Uncovering the Value of Green Advertising for Environmental Management Practices

This paper extends previous environmental management research by building and empirically testing a model of the contingency effects of green advertising on the relationships between environmental management practices in terms of environmentally conscious manufacturing and product stewardship, environmental reputation and financial performance. We examine the value of green advertising in sharing and publicizing information about organizational achievements in environmental preservation in a business-to business context with the Taiwanese electronics manufacturing industry. The theoretical propositions are largely confirmed by structural path analyses of survey responses collected from 122 Taiwanese electronics manufacturers. Green advertising delivers financial benefits only for those manufacturers that do not have an established environmental reputation. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment

[1]  Y. Lun,et al.  The roles of stakeholder support and procedure-oriented management on asset recovery , 2012 .

[2]  Aseem Prakash,et al.  GREEN MARKETING, PUBLIC POLICY AND MANAGERIAL STRATEGIES , 2002 .

[3]  K. Lai,et al.  Ecological modernisation of Chinese export manufacturing via green logistics management and its regional implications , 2012 .

[4]  R. Kreutzer,et al.  Corporate Reputation Management , 2012 .

[5]  Arun Sharma,et al.  Sustainability and business-to-business marketing: A framework and implications , 2010 .

[6]  Sumesh R. Nair,et al.  An environmental marketing system - A proposed model based on Indian experience , 2008 .

[7]  Kimberly D. Elsbach,et al.  Acquiring Organizational Legitimacy Through Illegitimate Actions: A Marriage of Institutional and Impression Management Theories , 1992 .

[8]  M. Clarkson.  A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance , 1995 .

[9]  Carol L Cone,et al.  Causes and effects. , 2003, Harvard business review.

[10]  Chin-Shan Lu,et al.  A taxonomy of green supply chain management capability among electronics-related manufacturing firms in Taiwan. , 2010, Journal of environmental management.

[11]  Luk N. Van Wassenhove,et al.  The Economics of Remanufacturing Under Limited Component Durability and Finite Product Life Cycles , 2007, Manag. Sci..

[12]  Sarah Golden,et al.  Corporate environmental disclosures: are they useful in determining environmental performance? , 2001 .

[13]  M. Lindell,et al.  Accounting for common method variance in cross-sectional research designs. , 2001, The Journal of applied psychology.

[14]  Polly S. Rizova,et al.  Are You Networked for Successful Innovation , 2008 .

[15]  Robert D. Klassen,et al.  Environmental Management in Operations: The Selection of Environmental Technologies* , 1999 .

[16]  M. Porter,et al.  The competitive advantage of corporate philanthropy. , 2002, Harvard business review.

[17]  Paul R. Milgrom,et al.  Relying on the Information of Interested Parties , 1985 .

[18]  Iain J. Clelland,et al.  Talking Trash: Legitimacy, Impression Management, and Unsystematic Risk in the Context of the Natural Environment , 2004 .

[19]  Michael W. Toffel,et al.  Responding to Public and Private Politics: Corporate Disclosure of Climate Change Strategies , 2009 .

[20]  Harrie Vredenburg,et al.  Corporate Environmental Responsiveness Strategies , 1999 .

[21]  W. Davidson,et al.  Corporate Environmental Initiatives and Anticipated Firm Performance: The Differential Effects of Process-Driven Versus Product-Driven Greening Initiatives , 2000 .

[22]  Sergio Rubio,et al.  Characteristics of research on green marketing , 2009 .

[23]  Olli-Pekka Hilmola,et al.  North European companies and major Eurasian countries – future outlook on logistics flows and their sustainability , 2011 .

[24]  R. Ping.  A Parsimonious Estimating Technique for Interaction and Quadratic Latent Variables , 1995 .

[25]  Forest L. Reinhardt,et al.  Environmental Product Differentiation: Implications for Corporate Strategy , 1998 .

[26]  Christina W.Y. Wong,et al.  Green logistics management and performance: Some empirical evidence from Chinese manufacturing exporters , 2012 .

[27]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[28]  Elizabeth C. Economy,et al.  Scorched earth: will environmental risks in China overwhelm its opportunities? , 2007, Harvard business review.

[29]  David Power,et al.  Social and Environmental Disclosure and Corporate Characteristics: A Research Note and Extension , 2001 .

[30]  Leslie C Carlson,et al.  Green Advertising and the Reluctant Consumer , 1995 .

[31]  K. Peattie,et al.  Social marketing: A pathway to consumption reduction? , 2009 .

[32]  J. R. Carter,et al.  Interorganizational determinants of environmental purchasing: Initial evidence from the consumer products industries , 1998 .

[33]  T.C.E. Cheng,et al.  Green shipping practices in the shipping industry : conceptualization, adoption, and implications , 2011 .

[34]  Kevin Lane Keller.  Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs , 2001 .

[35]  C. Fombrun,et al.  What's in a Name? Reputation Building and Corporate Strategy , 1990 .

[36]  Leslie C Carlson,et al.  Does environmental advertising reflect integrated marketing communications?: An empirical investigation , 1996 .

[37]  Tina M. Lowrey,et al.  Buyer Characteristics of the Green Consumer and Their Implications for Advertising Strategy , 1995 .

[38]  Kevin Lane Keller,et al.  How Social-Cause Marketing Affects Consumer Perceptions , 2006 .

[39]  Christina W.Y. Wong,et al.  Leveraging Environmental Information Integration to Enable Environmental Management Capability and Performance , 2013 .

[40]  M. Russo,et al.  A Resource-Based Perspective On Corporate Environmental Performance And Profitability , 1997 .

[41]  Amit Gupta,et al.  Determining Optimal Advertising Strategies: A Markov Decision Model Approach* , 1996 .

[42]  P. Bloom,et al.  Choosing the Right Green Marketing Strategy , 2004 .

[43]  J. González‐Benito,et al.  Environmental proactivity and business performance: an empirical analysis , 2005 .

[44]  Christina W. Y. Wong,et al.  Green Service Practices: Performance Implications and the Role of Environmental Management Systems , 2013 .

[45]  Kunpeng Li,et al.  Reverse channel design: the impacts of differential pricing and extended producer responsibility , 2012 .

[46]  F. Pil,et al.  LEAN, GREEN, AND THE QUEST FOR SUPERIOR ENVIRONMENTAL PERFORMANCE , 2001 .

[47]  Frank L. Montabon,et al.  An examination of corporate reporting, environmental management practices and firm performance , 2007 .

[48]  W. Kilbourne,et al.  Green Advertising: Salvation or Oxymoron? , 1995 .

[49]  S. Toms,et al.  Firm Resources, Quality Signals and The Determinants of Corporate Environmental Reputation: Some UK Evidence , 2002 .

[50]  R. Freeman.  Strategic Management: A Stakeholder Approach , 2010 .

[51]  S. Waddock,et al.  Corporate Responsibility and Financial Performance: The Role of Intangible Resources , 2010 .

[52]  Joseph Sarkis,et al.  RELATIONSHIPS BETWEEN OPERATIONAL PRACTICES AND PERFORMANCE AMONG EARLY ADOPTERS OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES IN CHINESE MANUFACTURING ENTERPRISES , 2004 .

[53]  Sulaiman A. Al-Tuwaijri,et al.  The Relations Among Environmental Disclosure, Environmental Performance, and Economic Performance: A Simultaneous Equations Approach , 2004 .

[54]  Barton A. Weitz,et al.  Corporate Hypocrisy: Overcoming the Threat of Inconsistent Corporate Social Responsibility Perceptions , 2009 .

[55]  Álvaro Garrido-Morgado,et al.  Corporate Reputation: A Combination of Social Responsibility and Industry , 2012 .

[56]  Chung-Chiang Chen,et al.  Incorporating green purchasing into the frame of ISO 14000 , 2005 .

[57]  Sridhar Narayanan,et al.  Heterogeneous Learning and the Targeting of Marketing Communication for New Products , 2009, Mark. Sci..

[58]  Ching-Chiao Yang,et al.  The Effect of Environmental Management on Environmental Performance and Firm Performance in Taiwanese Maritime Firms , 2012 .

[59]  K. Lai,et al.  Green operations and the moderating role of environmental management capability of suppliers on manufacturing firm performance , 2012 .

[60]  Ad J. de Ron,et al.  Sustainable production: The ultimate result of a continuous improvement , 1998 .

[61]  Robert Sroufe,et al.  EFFECTS OF ENVIRONMENTAL MANAGEMENT SYSTEMS ON ENVIRONMENTAL MANAGEMENT PRACTICES AND OPERATIONS , 2003 .

[62]  R. Lamming,et al.  The Environment as a Supply Chain Management Issue , 1996 .

[63]  Lynette Knowles Mathur,et al.  An Analysis of the Wealth Effects of Green Marketing Strategies , 2000 .

[64]  Paul Shrivastava,et al.  Environmental technologies and competitive advantage , 1995 .

[65]  L. V. Wassenhove,et al.  Sustainable Operations Management , 2005 .

[66]  J. Diamond,et al.  China's environment in a globalizing world , 2005, Nature.

[67]  Meetu Agarwal,et al.  Defluoridation of Water Using Amended Clay , 2003 .

[68]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[69]  Ruud H. Teunter,et al.  Matching Demand and Supply to Maximize Profits from Remanufacturing , 2003, Manuf. Serv. Oper. Manag..

[70]  W. Laufer.  Social Accountability and Corporate Greenwashing , 2003 .

[71]  A. Hillman,et al.  Shareholder value, stakeholder management, and social issues: what's the bottom line? , 2001 .

[72]  Charles J. Fombrun,et al.  Reputation: Realizing Value from the Corporate Image , 1996 .

[73]  T. Mitchell,et al.  Disclosure of contingent environmental liabilities: Some unintended consequences? , 1998 .

[74]  Luk N. Van Wassenhove,et al.  Remanufacturing as a Marketing Strategy , 2008, Manag. Sci..

[75]  P. Bentler,et al.  Significance Tests and Goodness of Fit in the Analysis of Covariance Structures , 1980 .

[76]  Rabikar Chatterjee,et al.  A Three-Stage Model of Integrated Marketing Communications at the Marketing-Sales Interface , 2006 .

[77]  S. Brammer,et al.  Does it pay to be different? An analysis of the relationship between corporate social and financial performance , 2008 .

[78]  T. Duncan,et al.  A Communication-Based Marketing Model for Managing Relationships , 1998 .

[79]  Stephen. Pavelin,et al.  Corporate Reputation and Social Performance: The Importance of Fit , 2006 .

[80]  Won-Moo Hur,et al.  Investigating the Antecedents of Green Brand Equity: A Sustainable Development Perspective , 2012 .

[81]  G. Dowling,et al.  Corporate reputation and sustained superior financial performance , 2002 .

[82]  Jacqueline Cramer,et al.  Barriers and stimuli for ecodesign in SMEs , 2002 .

[83]  Ricky Y. K. Chan.  The effectiveness of environmental advertising: the role of claim type and the source country green image , 2000 .

[84]  Antoaneta P. Petkova,et al.  Being good or being known: An empirical examination of the dimensions, antecedents, and consequences of organizational reputation , 2005 .