An examination of market orientation and environmental marketing strategy: the case of Chinese firms

ABSTRACT

This study examines whether market orientation, as an organizational capability, plays an enabling role in environmental marketing strategy and then contributes to financial performance. Utilizing the natural resource-based view (NRBV) as the conceptual foundation and drawing on previous studies, this study proposes and tests a research model that investigates the relationship between market orientation, environmental corporate identity, environmental marketing strategy and firm performance. By using data from Chinese companies, this study finds that market orientation significantly influences environmental marketing strategy and the environmental corporate identity moderates this relationship. Findings from this study provide invaluable insight into the understanding of the complexity involved in facilitation and substantiation of environmental ideology and its integration into a firm’s strategy and activities. The Chinese context also has useful practical implications for firms from emerging and transition economies.

KEYWORDS:

• Environmental identity
• corporate identity
• environmental marketing strategy
• market orientation
• performance

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 The terms “enabler” and “driver” have been distinguished in earlier studies of information systems (e.g. Lee & Klassen, 2008; Tsikriktsis, Lanzolla, & Frohlich, 2010). A driver is a factor that initiates and motivates firms to begin particular actions, whereas an enabler is a factor that assists firms in achieving some of their objectives. Consistent with previous studies, we differentiate “an enabler” and “a driver” and highlight the enabling role of market orientation in influencing EMS.

Additional information

Funding

This study was funded by the National Natural Science Foundation of China (grant number 71502140, grant number 71502142).