Linking green marketing with performance: Environmental marketing model for small business

Abstract

Abstract This study aims to enrich sustainability research and practice by review how green marketing as an environmental marketing strategy influences organizational performance in small businesses. This research also studies how the integration of learning orientation in the organizations internal culture determines the influence of green strategies to increase business value. A review of existing literature illustrates how investigations in this area have evolved in recent years, providing an appropriate framework based on prior studies and suggesting future research. This study collected data from 351 small businesses covering all industries types located in Indonesia to meet the research aims. The method used to analyse information is modeling the structural equations of cross-sectional survey data with the SMART-PLS software. The findings indicate that green marketing and learning orientation of the small business is an important driver which in turn, has a positive effect on performance. This provides empirical validation that companies that implement environmentally marketing and have the capability as a learning organization have proven to be effective in making a difference to the company’s value. Green marketing has more influence on how organizations increase their performance than organizations-learning orientation. Generally, the results support theoretical predictions, and several interesting findings appear.