Eco-labeling, Visioning, and Integration

Abstract

China recently became the second largest economy and is increasingly playing an important and influential role in the global economy. Eco-labeled products will be of importance as natural resources grow scarcer and environmental concerns increase; however, there is still a question mark over whether eco-labeled product enhances the competitive advantage of a firm. An important development in China is the improvement of its commodity inspection system, which is primarily concerned with eco-labeled products. China is working hard to set strict commodity standards for all governmental institutions, private enterprises, and NPOs that manufacture eco-labeled products. Although optimal integration is widely recognized as essential to achieving good business performance, this goal is unlikely to be realized unless all involved parties share a product vision. This chapter represents the possible benefits and effects of actions consistent with shared vision and integrative capabilities on eco-labeled product marketing performance particularly in the China region. The total sample size was 203 respondents. Confirmatory factor analysis (CFA) and structural equation modeling (SEM) were used for statistical analysis. The results demonstrate that shared vision and integrative capabilities correlate positively with eco-labeled product marketing performance; however, shared vision does not have a positive correlation with integrative capabilities. Moreover, this chapter provides a framework for the management of marketing activities on eco-labels and closes with a discussion of the theoretical and practical implications of the research findings.