Green Marketing Investments and Corporate Financial Sustainability: The Role of Leadership and Organizational Capabilities

Abstract

This study investigated the relationship between green marketing investments and corporate financial sustainability, with a specific focus on the mediating role of organizational capabilities and the moderating role of leadership. As environmental concerns have become increasingly central to corporate strategy, firms are allocating greater resources toward eco-friendly marketing initiatives; however, the financial implications of such investments have remained underexplored and empirically inconsistent. This research employed a quantitative, cross-sectional design to examine how green marketing expenditures influence long-term financial sustainability. Data were collected from 300 managerial respondents across manufacturing, FMCG, and service sectors in Pakistan. The findings confirmed that green marketing investments have a significant positive impact on financial sustainability. Furthermore, the results demonstrated that organizational capabilities partially mediate this relationship, while transformational leadership significantly strengthens the direct effect. The study contributes to the sustainability and marketing literature by providing an integrated framework based on the Resource-Based View and Dynamic Capabilities Theory, offering empirical evidence that the financial returns of green marketing are contingent upon strong internal capabilities and effective leadership support. These insights assist organizations in balancing profitability with environmental responsibility in alignment with the Sustainable Development Goals (SDGs).