Drawing upon the theoretical lenses of signaling theory and the natural resource-based view (NRBV), this study examines the direct and indirect effects of sustainability market orientation (SMO) on sustainable business performance (SBP) in small restaurants. Specifically, it investigates whether SMO directly enhances SBP and explores the mediating roles of green reputation and green loyalty in this relationship.
The data were collected from a sample of 254 small restaurant managers and owners across Vietnam. The hypotheses were tested using partial least squares structural equation modeling.
The results indicate that SMO has a direct positive impact on SBP, which is partially mediated by green reputation and green loyalty. Additionally, these variables exhibit sequential mediation in this relationship.
This study recommends that the managers of small restaurants adopting SMO focus on low-cost, low-tech green practices to overcome constraints and achieve success. This approach aligns with the collectivist and Confucian cultural values prevalent in relevant countries, thereby effectively facilitating the small restaurants' efforts to increase SBP both directly and indirectly through building a green reputation and green loyalty.
By integrating signaling theory with NRBV, this study extends the current understanding of how firms develop signaling resources through green initiatives to achieve sustainable competitive advantages. It enhances the knowledge on the impacts of green loyalty and reputation on performance outcomes in Vietnam, which is an emerging country influenced by collectivistic and Confucian cultural values.
