Stakeholder perceptions of green marketing: the effect of demand and supply integration

Abstract

PurposeThe purpose of this paper is to extend the stream of thought regarding the concept of demand and supply integration (DSI) within the domain of environmental responsibility and green marketing.Design/methodology/approachConceptual application of theory to strategic‐level concepts is used to develop propositions representing a theoretical approach to the integration of green marketing and green supply chain management (SCM).FindingsBased on stakeholder theory, the authors propose that greater value will be perceived by customer stakeholders when the firm is able to successfully manage and coordinate demand (marketing) and supply (SCM) functions, ensuring that customer stakeholders receive what they are promised in regard to environmental products and services. For this relationship to offer competitive advantage and higher firm performance, the authors contend that it is necessary to better understand how customer stakeholders perceive firms' environmental initiatives, and to investigate if the degree to which a firm's demand and supply functions are integrated influences these perceptions.Research limitations/implicationsScholars will benefit from ideas and questions put forth in this paper as it suggests specific avenues to pursue empirically in order to understand stakeholder perceptions of a firm's environmental responsibility activities.Practical implicationsManagers will benefit from the results of this paper by better understanding the benefits of DSI in creating marketing campaigns for environmental products and services that stakeholders perceive as legitimate.Originality/valueThe authors introduce the concept of DSI to the green marketing and green SCM literature and position DSI within the broader rubric of environmental commitment in the firm.

Environmental practices as offerings and requirements on the logistics market

“…Could it be that companies closer to consumers also perceive more stakeholder pressure to include other aspects of environmental practices than those related to their core businesses? Related to this, Kirchoff et al [24] suggest that ''green consumers'' are a growing stakeholder group, which indeed could have an impact on shippers' home pages in terms of environmental practices related to requirements on LSPs. Further, the fact that the home page scan also indicates that the level of logistics intensity in the shippers' industries has an impact on the presentation of environmental practices related to LSPs could imply that such industries have different stakeholder pressures than those with lower logistics intensity.…”

“…However, drawing on Kirchoff et al [24] and Post et al [45], another explanation can lie in the distinction between primary and secondary stakeholders. In our setting, the shippers would belong to the primary stakeholders of the LSPs, why the arguments directed towards the potential customers (i.e.…”

“…As the home pages are directed towards a diversity of stakeholders, it is interesting to note that also contractually related arguments are used. In particular, it is interesting that the shippers state their supplier requirements on their home pages, whereas suppliers according to Kirchoff et al [24] as well as Post et al [45] are not primary stakeholders. This can be explained whether the shippers' customers actually are supposed to care for how their provider of goods manages its supply chain, including the transport and logistics providers.…”

“…Post et al [45] further suggest that the corporation to a higher degree must consider the interest of the resource base group of stakeholders, which in their model includes investors, shareowners, and lenders; employees; and customers and users. This group is referred to by Kirchoff et al [24] as the primary stakeholder group. The industry structure group [45] includes, e.g., supply chain associates and regulatory authorities, and the social political area gathers more general interest groups such as governments, citizens, and local communities.…”

“…The industry structure group [45] includes, e.g., supply chain associates and regulatory authorities, and the social political area gathers more general interest groups such as governments, citizens, and local communities. Kirchoff et al [24] refer to these groups as secondary stakeholders. In the light of environmental impact from logistics and transportation, both primary and secondary stakeholders are likely to be affected and could thus be of relevance for the LSPs to take into account in relation to green practises included in their offerings.…”