Examining the Influence of Consumer Green Consumption Intention and Enterprise Environmental Awareness toward Enterprise Marketing Sustainability ()
1. Introduction
As sustainability concerns continue to grow, consumers are increasingly shifting towards eco-friendly purchasing behaviors, driving companies to adopt more sustainable practices (Saeed et al., 2019; Wiredu et al., 2023a). Consumer green consumption intention (CGCI) refers to the intention of consumers to purchase products and services that are environmentally friendly. This shift in consumer behavior has profound implications for how enterprises operate and market their products, particularly in terms of their environmental responsibility (Wiredu et al., 2024). Consequently, businesses are becoming more aware of their environmental impact, commonly referred to as enterprise environmental awareness (EEA). In parallel, the type of products a company offers product type (PRT) plays a key role in shaping the sustainability of its marketing efforts, collectively contributing to enterprise marketing sustainability (EMS) (Wibowo et al., 2020).
Accordingly, when consumer green consumption intentions rise, enterprises that emphasize sustainability in their marketing gain a competitive advantage by differentiating themselves in the market. This pushes companies to prioritize environmental messaging and branding that highlights their unique sustainability efforts. Sustainable marketing has become a strategic tool, helping companies stand out in a crowded marketplace by appealing to the values of environmentally conscious consumers (Wiredu et al., 2023b). Furthermore, consumer demand for green products stimulates innovation in green technologies and sustainable product designs (Yuan & Cao, 2022). For example, companies in sectors such as electronics, automotive, and household goods are pushed to develop energy-efficient, renewable-powered, or low-carbon-emission product types. The desire to meet consumers’ green intentions fosters a competitive landscape where enterprises innovate to offer the most sustainable products in the market (Wiredu, 2024).
Environmentally aware enterprises often invest in green marketing channels, such as digital platforms or sustainable packaging for promotional materials. These companies may reduce reliance on traditional print media or adopt eco-friendly packaging for their products (Fu et al., 2020). EEA encourages businesses to market their products in environmentally responsible ways, further promoting EMS by adopting greener marketing practices that align with their values (Roxas & Marte, 2022). More so, the development of new sustainable product types encourages innovation in marketing campaigns. When enterprises introduce products with unique green features, they can design creative marketing initiatives around themes of environmental protection, conservation, or responsible consumption. These innovative campaigns, driven by the nature of the product type, contribute to EMS by continuously reinforcing the brand’s commitment to sustainability and fostering engagement with environmentally conscious audiences (Han & Kim, 2017).
However, despite growing attention to green marketing and sustainability, there is still a significant research gap regarding the interconnectedness of CGCI, EEA, PRT, and EMS. Previous studies have examined these factors in isolation, but few have explored how they influence each other in an integrated model (Fu et al., 2020). This study aims to address this gap by investigating the relationship between these variables, focusing on how consumer intentions, enterprise awareness, and product types can enhance the sustainability of enterprise marketing strategies. Hence, the research objectives of the current study include; To examine the impact of CGCI on EMS, to assess the influence of EEA and PRT on EMS, and finally, to explore how CGCI directly impacts PRT and EEA. Furthermore, to achieve the objectives of the study, the following research questions were raised: (1) How does consumer green consumption intention influence enterprise marketing sustainability? (2) What is the role of enterprise environmental awareness and product type in promoting enterprise marketing sustainability? and (3) How does consumer green consumption intention impact product type and enterprise environmental awareness? Accordingly, the study offers the following contributions to existing body of knowledge; first, the study provides a comprehensive understanding of the interaction between CGCI, EEA, and PRT on EMS. It fills a research gap by integrating these variables into a unified model. Second, it offers practical insights for businesses seeking to enhance their sustainability through green marketing strategies.
Apart from the introduction, the rest of the paper is structured as follows: Chapter 2 covers the theoretical background and hypothesis development, Chapter 3 explains the research methodology, Chapter 4 presents the results and analysis, and finally, Chapter 5 provides the conclusion, along with the implications and limitations of the study.
2. Theoretical Background and Hypothesis
Development
2.1. Stakeholder Theory (ST)
Stakeholder Theory focuses on how businesses interact with various groups that have a stake in their operations, such as customers, employees, suppliers, governments, and communities. It emphasizes that organizations should not solely prioritize shareholder value but should also consider the broader impact of their actions on these stakeholders, especially in terms of social and environmental responsibility (Yuan & Cao, 2022). Accordingly, this theory suggests that companies are accountable to a wide range of stakeholders, including those concerned about the environment. Therefore, enterprises need to be environmentally aware and responsible to meet the expectations of green-conscious stakeholders like consumers, environmental advocacy groups, and regulatory bodies (Freeman, 1999).
Furthermore, stakeholder theory implies that businesses should focus on influencing consumer behavior by addressing environmental concerns. When enterprises prioritize sustainability, they meet consumer expectations for green products, thus encouraging consumers to adopt sustainable consumption habits (Wang et al., 2021). Additionally, different stakeholders may demand a range of environmentally friendly products. The product types offered by a company reflect its engagement with stakeholder concerns. For instance, companies responding to consumer demand for eco-friendly products can enhance consumer intentions to purchase green products (Kayikci et al., 2022). By aligning marketing strategies with sustainability, enterprises cater to stakeholders who value environmentally responsible behavior. Sustainable marketing signals to consumers and other stakeholders that the company is committed to long-term environmental stewardship, influencing consumer purchasing decisions in favor of green products (Shah & Bookbinder, 2022).
Therefore, this theory is suitable for understanding the influence of enterprise environmental awareness on consumer green consumption intention, as it highlights the responsibility of enterprises to address environmental concerns and market sustainable products. By considering the expectations and interests of multiple stakeholders, companies can create more effective and holistic green marketing strategies, positively impacting consumer intentions.
2.2. Consumer Green Consumption Intention and Enterprise Marketing Sustainability Nexus
As consumers’ green consumption intentions grow, enterprises are incentivized to align their marketing strategies with sustainability to meet this demand. The increasing expectation for eco-friendly products pushes companies to promote sustainable practices, highlighting their environmental efforts in marketing campaigns (Soule & Sekhon, 2022). Also, according to Paul et al., (2016) consumers with high green consumption intentions often prefer brands that demonstrate a strong commitment to sustainability. This preference encourages enterprises to adopt more sustainable marketing strategies to attract and retain eco-conscious customers. Hence, by aligning marketing efforts with consumer values, companies not only build brand loyalty but also enhance their reputation as environmentally responsible businesses, which further drives sustainable marketing efforts (Cheng & Liu, 2017).
In addition, Zhang et al. (2020) suggest that the desire to meet the needs of green-conscious consumers leads enterprises to innovate in both product development and marketing. Companies are encouraged to invest in sustainable product types and integrate them into their marketing strategies. For instance, the introduction of eco-friendly products can become a central theme of marketing campaigns, showcasing sustainability innovations and positioning the company as a leader in green practices.
Thus, this study debates that by responding to strong CGCI, enterprises are encouraged to develop and sustain environmentally focused marketing strategies, thereby reinforcing their commitment to sustainability and building stronger relationships with their target audience. Hence, the study proposed that;
H1: Consumer green consumption intention impacts enterprise marketing sustainability
2.3. Consumer Green Consumption Intention and Product Type Nexus
Aragoncillo & Orus (2018) contend that consumers increasingly intend to purchase green products, enterprises are driven to develop more eco-friendly product types. High CGCI pushes companies to innovate by offering products that are made from sustainable materials, are energy-efficient, or have a reduced environmental footprint. This consumer demand directly influences the variety of environmentally friendly product types available in the market (Han & Kim, 2017). Also, when consumer green consumption intentions rise, companies respond by diversifying their product lines to include a wider range of sustainable options. For example, companies may introduce organic, biodegradable, or recyclable versions of existing products to cater to eco-conscious consumers. The variety of product types expands as businesses seek to meet different preferences within the green consumer segment (Yuan & Cao, 2022).
Furthermore, research by Hong (2015) opined that high CGCI encourages businesses to consider the entire lifecycle of their products, from production to disposal. This drives companies to design product types that are not only eco-friendly in use but also sustainable in terms of sourcing, manufacturing, packaging, and end-of-life disposal (e.g., reusable or compostable products). Consequently, the intention of consumers to engage in green consumption influences the creation of products with minimal environmental impact throughout their lifecycle (Sun et al., 2019). Therefore, these positive influences show how rising CGCI can shape the types of products that enterprises offer, driving sustainability and innovation in product development to meet the expectations of environmentally conscious consumers. Thus, the study proposed that;
H2: Consumer green consumption intention significantly influences product type
2.4. Consumer Green Consumption Intention and Enterprise Environmental Awareness Nexus
Research contends that as consumers show greater intention to engage in green consumption, enterprises are compelled to become more environmentally aware. The demand for eco-friendly products and services signals to businesses that they must prioritize environmental sustainability to meet consumer expectations. This drives Enterprise Environmental Awareness (EEA) as companies respond to consumer preferences by adopting greener practices and increasing their environmental consciousness (Fu et al., 2023). Similarly, St-Pierre et al. (2023) underscores that high CGCI pressures enterprises to assess and improve the sustainability of their entire supply chain, from sourcing raw materials to production and distribution. As consumers increasingly prefer products that are sustainably produced, businesses become more environmentally aware of their supply chain impact. Thus, this relationship between consumer intention and enterprise awareness encourages companies to implement eco-friendly sourcing, reduce waste, and minimize carbon footprints throughout their operations (Raihan, 2023).
Moreso, Ribeiro et al. (2022) discovered that consumer green consumption intention drives enterprises to invest in green technologies and innovations. As consumers seek out sustainable products, companies are motivated to explore new eco-friendly technologies and processes that reduce environmental harm. This investment fosters EEA as businesses become more aware of the environmental implications of their operations and actively seek ways to minimize their ecological impact through technological advancements. Accordingly, the present research put forward that CGCI positively influences EEA by driving enterprises to respond to consumer preferences for sustainability. This response manifests in the form of increased environmental awareness, investments in green innovations, improved supply chain practices, and the development of clear environmental policies. Hence, the study theorizes that;
H3: Consumer green consumption intention positively impacts enterprise environmental awareness
2.5. Enterprise Environmental Awareness and Enterprise Marketing Sustainability Nexus
As enterprises become more environmentally aware, they incorporate sustainability into their core brand messaging. EEA influences the development of marketing campaigns that highlight the company’s environmental initiatives, such as carbon reduction efforts, energy-efficient processes, or sustainable sourcing. This integration strengthens EMS by aligning marketing strategies with eco-friendly values and building a responsible brand image (Soule & Sekhon, 2022). Consequently, grounded on the ST theory, with higher EEA, enterprises emphasize transparency in their environmental practices. Businesses that are aware of their environmental impact tend to be more transparent about their sustainability efforts in their marketing, showcasing certifications, eco-friendly processes, and adherence to green standards. This enhances EMS by promoting trust and credibility, as consumers prefer companies that are open about their environmental impact and sustainable efforts (Yuan & Cao, 2022).
Additionally, Ryan (2016) indicated in their study that as enterprises become more environmentally aware, they align their product offerings and positioning with sustainability goals. This leads to marketing strategies that emphasize the environmental benefits of products, such as energy efficiency, recyclability, or low carbon emissions. By positioning products in this way, EEA drives EMS, as sustainability becomes a key selling point in enterprise marketing. Hence, the study argues that the positive influences show how EEA drives enterprises to not only adopt sustainable practices internally but also to reflect these efforts in their marketing strategies, resulting in more responsible, long-term, and transparent marketing approaches under EMS (Adiyono et al., 2021). Therefore, the study proposed that;
H4: Enterprise environmental awareness positively impacts enterprise marketing sustainability
2.6. Product Type and Enterprise Marketing Sustainability Nexus
When companies offer eco-friendly product types, such as recyclable, biodegradable, or energy-efficient products, it allows them to promote sustainability directly in their marketing efforts. Highlighting environmentally responsible products helps enterprises create marketing campaigns that emphasize their commitment to sustainability, thus strengthening EMS. This alignment between product offerings and marketing ensures consistency in the brand’s green messaging (Yuan & Cao, 2022). Furthermore, according to Sun et al. (2019) sustainable product types enable enterprises to differentiate themselves from competitors by emphasizing unique green features in their marketing. By showcasing products that use sustainable materials, reduce waste, or lower carbon footprints, businesses can appeal to eco-conscious consumers. This product differentiation supports EMS by positioning the enterprise as an environmentally responsible leader, reinforcing the marketing strategy centered on sustainability.
Soule & Sekhon (2022) opined that product types that are designed with sustainability in mind encourage enterprises to be more transparent about the product lifecycle in their marketing efforts. For instance, marketing strategies can include information about the sourcing of materials, ethical production processes, and end-of-life disposal options, such as recycling or composting. Therefore, by promoting transparency around sustainable product types, companies strengthen EMS, as their marketing becomes more aligned with consumer expectations for environmental responsibility. Likewise, research by Han & Kim (2017) revealed that the type of products an enterprise offers greatly impacts how sustainability is integrated into its marketing strategies. Thus, eco-friendly and sustainable product types create opportunities for enterprises to align their marketing efforts with green values, enhancing their overall Enterprise Marketing Sustainability (EMS). Hence, the study theorizes that;
H5: Product type positively influences enterprise marketing sustainability (Figure 1)
Figure 1. Conceptual framework for the study. Source: Author’s construction.
3. Research Methodology
3.1. Research Method and Sampling
A self-administered questionnaire was developed for data collection, which spanned three months from August 2024 to October 2024. The survey was conducted in two phases: Phase 1 gathered basic demographic data from respondents, while Phase 2 featured 20 measurement scales assessing respondents’ general intention toward green consumption. Each item was rated using a 5-point Likert scale (1 = strongly disagree, 5 = strongly agree). The measurement scales were adapted from previous studies with slight modifications to fit the context of this research. Initially drafted in English, the questionnaires were translated into Bahasa Indonesia with the assistance of field experts. Participants were chosen based on their intention toward green consumption and business marketing professionals comprising CEOs, General Managers, and Marketing Personnel were required to have at least five years of experience as both green consumers and participants in marketing sustainability. This ensured they possessed extensive knowledge of Social Media Engagement, Customer Purchase Behavior, Product Promotion, Business Marketing Sustainability, and other relevant areas.
Throughout the survey distribution, the researchers provided a consent form and elucidated the study’s aims to participants, assuring them that their responses would remain strictly confidential and used solely for research purposes. The researchers employed a stratified sampling method to select participants, a widely used approach in research that involves dividing a population into subgroups or strata based on specific characteristics, then sampling from each subgroup. Stratified sampling is frequently applied in fields such as market research, public health studies, educational research, and ecological studies. Before sending out the questionnaires, a pilot test was organized. The pilot involves preliminary testing of the research instruments and procedures to identify potential issues or flaws before collecting data. In the pilot testing process, participants were invited to complete the questionnaires and share their understandability and relevance of the study items. The researchers also assessed the time required for survey completion and the data quality obtained. Any ambiguities or issues with specific questions were identified and addressed, ensuring the final survey instrument was well-structured and valid. In this study, it was used to select respondents from green consumer groups and marketing sustainability businesses. During the initial phase of data collection, the researchers reached out to 470 respondents through personal contact, WhatsApp, Instagram, and Facebook. By the end of the collection period, a strong response rate of 81% (N = 380) was achieved, reflecting high participation. Since no clinical or animal experiments were conducted, ethical approval was not required. Additionally, data were collected secretly, and participation in the survey was voluntary.
3.2. Demographic Profile of Respondents
The research revealed that the demographic profile of the respondents encompasses of 230 men, accounting for 61% of the respondents and 150 females, accounting for 39% of the total respondents, as displayed in Table 1. Also, the age distribution of the respondents is as follows: 22% (n = 100) are aged between 18 - 24, 29% (n = 135) are between the ages of 25 - 34, 26%, (n = 120) fall between the ages of 35 - 49, and 23% (n = 105) are above the age of 50. The study revealed that 22% of the participants possessed a high-school education, whereas 28% held undergraduate degree. Moreover, 27% of individuals had successfully acquired their master degree, while 23% possessed Ph.D. degree.
Furthermore, the investigation found that 26% (100) of the respondents are Chief Executive Officers, 33% (125) are General Managers, and 41% (155) are in the role of Marketing Personnel. Lastly, concerning business category, 21% (80) of respondents primarily deal in clothing and textiles, 25% (95) are in food and beverages, 30% (115) deals in electric appliances, 16% (60) are into furniture work, and 8% (30) signify other businesses.
Table 1. Demographic profile of respondent’s (N = 380).
Characteristics |
Category |
Frequency |
% |
Gender |
Male |
230 |
61% |
Female |
150 |
39% |
Age |
18 - 24 |
90 |
24% |
25 - 34 |
110 |
29% |
35 - 49 |
100 |
26% |
Above 50 |
80 |
21% |
Educational
Background |
High school |
80 |
21% |
Undergraduate |
110 |
29% |
Master’s degree |
100 |
26% |
Ph.D. degree |
90 |
24% |
Job Position |
Chief Executive Officer |
100 |
26% |
General Manager |
125 |
33% |
Marketing Personnel |
155 |
41% |
Business Category |
Clothing and textile |
80 |
21% |
Food and beverage |
95 |
25% |
Electric appliance |
115 |
30% |
Furniture |
60 |
16% |
Others |
30 |
8% |
Source: Author’s computation.
3.3. Measurements
The study’s online survey was conducted in two phases. In Phase 1, respondents provided basic demographic information of respondents. This included data such as gender, age, educational background, job position, and business category, as shown in Table 1. Phase 2 focused on measurement scales adapted from previous studies, outlined in Table 2. The questionnaire featured two higher-order constructs covering Consumer green consumption intention (CGCI), Enterprise environmental awareness (EEA), Product type (PRT), and Enterprise marketing sustainability (EMS). To ensure accuracy and reliability, feedback from online shoppers and business experts was collected before distributing the questionnaire. The constructs were measured using a 5-point Likert scale (1 = strongly disagree to 5 = strongly agree).
Table 2. Measurement details.
Source: Author’s compilation (2024).
3.4. Method of Data Analysis
The PLS-SEM method was employed to evaluate the theoretical outline for some reasons. Firstly, it enables precise estimation of associations between variables by concurrently investigating both structural and measurement models (Otoo et al., 2024). PLS-SEM is particularly suitable for exploratory research, as it can assess moderation and mediation effects while managing complex relationships with relatively small sample sizes (Hair et al., 2021). Lastly, its widespread use in several fields and many EMS studies underscores the reliability of this technique in parallel settings (Yuan & Cao, 2022).
4. Results and Discussion
4.1. Measurement Reliability and Validity
The study utilized various tests, such as composite reliability, Cronbach’s alpha, factor loadings, and average variance extracted (AVE), to assess the internal reliability of the constructs. Hair et al. (2021) suggest a threshold of over 0.70 for composite reliability, Cronbach’s alpha, and factor loadings. As shown in Table 3, the analysis confirms that the indicators are reliable and valid, with all constructs exceeding the recommended thresholds, thereby demonstrating strong internal reliability for the scales used in this research.
4.2. Common Method Bias (CMB)
The common method bias (CMB) can increase the standard errors of regression coefficients, complicating the identification of each predictor’s specific effect on the dependent variable. In addressing multicollinearity, the study ensures more precise and meaningful interpretations of the associations among variables. In this investigation, multicollinearity was evaluated using the variance inflation factor (VIF). As shown in Table 3, all VIF scores fall below the recommended threshold of 5.00, as proposed by Harman (1976), indicating no concerns with collinearity or CMB.
Table 3. Summary of validity results.
Indicators |
Items |
Factor
loadings |
Cronbach’s alpha
(α > 0.7) |
Composite reliability (rho_c) |
AVE (>0.5) |
VIF |
CGCI |
CGCI1 |
0.777 |
0.738 |
0.790 |
0.584 |
1.453 |
CGCI2 |
0.784 |
|
|
|
1.160 |
CGCI3 |
0.904 |
|
|
|
2.741 |
CGCI4 |
0.844 |
|
|
|
1.966 |
CGCI5 |
0.809 |
|
|
|
1.909 |
PRT |
PRT1 |
0.862 |
0.894 |
0.923 |
0.705 |
2.869 |
PRT2 |
0.901 |
|
|
|
3.269 |
PRT3 |
0.760 |
|
|
|
1.718 |
PRT4 |
0.810 |
|
|
|
1.999 |
PRT5 |
0.858 |
|
|
|
2.658 |
EEA |
EEA1 |
0.720 |
0.888 |
0.919 |
0.695 |
1.871 |
EEA2 |
0.874 |
|
|
|
2.872 |
EEA3 |
0.785 |
|
|
|
2.220 |
EEA4 |
0.884 |
|
|
|
3.413 |
EEA5 |
0.892 |
|
|
|
3.541 |
EMS |
EMS1 |
0.701 |
0.761 |
0.847 |
0.569 |
1.060 |
EMS2 |
0.901 |
|
|
|
2.854 |
EMS3 |
0.775 |
|
|
|
1.690 |
EMS4 |
0.831 |
|
|
|
2.041 |
EMS5 |
0.853 |
|
|
|
2.306 |
Source: Author’s computation based on PLS software.
4.3. Assessing Reflective Measurement Model
4.3.1. Discriminate Validity (Fornell-Larcker Criterial)
The discriminant validity is an essential component of construct validity, reflecting how accurately a measurement represents the intended theoretical construct. Henseler et al. (2015) suggest that a study model is valid when the structural model constructs have values below the 0.90 threshold. This study employed both the Heterotrait-Monotrait (HTMT) ratio and the Fornell & Larcker (1981) criteria. As revealed in Table 4, the outcomes from HTMT and Fornell & Larcker approve that the suggested model demonstrates robust psychometric properties.
Table 4. Results of discriminant validity.
Fornell & Larcker (1981) Criteria |
|
CGCI |
EEA |
EMS |
PRT |
CGCI |
0.696 |
|
|
|
EEA |
0.497 |
0.834 |
|
|
EMS |
0.316 |
0.628 |
0.754 |
|
PRT |
0.292 |
0.632 |
0.990 |
0.840 |
HTMT Criteria |
|
CGCI |
EEA |
EMS |
PRT |
CGCI |
|
|
|
|
EEA |
0.510 |
|
|
|
EMS |
0.592 |
0.745 |
|
|
PRT |
0.308 |
0.712 |
0.644 |
|
Source: Author’s computation based on PLS software.
4.3.2. Combined Loadings and Cross Loadings
Table 5 displays the outcomes for both cross-loadings and combined loadings of the constructs. The results indicate that each variable loads more strongly on its own items than on other variables, confirming that each construct demonstrates valid convergent validity through its item loadings. These outcomes suggest improved reliability and validity of the measurement instrument used. Furthermore, they show that the study model is not affected by likely measurement bias (Ribeiro et al., 2022; Raihan, 2023).
Table 5. Item cross-loading matrix of the constructs.
Items |
CGCI |
EEA |
EMS |
PRT |
CGCI1 |
0.777 |
0.578 |
0.600 |
0.755 |
CGCI2 |
0.784 |
0.610 |
0.739 |
0.640 |
CGCI3 |
0.904 |
0.418 |
0.223 |
0.215 |
CGCI4 |
0.844 |
0.484 |
0.296 |
0.286 |
CGCI5 |
0.809 |
0.559 |
0.280 |
0.244 |
EEA1 |
0.265 |
0.720 |
0.563 |
0.564 |
EEA2 |
0.444 |
0.874 |
0.604 |
0.612 |
EEA3 |
0.404 |
0.785 |
0.471 |
0.486 |
EEA4 |
0.467 |
0.884 |
0.499 |
0.494 |
EEA5 |
0.475 |
0.892 |
0.477 |
0.472 |
EMS1 |
0.477 |
0.078 |
0.701 |
0.056 |
EMS2 |
0.238 |
0.474 |
0.901 |
0.901 |
EMS3 |
0.253 |
0.575 |
0.775 |
0.760 |
EMS4 |
0.215 |
0.521 |
0.831 |
0.810 |
EMS5 |
0.319 |
0.556 |
0.853 |
0.858 |
PRT1 |
0.194 |
0.533 |
0.783 |
0.862 |
PRT2 |
0.238 |
0.474 |
0.901 |
0.901 |
PRT3 |
0.253 |
0.575 |
0.775 |
0.760 |
PRT4 |
0.215 |
0.521 |
0.831 |
0.810 |
PRT5 |
0.319 |
0.556 |
0.853 |
0.858 |
Source: Author’s computation based on PLS software.
4.4. Model Performance and Goodness of Fit
Assessing effect size is a valuable complement to measuring the significance level (p-value) of links among variables, as it offers insight into the practical significance of effects in study models. In this investigation, effect size was examined using F2 and R2 tests. As revealed in Table 6, the outcomes reveal that the statistical coefficients for F2 and R2 specify effect sizes ranging from small to large. Moreover, the model’s goodness of fit was assessed using RMSE, RMS_theta, and NFI. These results approve the robustness and reliability of the analysis, providing a solid foundation for policy-makers to base decisions on this study.
Table 6. Structural model fit summary.
Variables |
R2 |
F2 |
CGCI |
|
|
EEA |
0.247 |
0.328 |
EMS |
0.981 |
0.045 |
PRT |
0.085 |
0.093 |
Model Fitness Indicators |
Saturated Model |
Estimated Model |
RMSE |
0.126 |
0.203 |
NFI |
0.131 |
0.143 |
(RMS_theta) |
0.004 |
0.006 |
Source: Author’s computation based on PLS software.
4.5. Hypotheses Testing
Direct Path Analysis
The investigation suggested five direct links in the study model. The empirical result showed that CGCI has a direct and significant effect on EMS H1 (β = 0.634, t = 10.105; p-value = 0.000), CGCI H2 (β = 0.492, t = 23.311; p-value = 0.000) has a direct and noteworthy effect on PRT. The study additionally discovered that CGCI H3 (β = 0.597, t = 11.524; p-value = 0.000) has a positive influence on EEA. Congruently, the investigation presented that EEA H4 (β = 0.721, t = 43.248; p-value = 0.000) has a direct link with EMS. Furthermore, the investigation discovered that PRT H5 (β = 0.988, t = 14.473; p-value = 0.000) positively impact EMS.
Consequently, the outcome of the direct path result of the investigation has been conveyed in Table 7. Similarly, the structural model and the final model with estimated parameters are offered in Figure 2.
Figure 2. Final model with estimated parameters. Source: Author’s construction.
Table 7. Results of hypothesis analysis.
Hypothesis |
Relationship |
β |
T-stats |
P-value |
Hypothesis Supported |
Direct Relationship |
H1 |
CGCI -> EMS |
0.634*** |
10.105 |
0.000 |
Supported |
H2 |
CGCI -> PRT |
0.492*** |
23.311 |
0.000 |
Supported |
H3 |
CGCI -> EEA |
0.597*** |
11.524 |
0.000 |
Supported |
H4 |
EEA -> EMS |
0.721*** |
43.248 |
0.000 |
Supported |
H5 |
PRT -> EMS |
0.988*** |
14.473 |
0.000 |
Supported |
Source: Author’s computation based on PLS software.
5. Discussion
The concept of EMS has garnered considerable attention from scholars focused on business marketing sustainability. However, few studies have investigated the mechanisms through which CGCI influences EMS, PRT, and EEA, particularly in developing regions like Indonesia. To fill this gap, this study explores the direct relationships between these indicators. The findings are as follows: first, the results confirm that CGCI has a positive and significant effect on EMS, PRT, and EEA among businesses in Indonesia. Furthermore, the study shows that PRT and EEA have a strong positive impact on EMS, supporting hypotheses H1 through H5 proposed in this research.
The outcome revealed that CGCI has a positive and significant effect on EMS. A possible explanation to this result could be that consumers with strong green consumption intentions actively seek eco-friendly products and services. Meeting consumer preferences for sustainability not only enhances brand reputation but also drives long-term sales growth, positively impacting EMS (Soule & Sekhon, 2022). Accordingly, based on the ST theory, when enterprises align their marketing strategies with green consumption intentions, they foster stronger relationships with environmentally conscious consumers. CGCI promotes a sense of shared values between consumers and businesses, leading to higher brand loyalty, trust, and customer retention. This enhanced consumer engagement translates into more sustainable and long-lasting marketing practices, contributing positively to EMS. The outcomes in this study correspond to past research that underscored that CGCI predicts EMS (Fu et al., 2023; St-Pierre et al., 2023).
Also, the outcomes of this study approve that CGCI has a significant effect on PRT. The outcome implies that consumers with strong green consumption intentions actively seek out products that are environmentally friendly, such as those made from sustainable materials, with low carbon footprints, or that are recyclable. As a result, the types of products businesses create evolve to meet the rising demand for eco-conscious options (Aragoncillo & Orus, 2018). Furthermore, another reason for this outcome could be that CGCI encourages businesses to focus not only on the end product but also on the sourcing and production processes. Consumers with green intentions prefer products that are ethically sourced, cruelty-free, or made through sustainable supply chains. This demand influences companies to offer product types that reflect these values, such as fair-trade goods or products certified by environmental organizations, enhancing the overall sustainability of their product lines. Thus, the results of this study align with the conclusions from these studies that CGCI substantially impacts PRT (Sun et al., 2019; Soule & Sekhon, 2022).
Additionally, the third hypothesis of this research established that CGCI positively impacts PRT. Grounded on the ST theory, as consumers increasingly prioritize green consumption, they exert pressure on businesses to adopt more environmentally responsible practices. Companies are compelled to become more aware of their environmental impact in order to meet consumer expectations. This heightened awareness encourages enterprises to integrate eco-friendly strategies across operations, from reducing emissions and waste to adopting sustainable supply chains (Kayikci et al., 2022). Additionally, a possible elucidation to this interesting outcome may be that businesses recognize that appealing to environmentally conscious consumers through green marketing is a powerful way to strengthen their brand and differentiate themselves in the market. To align with CGCI, enterprises enhance their environmental awareness, investing in sustainable innovations, energy-efficient technologies, and greener product development. This shift toward environmental awareness helps them stay competitive in an increasingly eco-driven marketplace. Accordingly, this study’s outcomes align with these erstwhile study findings (Sun et al., 2019; Soule & Sekhon, 2022).
Similarly, the H4 delineated in this study articulated that EEA directly influences EMS. Thus, as enterprises become more environmentally aware, they are motivated to continuously improve their environmental practices. This heightened awareness encourages businesses to stay updated on new sustainability trends, technologies, and regulations. The more an enterprise focuses on environmental awareness, the more it learns and identifies areas for improvement, leading to a cycle of ongoing enhancement in its environmental practices (Yuan & Cao, 2022). Moreover, when an enterprise cultivates environmental awareness, it embeds sustainability into its core values and operations. This cultural shift makes environmental consciousness a guiding principle in decision-making, promoting further awareness across all levels of the organization. As a result, the enterprise not only sustains but also amplifies its environmental efforts, creating a feedback loop that deepens its commitment to environmental sustainability. The present investigation outcome is consistent with these past studies (Ribeiro et al., 2022; Raihan, 2023).
Finally, the H5 of this investigation established that PRT substantially influences EMS. Founded on the ST concept, when an enterprise develops product types that are eco-friendly or sustainable, it naturally enhances its environmental awareness. This focus on sustainability in product design compels the enterprise to become more conscious of its environmental footprint, leading to an overall increase in environmental awareness across its operations (Han & Kim, 2017). More so, offering environmentally friendly product types aligns an enterprise with the values of eco-conscious consumers. This market demand encourages the business to maintain high environmental standards and transparency, driving it to adopt more sustainable practices throughout its value chain. By continuously developing green products, enterprises increase their awareness of environmental issues, ensuring that their product offerings remain aligned with consumer expectations and regulatory requirements. Therefore, the present study result is consistent with these prior studies (Kayikci et al., 2022; St-Pierre et al., 2023)
6. Conclusion
This study provides important insights into the relationship between CGCI, PRT, EEA, and EMS. The research hypothesis was tested using the SEM-PLS methodology, and the empirical findings showed that CGCI has a positive influence on PRT, EEA, and EMS. Furthermore, the results confirmed that both EEA and PRT significantly and positively impact EMS.
6.1. Theoretical Implications
The study results make a noteworthy contribution to ST by stressing how CGCI serves as model, influencing EMS, PRT, and EEA. This suggests that businesses are not only accountable to shareholders but also to a broader set of stakeholders, including customers, employees, and the community, who increasingly demand environmentally responsible behavior. The findings indicate that companies that actively consider the preferences and intentions of these stakeholders in their strategies can enhance their sustainability initiatives, product offerings, and overall environmental consciousness. This reinforces the notion that stakeholder engagement is crucial for fostering corporate responsibility and sustainability, providing a theoretical foundation for future research to explore how stakeholder dynamics influence corporate environmental strategies and the interdependencies between consumer intentions and business practices (Shah & Bookbinder, 2022).
More so, the research also pinpoints the influence of EEA and PRT on EMS. The results specify that EEA and PRT are direct predictors of EMS. This relationship suggests that a firm’s heightened EEA leads to more sustainable PRT, which, in turn, fulfills the demands of various stakeholders such as consumers, regulators, and advocacy groups who prioritize environmental responsibility. The findings indicate that businesses that actively consider and respond to stakeholder concerns regarding sustainability are more likely to implement effective marketing strategies that promote environmentally friendly practices. This reinforces the idea that stakeholder engagement is essential for achieving long-term sustainability goals, as it creates a feedback loop where stakeholder expectations drive the development of sustainable products and practices, ultimately enhancing the firm’s overall EMS. Future research can build on this implication by exploring specific stakeholder influences and their roles in shaping corporate sustainability initiatives.
6.2. Practical Implications
The research offers the following practical contributions: Since the investigation results confirmed that CGCI, is vital in improving EMS, PRT, and EEA, the research proposes that businesses should actively incorporate green consumption trends into their product development and marketing strategies. By aligning with consumer demand for environmentally sustainable PRT and practices EEA, companies can not only enhance their environmental awareness but also achieve long-term EMS. This can be achieved through eco-friendly product innovation, transparent communication about sustainability efforts, and promoting green initiatives, which will strengthen brand loyalty and competitiveness in an increasingly eco-conscious market.
Moreover, given the importance and essential role of EEA and PRT in driving EMS, Businesses should focus on developing and promoting eco-friendly PRT as a way to enhance their overall EEA. By prioritizing sustainable product types, companies will naturally become more conscious of environmental impacts across their operations, encouraging continuous improvements in sustainability practices and increasing their accountability to eco-conscious stakeholders.
Additionally, as enterprises work toward achieving EMS, they should integrate environmental awareness into their core marketing strategies. By promoting their commitment to sustainability through transparent messaging, green branding, and environmentally conscious campaigns, businesses can elevate their EEA while responding to consumer demand for sustainable business practices. This strengthens their market position and encourages long-term sustainability efforts throughout the organization.
6.3. Limitations and Future Research
Whereas the study offers valuable insights, several limitations should be acknowledged. First, the research may face issues of generalizability due to its focus on a specific sample size and regional context. Future studies should aim to incorporate larger and more diverse samples to enhance the representativeness and generalizability of the results. Moreover, exploring the potential mediating and moderating effects of external factors, such as economic conditions, cultural differences, and global events, could deepen our understanding of the intricacies surrounding enterprise marketing sustainability.