Green Marketing Strategy and its effect on the Performance of Small and Medium Business Enterprises (SMEs)

Abstract

Small and medium scale business enterprises (SMEs) are the pivotal determinant of nation’s 
economic growth and development as it has the power to create employment opportunities, 
contribute to the gross domestic product and generate revenue to the government through taxes. 
However, SMEs performance has been constrained by numerous obstacles one of which is the 
failure to incorporate efficient green marketing strategy in their business dealings. Thus, the main 
objective of this study is to empirically test the effect of green marketing strategy on the 
performance of SMEs. More so, the specific objectives are to examine the effect of green product 
strategy, green price strategy, green place strategy and green promotion strategy. Therefore, there 
is an obvious need to bridge this gap and contribute to the body of existing literature. Therefore, 
the findings of this study revealed that there is significant effect of green product on customer 
satisfaction, green price also has a significant effect on company’s profitability, green place has a 
strong and positive influence in strengthening intermediaries and increase brand reputation while, 
green promotion has a strong influence on sales maximisation. The study recommended that SMEs 
should have greener mind-set, exhibit greener attitude and be environmentally friendly in all 
significant aspect of their business. Future researchers should give special attention to green 
people, process and physical evidence because it is evidenced that they have received negligible 
attention.