Does sustainability marketing strategy achieve payback profits? A signaling theory perspective

Abstract

Despite the importance of sustainability marketing strategy, its influence on firm performance is still inconclusive. In this study, we explore how and under what conditions sustainability marketing strategy influences firm performance by including the customer as an external stakeholder. Drawing on signaling theory, we test the hypothesized relationships using survey data collected from 264 Chinese firms. The results reveal that customer loyalty partially mediates the relationship between sustainability marketing strategy and firm performance. In addition, our findings indicate that competitive intensity positively moderates the relationship between sustainability marketing strategy and customer loyalty, and the mediating effect of customer loyalty. However, customer trust negatively moderates the relationship between sustainability marketing strategy and customer loyalty, while its moderated mediation is not significant. This study contributes to sustainability marketing literature and practice by providing novel insights into how to enhance firm performance by developing sustainability marketing strategy.

Embracing green innovation via green supply chain learning: The moderating role of green technology turbulence

“…Energy shortage, environmental pollution, and customers' growing awareness of environment-friendly products are driving firms to concern for environmental management (Taoketao, Feng, Song, & Nie, 2018;Wang, Feng, Zhao, & Song, 2018). These pressures subsequently turn into a momentum for firms to engage in green innovation (Du et al, 2018).…”

External involvement and green product innovation: The moderating role of environmental uncertainty

“…External involvement helps firms to gain resources and capabilities externally to meet customer demand (Jayaram, ; Mishra & Shah, ; Wu, ). It is generally acknowledged that involving external stakeholders is critical in achieving competitive advantages and performance (Dögl & Behnam, ; Feng, Sun, & Zhang, ; Singh & Power, ; Taoketao, Feng, Song, & Nie, ). From the perspective of supply chain management, we define external involvement as the degree to which customers and suppliers are involved in a firm's green product innovation programs.…”

Linking green customer and supplier integration with green innovation performance: The role of internal integration

“…Conducting green innovation to reduce the negative influences on natural environment has been deemed as an important source of competitive advantage (Dangelico, Pujari, & Pontrandolfo, ; Gerstlberger, Præst Knudsen, & Stampe, ; Huang & Li, ). Existing literature suggested that both the institutional and market pressures have forced firms to attempt to implement green innovation (Chen, Yi, Zhang, & Li, ; Lee, Kim, & Kim, ; Taoketao, Feng, Song, & Nie, ). Although much of the previous research has focused on the performance consequences of green innovation (e.g., Huang & Li, ; Tang, Walsh, Lerner, Fitza, & Li, ), how green innovation performance is influenced by green customer and supplier integration is still unclear.…”

“…Conducting green innovation to reduce the negative influences on natural environment has been deemed as an important source of competitive advantage (Dangelico, Pujari, & Pontrandolfo, 2017;Gerstlberger, Praest Knudsen, & Stampe, 2014;Huang & Li, 2017). Existing literature suggested that both the institutional and market pressures have forced firms to attempt to implement green innovation (Chen, Yi, Zhang, & Li, 2018;Lee, Kim, & Kim, 2018;Taoketao, Feng, Song, & Nie, 2018).…”