Sustainability Marketing as a Business Strategy to Improve Performance and Competitive Advantage

Abstract

Sustainability marketing is increasingly viewed as an important strategy in improving company performance and competitive advantage amidst increasing demands for sustainability. This study aims to analyze the effect of sustainability marketing on company performance and competitive advantage. The study used a quantitative approach with a survey method of 200 company employees in Surabaya City. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results of the measurement model evaluation showed that all constructs met the validity and reliability criteria, indicated by outer loading values > 0.70, Cronbach's Alpha and Composite Reliability > 0.70, and Average Variance Extracted (AVE) values > 0.50. The discriminant validity test also confirmed the conceptual differences between constructs. Furthermore, the results of the structural model test showed that sustainability marketing had a positive and significant effect on company performance (β = 0.479; p < 0.001) and company competitive advantage (β = 0.461; p < 0.001). The R² value indicates that sustainability marketing explains 23.0% of the variation in company performance and 21.3% of the company's competitive advantage, with a moderate effect size and adequate predictive power. This finding confirms that sustainability marketing plays a strategic role in improving performance and building a sustainable competitive advantage for companies.