The Impact of Enviropreneurial Orientation on Small Firms’ Business Performance: The Mediation of Green Marketing Mix and Eco-Labeling Strategies

Abstract

Global green trends are creating new challenges and opportunities for entrepreneurs worldwide with customers now more environmentally aware and willing to pay extra for green services and products. In considering this phenomenon, the current study focuses on the positive influence of enviropreneurial orientation on the business performance of small firms and explores the mediation effects of green marketing mix and eco-labeling strategies. Drawing upon the natural resource-based view (NRBV) and the dynamic capability view (DCV), we tested our multiple mediation model with a sample of owners/managers of 160 small firms from Bangladesh, with these firms coming from the sectors of trading, manufacturing, and services. To test the study’s hypotheses, we employed the variance-based structural equation modeling (SEM) method, using the partial least squares (PLS) technique. The results reveal that green marketing mix and eco-labeling strategies transmit the effect of enviropreneurial orientation to business performance of small firms. Both strategies are found to be mediators in the relationship between enviropreneurial orientation and business performance of small firms. The study also offers suggestions for future research.

Poor resource capital of micro-entrepreneurs: the mediating role of entrepreneurial orientation

“…Therefore, many studies have attempted to establish a link between resources and firm performance (Van Iddekinge et al , 2009; Margaritis and Psillaki, 2010; Maiti et al , 2020). More specifically, prior studies have recognized the direct and significant positive influence of human capital (Bosma et al , 2004; Harlow, 2008; Fatoki, 2011; Bastié et al , 2013; Khan and Quaddus, 2018), social capital (Bosma et al , 2004; Cooke et al , 2005; Fatoki, 2011), and financial capital (Wiklund and Shepherd, 2005; Frank et al , Kessler and Fink, 2010; Fatoki, 2011; Bastié et al , 2013; Khan et al , 2020a, 2020b) on firm performance. However, these findings are inconclusive and misleading, as other studies suggest a negative (Santarelli and Tran, 2013) or non-existent correlation (Bosma et al , 2004; Acquaah, 2007; Coleman, 2007; Shrader and Siegel, 2007).…”

Are We Overestimating the Benefits of Emission Reduction Measures?

“…Another interesting implication here is not how people accept or buy into policy changes but rather how the politicians perceive-and promote-their policy proposals. Likewise, companies that are reinventing themselves with a green marketing mix and eco-labeling strategies to gain market advantage [42,43], which are also likely to be adopted by carbon-intensive companies, may likely be viewed by the general public as adopting sustainable measures, while in reality these companies are not (an example here is the so-called sustainable fast fashion). The framework thus has implications for the success of sustainability interventions and policymaking.…”

Measuring Sustainable Marketing Orientation—Scale Development Process

“…Nevertheless, sustainable marketing does not immediately lead to the creation of unique competitive advantage [55], mainly because it presupposes a strategic approach that is time consuming and because it is oriented toward intangible ethical values that take time to be noticed by the market-especially if the company does not use sustainability as an element of positioning strategy. However, by accumulation of valuable sustainability-oriented resources and capabilities, companies ensure superior performance [56][57][58].…”

“…Most of the published empirical research intensively investigated solely one component of sustainability (ecological or social) rather than taking the holistic perspective by either focusing on the environmental marketing as a marketing strategy [6,45,[58][59][60][61][62][63][64] or evaluating corporate social responsibility through the strategic marketing function [64][65][66]. Moreover, none of the available empirical papers focused on sustainable marketing, but rather on the influence of sustainability-oriented CSR on environmental marketing [67], social responsibility orientation on the environmental sustainability disclosure [66], on the investigation of sustainable strategic orientation [68] or on the ecological and social elements of marketing strategy [69].…”

“…Namagembe [71] developed enviropreneurial orientation as a unidimensional measure based on RA theory that was used and confirmed in other published research on the sample of SMEs. [58]. Green marketing strategy through the validation has been divided relative to the focus of activities-process and market oriented, whereas environmental culture has been measured separately [70].…”