Environmental sustainability mediating adaptive marketing capability and performance of manufacturing firms in emerging markets

Abstract

While sustainability has emerged as a critical mega-trend reshaping business strategies worldwide, little is known about how adaptive marketing capabilities foster corporate environmental sustainability and whether these capabilities translate into improved firm performance. This study investigates the effect of adaptive marketing capability (AMC) on firm performance, with corporate environmental sustainability (CES) serving as a mediating variable, within the context of large-scale manufacturers in Ethiopia. Employing an outside-in strategic perspective, data were collected via a cross-sectional survey from 206 manufacturing managers. Partial Least Squares Structural Equation Modeling (PLS-SEM) was utilized to test the hypothesized relationships. The results indicate that AMC has a positive and significant impact on CES and firm performance, with a higher effect on CES. Mediation analysis indicates that CES partially mediates the AMC and firm performance linkage, showing its function in translating marketing capabilities into sustainability-driven firm performance. The study offers practical guidance for managers in resource-constrained contexts, indicating that AMC can enhance environmental sustainability and performance. By aligning marketing strategies with sustainability goals, firms can contribute to Sustainable Development Goals 12 and 13. This study advances the marketing and sustainability discourse by demonstrating how AMC relates to sustainable firm performance.