Strategic Marketing Alignment-Competitive Advantage Nexus: Green Entrepreneurship Path in SMEs
DOI:
https://doi.org/10.25159/1998-8125/17503Keywords:
strategic marketing alignment, competitive advantage, SMEs, green entrepreneurshipAbstract
Purpose: This study investigated strategic marketing alignment (SMA) and competitive advantage (CA) in SMEs with an emphasis on the moderating role of green entrepreneurship (GE). By focusing on sustainability, resources, and capabilities, light is shed on the importance of GE for the success of small- and medium-sized enterprises (SMEs).
Design/Methodology/Approach: A descriptive cross-sectional design with a quantitative research approach relying on structured questionnaires is employed. The data collection resulted in a total of 250 filled-out questionnaires. Participants were SME owners and managers in manufacturing, and other sectors around Buffalo City Metropolitan, East London.
Findings: The results indicated that the relationship between SMA and SME CA was not statistically significant (p = 0.702) while SMA had a significant positive impact on GE. The results supported the positive and direct effect of GE on CA. The results highlighted a complete moderation of GE on SMA and SME CA.
Managerial/Policy implications: Management of SMEs can take advantage of ecological sustainability. SMEs’ use of GE as their dynamic capabilities can enhance competitiveness and increase potential opportunities. SME organisational culture may affect green entrepreneurship and competitive advantage interaction.
Originality/Value: As a unique study bridging the gap between research and practice, the study delves further into encouraging SME managers and owners to align with ecological practices and comply with the environment in which they operate through sustainable practices to increase chances of differentiation and competitiveness.
References
Adu, D. A., X. H. Chen, M. Hasan, X. Zhu, and N. Jellason. 2023. “The Relationship between Entrepreneurial Energy Efficiency Orientation and Carbon Footprint Reduction: The Mediating Role of Green Networking and Identification of Barriers to Green Practices.” Journal of Environmental Management 347: 119–256. https://doi.org/10.1016/j.jenvman.2023.119256. DOI: https://doi.org/10.1016/j.jenvman.2023.119256
Afum, E., W. A. Mensah, C. Baah, G. Asamoah, and L. Y. Kusi. 2023. “Green Market Orientation, Green Value-Based Innovation, Green Reputation and Enterprise Social Performance of Ghanaian SMEs: The Role of Lean Management.” Journal of Business and Industrial Marketing. https://doi.org/10.1108/JBIM-03-2021-0169. DOI: https://doi.org/10.1108/JBIM-03-2021-0169
Ahmadov, T., S. Durst, W. Gerstlberger, and E. Kraut. 2023. “SMEs on The way to a Circular Economy: Insights from a Multi-Perspective Review.” Management Review Quarterly: 1–34. https://doi.org/10.1007/s11301-023-00380-2. DOI: https://doi.org/10.1007/s11301-023-00380-2
AI-Haddad, L., M. S. Sial, I. Ali, R. Alam, N. V. Khuong, and T. H. Khanh. 2019. “The Role of Small and Medium Enterprises (SMEs) in Employment Generation and Economic Growth: A Study of Marble Industry in Emerging Economy.” International Journal of Financial Research 10 (6): 174–187. https://doi.org/10.5430/ijfr.v10n6p174. DOI: https://doi.org/10.5430/ijfr.v10n6p174
Alsayah, A. 2022. “Strategic Alignment and Its Impact on Creating an Organisation’s Reputation and Image.” Problems and Perspectives in Management 20 (1): 501–513. https://doi.org/10.21511/ppm.20(1).2022.40. DOI: https://doi.org/10.21511/ppm.20(1).2022.40
Astawa, I. K., K. Przada, I. K. Budarma, C. Widhari, and A. Suardani. 2021. “The Effect of Green Supply Chain Management Practices on the Competitive Advantage and Organisational Performance.” Polish Journal of Management Studies 24 (1): 45–60. https://doi.org/10.17512/pjms.2021.24.1.03. DOI: https://doi.org/10.17512/pjms.2021.24.1.03
Bataineh, M. J., P. Sánchez‐Sellero, and F. Ayad. 2024. “Green is the New Black: How Research and Development and Green Innovation Provide Businesses a Competitive Edge.” Business Strategy and the Environment 33 (2): 1004–1023. https://doi.org/10.1002/bse.3533. DOI: https://doi.org/10.1002/bse.3533
Bıçakcıoğlu, N., V. Theoharakis, and M. Tanyeri. 2020. “Green Business Strategy and Export Performance: An Examination of Boundary Conditions from an Emerging Economy.” International Marketing Review 37 (1): 56–75. https://doi.org/10.1108/IMR-11-2018-0317. DOI: https://doi.org/10.1108/IMR-11-2018-0317
Bugwandin, V., and M. S. Bayat. 2022. “A Sustainable Business Strategy Framework for Small and Medium Enterprises.” Acta Commercii 22 (1): 1–12. https://doi.org/10.4102/ac.v22i1.1021. DOI: https://doi.org/10.4102/ac.v22i1.1021
Chigori, D., K. Viljoen, M. Ford, and L. Cilliers. 2020. “Mobile Phone Banking: A Comparative Analysis of e-Service Quality and Customer Loyalty of Banking Applications and Unstructured Supplementary Service Data Services.” Journal of Economic and Financial Sciences 13 (1): a471. https://doi.org/10.4102/jef.v13i1.471. DOI: https://doi.org/10.4102/jef.v13i1.471
Durrani, N., A. Raziq, T. Mahmood, and M. R. Khan. 2024. “Barriers to Adaptation of Environmental Sustainability in SMEs: A Qualitative Study.” PLoS One 19 (5): e0298580. https://doi.org/10.1371/journal.pone.0298580. DOI: https://doi.org/10.1371/journal.pone.0298580
Ekins, P., and D. Zenghelis. 2021. “The Costs and Benefits of Environmental Sustainability.” Sustainability Science 16 (1): 949–965. https://doi.org/10.1007/s11625-021-00910-5. DOI: https://doi.org/10.1007/s11625-021-00910-5
Farida, I., and D. Setiawan. 2022. “Business Strategies and Competitive Advantage: The Role of Performance and Innovation.” Journal of Open Innovation 8 (3): 2–16. https://doi.org/10.3390/joitmc8030163. DOI: https://doi.org/10.3390/joitmc8030163
Fatoki, O. 2019. “Green Entrepreneurial Orientation and Firm Performance in South Africa.” Entrepreneurship and Sustainability Issues 7 (1): 247–262. https://doi.org/10.9770/jesi.2019.7.1(19). DOI: https://doi.org/10.9770/jesi.2019.7.1(19)
Guo, Y., L. Wang, and Y. Chen. 2020. “Green Entrepreneurial Orientation and Green Innovation: The Mediating Effect of Supply Chain Learning.” SAGE Open 10 (1): 1–13. https://doi.org/10.1177/2158244019898798. DOI: https://doi.org/10.1177/2158244019898798
Hair, J. F., C. M. Ringle, and M. Sarstedt. 2011. “PLS-SEM: Indeed a Silver Bullet.” Journal of Marketing Theory and Practice 19 (2): 139–151. https://doi.org/10.2753/MTP1069-6679190202. DOI: https://doi.org/10.2753/MTP1069-6679190202
Idrees, H., J. Xu, and N. A. Andrianarivo Andriandafiarisoa Ralison. 2023. “Green Entrepreneurial Orientation and Knowledge Creation Process as Enablers of Green Innovation Performance: The Moderating Role of Resource Orchestration Capability.” European Journal of Innovation Management: 1460–1060. https://doi.org/10.1108/EJIM-02-2023-0143. DOI: https://doi.org/10.1108/EJIM-02-2023-0143
Islami, X., M. T. Latkovikj, L. Drakulevski, and M. B. Popovska. 2020. “Does Differentiation Strategy Model Matter? Designation of Organizational Performance Using Differentiation Strategy Instruments—An Empirical Analysis.” Business: Theory and Practice 21 (1): 158–177. https://doi.org/10.3846/btp.2020.11648. DOI: https://doi.org/10.3846/btp.2020.11648
Jamnekar, A. V., and M. T. Sunny. 2024. Green Marketing Strategies for Small and Medium-sized Enterprises (SMEs) Exploring Opportunities and Challenges in India’s Sustainable Market. Bharti Publications.
Juniarti, A. T., B. I. Setia, E. S. Alghifari, and D. A. W. Sya’roni. 2024. “Green Leadership and Competitive Advantage: The Role of Mediation from Knowledge Management and Talent Management.” Journal of Eastern European and Central Asian Research (JEECAR) 11 (3): 588–603. https://doi.org/10.15549/jeecar.v11i3.1648. DOI: https://doi.org/10.15549/jeecar.v11i3.1648
Laburtseva, O., Y. Larina, O. Nahorna, S. Vinichenko, V. Hordiienko, and A. T. N. Al-Shaban. 2021. “Development of a Marketing Strategy for Enterprise Financial Growth.” Studies of Applied Economics 39 (5): 2–10. https://doi.org/10.25115/eea.v39i5.4794. DOI: https://doi.org/10.25115/eea.v39i5.4794
Land, A., T. Gruchmann, E. Siems, and P. Beske-Jansen. 2022. “Dynamic Capabilities Theory.” In Handbook of Theories for Purchasing, Supply Chain and Management Research, edited by W. L. Tate, L. M. Ellram, and L. Bals. Edward Elgar Publishing. https://doi.org/10.4337/9781839104503.00029. DOI: https://doi.org/10.4337/9781839104503.00029
Lestari, E. R., and F. L. Ardianti. 2019. “Technological Capability and Business Success: The Mediating Role of Innovation.” IOP Conference Series. Earth and Environmental Science 250: 012039. https://doi.org/10.1088/1755-1315/250/1/012039. DOI: https://doi.org/10.1088/1755-1315/250/1/012039
Lin, Y. H., N. Kulangara, K. Foster, and J. Shanf. 2020. “Improving Green Market Orientation, Green Supply Chain Relationship Quality, and Green Absorptive Capacity to Enhance Green Competitive Advantage in the Green Supply Chain.” Sustainability (Basel) 12 (7251): 2–22. https://doi.org/10.3390/su12187251. DOI: https://doi.org/10.3390/su12187251
Mankgele, K. P. 2023. “Green Entrepreneurial Orientation and Environmental Performance of SMEs in Johannesburg Municipality in the Gauteng Province: The Role of Green Competitive Advantage and Green Innovation.” International Journal of Research in Business & Social Science 12 (4): 154–162. https://doi.org/10.20525/ijrbs.v12i4.2454. DOI: https://doi.org/10.20525/ijrbs.v12i4.2454
Mareno-Gomez, J., J. C. Londono, and L. F. Zapata-Upegui. 2023. “Marketing Strategy and Competitiveness: Evidence from Colombian SMEs.” Tec Empresarial 17 (2): 48–64. https://doi.org/10.18845/te.v17i2.6701. DOI: https://doi.org/10.18845/te.v17i2.6701
Meyer, M. A., and M. K. Peter. 2024. “Evolving Marketing Strategies for Swiss SMEs in the ICT Sector: A Marketing Strategy Canvas in Support of Digital Transformation.” International Journal of Technology Marketing 18 (1): 91–112. https://doi.org/10.1504/IJTMKT.2024.135672. DOI: https://doi.org/10.1504/IJTMKT.2024.135672
Misztal, A., and M. Kowalska. 2023. “Factors of Green Entrepreneurship in Selected Emerging Markets in the European Union.” Environment, Development and Sustainability: 1–24. https://doi.org/10.1007/s10668-023-03811-y. DOI: https://doi.org/10.1007/s10668-023-03811-y
Mhlongo, T., and P. Daya. 2023. “Challenges Faced by Small, Medium and Micro Enterprises in Gauteng: A Case for Entrepreneurial Leadership as an Essential Tool for Success.” The Southern African Journal of Entrepreneurship and Small Business Management 15 (1): a591. https://doi.org/10.4102/sajesbm.v15i1.591. DOI: https://doi.org/10.4102/sajesbm.v15i1.591
Mondal, S., S. Singh, and H. Gupta. 2023. “Green Entrepreneurship and Digitalisation Enabling the Circular Economy through Sustainable Waste Management—An Exploratory Study of Emerging Economy.” Journal of Cleaner Production 422: 138–433. https://doi.org/10.1016/j.jclepro.2023.138433. DOI: https://doi.org/10.1016/j.jclepro.2023.138433
Muangmee, C., Z. D. Pikiewicz, N. Meekaewkunchorn, N. Kassakorn, and B. Khalid. 2021. “Green Entrepreneurial Orientation and Green Innovation in Small and Medium-Sized Enterprises (SMEs).” Social Sciences (Basel, Switzerland) 10 (136): 2–15. https://doi.org/10.3390/socsci10040136. DOI: https://doi.org/10.3390/socsci10040136
Muo, I. K., and A. A. Adebayo. 2019. “Green Entrepreneurship: Literature Review and Agenda for Future Research.” International Journal of Entrepreneurial Knowledge 7 (2): 17–29. https://doi.org/10.37335/ijek.v7i2.90. DOI: https://doi.org/10.37335/ijek.v7i2.90
Musfar, T. F. 2023. “Green Entrepreneurial Orientation for Achieving Sustainable Business Performance: A Conceptual Paper.” In Proceeding of International Conference on Innovations in Social Sciences Education and Engineering 3: 49. https://conference.loupiasconference.org/index.php/icoissee3/article/view/397.
Neumann, T. 2022. “Impact of Green Entrepreneurship on Sustainable Development: An Ex-Post Empirical Analysis.” Journal of Cleaner Production 377: 134317. https://doi.org/10.1016/j.jclepro.2022.134317. DOI: https://doi.org/10.1016/j.jclepro.2022.134317
Novitasari, M., and D. Agustia. 2023. “Competitive Advantage as a Mediating Effect in the Impact of Green Innovation and Firm Performance.” Business: Theory and Practice 24 (1): 216–226. https://doi.org/10.3846/btp.2023.15865. DOI: https://doi.org/10.3846/btp.2023.15865
Olazo, D. B. 2023. “Marketing Competency, Marketing Innovation and Sustainable Competitive Advantage of Small and Medium Enterprises (SMEs): A Mixed-Method Analysis.” Asia Pacific Journal of Marketing and Logistics 35 (4): 890–907. https://doi.org/10.1108/APJML-01-2022-0050. DOI: https://doi.org/10.1108/APJML-01-2022-0050
Oyewole, A. T., O. B. Adeoye, W. A. Addy, C. C. Okoye, and O. C. Ofodile. 2024. “Enhancing Global Competitiveness of US SMEs through Sustainable Finance: A Review and Future Directions.” International Journal of Management & Entrepreneurship Research 6 (13): 634–647. https://doi.org/10.51594/ijmer.v6i3.876. DOI: https://doi.org/10.51594/ijmer.v6i3.876
Parwandani, J. A., and G. Michaud. 2021. “What Are the Drivers and Barriers for Green Business Practice Adoption for SMEs?” Environment Systems & Decisions 41 (1): 577–593. https://doi.org/10.1007/s10669-021-09821-3. DOI: https://doi.org/10.1007/s10669-021-09821-3
Permatasari, P., and J. Gunawan. 2023. “Sustainability Policies for Small and Medium Enterprises: WHO Are the Actors?” Cleaner and Responsible Consumption 9 (1): 100–122. https://doi.org/10.1016/j.clrc.2023.100122. DOI: https://doi.org/10.1016/j.clrc.2023.100122
Sardana, D., M. Terziovski, and N. Gupta. 2016. “The Impact of Strategic Alignment and Responsiveness to Market on Manufacturing Firm’s Performance.” International Production Economics 177: 131–138. https://doi.org/1016/j.ijpe.2016.04.018. DOI: https://doi.org/10.1016/j.ijpe.2016.04.018
Sarstedt, M., C. M. Ringle, D. Smith, R. Reams, and J. F. Hair. 2014. “Partial Least Squares Structural Equation Modelling (PLS-SEM): A Useful Tool for Family Business Researchers.” Journal of Family Business Strategy 5 (1): 105–115. https://doi.org/10.1016/j.jfbs.2014.01.002. DOI: https://doi.org/10.1016/j.jfbs.2014.01.002
Sarwar, Z., M. A. Khan, Z. Yang, A. Khan, M. Haseeb, and A. Sarwar. 2021. “An Investigation of Entrepreneurial SMEs’ Network Capability and Social Capital to Accomplish Innovativeness: A Dynamic Capability Perspective.” SAGE Open 11 (3): 1–14. https://doi.org/10.1177/21582440211036089. DOI: https://doi.org/10.1177/21582440211036089
Sharfaei, S., J. Wei Ong, and A. O. Ojo. 2023. “The Impact of Market Uncertainty on International SME Performance.” Cogent Business & Management 10 (1): 2198160. https://doi.org/10.1080/23311975.2023.2198160. DOI: https://doi.org/10.1080/23311975.2023.2198160
Shehzad, M. U., J. Zhang, K. F. Latif, K. Jamil, and A. H. Waseel. 2023. “Do Green Entrepreneurial Orientation and Green Knowledge Management Matter in the Pursuit of Ambidextrous Green Innovation: A Moderated Mediation Model.” Journal of Cleaner Production 388: 135971. https://doi.org/10.1016/j.jclepro.2023.135971. DOI: https://doi.org/10.1016/j.jclepro.2023.135971
Shehzad, M. U., Z. Jianhua, K. Z. Naveed, and M. Sherani. 2024. “Sustainable Transformation: An Interaction of Green Entrepreneurship, Green Innovation, and Green Absorptive Capacity to Redefine Green Competitive Advantage.” Business Strategy and the Environment 1: 1–19. https://doi.org/10.1002/bse.3859. DOI: https://doi.org/10.1002/bse.3859
Siswoyo, M., G. Kustyadji, A. Wijayani, and W. Hartati. 2020. “Competitive Advantage of Environmental Management and Green Innovation.” Utopía y praxis latinoamericana: revista internacional de filosofía iberoamericana y teoría social 10: 533–544. https://www.redalyc.org/journal/279/27964799051/html/.
Skordoulis, M., G. Kyriakopoulos, S. Ntanos, S. Galatsidas, G. Arabatzis, M. Chalikias, and P. Kalantonis. 2022. “The Mediating Role of Firm Strategy in the Relationship between Green Entrepreneurship, Green Innovation, and Competitive Advantage: The Case of Medium and Large-Sized Firms in Greece.” Sustainability (Basel) 14 (6): 3286. https://doi.org/10.3390/su14063286. DOI: https://doi.org/10.3390/su14063286
Sudarman, D., and N. Lailla. 2023. “The Influence of Marketing Strategy and Marketing Mix on Marketing Performance of Ready to Drink Beverages through Brand Image.” International Journal of Professional Business Review 8 (9): 1–15. https://doi.org/10.26668/businessreview/2023.v8i9.3539. DOI: https://doi.org/10.26668/businessreview/2023.v8i9.3539
Sudi, D. M. 2024. “Sustainable Marketing Strategies for SMEs: The Impact of Customer Engagement on Business Growth in the Context of Environmental Sustainability.” Journal of Contemporary Administration and Management (ADMAN) 2 (1): 512–519. https://doi.org/10.61100/adman.v2i1.216.
Sudirjo, F. 2023. “Marketing Strategy in Improving Product Competitiveness in the Global Market.” ADMAN Journal of Contemporary Administration and Management 1 (2): 63–69. https://doi.org/10.61100/adman.v1i2.24. DOI: https://doi.org/10.61100/adman.v1i2.24
Sujanska, L., and M. Nadanyiova. 2023. “Sustainable Marketing and its Impact on the Image of the Company.” Marketing and Management of Innovations 2 (2): 51–57. https://doi.org/10.21272/mmi.2023.2-06. DOI: https://doi.org/10.21272/mmi.2023.2-06
Teece, David J., Gary Pisano, and Amy Shuen. 1997. “Dynamic Capabilities and Strategic Management.” Wiley Online Library 18 (7): 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708). DOI: https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Tekala, K., S. Baradarani, A. Alzubu, and A. Berberoglu. 2024. “Green Entrepreneurship for Business Sustainability: Do Environmental Dynamism and Green Structural Capital Matter?” Sustainability 16 (13): 2–24. https://doi.org/10.3390/su16135291. DOI: https://doi.org/10.3390/su16135291
Tolossa, A. T., M. Singh, and R. K. Gautam. 2024. “Unveiling the Nexus: The Crucial Role of Competitive Advantage in Bridging Entrepreneurial Marketing Practices and Sustainable Firm Performance in Small and Medium Enterprises.” Journal of Innovation and Entrepreneurship 13 (1): 1–24. https://doi.org/10.1186/s13731-024-00398-0. DOI: https://doi.org/10.1186/s13731-024-00398-0
Tu, Y., and W. Wu. 2021. “How Does Green Innovation Improve Enterprises’ Competitive Advantage? The Role of Organisational Learning.” Sustainable Production and Consumption 26: 504–516. https://doi.org/10.1016/j.spc.2020.12.031. DOI: https://doi.org/10.1016/j.spc.2020.12.031
Vasilescu, M. D., G. C. Damian, and G. L. Gradinaru. 2023. “Green Entrepreneurship in Challenging Times: A Quantitative Approach for European Countries.” Ekonomska Istrazivanja 36 (1): 1828–1847. https://doi.org/10.1080/1331677X.2022.2093767. DOI: https://doi.org/10.1080/1331677X.2022.2093767
Wernerfelt, B. 1984. “A Resource-Based View of the Firm.” Strategic Management Journal 5 (2): 171–180. https://doi.org/10.1002/smj.4250050207. DOI: https://doi.org/10.1002/smj.4250050207
Xiao, H., A. Al Mamun, M. Masukujjaman, and Q. Yang. 2023. “Modelling the Significance of Strategic Orientation on Green Innovation: Mediation of Green Dynamic Capabilities.” Humanities & Social Sciences Communications 10 (1): 777. https://doi.org/10.1057/s41599-023-02308-3. DOI: https://doi.org/10.1057/s41599-023-02308-3
Yasir, N., M. Babar, H. S. Mehmood, R. Xie, and G. Guo. 2023. “The Environmental Values Play a Role in the Development of Green Entrepreneurship to Achieve Sustainable Entrepreneurial Intention.” Sustainability (Basel) 15 (8): 6451. https://doi.org/10.3390/su15086451. DOI: https://doi.org/10.3390/su15086451
Yin, C., M. P. Salmador, D. Li, and M. B. Lloria. 2021. “Green Entrepreneurship and SME Performance: The Moderating Effect of Firm Age.” International Entrepreneurship and Management Journal 18 (1): 225–275. https://doi.org/10.1007/s11365-021-00757-3. DOI: https://doi.org/10.1007/s11365-021-00757-3
Zhang, J., Y. Chen, Q. Li, and Y. Li. 2023. “A Review of Dynamic Capabilities Evolution-Based on Organisational Routines, Entrepreneurship and Improvisational Capabilities Perspective.” Journal of Business Research 168 (1): 114–214. https://doi.org/10.1016/j.jbusres.2023.114214. DOI: https://doi.org/10.1016/j.jbusres.2023.114214
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Bonga Mgwatyu, Darlington Tawanda Chigori, Oni Olabanji
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
