The Interplay of Tactical Green Marketing Orientation and Service Innovation Capability on Sustainable Business Performance

Abstract

Sustainable business performance has gained significant attention in today’s business landscape. Increasing global apprehension regarding environmental issues is compelling organizations to align with sustainable development principles (Khan, Ahmad, et al., 2023). This study examines the direct and indirect effects of stakeholder pressure, tactical green marketing orientation, and service innovation capability on sustainable business performance in five specific SME sectors. A web-based questionnaire was administered to 233 SME representatives from the selected industries using the resource-based view theory and stakeholder’s theory. Path modeling using Partial Least Squares (PLS) 4.0 was used to analyze the data and assess the research hypotheses. The results indicate that stakeholder pressure influences green marketing tactics. In addition, the results indicate that green marketing orientation moderates the relationship between stakeholder pressure and sustainable business performance. In contrast, service innovation capability moderates the relationship between green marketing orientation and sustainable business performance. This study contributes to better comprehending the relationship between tactical green marketing and a company’s sustainable performance, thereby providing managers with valuable insights for enhancing sustainable business performance