Green marketing capability: A configuration approach towards sustainable development

Abstract

Literature often shows that not all firms achieve similar outcomes in pursuing green marketing practices. Hence, what makes some firms more successful than others in formulating green marketing practices and achieving desired outcomes is of crucial importance. This study proposes that green marketing capability (GMC) is one of the factors that can explain this difference between firms. Based on resource-based view and dynamic capability theories, this research develops a theoretical framework to conceptualize and configure GMC. In doing so, this research specifically explores three research objectives: (1) what constitutes GMC, (2) how firms differ in their GMC configurations, (3) how such GMC configurations might lead to green marketing performance differentials. To answer these objectives, in a multi-industry setting, this study employs a multi-source data collection approach and uses managerial surveys (n = 158), objective financial information, and uses configuration (cluster) approach for data analysis. The findings show that firms can develop GMC in two ways: through green market sensing (comprising of learning and planning activities) and green market execution (encompassing marketing mix and cross-functional orientations). Based on GMC configurations, firms can be classified into three groups: opportunity seekers that excel in both sensing and execution capabilities and act as green market prospectors; conservative compliants that lag behind in both these aspects and act as green market defenders; and critical adopters that lay medium emphasis on green market sensing and execution activities and maintain a balanced “wait and see” approach. The results also show that firms can achieve the best possible green marketing performance by adopting an opportunity seeker's strategy. The study highlights several research and managerial implications for firms to adopt innovative GMC practices.