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Creating a Green Brand for Competitive Distinction

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Abstract

This research examines the question of how an environmentally proactive hotel can gain competitive distinction by way of ‘green’ branding. It demonstrates that not all green branding options are created equal. The two most widely recognized options, unilateral commitments and participation in voluntary environmental programs, have significant variations in their ability to inform relevant constituencies, achieve external legitimacy and add firm value. To illustrate these points, this research systematically evaluates the efforts of Damaí Lovina Villas, a small boutique Indonesian hotel, to promote its environmental activities by way of developing a green brand. Further, this study develops a framework that other companies can use to assess their green branding options.

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Notes

  1. This paper draws on-field data gathered between 2003 and 2006, in addition to the instructional case study ‘Sustainability and environmental standards: seeking competitive distinction at Damaí Lovina Villas’, by Nicole Darnall and Mark B. Milstein of Cornell University, which won The Case Association's 2008 Best First Case Award and received an honorable mention at the 2006 oikos Sustainability Case Writing Competition, and is available through the oikos Foundation. The author thanks Glenn Knape of Damaí Lovina Villas and Restaurant for providing data for this analysis.

  2. Unlike most VEPs, ISO 14001 is not specific to an industrial sector, and any type of organization can certify to the standard.

  3. Crop production increases due to composting is not unusual. At the extreme, some studies have shown that compost to agronomic crops can increase crop production as much as 900 per cent (Winter Sydnor and Redente, 2002).

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Authors and Affiliations

  1. Department of Environmental Science & Policy, George Mason University, 4400 University Drive, MSN 5F2, Fairfax, 22030, VA, USA

    Nicole Darnall

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  1. Nicole Darnall
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Darnall, N. Creating a Green Brand for Competitive Distinction. Asian Bus Manage 7, 445–466 (2008). https://doi.org/10.1057/abm.2008.19

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