External Drivers of Dominant Green Positioning for Organic Food Brands: Evidence from an Emerging Market
Abstract
1. Introduction
2. Research Background and Hypotheses Development
2.1. Dominant Green Positioning
2.2. Environmental Customer Pressure
2.3. Environmental Competitive Intensity
2.4. Environmental Regulatory Pressure
2.5. Conceptual Model
3. Materials and Methods
3.1. Sampling Method and Data Collection
3.2. Measurement Model
3.2.1. Dominant Green Positioning (DGP)
- The target audience needs to which the brand positioning responds (DGP1)
- 2.
- The competitive frame of reference for brand positioning competitive (DGP2)
- 3.
- The importance of dimensions in defining strategic positioning alternatives (DGP3)
- 4.
- Supporting arguments for the dominant dimension of brand positioning (DGP4–DGP9)
- The level of “greenness” associated with the brand’s strategic positioning alternative (DGP4 and DGP5). Scholars [99,133] argue that a moderate to high level of “greenness” is typical of companies that view environmentalism as an opportunity for development. These companies see “greening” as the major driving force behind them, guiding their actions from day one.
- The level of compliance with the EU organic food standards (DGP6 and DGP7). Referencing organic standards is used to describe the positioning of brands that go beyond the minimum legal requirements [81,82]. Similarly, the model proposed by Kapitan et al. [86] indicates that meeting such standards is only part of a company’s broader environmental efforts that can be associated with a brand. Clearly green-oriented brands are compelled to seek additional elements beyond regulatory requirements in order to position themselves as “green” or “deeply green”.
- Exclusive versus inclusive approach (DGP8 and DGP9). In line with the polarisation of consumer markets, green marketing strategies tend to fall into two markedly different directions. The inclusive approach involves positioning brands through value for money, convenience, and other core benefits. In contrast, the exclusive approach relies on an explicit link to environmental credentials, which can be translated through benefits such as naturalness, taste, health, or even luxury [134]. Gordon [135] proposes a similar approach, categorising brands into niche and mainstream, each supported by specific associations.
3.2.2. Environmental Customer Pressure (ECP)
3.2.3. Environmental Competitive Intensity (ECI)
3.2.4. Environmental Regulatory Pressure (ERP)
Construct | Item Code | Measurement Item | References |
---|---|---|---|
Environmental Customer Pressure | ECP1 | Increasing awareness of environmental issues among our consumers prompts the company to enhance its environmental commitment | [38,92,94] |
ECP2 | Consumers’ preference for organic food products drives the company to strengthen its environmental commitment | ||
ECP3 | Consumers’ continued attention to the company’s behaviour regarding environmental protection practices intensifies the company’s efforts in this direction | ||
ECP4 | The company feels consumer pressure to adopt more environmentally friendly packaging for the product range in its portfolio | ||
ECP5 | If the company does not meet consumers’ environmental requirements, they will switch to competing brands that satisfy these needs at the desired level | ||
Environmental Regulatory Pressure | ERP1 | Recently, the company has modified the attributes of its organic food product offerings in response to regulations on organic production and product labelling, as well as environmental regulations (including environmental taxes)… … currently existing | [93,140,141,142] |
ERP2 | … expected to be introduced in the future | ||
ERP3 | Organic production and labelling regulations, as well as environmental regulations: … affect the company’s business | ||
ERP4 | … contain strict standards | ||
ERP5 | … are adapted and suitable to the local market context | ||
ERP6 | … are clear | ||
ERP7 | … are effective in directly addressing issues related to environmental protection and in fostering sustainable development of organic production | ||
Environmental Competitive Intensity | ECI1 | Competition in the organic food market is fierce | [43,112] |
ECI2 | There are many “promotion wars” in the organic food market | ||
ECI3 | Any offer (product, price, etc.) launched on the market by a competitor can easily be delivered by other competitors | ||
ECI4 | Price competition is a distinctive feature of the organic food market | ||
ECI5 | We hear almost daily about competitors’ actions in the organic food market | ||
ECI6 | The number of competitors in the organic food market is high | ||
Dominant Green Positioning | DGP1 | The company considers only the needs of consumers with strong concerns for environmental protection and organic food | [43,86,130] |
DGP2 | The competitive set we consider in our internal decision-making consists only of companies that have exclusively certified organic food products in the product category/categories in which we are present on the market | [129,130] | |
DGP3 | Green attributes and benefits play a key role in differentiating the brand and attracting the company’s target consumers | [41,42,99] | |
DGP4 | The company views environmentalism and the practice of organic production as primary opportunities to develop innovative products capable of meeting consumer needs and generating a competitive advantage | [99,133,143] | |
DGP5 | Environmental and organic food concerns have been part of the company’s core business since day one | ||
DGP6 | The company believes that exceeding EU standards in organic production is an effective way to differentiate its portfolio brand from the competition | [81,82,144,145] | |
DGP7 | Some of the green attributes and benefits through which the company aims to differentiate the portfolio brand result from exceeding EU standards in organic production | ||
DGP8 | The company seeks for its organic food brand to be perceived by end consumers as exclusive, niche, or even luxury | [67,86,134,135] | |
DGP9 | The company seeks for its organic food brand to be known by the target audience primarily for being green |
4. Results
4.1. Evaluation of the Measurement Model
4.2. Structural Model Evaluation and Research Hypotheses Validation
4.3. Validation of the Research Model Based on Model Fit Indices
5. Discussions
6. Conclusions
6.1. Theoretical Contributions
6.2. Managerial Implications
6.3. Limitations and Future Research
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
Appendix A
Construct | Item Code | Indicator Loadings |
---|---|---|
Environmental Customer Pressure | ECP1 | 0.876 |
ECP2 | 0.805 | |
ECP3 | 0.839 | |
ECP4 | 0.783 | |
ECP5 | 0.762 | |
Environmental Regulatory Pressure | ERP1 | 0.679 |
ERP2 | 0.613 | |
ERP3 | 0.418 | |
ERP4 | 0.356 | |
ERP5 | 0.777 | |
ERP6 | 0.708 | |
ERP7 | 0.808 | |
Environmental Competition Intensity | ECI1 | 0.866 |
ECI2 | 0.889 | |
ECI3 | 0.685 | |
ECI4 | 0.758 | |
ECI5 | 0.813 | |
ECI6 | 0.817 | |
Dominant Green Positioning | DGP1 | 0.686 |
DGP2 | 0.656 | |
DGP3 | 0.782 | |
DGP4 | 0.718 | |
DGP5 | 0.771 | |
DGP6 | 0.774 | |
DGP7 | 0.822 | |
DGP8 | 0.661 | |
DGP9 | 0.628 |
Structural Relationship | Initial Beta Coefficients | Beta Coefficients Under Control Variable Effects | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Number of Employees | Turnover | Years in the Organic Food Market | Product Portfolio Structure | Supply Chain Position | ||||||||
β | p-Value | Β | p-Value | Β | p-Value | β | p-Value | Β | p-Value | β | p-Value | |
ECP → DGP | 0.368 | <0.001 | 0.325 | 0.001 | 0.372 | <0.001 | 0.367 | <0.001 | 0.326 | 0.001 | 0.376 | <0.001 |
ECI → DGP | 0.301 | 0.002 | 0.267 | 0.006 | 0.198 | 0.034 | 0.259 | 0.008 | 0.286 | 0.004 | 0.312 | 0.002 |
ERP → DGP | 0.111 | 0.159 | 0.183 | 0.047 | 0.153 | 0.081 | 0.128 | 0.122 | 0.116 | 0.147 | 0.102 | 0.179 |
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Category | Description | N | % |
---|---|---|---|
Place in the supply chain 1 | Producers and/or processor | 56 | 72.7% |
Distributor | 16 | 20.8% | |
Specialized/general retailer | 5 | 6.5% | |
Years of presence on the organic food market | Less than 2 years | 8 | 10.4% |
Between 2 and 5 years | 29 | 37.7% | |
Between 6 and 9 years | 17 | 22.1% | |
10 years and over | 23 | 29.9% | |
Turnover | Less than €2,000,000 | 44 | 57.1% |
Between €2,000,000 and €9,999,999,999 | 22 | 28.6% | |
Between €10,000,000 and €49,999,999 | 6 | 7.8% | |
Over €50,000,000 | 5 | 6.5% | |
Total number of employees | Between 1 and 9 employees | 37 | 48.1% |
Between 10 and 49 employees | 23 | 29.9% | |
Between 50 and 249 employees | 11 | 14.3% | |
250 employees and more | 6 | 7.8% | |
Product portfolio structure | Exclusively organic products | 32 | 41.6% |
Conventional and organic products | 45 | 58.4% |
Construct | CA | CR | AVE | 1 | 2 | 3 | 4 | |
---|---|---|---|---|---|---|---|---|
1 | Environmental Customer Pressure | 0.872 | 0.907 | 0.662 | 0.814 | |||
2 | Environmental Regulatory Pressure | 0.783 | 0.853 | 0.539 | 0.336 | 0.734 | ||
3 | Environmental Competitive Intensity | 0.891 | 0.918 | 0.652 | 0.495 | 0.353 | 0.808 | |
4 | Dominant Green Positioning | 0.886 | 0.908 | 0.526 | 0.501 | 0.330 | 0.426 | 0.725 |
Hypothesis | Direction | Structural Relationship | β | p-Value | f2 | Result | Argumentation |
---|---|---|---|---|---|---|---|
H1 | + | ECP → DGP | 0.368 | <0.001 | 0.199 | Accepted | β > 0.1; p-value < 0.05 |
H2 | + | ECI → DGP | 0.301 | 0.002 | 0.147 | Accepted | β > 0.1; p-value < 0.05 |
H3 | + | ERP → DGP | 0.111 | 0.159 | 0.043 | Rejected | p-value > 0.05 |
Measures | Model Fit Indices | Recommendation | Compliance |
---|---|---|---|
Average Path Coefficient (APC) | 0.260, p < 0.001 | p < 0.05 | Yes |
Average R-squared (ARS) | 0.389, p = 0.002 | p < 0.05 | Yes |
Average Adjusted R-squared (AARS) | 0.364, p = 0.003 | p < 0.05 | Yes |
Average Variance of Inflation Factors (AVIF) | 1.323 | Acceptable: AVIF ≤ 5 Ideal: AVIF ≤ 3.3 | Yes (ideal) |
Average Full Collinearity (AFVIF) | 1.421 | Acceptable: AFVIF ≤ 5 Ideal: AFVIF ≤ 3.3 | Yes (ideal) |
Tenenhaus Goodness-of-Fit (GoF) | 0.481 | Low: GoF ≥ 0.1 Average: GoF ≥ 0.25 High: GoF ≥ 0.36 | Yes (high) |
Simpson’s Paradox Ratio (SPR) | 1.000 | Acceptable: SPR ≥ 0.7 Ideal: SPR = 1 | Yes (ideal) |
R-squared Contribution Ratio (RSCR) | 1.000 | Acceptable: RSCR ≥ 0.9 Ideal: RSCR = 1 | Yes (ideal) |
Statistical Suppression Ratio (SSR) | 1.000 | Acceptable: SSR ≥ 0.7 | Yes |
Nonlinear Bivariate Causality Direction Ratio (NLBCDR) | 1.000 | Acceptable: NLBCDR ≥ 0.7 | Yes |
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Stoica, M.; Roșca, M.I.; Roșca, L.D.; Popescu, I.C. External Drivers of Dominant Green Positioning for Organic Food Brands: Evidence from an Emerging Market. Sustainability 2025, 17, 8589. https://doi.org/10.3390/su17198589
Stoica M, Roșca MI, Roșca LD, Popescu IC. External Drivers of Dominant Green Positioning for Organic Food Brands: Evidence from an Emerging Market. Sustainability. 2025; 17(19):8589. https://doi.org/10.3390/su17198589
Chicago/Turabian StyleStoica, Mihai, Mihai Ioan Roșca, Laura Daniela Roșca, and Ioana Cecilia Popescu. 2025. "External Drivers of Dominant Green Positioning for Organic Food Brands: Evidence from an Emerging Market" Sustainability 17, no. 19: 8589. https://doi.org/10.3390/su17198589
APA StyleStoica, M., Roșca, M. I., Roșca, L. D., & Popescu, I. C. (2025). External Drivers of Dominant Green Positioning for Organic Food Brands: Evidence from an Emerging Market. Sustainability, 17(19), 8589. https://doi.org/10.3390/su17198589