Mediating Role of Innovation Capability on the Link Between Green Marketing Orientations and Sustainable SME Performance

Abstract

This study investigates the influence of Green Marketing Orientation (GMO) and Innovation Capability on
Sustainable Performance among SMEs in Kaduna Metropolis, Nigeria. Drawing on Stakeholder Theory and the
Resource-Based View, the research explores both direct and mediated relationships across three dimensions of
Internal (IGMO), Strategic (SGMO), and Tactical (TGMO). A cross-sectional survey design was adopted, and data
were collected from 382 valid responses using structured questionnaires administered to SME owner-managers.
Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed for data analysis. The findings
reveal that SGMO significantly enhances sustainable performance, both directly and through innovation capability.
TGMO also influences performance indirectly via innovation, while IGMO shows no significant direct or mediating
effect. Innovation capability emerged as a key driver of sustainability outcomes, supporting the RBV's emphasis on
internal resources. These results highlight that while SMEs engage in various green initiatives, only those embedded
in strategic frameworks and linked to innovation lead to meaningful sustainability gains. The study concludes that
SMEs must move beyond isolated green efforts and invest in innovation-oriented strategies to achieve long-term
environmental, economic, and social performance. Practical and theoretical implications are discussed, offering
insights for policymakers, such as SMEs managers, and sustainability advocates in emerging markets.