Driving B2B brands through signaling sustainability practices

Despite the mounting pressure on the environment and the growing importance of sustainability, little emphasis has been placed on capturing the value from pursuing sustainability to enhance a manufacturer’s brand image and market performance in business-to-business (B2B) markets. Using signalling theory, we examine the extent to which a firm’s pursuit of sustainability promotes brand
image and market performance. In addition, we examine the roles of customer relationship management (CRM) and customers’ attitudes toward sustainability in fostering the relationship between sustainability practices and brand image. Drawing on a multi-informant dataset collected from B2B manufacturing firms and their customers, we show that sustainability practices significantly drive brand image and this relationship is contingent on CRM and customers’ attitudes
toward sustainability. The results also show that manufacturing firms with a positive brand image have higher levels of market performance by reducing information costs for customers and lowering their perceived risk of purchase.