Stakeholder perceptions of green marketing: the effect of demand and supply integration

The purpose of this paper is to extend the stream of thought regarding the concept of demand and supply integration (DSI) within the domain of environmental responsibility and green marketing.

Conceptual application of theory to strategic‐level concepts is used to develop propositions representing a theoretical approach to the integration of green marketing and green supply chain management (SCM).

Based on stakeholder theory, the authors propose that greater value will be perceived by customer stakeholders when the firm is able to successfully manage and coordinate demand (marketing) and supply (SCM) functions, ensuring that customer stakeholders receive what they are promised in regard to environmental products and services. For this relationship to offer competitive advantage and higher firm performance, the authors contend that it is necessary to better understand how customer stakeholders perceive firms' environmental initiatives, and to investigate if the degree to which a firm's demand and supply functions are integrated influences these perceptions.

Scholars will benefit from ideas and questions put forth in this paper as it suggests specific avenues to pursue empirically in order to understand stakeholder perceptions of a firm's environmental responsibility activities.

Managers will benefit from the results of this paper by better understanding the benefits of DSI in creating marketing campaigns for environmental products and services that stakeholders perceive as legitimate.

The authors introduce the concept of DSI to the green marketing and green SCM literature and position DSI within the broader rubric of environmental commitment in the firm.