Green marketing and perceived SME profitability: the meditating effect of green purchase behaviour

Albert Martins

35 citations0/0 files storedManagement of Environmental Quality An International Journal

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Environmental Sustainability in Business Consumer Market Behavior and Pricing Sustainable Supply Chain Management

Abstract

Purpose The concept of green marketing has emerged as a panacea for reducing the negative impact of business activities on the environment. Many studies have investigated the impact of green marketing on green purchase behavior, sustainable competitive advantage, etc., without much being explored about how green marketing translates into firms' profitability, particularly among small and medium enterprises (SMEs) in emerging markets. This study, therefore, investigates the influence of green marketing on perceived SME profitability alongside the mediating effect of green purchase behaviour. Design/methodology/approach A quantitative research approach was adopted, where a cross-sectional survey design was employed to collect the data from 400 SME owners/managers in Ghana. Using Statistical Package for Social Science, the data were analysed through descriptive statistics, correlation and macro Process version 3.4.1. Findings The results reveal that the dimensions (environmental knowledge, environmental concern, green price, green advertising and green product) of green marketing distinctively have significant positive effect on perceived SME profitability as well as green purchase behaviour. Furthermore, green purchase behaviour significantly mediates the relationship between green marketing dimensions and perceived SME profitability such that the indirect effects are far greater than the direct effects. Practical implications SME managers should include the green marketing dimensions in their business plans and develop strategies to implement them in order to enhance green purchase behaviour of their products and services which will, in turn, lead to profitability. Originality/value In augmenting green marketing literature, this study provides an insight into how SMEs can leverage on the distinct dimensions of green marketing to influence green purchase behaviour and profitability in an emerging market context.

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References

1995Toward a New Conception of the Environment-Competitiveness Relationship 2004Entrepreneurial orientation and small business performance: a configurational approach 2006The Influence of Green Innovation Performance on Corporate Advantage in Taiwan 2015Factors Affecting Green Purchase Behaviour and Future Research Directions 2001Determinants of Chinese consumers' green purchase behavior 2001Does It Really Pay to Be Green? An Empirical Study of Firm Environmental and Financial Performance: An Empirical Study of Firm Environmental and Financial Performance 2008Opportunities for green marketing: young consumers 2005Green marketing: legend, myth, farce or prophesy?

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2023Mapping the knowledge domain of green procurement: a review and bibliometric analysis 2023Investigating the effects of corporate social responsibility on sustainable consumer purchase behavior 2024Linking green marketing and SMEs performance: A psychometric meta-analysis 2025Leveraging Customer Green Behavior Toward Green Marketing Mix and Electronic Word-of-Mouth 2025

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