Influence of Green Marketing Practices and Corporate image on Performance of ISO 9000 and 14000 Series Certified Firms in Kenya

Abstract

The study reported here investigated influence of green marketing practices and corporate image on performance of Kenyan firms that are ISO 9000 and 14000 series certified. Specific objectives were to determine the relationship between green marketing practices and performance of ISO certified organizations in Kenya; to establish influence of green marketing practices on corporate image; to assess the relationship between corporate image and firm performance; and to determine the mediating role of corporate image on the relationship between Green Marketing Practices and Performance. A census survey of 120 firms was conducted between January and February, 2012 with response rate of 67.5 percent. The pertinent data obtained from managers (internal customers) were analyzed using descriptive statistics as well as correlation and regression analyses. Survey results showed that green marketing practices had statistically significant effect on some performance indicators (innovativeness, effectiveness, and competitive advantage) and not on others (sales turnover, market share and gross profit). The latter set of results may be explained by the fact that there is usually a considerable time lag between expenditure of marketing effort and its impact on long-term
measures of a firm’s performance. In addition, sales turnover, market share and gross profit are a function of many other internal as well as external business and non-business factors. The study results further revealed that corporate image had statistically significant direct effect of communication-related indicators and not on sales-oriented measures of the firm’s performance. Finally, results showed that interaction effect of green marketing practices and corporate image was statistically not significant ( = 0.062). The study has made contributions to theory, policy and managerial practice in the discipline of green marketing. It has offered a more explicit clarification into the relationships that exist between green
marketing practices, corporate image and firm’s performance. The authors recommend replication of the study in other business contexts. In addition, since respondents of the current study were managers (internal customers) and thus, future research should collect pertinent data from external customer publics.

Keywords: Green Marketing, Environmental Degradation,
Corporate Image and Firm Performance