The Impact of SMEs Capability for Service Innovation and Its Tactical Green Marketing on Sustainable Business Performance

Abstract

Corporate social responsibility (CSR) is now central to all firms. Customers now expect companies to promote sustainability and social well-being actively. This study examines the direct and indirect effects of stakeholder pressure (SP), corporate social responsibility (CSR), tactical green marketing orientation (TGMO), and service innovation competence (SIC) on five sectors of Pakistani Small and Medium enterprises’ (SME) sustainable business performance (SBP). The paper used a resource-based view and stakeholder theories. An online questionnaire collected data from 284 SMEs in five areas. The study tested its hypotheses using partial least squares (PLS) 4.0 path modeling. The study found that stakeholder pressure and corporate social responsibility (CSR) affect tactical green marketing and sustainable organizational performance. The data also shows that tactical green marketing mediates the impact of stakeholder pressure and CSR on sustainable business performance. Service innovation moderates the link between tactical green marketing orientation and sustainable business performance. This study seeks to clarify and improve the relationship between tactical green marketing and company sustainability. This It gives management a complete picture of the company’s long-term success.