Abstract
The study focuses on green competitive advantage from a multi-dimensional perspective, investigating the impact of green marketing tools and company descriptive variables on these dimensions. The data were collected from small, medium and micro enterprises (SMME) from Western Cape/South Africa, an area marked by long-term water consumption restrictions. A qualitative approach was considered for variable tailoring to the SMMEs’ peculiarities, followed by a quantitative study, employing a sample of 237 companies, for testing each competitive advantage dimension against the established green marketing tools and company descriptive variables using logistic regressions. Each competitiveness variable was explained by at least one green marketing tool. Donating money and/or allocating time for environmental purposes explained three dependent variables, while selling biodegradable/recycled/refurbished products had an inverse relationship with two of them. Business type and number of operational years had a significant impact on three dimensions. This study enriches the literature by using green competitive advantage dimensions and not a latent factor, analyzing the impact of company descriptive variables as explanatory variables and prompting green strategies for small and medium businesses. The model could be improved by tests in other geographic areas, including green distribution and price variables and other descriptive factors (turnover, responsible investment and internationalization).
Highlights
Sustainability can be attained when businesses satisfy needs and desires without endangering the environment [1,2]
The study focused on determining whether the usage of six dimensions of competitive advantage can be explained by the degree of integration of five green marketing tools, hypotheses Hypothesis 1 (H1)–Hypothesis 5 (H5) being formulated and by four company descriptive variables, hypotheses Hypothesis 6 (H6)–Hypothesis 9 (H9) being formulated
The study develops on the few works probing into the explanatory effect of company descriptive variables [40,93] on green endeavors by investigating how each competitive advantage dimension can be used by different types of micro, small and medium enterprises
Summary
Sustainability can be attained when businesses satisfy needs and desires without endangering the environment [1,2]. Environmentally-centered businesses opt usually between employing either a compliance model of environmental management, aiming to adjust processes to regulations and laws, or a strategic one, planning to attain sustainable competitive advantage [3]. The double-bottom line perspective takes into consideration sustainability (social, economic and environmental) alongside profitability, while the triple-bottom line one includes environmental quality and social justice besides economic indicators. These two types of value-rendering models delineate the importance of sustainability in obtaining a competitive advantage or a green market position [6]. Hartmann et al [7] argue that in building a green market position or green competitive advantage, companies should rely on the usage of a mixture between consumer emotional benefits and concrete environmentally-focused product features, a goal which can definitely be obtained based on green or environmental marketing endeavors
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