The Impact of Green Market Orientation and Ambidextrous Green Innovation on Organizational Performance: Empirical Study on Small Restaurants in Vietnam

Abstract

The natural resource-based view (NRBV) posits that aligning business operations toward sustainability fosters innovation and leads to sustainable competitive advantages. Green market orientation (GMO) and green innovation (GI) have emerged as strategic approaches that enhance organizational performance (OP). However, understanding service contexts still needs to be improved, particularly in small restaurants in emerging countries. Additionally, while previous studies on GMO and GI have primarily focused on operationalizing OP based on past performance, there needs to be more understanding of their impact on past performance and future growth. Utilizing a balanced scorecard approach helps to address this limitation effectively. Building on these theoretical frameworks, this study investigates the impact of GMO and ambidextrous GI on OP and the mediating role of ambidextrous GI in the GMO-OP linkage. Data from 272 small restaurants in Vietnam were collected and analyzed using PLS-SEM to illuminate the effects of GMO in the restaurant context. The findings support both direct and indirect effects. This study advances NRBV by utilizing balanced scorecard approaches to capture performance outcomes comprehensively. This research also extends GMO studies to the service sector, especially small restaurants, underscoring the pivotal roles of GMO in boosting GI and performance. Lastly, this study follows prior calls for more studies to shed light on the antecedents and consequences of ambidextrous GI.