Proactive Environmental Strategy and Green Brand Positioning: Implications for Sustainable Development and Firm Performance in <scp>B2B</scp> Markets

ABSTRACT This study investigates how proactive environmental strategy, operationalized through company environmental strategy (CES) and green marketing strategy (GMS), shapes green brand competitiveness (GBC) and new green product success (NGPS) via green brand positioning (GBP). Drawing on signaling theory, we explain how internal commitments and external messaging jointly influence credibility in B2B markets. We conducted a quantitative analysis using cross‐sectional survey data from 303 Chinese firms, with two respondents per company. Structural equation modeling (SEM) was employed to test the hypothesized relationships, including the latent interaction between CES and GMS. Results show that proactive environmental strategies indirectly enhance GBP, which in turn drives GBC and NGPS. The interaction between CES and GMS is significant, highlighting the importance of aligning internal initiatives with external communication for effective signaling in B2B contexts. This paper advances signaling theory in sustainability research by extending it to B2B branding. It contributes novel insights into how the interplay of CES and GMS influences brand positioning and outcomes. Unlike prior studies emphasizing B2C settings, we highlight the distinctive signaling mechanisms in B2B markets and their implications.