The interactive influence of green market orientation and green management values on green practices and green performance of food and beverage SMMEs

Abstract

Unlike larger companies, the practices of small, micro, and medium-sized enterprises (SMMEs) do not yet align with the growing consumer demand for environmentally friendly products and sustainable production processes. As a result, scholars suggest that Food and Beverage SMMEs should adopt a green market orientation to rebuild themselves after the COVID-19 pandemic. The South African government has also shown its commitment by prioritizing food security, green economy initiatives, and small businesses to drive economic recovery post the pandemic. Focusing on F&B SMMEs in South Africa, and adopting a multidimensional view of green market orientation, this study quantitatively explored the relationships between green market orientation as the primary phenomenon, and companies’ green performance. Green market orientation was examined in terms of its components, namely 1) green customer orientation, 2) green competitor orientation, and 3) green inter-functional coordination, furthermore, extending the examination to also consider the effect of companies’ green management values on their implementation of green internal practices. A total of 491 F&B SMMEs in South Africa participated in the study by completing a structured questionnaire, selected through non-probability, purposive sampling. Out of these, 376 complete and useful responses were statistically analyzed. The sample profile was described, and the reliability and validity of the constructs were verified through descriptive and inferential analyses. Multiple regression analysis was conducted to examine the relationships between selected variables based on the study’s hypotheses, and to identify any moderating and mediating variables in the final model. Green customer orientation has been identified as the most significant factor in driving green market orientation to improve green performance. The study also found that when F&B SMMEs embrace a green market orientation, implementing green internal practices can further enhance their green performance. Moreover, adopting related consumption and waste policies can boost companies’ green performance, reduce food waste, and improve food security. Companies that integrate a green customer orientation and green Preface vi internal practices, guided by green management values, are likely to see improved green performance. It is clear that green management values should be an essential part of management’s approach, and a green customer orientation that reflects management’s attentiveness to their customers’ evolving needs will heighten companies’ awareness of changing market needs, ultimately leading to enhanced green performance.