all constructs exceeded their midpoint level of 3. The highest mean rating belonged to cultural practice, with a mean value of 3.47. Thus, cultural practice has an important function in addressing climate change impact. Similarly, Nyong, Adesina, and Osman Elasha [93] disclosed the crucial role of traditional knowledge in overcoming the impacts of climate change due to economic wellbeing. Within the context of Malaysia, most studies have examined the effects of climate change on the agriculture domain (see Tang [94], Hezri and Nurdin Hassan [95], and Masud et al. [96]), as well as on hotel operations and management in Islands [93,94]. This is ascribable to the fact that the agriculture sector in Malaysia is one of the major contributors to the national Gross Domestic Product (GDP) [95]. The agriculture domain contributed 8.1% to GDP in 2016, with rice cultivation being the second largest agricultural output after oil palm. Agriculture is highly dependent on climate change factors, thus making climate change a significant issue for the agricultural sector [96,97]. The positive outcome of using traditional knowledge on climate change by previous generations resulted in the next generation using this knowledge to the present day [98]. Traditional knowledge has, therefore, garnered more interest because of its capability to tackle climate change impacts at the grassroots level [97].

Cultural belief exerted a significantly positive effect on economic wellbeing due to climate change among the selected Island communities [99]. In a similar vein, Ager and Strang [100] found that culture supported the measurement of economic activity in the context of supply and demand. Van der Borg et al. [101] disclosed that culture was internalised as knowledge input into the local economic environment in better location potential, local market characteristics (product and human capital), and innovative capacity. Next, Marini [102] reported that cross-country and cross-regional evidence supports the hypothesis that culture affects economic wellbeing. Both cultural and economic indicators can explain growth dynamics and emphasise their complementary significance. Tabellini [103] also revealed that culture can shape the economy upon comparing the performance of countries and regions at similar development levels.

For cultural practice, it displayed a significant effect on economic wellbeing due to climate change among the selected Island communities. Prior studies found that cultural practices in a community are the patterns of social interactions and behaviour, which typically include the practices of using certain products, such as the seasonal calendar devised by Orang Suku in Sarawak during the monsoon to predict climate change [102]. Marini [102] also reported that cultural traits were relevant to the economy, given the effect of culture can be viewed as the result of two main factors when culture influences the economy: a historical component that consists of habits and values inherited from parents and past generations, as well as a contemporary component that consists of beliefs formed through social interaction and networking [103].

Personality traits, however, had no significant effect on economic wellbeing due to climate change among the Island communities [104]. Similarly, Grebitus, Lusk, and Nayga [105] found that personality traits did not significantly support economic wellbeing. However, they depicted that personality values vary from person to person, thus allowing for psychological theories and findings to be used to establish testable, stable, and generalisable relationships between personality traits and economic wellbeing. It is noteworthy to highlight that personality traits can correlate with climate change [103] and are attributable to varying populations; this study assessed an insular community.

The study outcomes indicated that adaptive capacity mediated the link between personality traits and economic wellbeing due to climate change among the selected Island communities. This study found that adaptability provides a valuable framework for interpreting and describing the relationship between personality traits and economic wellbeing [106]. In addition, adaptability significantly influenced personality traits in relation to economic wellbeing. In line with this, Echchakoui [107] reported that adaptive behaviour partially mediated the relationship between personality traits and performance. Previous studies found that traditional knowledge (personality traits) had a significant effect on economic wellbeing [108], which contradicts the result of this study for Island communities. Perhaps, the use of a survey questionnaire led to such a result, and it would be interesting for additional research work to deploy other research methods.

6. Conclusions

In conclusion, this study has successfully determined the effect of two significant dimensions of traditional knowledge (i.e., cultural beliefs and cultural practice) on economic wellbeing due to climate change among the selected Island communities. In addition, adaptive capacity mediated the relationship between personality traits and economic wellbeing due to climate change among the communities in Redang and Perhentian Islands, Terengganu, Malaysia. The limitation of this study lies mainly in the small sample size and the short duration of stay on the two Islands. This study focused solely on the community of the two Islands in Terengganu, Malaysia. Hence, future studies should focus on coastal communities instead of focusing only on Island communities to obtain a higher response rate and better understanding. In addition, more studies may explore the other dimensions of traditional knowledge on mitigating the impacts of climate change. Future studies may assess the correlations proposed in this study to determine their applicability in other Islands across Malaysia or other countries.

On the basis of the reported findings, this study contributes to the practical and administrative implications. The study outcomes provide the public, organisations, and policymakers (government) with a better understanding and knowledge about the importance of using traditional knowledge in tackling the effects of climate change due to the economic wellbeing of the Island communities. This study can also assist the government, non-governmental, and private agencies within the business segment in saving costs by preventing climate change through traditional knowledge instead of letting it happen and spending huge sums on repairs, which would eventually affect the economic performance of Malaysia. A database of all traditional knowledge that can be easily accessed can be created, and compensation payment can be made to the original holder of the traditional knowledge so that the benefits flow back to the holder, while concurrently boosting the economy of the community.

Besides that, this study offers theoretical and practical contributions in many ways. Theoretically, this study explored the indirect relationships between traditional knowledge dimensions (i.e., cultural beliefs, cultural practices, and personality traits) and the impact of climate change on economic wellbeing. Nonetheless, only a handful of studies have assessed the indirect correlations among these variables. In practice, the study outcomes have significant implications for researchers, universities, businesses, policymakers, governments, society, and the environment. As this study promotes the mitigation of climate change impacts by deploying traditional knowledge, it may serve as a reference source and basis for implementing future policies. In terms of drawbacks, this study only involved Island dwellers from Pulau Redang and Pulau Perhentian in Terengganu, Malaysia.