Vol. 1 No. 2 (2026): Sustainable Management Review
Articles

Sustainable Branding Strategy and Firm Performance: The Mediating Role of Customer Engagement and the Moderating Effect of Marketing Capability

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  • Dong Guo,
  • Yixiao Xu,
  • Wei Yet Tan
Dong Guo
SEGi University
Yixiao Xu
SEGi University
Wei Yet Tan
SEGi University
DOI: https://doi.org/10.70693/smr.v1i2.10

Published 2026-03-17

Keywords

  • sustainable branding strategy,
  • firm performance,
  • customer engagement,
  • marketing capability,
  • sustainability marketing

How to Cite

Guo, D., Xu, Y., & Tan, W. Y. (2026). Sustainable Branding Strategy and Firm Performance: The Mediating Role of Customer Engagement and the Moderating Effect of Marketing Capability. Sustainable Management Review, 1(2), 1–12. https://doi.org/10.70693/smr.v1i2.10

Copyright (c) 2026 Dong Guo, Yixiao Xu, Wei Yet Tan

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

As sustainability increasingly shapes consumer preferences and corporate competition, firms are integrating environmental and social responsibility into branding strategies to enhance market performance. However, the mechanisms linking sustainable branding to firm performance remain insufficiently explored from a marketing perspective. Using panel data from publicly listed firms covering the period 2012–2023, this study employs fixed-effects regression models to examine the impact of sustainable branding strategy on firm performance, with customer engagement modeled as a mediating mechanism and marketing capability as a moderating factor. The findings indicate that sustainable branding strategy significantly improves firm performance. Customer engagement partially mediates this relationship, while marketing capability strengthens the effectiveness of branding strategies in generating performance gains. The results suggest that sustainability-oriented branding contributes to firm success when firms effectively engage customers and possess strong marketing capabilities, highlighting the strategic importance of integrating sustainability into marketing practices.

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