Green Marketing and Innovation Boost Food Business Performance, Study at Duta Mall Palangka Raya Finds
Green marketing practices combined with business innovation significantly improve marketing performance among food and beverage businesses at Duta Mall Palangka Raya, according to a new study conducted by Noorjaya Nahan and Abdi from the Faculty of Economics and Business, Universitas Palangka Raya, Indonesia. Published in the International Journal of Contemporary Sciences (IJCS), Volume 4, Issue 5 (2024), the research found that environmentally responsible marketing not only directly increases business performance but also stimulates innovation, which further strengthens customer growth, sales, profitability, and brand visibility. The findings provide practical guidance for small and medium-sized food businesses seeking sustainable growth in an increasingly competitive market.
As consumers become more environmentally conscious, businesses are under growing pressure to reduce their environmental footprint while maintaining competitiveness. Across the global food and beverage industry, customers increasingly prefer brands that demonstrate responsible practices such as eco-friendly packaging, waste reduction, sustainable sourcing, and transparent environmental communication.
For food and beverage businesses operating in shopping malls, competition extends beyond product quality and price. Businesses must also create memorable customer experiences, differentiate their brands, and respond quickly to changing consumer preferences. Green marketing has therefore emerged as an important business strategy, but its effectiveness often depends on whether environmental commitment is accompanied by continuous innovation.
Sustainability Is Becoming a Competitive Advantage
Duta Mall Palangka Raya is one of the largest commercial centers in Central Kalimantan, housing dozens of food and beverage tenants that compete to attract visitors every day. In this highly competitive environment, environmental responsibility can become a valuable source of differentiation.
Recognizing this trend, Noorjaya Nahan and Abdi examined how green marketing influences marketing performance, and whether innovation acts as a bridge that strengthens the relationship between sustainable business practices and commercial success.
Survey Involving Food and Beverage Business Owners
The researchers employed a quantitative explanatory approach involving 50 food and beverage business operators at Duta Mall Palangka Raya.
Participants completed structured questionnaires measuring three major variables: green marketing, innovation, and marketing performance. The responses were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate both direct and indirect relationships among the variables. Before testing the hypotheses, the researchers confirmed that all measurement indicators met accepted standards for validity and reliability, ensuring that the results accurately represented the business conditions being studied.
Descriptive findings showed that respondents generally reported strong implementation of sustainable business practices. Green marketing achieved an average score of 4.18, innovation received 4.24, while marketing performance reached 4.20 on a five-point scale, indicating positive perceptions across all three variables.
Green Marketing Encourages Innovation
The study revealed that environmentally responsible marketing significantly stimulates innovation among food and beverage businesses.
The strongest relationship identified in the research was between green marketing and innovation, with a path coefficient of 0.724, indicating that businesses implementing environmentally friendly practices are considerably more likely to develop new products, improve services, redesign packaging, and adopt creative marketing strategies.
Researchers found that businesses embracing green marketing often introduced innovations such as seasonal menus using local ingredients, environmentally friendly packaging, cleaner operational processes, and digital sustainability campaigns that strengthened customer engagement.
Innovation Improves Marketing Performance
Innovation also demonstrated a significant positive effect on marketing performance.
According to the analysis:
- Innovation positively affected marketing performance with a coefficient of 0.512.
- Green marketing directly improved marketing performance with a coefficient of 0.371.
- Green marketing strongly influenced innovation with the highest coefficient of 0.724.
- Innovation also served as a partial mediator, meaning that green marketing becomes even more effective when translated into practical business improvements.
The researchers also found that green marketing and innovation together explained 68.1% of the variation in marketing performance, indicating that these two factors account for most differences in business outcomes among participating food and beverage tenants.
Marketing performance in the study was measured through indicators including:
- Sales growth
- Customer growth
- Market share
- Profitability
- Brand visibility
Green Marketing Builds Customer Trust
The findings suggest that customers increasingly associate environmentally responsible business practices with higher product quality and stronger corporate responsibility.
Businesses using recyclable packaging, reducing single-use plastics, promoting sustainability initiatives, and maintaining cleaner operations were more likely to gain customer confidence. According to the researchers, these practices strengthen brand differentiation and encourage repeat purchases.
However, the study emphasizes that environmental messaging alone is insufficient. Businesses achieve the greatest benefits when green marketing is supported by tangible innovation, including new menu development, improved service quality, operational efficiency, and creative digital promotion.
Practical Recommendations for Food Businesses
Based on the research findings, the authors recommend several strategies for food and beverage businesses seeking sustainable growth:
- Expand the use of environmentally friendly packaging and reduce single-use plastic.
- Develop innovative menu options using locally sourced ingredients.
- Improve service quality and operational efficiency.
- Strengthen digital marketing campaigns that communicate sustainability values.
- Introduce refill, reusable, or waste-reduction initiatives.
- Continuously monitor sales, customer growth, profitability, and brand visibility.
- Treat green marketing as an ongoing business strategy rather than merely a promotional message.
The researchers also recommend that shopping mall management support sustainability by providing shared waste management facilities, organizing green promotional campaigns, and encouraging collaboration among environmentally responsible tenants.
Academic Perspective
According to Noorjaya Nahan and Abdi from the Faculty of Economics and Business, Universitas Palangka Raya, green marketing creates the greatest business value when it stimulates continuous innovation. Their findings indicate that environmentally responsible marketing should not be viewed simply as branding or promotional content. Instead, it should become the foundation for ongoing improvements in products, services, operational processes, packaging, and customer experience. Integrating sustainability with innovation enables businesses to strengthen competitiveness while contributing to environmental responsibility.
Broader Implications
The study offers important insights for small and medium-sized enterprises (SMEs), food and beverage entrepreneurs, policymakers, and business organizations seeking sustainable economic development.
For business owners, the findings demonstrate that sustainability can generate measurable commercial benefits rather than merely fulfilling environmental obligations. For policymakers, the research highlights the importance of supporting green entrepreneurship through incentives, training, and infrastructure that encourage innovation. Shopping centers and commercial districts can also use the findings to design sustainability initiatives that improve both tenant competitiveness and environmental performance.
As consumers increasingly prioritize responsible businesses, integrating green marketing with innovation may become a key strategy for long-term growth across Indonesia's retail and hospitality sectors.
Author Profile
Noorjaya Nahan is a researcher at the Faculty of Economics and Business, Universitas Palangka Raya, Indonesia, specializing in marketing management, sustainable business strategy, green marketing, innovation, and small business development. This study was conducted in collaboration with Abdi, who also researches marketing performance, entrepreneurship, innovation management, and business sustainability, with a focus on strengthening the competitiveness of Indonesian small and medium-sized enterprises.
Source
- Article Title: The Effect of Green Marketing on Marketing Performance Through Innovation in Food and Beverage Businesses at Duta Mall Palangka Raya
- Journal: International Journal of Contemporary Sciences (IJCS)
- Publication Year: 2024
- DOI: https://doi.org/10.55927/5ez27z73
- Official URL: https://journalijcs.my.id/index.php/ijcs
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