Green marketing and firm performance

Understanding the determinants of firm performance is critical for competitiveness and sustainability. This thesis investigates how internal capabilities (Intellectual Capital and Financial Capability) and external factors (Competition Intensity and Green Perceptions) influence performance. Moving beyond one-dimensional studies, this research adopts a multidimensional approach, introducing consumers' green perceptions as a moderator and measuring performance in relative terms against competitors. Quantitative research was conducted in Greece through a two-phase primary data collection. First, 80 firms provided data on their capabilities and performance. Second, 848 evaluations were collected from 200 consumers regarding the green perceptions of these firms. Data were analyzed using Ordered Probit regression. The findings reveal that Intellectual Capital has a significant positive effect on firm performance, whereas Financial Capability does not show a statistically significant direct relationship. Notably, Competition Intensity is positively related to performance, suggesting it acts as a catalyst for improvement within the Greek business context. Regarding Green Perceptions, while they do not directly affect performance, they function as a crucial moderator, significantly strengthening the positive relationship between Intellectual Capital and firm performance. This evidence demonstrates a clear synergy between knowledge assets and environmental reputation. This research contributes to strategic management literature by offering a framework tested in a mid-level European economy. The findings suggest that managers should prioritize investments in intellectual capital while ensuring that marketing departments effectively communicate green strategies to achieve superior competitive advantage.