The role of sustainable marketing and innovation in the competitive marketing performance of SMEs: a theoretical and research proposition perspective

Purpose This study aims to examine the relationship between innovation and sustainable marketing in improving competitive marketing performance through sustainable initiatives undertaken by small and medium-sized enterprises (SMEs), using the theories of dynamic capabilities and stakeholder theory. In addition, this research explores how transparency influences the interaction between sustainable initiatives and competitive marketing performance, facilitated by sustainable marketing and innovation. Design/methodology/approach A theoretical framework was developed to analyse the relationship and alignment between sustainable marketing and innovation in generating competitive marketing performance through sustainable initiatives. This was achieved through a comprehensive review of the existing literature on sustainable marketing, innovation, sustainable initiatives, transparency and competitive marketing performance, using the preferred reporting items for systematic reviews and meta-analyses (PRISMA) approach. Findings Based on the theoretical framework established in this study, five key research propositions were formulated to examine the interconnections among sustainable marketing, innovation, sustainable initiatives, transparency and competitive marketing performance. The proposed framework and research propositions indicate that the interplay between sustainable marketing and innovation can foster sustainable initiatives across products, pricing, distribution and promotion. Consequently, this interaction may enhance competitive marketing performance. However, transparency may strengthen the relationship between competitive marketing performance and marketing-enabled sustainable initiatives. Originality/value From the perspectives of dynamic capabilities and stakeholder theories, this study is important because it offers a research framework and propositions for implementing innovation and sustainable marketing within SMEs.