The Effect of Environmental and Social Sustainable Marketing on Financial Performance of Ethiopian Textile Product Exporters: Does Economic Sustainability Mediate the Relationship?
Abstract
The study investigates how ESM, SSM, and ECSM strategies and practices influence the financial performance of textile product exporters in Ethiopia. Unlike previous studies, both the direct effects of ESM and SSM on EP and their effect on EP through ECSM (i.e., indirect effect) were examined using PLS-SEM with a sample of 98 managers in the textile and garment industry. The findings are: first, the direct effect of ESM on EP is significant, but its effects on ECSM and on EP through ECSM are not significant; second, SSM has a significant direct effect on EP, and its effect on ECSM and on EP through ECSM are significant and strong; finally, ECSM has a strong positive effect on EP. The results imply that ESM issues need to be recognized in an organization’s short-term plans, strategies, and practices, while SSM needs to be embedded into the long-term economic objectives of the firm.
DOI: https://doi.org/10.54663/2182-9306.2025.v.13.n.25.158-182
Keywords
Full Text:
PDFReferences
Al-Ghwayeen, W. S., & Abdallah, A. B. (2018). Green supply chain management and export performance. Journal of Manufacturing Technology Management, 29(7), 1233–1252. https://doi.org/10.1108/jmtm-03-2018-0079
Ali, S. M., Khan, K. A., Haider, N. S., & Rehman, A. (2023). Analyzing the Impact of Green Marketing Strategies on the Environmental Performance and market performance of Companies in the Consumer Goods Sector. Journal of Policy Research, 9(4), 276–283. https://doi.org/10.61506/02.00150
and Value-Belief-Norm theory: Assessing unobserved heterogeneity of two ethnic groups. Sustainability, 11(12), 1-28.
Anderson, M. W., Teisl, M., & Noblet, C. (2012). Giving voice to the future in sustainability: Retrospective assessment to learn prospective stakeholder engagement. Ecological Economics, 84, 1–6. https://doi.org/10.1016/j.ecolecon.2012.09.002
Anggadwita, G., & Mustafid, Q. Y. (2014). Identification of factors influencing the performance of small medium enterprises (SMEs). Procedia - Social and Behavioral Sciences, 115, 415–423. https://doi.org/10.1016/j.sbspro.2014.02.448
Anita, S. Y., Mu’min, H., Megawati, E., Setiawati, R., & Utomo, B. (2024). The relationship between environmentally friendly product innovation, sustainable marketing strategy, and customer satisfaction to financial performance in the sustainable fashion industry in Indonesia. West Science Interdisciplinary Studies, 2(05), 1063–1076. https://doi.org/10.58812/wsis.v2i05.929
Ara, H., Leen, J. Y. A., & Hassan, S. H. (2019). GMS for Sustainability Performance in the Apparel Manufacturing Industry: A Conceptual Framework. Vision the Journal of Business Perspective, 23(2), 170–179. https://doi.org/10.1177/0972262919850931
Barraco, M. (2024). Characteristics of research on green marketing. Theoretical study. https://doi.org/10.46286/msi.2024.19.1.2
Belz, F. M., & Karstens, B. (2010). Strategic and instrumental sustainability marketing in the Western European food processing industry: Conceptual framework and hypothesis. In Proceedings of the Corporate Responsibility Research Conference (pp. 1–13). Euromed Management School.
Boehe, D. M., & Barin Cruz, L. (2010). Corporate social responsibility, product differentiation strategy and export performance. Journal of Business Ethics, 91(S2), 325–346. https://doi.org/10.1007/s10551-010-0613
Brian W. Jacobs, Vinod R. Singhal, & Ravi Subramanian. (2010). An empirical investigation of environmental performance and the market value of the firm. Journal of Operations Management, 28(5), 430–441. https://doi.org/10.1016/j.jom.2010.01.001
Cai, T., & Hao, J. (2025). The influence of ESG responsibility performance on enterprises’ export performance. International Review of Economics & Finance, 103917. https://doi.org/10.1016/j.iref.2025.103917
Chang, H. S. (2024). Sustainability competence in small and medium exporters: Determinant and outcomes. Business Strategy and the Environment, 33(6), 5624–5646. https://doi.org/10.1002/bse.3775
Costa, C., Lages, L. F., & Hortinha, P. (2015). The bright and dark side of CSR in export markets: Its impact on innovation and performance. International Business Review, 24(5), 749–757. https://doi.org/10.1016/j.ibusrev.2015.01.008
Daniel, T. (2016). Assessment of factors affecting the performance of the garment exporting industry in Ethiopia: The case of Addis Ababa. Unpublished MBA Thesis, Addis Ababa University.
Dudeja, M. (2023). Corporate Social Responsibility and Sustainable Marketing: A Comparative Study. International Journal For Multidisciplinary Research. https://doi.org/10.36948/ijfmr.2023.v05i05.8061
Elkington, J. (1998). Cannibals with forks: The triple bottom line of 21st-century business. New Society Publishers.
ETIDI. (2017). Ethiopian textile and apparel profile. Addis Ababa: Sivanet Printing.
Feng, Y., Chen, H., & Tang, J. (2018). The impacts of social responsibility and ownership structure on sustainable financial development of China’s energy industry. Sustainability, 10(2), 301. MDPI AG. https://doi.org/10.3390/su10020301
Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L., & de Colle, S. (2010). Stakeholder theory: The state of the art. Cambridge University Press.
Ghazali, E. M., Nguyen, B., Mutum, D. S., & Yap, S. F. (2019). Pro-environmental behaviours
Giovannoni, E., & Fabietti, G. (2013). What is sustainability? A review of the concept and its applications. In Integrated Reporting (pp. 21–40). https://doi.org/10.1007/978-3-319-02168-3_2
Gordon, R.; Carrigan, M. and Hastings, G. (2011). A Framework for Sustainable Marketing.
Hair Jr, J.F., Hult, G.T.M., Ringle, C., and Sarstedt, M. (2017). A primer on partial least
Hair, J. F. Jr., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications.
Hörisch, J., Freeman, R. E., & Schaltegger, S. (2014). Applying stakeholder theory in sustainability Management. Organization & Environment, 27(4), 328–346. https://doi.org/10.1177/1086026614535786
Hourneaux Jr, F., Gabriel, M. L. d. S., & Gallardo-Vázquez, D. A. (2018). Triple bottom line and sustainable performance measurement in industrial companies. Revista de Gestão, 25(4), 413–429. https://doi.org/10.1108/REGE-04-2018-0065
Hristov, I., Chirico, A., & Appolloni, A. (2019). Sustainability value creation, survival, and growth of the company: A critical perspective in the sustainability balanced scorecard (SBSC). Sustainability, 11(7), 2119. https://doi.org/10.3390/su11072119
Ikram, M., & Siddiqui, D. A. (2019). Effect of Green Supply Chain Management on Environmental Performance and Export Performance: A Case Study of Textile Industries in Pakistan. Social Science Research Network. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3397119
Kallmuenzer, A., Bichler, B., Petry, T., & Valeri, M. (2023). Employee perceptions of corporate social responsibility activities: the case of family firms. European Business Review, 35(5), 600–623. https://doi.org/10.1108/ebr-09-2022-0171
Khalil, N., Abdullah, S. N. C., Haron, S. N., & Hamid, M. Y. (2022). A review of green practices and initiatives from stakeholder’s perspectives towards sustainable hotel operations and performance impact. Journal of Facilities Management, 22(4), 653–682. https://doi.org/10.1108/jfm-03-2022-0025
Kotler, P. (2018). Why broadened marketing has enriched marketing. AMS Review, 8(1–2), 20–22. https://doi.org/10.1007/s13162-018-0112-4
Kumar, V., Rahman, Z., Kazmi, A., & Goyal, P. (2012). Evolution of Sustainability as Marketing Strategy: Beginning of new Era. Procedia - Social and Behavioral Sciences, 37, 482–489. https://doi.org/10.1016/j.sbspro.2012.03.313
Leonidou, L. C., Fotiadis, T. A., Christodoulides, P., Spyropoulou, S., & Katsikeas, C. S. (2015). Environmentally friendly export business strategy: Its determinants and effects on competitive advantage and performance. International Business Review, 24(5), 798–811. https://doi.org/10.1016/j.ibusrev.2015.02.001
Li, Y. (2022). Corporate Social Responsibility of Chinese Manufacturing Companies’ effect on Green Business Strategy, Innovation and Performance. Technium Social Sciences Journal, 31, 522–552. https://doi.org/10.47577/tssj.v31i1.6382
Lu, J., Ren, L., Yao, S., Qiao, J., Mikalauskiene, A., & Streimikis, J. (2020). Exploring the relationship between corporate social responsibility and firm competitiveness. Economic Research-Ekonomska Istraživanja, 33(1), 1621–1646. https://doi.org/10.1080/1331677x.2020.1761419
Mahmood, A., & Bashir, J. (2020). How does corporate social responsibility transform brand reputation into brand equity? Economic and noneconomic perspectives of CSR. International Journal of Engineering Business Management, 12, 184797902092754. https://doi.org/10.1177/1847979020927547
Martin, D. M., & Schouten, J. W. (2014). Sustainable Marketing through the Natural Step (pp. 231–243). Palgrave Macmillan, London. https://doi.org/10.1057/9781137353290_18
Martinez-Conesa, I., Soto-Acosta, P., & Palacios-Manzano, M. (2016). Corporate social responsibility and its effect on innovation and firm performance: Empirical research in SMEs. Journal of Cleaner Production, 142, 2374–2383. https://doi.org/10.1016/j.jclepro.2016.11.038
Mutum DS, Ghazali EM, Wei-Pin W. Parallel mediation effect of consumption values and the modera-tion effect of innovativeness, in predicting the influence of identity on green purchasing behavior. J Con-sum Behav. 2021, 20:291–302.
Nguyen, H., Onofrei, G., Yang, Y., Pham, H., Wiengarten, F., & Nkhoma, M. (2022). Handling customer green pressures: The mediating role of process innovation among export‐oriented manufacturing industries. Business Strategy and the Environment, 32(4), 2312–2326. https://doi.org/10.1002/bse.3250
Nurjaman, K. (2024). Sustainable Marketing: Integrating Green Marketing Practices into Marketing Strategy. Influence. https://doi.org/10.54783/influencejournal.v6i2.232
Palma, E., Gomes, C., Kneipp, J., & Rosa, L. (2014). Estratégias de Negócios Sustentáveis e Desempenho Exportador: uma análise em empresas do setor de gemas e joias. Review of Business Management. https://doi.org/10.7819/rbgn.v16i50.1456
Phan, T. T. H., Tran, H. X., Le, T. T., Nguyen, N., Pervan, S., & Tran, M. D. (2020). The Relationship between Sustainable Development Practices and Financial Performance: A Case Study of Textile Firms in Vietnam. Sustainability, 12(15), 5930. https://doi.org/10.3390/su12155930
Savitz, A. W. & Weber, K. (2006). The Triple Bottom Line. Jossey-Bass.
Schönborn, G., Berlin, C., Pinzone, M., Hanisch, C., Georgoulias, K., & Lanz, M. (2018). Why social sustainability counts: The impact of corporate social sustainability culture on financial success. Sustainable Production and Consumption, 17, 1–10. https://doi.org/10.1016/j.spc.2018.08.008
Silva, G. M., Dias, Á. L., Lisboa, A. C., & Silva, F. P. (2023). Drivers and outcomes of sustainable export marketing strategies in international environments. Review of International Business and Strategy, 33(4), 627–648. https://doi.org/10.1108/ribs-05-2022-0056
Singh, V. K., Keshari, A., Singh, D., Singh, P. C., & Gautam, A. (2024). Green export strategies and SMEs export performance: mediating roles of innovation, readiness, and activities. Journal of Innovation and Entrepreneurship, 13(1). https://doi.org/10.1186/s13731-024-00451-y
Starik, M., & Kanashiro, P. (2013). Toward a theory of sustainability management. Organization & Environment, 26(1), 7–30. https://doi.org/10.1177/1086026612474958
Svensson, G., Ferro, C., Høgevold, N., Padin, C., Varela, J. C. S., & Sarstedt, M. (2018). Framing the triple bottom line approach: Direct and mediation effects between economic, social and environmental elements. Journal of Cleaner Production, 197, 972–991. https://doi.org/10.1016/j.jclepro.2018.06.226
Taliento, M., Favino, C., & Netti, A. (2019). Impact of Environmental, Social, and Governance Information on Economic Performance: Evidence of a Corporate ‘Sustainability Advantage’ from Europe. Sustainability, 11(6), 1738. https://doi.org/10.3390/su11061738
Teplova, T., Sokolova, T., Gubareva, M., & Sukhikh, V. (2022). The Multifaceted Sustainable Development and Export Intensity of Emerging Market Firms under Financial Constraints: The Role of ESG and Innovative Activity. Complexity, 2022(1). https://doi.org/10.1155/2022/3295364
Themistocleous, C. (2024). Sustainable marketing (pp. 215–218). Edward Elgar Publishing. https://doi.org/10.4337/9781800880344.ch40
Yazdanifard, R., & Mercy, I. E. (2011). The Impact of Green Marketing on Customer Satisfaction and Environmental Safety. International Conference on Computer Communication and Management, 5, 637-641.
Yue, S., & Li, B. (2024). The influence of ESG practices on domestic value-added to exports during the period of technological change. PLoS ONE, 19(7), e0303248. https://doi.org/10.1371/journal.pone.0303248
Zeriti, A., Robson, M. J., Spyropoulou, S., & Leonidou, C. N. (2014). Sustainable Export Marketing Strategy fit and performance. Journal of International Marketing, 22(4), 44–66. https://doi.org/10.1509/jim.14.0063
Refbacks
- There are currently no refbacks.
Copyright (c) 2026 Tdessie mangistie Mamaru
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
International Journal of Marketing, Communication and New Media
ISSN: 2182-9306
DOI: 10.54663/2182-9306
Qualis Periódicos - CAPES: B2
REBIB: Q2
Indexing:
WEB OF SCIENCE (WoS) & JOURNAL CITATION REPORTS (JCR)
QUALIS - GOOGLE SCHOLAR - LATINDEX - REDIB - RCAAP - OAJI - DRJI - MIAR - LIVRE - ERIH PLUS - INDEX COPERNICUS
