Green marketing practices and financial performance of manufacturing firms: The moderating role of organizational culture

John Kwame Akuma; Derrick Nukunu Akude; Emmanuel Addai Kwaning; Kojo Agyekum Asiama

doi:10.31893/multirev.2025017

Keywords:

green strategy

green internal marketing

green marketing communication

Financial performance

Abstract

This paper investigated the moderating role of organizational culture on the relationship amid green marketing practices as well as financial performance of manufacturing firms. The survey utilized a self-administered questionnaire approach, gathering a total of 270 completed responses for data analysis utilizing Smart PLS-SEM (version 4). The study noted the occurrence of a significant positive relationship amid green internal marketing as well as financial performance. Second,there is a significant positive effect amid green marketing communication as well as financial performance. Third, there is a significant negative relationship amid green strategy as well as financial performance. However, the connection amid green product as well as financial performance is insignificant. Moreover, organizational culture has a significant moderation effect on the relationship amid green strategy as well as financial performance. Furthermore, organizational culture has a significant moderation effect on the relationship amid green product as well as financial performance. In addition, organizational culture has a significant moderation effect on the relationship amid green marketing communication and financial performance. However, organizational culture has an insignificant moderating effect on the relationship among green internal marketing as well as financial performance This investigation underscores the necessity of adopting a comprehensive strategy to enhance the financial performance of firms. Managers must focus on strategic alignment, leadership commitment, employee engagement, effective communication, and continuous improvement to foster a culture that supports green marketing initiatives.
References
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42. Khan, M., Serafeim, G., & Yoon, A. (2023). Corporate sustainability: First evidence on materiality. The Accounting Review, 91(6), 1697-1724.
43. Khan, P. A., Johl, S. K., & Akhtar, S. (2021). Firm sustainable development goals and firm financial performance through the lens of green innovation practices and reporting: a proactive approach. Journal of Risk and Financial Management, 14(12), 605.
44. Khan, S. A., Yang, Q., & Waheed, A. (2022). Green Supply Chain Management Practices and Firm Performance: Moderating Role of Organizational Culture in Developing Countries. Journal of Cleaner Production, 245, 118939.
45. Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration (ijec), 11(4), 1-10.
46. Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and psychological measurement, 30(3), 607-610.
47. Kumar, V., Rahman, Z., & Kazmi, A. A. (2020). Sustainability marketing strategy: An analysis of recent literature. Journal of Cleaner Production, 248, 119207.
48. Lawrence, T. B., Suddaby, R., & Leca, B. (2021). Institutional work: Refocusing institutional studies of organization. Journal of Management Inquiry, 20(1), 52-58.
49. Lee, M., & Park, S. (2019). The Effect of Green Marketing Strategy on Corporate Sustainability Performance: The Mediation Role of Stakeholder Collaboration. Sustainability, 11(3), 592.
50. Leonidou, L. C., Katsikeas, C. S., & Morgan, N. A. (2020). "Greening" the marketing mix: Do firms do it and does it pay off? Journal of the Academy of Marketing Science, 48, 88-110.
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53. Schein, E. H. (2019). Organizational culture and leadership (5th ed.). John Wiley & Sons.
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56. Vilkaite-Vaitone, N.; Skackauskiene, I.; Díaz-Meneses, G. (2022) Measuring Green Marketing: Scale Development and Validation. Energies MDPI, 15, 718. https:// doi.org/10.3390/en15030718
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

Akuma, J. K., Akude, D. N., Kwaning, E. A., & Asiama, K. A. (2024). Green marketing practices and financial performance of manufacturing firms: The moderating role of organizational culture. Multidisciplinary Reviews, 8(1), 2025017. https://doi.org/10.31893/multirev.2025017

[1] Akingbola, K., Oladapo, V., & Akinbode, J. (2020). Internal marketing and green marketing strategies: A systematic literature review and research agenda. Journal of Cleaner Production, 258, 120857.

[2] Akuma, J. K., Idun, A. A. A., Tackie, G., Kwaning, E. A., & Asiama, K. A. (2024a). Management Accounting Practices and Financial Performance of Manufacturing Firms: Moderating Role of Information Technology Integration. American Journal of Industrial and Business Management, 14(5), 800-824.

[3] Akuma, J. K., Tackie, G., Idun, A. A. A., & Kwaning, E. A. (2024b). Management Accounting Practices and Sustainability Performance of Manufacturing Firms in Ghana. American Journal of Industrial and Business Management, 14(2), 214-241.

[4] Ali, F., Rasoolimanesh, S. M., Sarstedt, M., Ringle, C. M., & Ryu, K. (2018). An assessment of the use of partial least squares structural equation modeling (PLS- SEM) in hospitality research. International Journal of Contemporary Hospitality Management, 30(1), 514– 538. https://doi.org/10.1108/IJCHM-10-2016-0568

[5] Aliyu, S., Hassan, M. K., Mohd Yusof, R., & Naiimi, N. (2017). Islamic banking sustainability: A review of literature and directions for future research. Emerging Markets Finance and Trade, 53(2), 440-470.

[6] Arend, R. J., & Bromiley, P. (2022). Dynamic capabilities and competitive advantage: A review and research agenda. Journal of Management, 48(1), 81-109.

[7] Bansal, P., & Roth, K. (2020). Beyond stakeholders: Toward a pluralistic view of corporate sustainability. Journal of Business Ethics, 167(3), 393-406.

[8] Bansal, P., & Song, H. C. (2022). Institutional theory and corporate sustainability: A review. Journal of Business Ethics, 170(3), 475-495.

[9] Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.

[10] Blau, P. M. (1964). Exchange and Power in Social Life. Wiley.

[11] Boonlertvanich, K. (2019). Service quality, satisfaction, trust, and loyalty: The moderating role of main-bank and wealth status. International Journal of Bank Marketing, 37(1), 278–302. https://doi.org/10.1108/ ijbm-02-2018-0021

[12] Buciuniene, I., & Kazlauskaite, R. (2021). The role of organizational culture in green HRM implementation and employee engagement in sustainability practices. Journal of Cleaner Production, 291, 125255.

[13] Cameron, K. S., & Quinn, R. E. (2021). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. John Wiley & Sons.

[14] Chen, Y., Li, S., & Xia, J. (2021). The impact of green innovation on firm performance: Evidence from manufacturing firms. Journal of Cleaner Production, 299, 126906.

[15] Cogdill, R. P., Knight, T. P., Anderson, C. A., Drennen III, J. K. (2017). The financial returns on investments in process analytical technology and lean practices: benchmarks and case study. Journal of Pharmaceutical Innovation, 2(1-2), 38-50.

[16] Cohen, J. (1988). Set correlation and contingency tables. Applied psychological measurement, 12(4), 425-434.

[17] Crane, A., Palazzo, G., & Spence, L. J. (Eds.). (2023). The Oxford Handbook of Corporate Social Responsibility: Psychological and Organizational Perspectives. Oxford University Press.

[18] Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of Management, 31(6), 874-900.

[19] Delmas, M. A., & Pekovic, S. (2019). Resource efficiency strategies and market conditions. Business Strategy and the Environment, 28(2), 404-414.

[20] DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147-160.

[21] Eccles, R. G., Ioannou, I., & Serafeim, G. (2019). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857.

[22] Eisenhardt, K. M., & Martin, J. A. (2021). Dynamic capabilities: Current debates and future directions. Academy of Management Perspectives, 35(1), 89-106.

[23] Emerson, R. M. (1976). Social exchange theory. Annual Review of Sociology, 2(1), 335-362.

[24] Fassin, Y., & Van Rossem, A. (2022). Stakeholder management and corporate performance: A meta-analysis. Journal of Business Ethics, 175(1), 1-23.

[25] Figueiredo, B., Canário, C., Tendais, I., Pinto, T. M., Kenny, D. A., & Field, T. (2018). Couples’ relationship affects mothers’ and fathers’ anxiety and depression trajectories over the transition to parenthood. Journal of Affective Disorders, 238, 204-212.

[26] Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. Cambridge University Press.

[27] Freeman, R. E. (2020). Strategic management: A stakeholder approach. Cambridge University Press.

[28] Greenwood, R., Hinings, C. R., & Whetten, D. (2020). Rethinking institutions and organizations. Journal of Management Studies, 57(1), 1-13.

[29] Gürlek, M., & Tuna, M. (2019). Reinforcing competitive advantage through green organizational culture and green innovation. Service Industries Journal, 39(4), 299-320.

[30] Ha, N. M., Nguyen, P. A., Luan, N. V., & Tam, N. M. (2023). Impact of green innovation on environmental performance and financial performance. Environment, Development and Sustainability, 1-22.

[31] Hair, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. (2017). Advanced issues in partial least squares structural equation modeling .https://nls.ldls.org.uk/welcome.html?ark:/81055/vdc100044101027.0(000001

[32] Hair, J., Risher, J., Sarstedt, M. and Ringle, C. (2019), “When to use and how to report the results of PLSSEM”, European Business Review, Vol. 31 No. 1, pp. 2-24, doi: 10.1108/EBR-11-2018-0203.

[33] Hair, J.F., Jr, Hult, G.T.M., Ringle, C. and Sarstedt, M. (2016), A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), Sage publications.

[34] Hanafiah, M. H. (2020). Formative vs. reflective measurement model: Guidelines for structural equation modeling research. International Journal of Analysis and Applications, 18(5), 876-889.

[35] Hartmann, J., & Vachon, S. (2020). Linking Environmental Management to Environmental Performance: The Interactive Role of Industry Context. Business Strategy and the Environment, 29(5), 210-225.

[36] Hartmann, J., & Vachon, S. (2022). The role of organizational culture in green supply chain management: An integrative framework. International Journal of Production Economics, 243, 108322.

[37] Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747- 014-0403-8

[38] Hofstede, G. (2020). Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations. SAGE Publications.

[39] Hofstede, G., Hofstede, G. J., & Minkov, M. (2020). Cultures and Organizations: Software of the Mind. McGraw-Hill.

[40] Homans, G. C. (1958). Social behavior as exchange. American Journal of Sociology, 63(6), 597-606.

[41] Khan, M. T., Khan, M. U., Awan, U., & Saeed, S. (2020). The impact of green marketing on consumer buying behavior. Journal of Cleaner Production, 269, 122081.

[42] Khan, M., Serafeim, G., & Yoon, A. (2023). Corporate sustainability: First evidence on materiality. The Accounting Review, 91(6), 1697-1724.

[43] Khan, P. A., Johl, S. K., & Akhtar, S. (2021). Firm sustainable development goals and firm financial performance through the lens of green innovation practices and reporting: a proactive approach. Journal of Risk and Financial Management, 14(12), 605.

[44] Khan, S. A., Yang, Q., & Waheed, A. (2022). Green Supply Chain Management Practices and Firm Performance: Moderating Role of Organizational Culture in Developing Countries. Journal of Cleaner Production, 245, 118939.

[45] Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration (ijec), 11(4), 1-10.

[46] Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and psychological measurement, 30(3), 607-610.

[47] Kumar, V., Rahman, Z., & Kazmi, A. A. (2020). Sustainability marketing strategy: An analysis of recent literature. Journal of Cleaner Production, 248, 119207.

[48] Lawrence, T. B., Suddaby, R., & Leca, B. (2021). Institutional work: Refocusing institutional studies of organization. Journal of Management Inquiry, 20(1), 52-58.

[49] Lee, M., & Park, S. (2019). The Effect of Green Marketing Strategy on Corporate Sustainability Performance: The Mediation Role of Stakeholder Collaboration. Sustainability, 11(3), 592.

[50] Leonidou, L. C., Katsikeas, C. S., & Morgan, N. A. (2020). "Greening" the marketing mix: Do firms do it and does it pay off? Journal of the Academy of Marketing Science, 48, 88-110.

[51] Muisyo, P. K., & Qin, S. (2021). Enhancing the Effectiveness of Green Marketing Strategies on Firm Performance Through Organizational Culture: Evidence from Kenyan Manufacturing SMEs. Journal of Cleaner Production, 263, 121318.

[52] Ringle, C. M., Wende, S., and Becker, J.-M. 2022. "SmartPLS 4." Oststeinbek: SmartPLS GmbH, http://www.smartpls.com.

[53] Schein, E. H. (2019). Organizational culture and leadership (5th ed.). John Wiley & Sons.

[54] Scott, W. R. (2014). Institutions and organizations: Ideas, interests, and identities. Sage Publications.

[55] Sharma, P., Gupta, P., & Arora, A. (2021). Green marketing and organizational culture: A review of literature. Journal of Business Research, 127, 15-23.

[56] Vilkaite-Vaitone, N.; Skackauskiene, I.; Díaz-Meneses, G. (2022) Measuring Green Marketing: Scale Development and Validation. Energies MDPI, 15, 718. https:// doi.org/10.3390/en15030718

[57] Wang, H., Li, X., & Li, Y. (2021). Green internal marketing, environmental corporate social responsibility and organizational performance: Evidence from China. Journal of Cleaner Production, 296, 126561.

[58] Wang, Y., Wang, S., & Mao, Z. (2021). Internal green marketing, green organizational identity, and environmental performance: Evidence from China. Journal of Cleaner Production, 314, 128006.

Abstract

References

How to cite