Market-oriented sustainability: moderating impact of stakeholder involvement
| Date | 28 January 2014 |
| DOI | https://doi.org/10.1108/IMDS-04-2013-0194 |
| Published date | 28 January 2014 |
| Pages | 21-36 |
| Author | James W. Clark,Lisa C. Toms,Kenneth W. Green |
| Subject Matter | Information & knowledge management,Information systems,Data management systems |
Market-oriented sustainability:
moderating impact of stakeholder
involvement
James W. Clark
Department of Management, Marketing, and
Management Information Systems, Southern Arkansas University, Magnolia,
Arkansas, USA
Lisa C. Toms
College of Business, Southern Arkansas University, Magnolia,
Arkansas, USA, and
Kenneth W. Green
Department of Management, Marketing, and
Management Information Systems, College of Business,
Southern Arkansas University, Magnolia, Arkansas, USA
Abstract
Purpose – The theoretical framework for market-oriented sustainability developed by Crittenden,
Crittenden, Ferrell, Ferrell, and Pinney, in which the relationship between organizational culture and
performance management is theorized as moderated by stakeholder involvement, is empirically
assessed. The paper aims to discuss these issues.
Design/methodology/appro ach – Crittenden et al. model is operationalized usi ng market
orientation to represent organizational culture and climate, logistics performance to represent
performance management, and green purchasing to represent the moderator stakeholder involvement
in sustainability. The model is assessed using data collected from a sample of 257 manufacturing
managers working for US manufacturing plants. A partial least squares structural equation modeling
approach is used to statistically assess for measurement scale validity and reliability and the
moderated model.
Findings – The results support the conceptual framework for market-oriented sustainability
theorized by Crittenden et al. Organization culture in the form of market orientation interacts with
stakeholder involvement in sustainability in the form of green purchasing to enhance performance
monitoring in the form of logistics performance.
Research limitations/implications – This study is one of the first to empirically assess the
market-oriented sustainability model. Only one set of potential constructs (market orientation, green
purchasing, and logistics performance) is used to test the overall model thus limiting the generalization
of the results.
Practical implications – The results indicate that manufacturing managers should work to
establish and improve market orientation as a direct way of making their plants and organizations
environmentally sustainable and that manufacturing managers interact with supply chain partners,
specifically suppliers, to satisfy customer demands for eco-friendly products and services.
Originality/value – This is one of the first studies to empirically assess the general form of the
market-oriented sustainability model.
Keywords Logisticsperformance,Market orientation,Green purchasing,Market-orientedsustainability,
Partial least squares
Paper type Research paper
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-5577.htm
Received 19 April 2013
Revised 9 July 2013
Accepted 12 July 2013
Industrial Management & Data
Systems
Vol. 114 No. 1, 2014
pp. 21-36
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/IMDS-04-2013-0194
Market-oriented
sustainability
21
1. Introduction
As economies develop around the world, concerns over sustainability have moved to
the forefront (Urban and Govender, 2012). Organizational sustainability has three
components: economic, social, and environmental (Carter and Easton, 2011; Carter and
Rogers, 2008). In this study, we focus on environmental sustainability that refers to the
indefinite consumption of resources without damaging the natural environment
(Constanza et al., 1991). Specifically, we work toward answering the question: what can
be done by manufacturing and marketing managers to ensure that expanding levels of
consumption can continue without degrading the environment?
Crittenden et al. (2011) propose a conceptual framework for market-oriented
sustainability that attempts to capture the underlying mechanisms that mo tivate
corporations to act in a sustainable manner. They propose a strategic alignment of
sustainability with marketing strategies for the purpose of creating competitive
advantage. The framework includes three general constructs: organizational cultu re
and climate, stakeholder involvement, and performance management. Crittenden et al.
(2011) model stakeholder involvement as a moderator of the relationship between
organizational culture and performance management.
The purposeof this study is to empirically assessthe general theoreticalframework for
the study of market-oriented sustainability. Deshpande and Farley (1998) specifically
identify market orientation as a type of organizational culture, and Slater and Narver
(1995) specifically identify suppliers as key stakeholders. Crittenden et al. (2011) discuss
the importanceof establishing performance metricsto reduce or eliminate what they call
the “strategy-to-performance gap.” We operationalize the market-oriented sustainability
model using marketorientation to representorganizational culture, logisticsperformance
to represent performance management,and green purchasing to representthe moderator
stakeholder involvement. Market orientation is an overriding philosophy that serves as
the primary fabricof an organization’s culture establishing the capability to identify and
respond to changes in customer demand. Bowersox et al. (2000) argue that logistics
performance reflects a firm’s overall supply chain competency. Logistics performance
reflects an organization’s performance as it relates to its ability to deliver goods and
services in the precise quantities and at the precise times required by customers
(Green et al., 2008; Bowersox et al., 2000). The measurement of logistics performance
reflects a focus on performance management. Tier-one suppliers are an important
stakeholder group, and green purchasing represents the ability of manufacturing
organizations to integrate and coordinate environmental sustainability efforts with
tier-one suppliers and reflects the degree to which suppliers are involved in purchasing
initiatives that focus on environmental sustainability.
Crittenden et al. (2011) call for the identification of specific variables and recommend the
use of multiple research methodologies to test the market-oriented sustainability model.
This study is original in that it is one of the first to empirically assess the theorized
framework following a survey methodology. The model is assessed using data collected
from a sample of 257 manufacturing managers working for US manufacturing plants.
A structural equation modeling (SEM) approach, specifically partial least squares (PLS), is
used to conduct the statistical analysis of measurement scale validity and reliability and the
moderated model. Crittenden et al. (2011, p. 85) state that their framework “should encourage
marketers to integrate sustainability into the development of marketing strategies.”
This study provides empirical results that support this recommendation of integration.
IMDS
114,1
22
To continue reading
Request your trial