Drivers and performance outcomes of an eco-friendly corporate and marketing strategy in smaller manufacturing firms

Abstract

With the intensification of problems relating to the environment, a growing number of firms are becoming more ecologically conscious. This paper presents the results of a study conducted among 103 small manufacturers located in Cyprus, focusing on the internal/external drivers of their ecofriendly strategy, and resulting performance outcomes. The findings confirmed the instrumental role of organisational resources and capabilities in forming an environmental orientation in these firms, as well as that of public concern (but not that of environmental legislation). This environmental orientation subsequently provides the basis toward building sound eco-friendly strategies at both the corporate and marketing levels. The implementation of these strategies is conducive to building an advantage against competitors, which was shown to enhance the firm’s market (but not financial) dimensions of business performance. These findings have important implications for designing appropriate business strategies, as well as formulating the right policies at governmental level to enhance environmental sensitivity among small manufacturing units.