Linking green market orientation and performance: Antecedents and processes

This study investigates how a competitive environment can motivate firms to adopt a green market orientation, and how that orientation can result in firms' superior performance (environmental and financial) through both internal green practice and green supply chain management. A theoretical model is tested using 429 samples from a survey of manufacturers done by the Global Manufacturing Research Group (GMRG). The results indicate that a competitive environment triggers the adoption of a green market orientation, which in turn encourages internal green practice and supplier management. Specifically, a green market orientation impacts supplier green monitoring indirectly, via the mediating role of internal green practice. Both internal green practice and supplier green monitoring are conducive to superior environmental performance, but the improvement in environmental performance fails to translate into increased financial returns in the short term. The findings suggest whether and how firms might adopt a green market orientation and how that orientation can improve firms' performance.