The impact of religiosity, environmental marketing orientation and practices on performance

Abstract

Purpose This paper aims to investigate the environmental marketing orientation of Muslim entrepreneurs and looks at its relationship with environmental marketing and organizational performance in the context of small and medium enterprises in Indonesian. The study also examines the role of religiosity as a moderator on the relationship between environmental marketing orientation and green marketing. Design/methodology/approach The paper is empirical and quantitative in nature. The sample of the study is Muslim entrepreneurs in West Java and Central Java Indonesia. The data were analyzed using descriptive statistics and partial least square analysis. Findings Environmental orientation has a positive relationship with environmental marketing and operational and economic performance. Nonetheless, the study suggests no significant influence of environmental marketing on commercial performance due to “greenwashing” practices. Religiosity appears to moderate the relationship between environmental orientation and environmental marketing practices. Research limitations/implications The lack of papers on Islamic marketing makes the depth of discussion somewhat limited. Practical implications The recommendation of this study provides a new path to the local government in mitigating the issue of environmental destructions occurring because of entrepreneurs’ business practices. This study has demonstrated the importance of cultivating religious values among society and specifically entrepreneurs as moral guidelines to further strengthen ethical behavior while conducting businesses. The government may endorse more teaching hours on Islamic curriculum at school to create the generation of religious entrepreneurs. Social implications The act of preserving the environments while conducting businesses is one form of worship in Islam as such we call for the elaboration and application of strategies to instill the paradigm of excellent merchants among Muslim. Originality/value This paper is the first of its kind which empirically testing the relationship between environmental marketing and firms performance with religiosity as a moderator among Muslim entrepreneurs in Indonesia.