Market-oriented sustainability: moderating impact of stakeholder involvement

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/approach – Crittenden et al. model is operationalized using 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.