Green marketing practices, competitive advantage and restaurant performance: Evidence from Pakistan

Environmental concerns are rising and expectations are also rising among stakeholders, leading to a growing trend for restaurants to take steps to enhance their organizational performance in a responsible way. Although green marketing has been studied extensively, empirical studies have been scarce in investigating the relationship between ‘green pressure’ and the adoption of ‘green practices’ as well as the relationship between green practices and multiple organizational outcomes from the restaurant manager's perspective in developing economies. To fill this gap, the current research developed and empirically tested an integrated model that relates environmental pressures, green practices, competitive advantage, profitability, and customers' buying behavior in the restaurant industry of Pakistan. The quantitative research design was used and data was collected using a structured questionnaire from 204 restaurant managers of Lahore, Pakistan. The proposed relationships were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results suggested that environmental pressure plays a significant role in encouraging the use of green practices which positively affects customer buying behavior, profitability and competitive advantage. The findings indicate that environmentally friendly operation procedures are consistent with organizational competences which have a several potential financial, competitive, and market benefits. By incorporating the concepts of Resource Based View, Green Marketing Theory and Sustainable Competitive Advantage Theory, the study makes a distinctive contribution to the existing literature. Practically, the results offer evidence to restaurant managers and policy makers of the importance of sustainable restaurant operation to building organizational competitiveness and to long-term environmental sustainability in developing economies.