The impact of environmental regulation, green innovation capabilities and sustainable marketing activities on strategic performance

Abstract

Purpose: This research examines the direct effects of command-controlled (CCER) and market-incentive environmental regulations (MIER) on green product (GPRI) and process innovation (GPCI) and sustainable economic (SEMA), social (SSMA) and environmental marketing activities (SENMA) and the contribution of these interactions on strategic performance (STP). Design/methodology/approach: Data were collected from 400 firms in Türkiye using a survey technique, one of the quantitative research methods. These data were analyzed using SmartPLS 4 software and structural equation modeling. Findings: The findings reveal that CCER positively influences GPRI-GPCI and SEMA-SSMA. However, we found that MIER positively affects GPCI and negatively affects SEMA. Furthermore, GPRI and SEMA-SSMA positively impacted STP. Additionally, GPRI and SEMA-SSMA mediate the relationship between CCER and STP. Moreover, the results indicate that MIER influences STP through SEMA. Originality/value: This study contributes to the literature by integrating institutional theory (INT) and dynamic capabilities (DC) to explore the interplay between CCER and MIER, GPRI-GPCI, sustainable marketing activities and STP.