Does Green Market Orientation and Green Supply Chain Affect Business Performance? The Mediating Role of Environmental Attitude

Arwin Yafi Rahmatullah, Sinta Putri Anggraini, Muhammad Ali Fikri, Aris Kusumo Diantoro

Abstract


Challenges related to the environment have become increasingly significant in recent years. For instance, depletion of the ozone layer, climate change, different forms of pollution and shortages of critical raw materials are only some of these challenges. Simultaneously, there has been an increasing demand for more environmentally friendly products. The uncertainty of markets and the instability of businesses have been challenges for all enterprises. This study evaluates the impacts of Green Market Orientation (GMO) and Green Supply Chain Management (GSCM) on Business Performance (BP), with Environmental Attitude (EA) as a mediating variable. Quantitative research was conducted with a sample of 200 MSMEs in East Lombok using purposive sampling. Partial Least Squares (PLS) has been applied for data analysis. Negative impacts of both GMO and GSCM on BP and a negative impact of GMO on EA were determined. In contrast, GSCM had a positive and significant impact on EA. Furthermore, EA had a positive and significant effect on BP. The findings also indicated that EA mediates the relationship between GSCM and BP. Hence, environmental attitudes of the MSMEs were transforming green supply chain practices into improved business performance.

Keywords


Green Market Orientation; Green Supply Chain Management; Environmental Attitude; Business Performance

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References


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DOI: https://doi.org/10.18860/iq.v22i2.41781

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