The role of green management in creating sustainability performance on the small and medium enterprises

Abstract

Purpose The purpose of this paper is to analyze the effect of the relationship between stakeholder demand, resources, knowledge and product uniqueness on green marketing and its implication on sustainability performance. Design/methodology/approach This study used a quantitative research approach that explains the phenomenon by collecting numerical data analyzed using mathematically based methods. The research location was Batik Lawean Center of Surakarta, which is the centers of Batik industry and heritage. These locations were chosen because Laweyan and Kedung Baruk have a vision as the center of Batik industry and environment-friendly heritage through sustainable development. Findings Stakeholder demand, resource, knowledge and the uniqueness of the product have a significant effect on the application of green management, and the green management has a significant effect on the sustainability performance. It means that the stakeholder demand, resources, knowledge and product uniqueness have a significant effect on green management, and green management simultaneously shows a significant effect on sustainability performance. The application of green management will also improve sustainability performance. Originality/value The originality of this study is on the testing of simultaneous relationships between the factors making up the application of green marketing, namely stakeholder demand, resources, knowledge and product uniqueness, as well as the impact of green marketing implementation on sustainability performance. This study focuses on the application of green management by involving the measurement of environmental performance and financial performance, as has been investigated by Karagiorgos (2010) and Earnhart and Lizal (2006). On the other hand, this study attempts to review the application of green management in the form of environmental performance as studied by Filbeck and Gorman (2004) and Sarah and Peter (2000), which reveal several determinants of environmental performance, as suggested by Mutamimah and Handoko (2011). However, this study focuses on the qualitative determinants that have been found by researchers (Raharjo, 2016) that the low or high level of green management application is determined by the demand of stakeholders, resources, knowledge, and product uniqueness considering the object of research is the Batik industry, which is certainly different from other industries, such as those that have been investigated by Karagiorgos (2010), Earnhart and Lizal (2006), Mutamimah and Handoko (2011), Filbeck and Gorman (2004), and Sarah and Peter (2000). This study also combines the measurement of financial performance and non-financial performance in the form of sustainability performance variables.

Environmental awareness and guests’ intention to visit green hotels: The mediation role of consumption values

“…Lots of studies have been carried out to understand better the guest intention on visiting green hotels. Among the previous studies are [4,[15][16][17][18][19][20][21][22][23][24], who have examined the individuals' intention to visit green hotels and the factors that motivate them. Meanwhile, some of the researches were carried out in the developed countries, or in some few developing countries [17,22].…”

“…Some of the previous literatures in the demands of green hotels by the customers are majorly on the guests towards green characteristics [ 12 , 20 , 22 , 25 , 26 ]. But in the literature, evidence abounds that hotels guest attitude towards eco-friendly products/services were in most cases not influenced their buying attitude [ 17 , 27 , 28 ]. While some customers feel the conservation of the environmental should be government business, some believes that there exist a trade-off between long-run social rewards and individual needs in the short-run.…”

Sustainability of Green Tourism among International Tourists and Its Influence on the Achievement of Green Environment: Evidence from North Cyprus

“…Tiago et al [26] pinpointed the green tourism offers of services and their concerns of green certification of lodgings and the influence of travelers' green preferences on their buying behaviors and decisions. In that context, green management would advance tourism sustainability performance [27] and promote a sustainable lifestyle with advanced implications for tourists of better environmental responsible practices [28,29]. Therefore, marketed messages and unbiased information about environmentally responsible practices are dependent on the efforts of managers to keep trustworthy tourists updated.…”

Impact of Strategic and Tactical Green Marketing Orientation on SMEs Performance

“…Green management is an enterprise recreation to make inputs (raw materials and auxiliaries) into outputs (goods and services) by prioritizing the balance and [17]. Therefore, it is critical to find out about green management models for SMEs-beginning from finding out the input (green input), processing of raw materials (green process), processing inputs into output (green output), distributing and promoting items and services (green marketing), as well as the application of government rules and public recognition for SME performance improvement [17].…”