Nurturing Business Performance: Unveiling the Power of Strategic Green Orientation and Sustainable Design

Abstract

In today's volatile and competitive industrial landscape, firms are under increasing pressure to deliver continuous value and adapt to evolving customer demands. Sustainable product design represents a potential approach to attain an environmentally friendly, strategic green market orientation (SGMO). However, the extant literature also asserts that not all organizations benefit from the adoption of green practices. The objective of this study is to investigate the mediating mechanism of sustainable process and product design on the effect of SGMO on firm performance. The study also considers the moderating role of market dynamism (MD), which reflects volatility in customer requirements, technology, and competition, particularly relevant in the B2B context. Survey data from 327 Indian manufacturing executives were analyzed with structural equation modelling and necessary condition analysis. The findings reveal that sustainable process and product design mediate between SGMO and firm performance. Further, market orientation moderates the impact of SGMO on firm performance through sustainable process and product design. This study contributes to industrial marketing theory by highlighting the importance of integrating sustainability‐oriented design and marketing strategies for achieving both environmental and financial performance.