Managing Green Transition Through Promotion: Evidence from Kosovo Businesses

Growing environmental pressures, regulatory requirements, and changing market demands have made the green transition a top priority for businesses globally. Nonetheless, research indicates that transition economies encounter particular difficulties when implementing sustainable practices, especially those with inadequate institutional frameworks. Green finance, leadership and organizational culture, information and awareness, digital transformation, and green marketing and promotion are the five thematic areas into which this review divides the body of research that is essential to green transformation.

The dynamic process by which microbusinesses shift to more environmentally friendly practices is examined [20]. Based on comparative case studies of six microbusinesses, the paper offers a longitudinal perspective by identifying three distinct stages in small enterprises' greening journeys, as opposed to concentrating only on isolated drivers. The findings indicate that at each stage of the greening process, businesses require different types of support. However, the institutional and policy measures currently in place are often misaligned with these evolving needs. The study adds to the body of knowledge on ecological responsibility in small businesses by showing how environmental engagement evolves over time and by providing useful suggestions for better policy interventions. The study by Čekanavičius et al. [21] discusses the growing global trend of incorporating environmental awareness into corporate operations. In addition to analyzing how national economic and cultural contexts impact the adoption of green attitudes and practices, the authors seek to define the term "green business." The study compares Lithuania and Ireland and identifies some significant differences: While Irish businesses are more likely to view green practices as a source of new business opportunities, Lithuanian businesses are more likely to concentrate on the costs of greening. The results of a quantitative survey and correlation analysis using SPSS indicate that the degree of business greening is significantly influenced by public environmental awareness and economic development levels. Purwandani and Michaud [22] used survey data from businesses in Ohio, USA, to examine the main factors that encourage and hinder SMEs' adoption of green business practices. According to the study, the most important factors influencing the adoption of green practices are internal motivations, such as organizational or personal values, and the desire to enhance one's reputation. However, the most often mentioned obstacle is a lack of funding. The study also shows that smaller, urban-based businesses are more likely to know about green practices than their larger, rural counterparts. These observations have important ramifications for legislators and advocacy groups hoping to promote sustainable changes in the SME sector, not just in Ohio but in similar areas as well.

Ashton et al. [23] examine the adoption of green practices by SMEs in the manufacturing sector of the Midwestern United States. Their results demonstrate that internal incentives—primarily cost-cutting and competitiveness—are more potent motivators than outside regulatory pressure. Nonetheless, unofficial tools like government grants and industry associations' peer education programs are effective in promoting environmentally friendly behavior.

A thorough analysis of sustainable entrepreneurship is provided by Odeyemi et al. [24], who concentrate on green business practices and their effects on the environment. The study examines how business owners incorporate environmental factors into their plans, emphasizing tactics like eco-innovation, the circular economy, and sustainable supply chains. Both the advantages—such as a smaller carbon footprint and better resource efficiency—and the disadvantages—such as budgetary limitations, legal concerns, and market acceptance—are highlighted in the paper. Additionally, it emphasizes how innovation and technology are major forces behind the green transformation and promotes ongoing research and development to expand sustainable solutions.

An empirical study [25] looked at how environmental orientation affected environmental performance in Pakistani manufacturing companies. The study also examines the moderating effect of top management's environmental consciousness and the mediating effect of green business practices. Environmental orientation directly enhances green business strategies and environmental performance, according to data gathered from 126 manufacturing companies. Furthermore, the relationship between environmental orientation and the adoption of green strategies is strengthened when there is environmentally conscious top management present. The authors stress that creating successful green business strategies to improve environmental outcomes in developing nations requires both internal and external environmental orientation.

Another study [26] investigates how green marketing tactics affect corporate image and business performance in the retail industry. To evaluate the relationship, the study uses a case study methodology that focuses on the South African retail chains Woolworths and Pick n Pay. This is done by analyzing documents, conducting surveys, and carrying out interviews. According to research, implementing green marketing—which includes eco-friendly goods, recyclable packaging, pollution prevention, and energy efficiency—improves a company's reputation and overall performance. The findings suggest that maintaining a competitive edge in the retail industry depends on the adoption of green marketing techniques.

In a related study, Nwankwo [27] looked at how green business strategies affected the performance of breweries in South-East Nigeria and discovered that while green advertising had no discernible impact, practices like green production, innovation, packaging, waste management, and energy efficiency greatly enhanced firm performance. In assessing how prepared businesses in Kosovo are to participate in green transition initiatives, it is important to recognize that not all green strategies yield the same results. In order to understand how prepared businesses in Kosovo are to participate in green transition initiatives, it is important to keep in mind that not all green strategies produce the same results. Moreover, it highlights the strategic role of green marketing in attaining a sustainable competitive advantage [28]. Their research indicates that green marketing has developed into a game-changing business approach that helps companies stand out in the marketplace and responds to growing consumer environmental consciousness. These studies collectively imply that in order to promote long-term corporate success in a green economy setting, internal environmental practices and external promotional initiatives need to be coordinated.

A study [29] offers insightful information from Kosovo's manufacturing sector, building on global evidence regarding the impact of green strategies on business performance. According to their research, green investments—specifically in product promotion, environmental culture, and renewable energy—have a significant positive impact on business growth. This study illustrates the unequal distribution of resources among various green practices and provides a more comprehensive picture of the implementation of green initiatives in Kosovo than previous research that concentrated on specific facets of green business. The Kosovo case, when paired with earlier research from South Africa and Nigeria, supports the notion that, in order to promote sustainable growth, particularly in emerging economies, both external marketing initiatives and internal eco-innovation must be contextually adjusted. These observations are consistent with the study by Halilaj [30], which examines the structural significance of SMEs in Kosovo, where innovation, institutional integration, and conformity to European market standards are all critical to sustainable growth. All of these studies point to the need for both enterprise-level internal change and more extensive policy coordination that promotes green strategies as drivers of competitiveness and economic growth in order to advance Kosovo's green transition.

Furthermore, a study by Elezaj et al. [31] investigates how green economy indicators help inform strategic choices in transitional nations like Kosovo, supporting the growing conversation on green transformation. Their chapter highlights how sectors such as energy, eco-tourism, and manufacturing are increasingly shaped by global ecological trends, and emphasizes the relevance of technological, political, and social factors in driving green innovation. This supports Halilaj's [30] claim that greater integration into European frameworks is necessary for small and medium-sized businesses in Kosovo to grow sustainably.

Firms face critical challenges when trying to adopt green or environmentally friendly practices. The most common obstacles include high initial cost, limited access to funding, lack of technical knowledge, and quantifying environmental impact. These are even more specifically crucial for small and medium-sized businesses (SMEs) and firms in developing economies. Access to green finance is typically constrained, and green start-ups with novel concepts can face further obstacles when they lack business experience or when their offerings are radically innovative [32]. On the other hand, the majority of firms lack the technical expertise or awareness to implement green practices effectively. It is also worth noting that emerging economies might need to import technology and know‑how, increasing costs and complexity [33]. It is difficult and resource-intensive to measure environmental footprint and success of green initiatives accurately. A study by Magdinceva-Šopova and Stojanovska-Stefanova [34] concludes that it is difficult to ensure that suppliers and partners also adhere to green standards, and companies are criticized if their supply chain is not green. Furthermore, the green supply chain management requires new practices and can introduce operational complexity [35]. On the other hand, Rawat and Pande [36] emphasize that consumer demand for green products is growing, but businesses must balance this with the risk of higher costs and reduced competitiveness if these costs are passed on to consumers. Thus, the inconsistent or weak government backing, i.e., short-term subsidies, will not be adequate to stimulate long-term transformation. A study [37] finds that green marketing practices can positively influence consumer purchasing behavior and generate sustainable value through environmental awareness, satisfaction, attitude, and purchasing intention. Moreover, Todos [38] emphasized that contemporary enterprises are voluntarily engaging in green business by integrating sustainability into business, products, and services. Green companies play a key role in building the green economy through satisfying the ecological requirements and being environmentally friendly. The article indicates that countries embracing green economy principles can become leaders in sustainability and business performance, measurable using tools like the Green Index.

Although the transition to green economy principles is still in its infancy in Kosovo, isolated but significant green initiatives are showing encouraging signs of progress. Many manufacturing companies have started to invest in cleaner technologies, renewable energy, and the promotion of green products, despite institutional and financial constraints. Furthermore, local studies show that business actors are becoming more conscious of the financial and environmental advantages of implementing green practices. To methodically progress Kosovo's shift to a competitive and sustainable green economy, a thorough national framework backed by fiscal incentives and trustworthy monitoring instruments like the Green Index is still required.

Table 1 presents a summary of the literature review from the viewpoint of Kosovo.

The majority of research focuses on developed economies or nations with robust institutional ecosystems, although earlier studies provide insightful information about the elements that facilitate the green transition. Empirical data from fragile, post-conflict, or transitional economies like Kosovo is conspicuously lacking. Furthermore, there is still a lack of research on the function of promotion in fostering long-lasting change. By investigating how promotional activities—along with leadership, awareness, and institutional support—are influencing green transition initiatives among businesses in Kosovo, this study seeks to close these gaps.

This section presents the results obtained from the survey data. As it is mentioned previously, the questionnaire was built using forms and distributed online via emails to a sample of 400 businesses. It is worth noting that the targeted sample size was 1000 businesses, but only 400 responses were collected during the 6 to 9-month data collection period.

The distribution of businesses surveyed by industry is depicted in Figure 1. About 50% of respondents work in the trade sector, and roughly 47% work in the services sector. Only 3% of respondents work in the production sector. This distribution illustrates how trade and service-oriented enterprises predominate in the Kosovo economy.

The distribution of surveyed companies by employee count is shown in Figure 2. Micro-enterprises with one to ten employees make up the majority of businesses (roughly 68%). About 24% of the sample consists of small businesses with 11–50 employees. A tiny percentage, about 4%, is made up of medium-sized companies (those with 51–250 employees) and large companies (those with more than 250 employees). This distribution is in line with the fact that micro and small businesses predominate in Kosovo's business environment.

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Figure 1. Sector of activity

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Figure 2. Number of employees

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Figure 3. Duration of business activity

The distribution of surveyed businesses by length of operation is shown in Figure 3. About 39% of businesses are relatively new, having been in operation for less than three years, while 49% of businesses have been in operation for three to ten years. About 12% of the sample consists of companies that have been in operation for more than ten years. The youthful and vibrant business climate in Kosovo is reflected in this distribution.

Figure 4 illustrates how surveyed businesses view the green transition's significance. For their operations, a sizable majority view the green transition as either very important (roughly 47%) or important (approximately 46%). Just a small portion of businesses consider it to be either moderately or completely important. This indicates that businesses in Kosovo are highly conscious of and prioritize sustainability issues.

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Figure 4. The importance of green transition to business

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Figure 5. Green transition formalized strategy

The status of formalized green transition strategies among businesses surveyed is shown in Figure 5. About 33% of businesses are presently in the process of developing a formalized strategy, compared to about 55% who reported having one. About 7% of respondents said they don't have such a plan. This shows that businesses in Kosovo are moving in the right direction toward organized planning for sustainability.

Businesses' perceptions of how promotion affects the success of their green transition initiatives are shown in Figure 6. About 50% of respondents, the largest percentage, think that promotions have an average impact. About 40% of respondents think the influence is high (many), whereas only 3% think it is little or sufficient (roughly 7%). These findings imply that although most people agree that promotion is important, different businesses have different opinions about how much of an impact it has.

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Figure 6. How much do you believe that promotion influences the success of your business's green transition

The transition to more sustainable economic activity has become a pressing necessity for the developed and developing world alike. In Kosovo, the behavior of corporations in adopting and spreading sustainability comes under increasing scrutiny. Correlation analysis conducted as part of this research throws immense light on how corporations perceive, tackle, and face challenges in going green (Table 3). To assess the relationships between variables, correlation analysis was used, with the relevant units presented in Table 4.

The findings point towards high internal consistency and congruence between firms' operational behavior and strategic priority. Most prominently, the "Investing in the green transition is a strategic priority for my business" item showed very high positive correlation with several other items. For instance, it is highly related to knowledge of sustainable practices among employees (r = .978) and that the feeling green actions encouraged are as important as having them done (r = .944). This means that when sustainability is incorporated in a strategic goal, it becomes embedded in all facets of organizational culture, employee training, and external communication.

Table 3. Correlation

Source: Authors’ contribution

Table 4. Item measured

Similarly, customer appreciation perceived (r = .940) and business image build-up through green practices (r = .907) also share very high correlations with this strategic intent. The measures indicate a virtuous circle of relationships: firms that pursue green are going to attract external stakeholder support, which reinforces their internal motivation and strategic intent.

However, the evidence also indicates major challenges. One of the most revealing trends is the inverted relationship between institutional support (Item 7) and the majority of the positive sustainability indicators. Institutional support, for example, inversely relates to strategic investment in the green shift (r = –.368), promoting green practices (r = –.380), and employee awareness (r = –.346). This would imply that the more active companies become in sustainability, the more they feel left behind by public institutions. This can be a sign that policy architectures and business needs, especially of small and medium-sized enterprises, to gain access to green financing, guidance, or incentives, are not aligned.

Most prominent among the problems identified here is the lack of finance, which is strongly linked with strategic priorities (r = .799) and promotion stress (r = .863). That is, even strongly committed companies are restricted by finance when attempting to implement environmentally friendly practices. This suggests that there is intention and knowledge, but a shortage of funds or subsidies limits actual implementation.

Lastly, there is also a notable correlation between seeing the green transition as a competitive opportunity (Item 8) and institutional support (r = .689). Institutions will encourage firms to view sustainability as not only an ethical obligation but as a competitive opportunity. This emphasizes the importance of public-private sector synergy in determining long-term green development policies.

These findings have important implications for business stakeholders and policymakers. First, the high internal consistency of pro-sustainability variables means that when sustainability becomes a strategic goal, it affects all aspects of business activities—employee development, customer relations, and public image. This shows the potential for green practices massification through leadership and learning.

Second, the weak or negative images of institutional support reflect a compelling demand for more effective public policies and programs. Governments and agencies must not only implement legal frameworks but also real tangible financial and technical support to stimulate green investment, particularly in SMEs ubiquitous in the economic landscape of Kosovo. Third, businesses should be convinced that sustainability will give them a competitive advantage, especially in the context of the EU Green Agenda and rising global market expectations. And for this to happen, structural barriers such as access to finance must be addressed through targeted incentives, green loans, and capacity-building programs. The correlation analysis provides a rich and subtle description of the dynamics between business values, perceived obstacles, and sustainability engagement. Business internal motivation is highly elevated to achieve green transformation, but the external context—institutional support and finance—is in underdeveloped shape. Bridging this gap is crucial if Kosovo is to successfully transition towards a more sustainable and competitive economy.

To ensure internal consistency and instrument reliability of the survey measure used in measuring business perception and involvement in the green shift, a Cronbach's Alpha reliability test was conducted. The test produced a Cronbach's Alpha coefficient of 0.810 for the 10 items used in the instrument. With typical conventions [39], a Cronbach's Alpha of above 0.7 is acceptable, and above 0.8 is good. Therefore, the obtained Cronbach's Alpha value of 0.810 (Table 5) indicates high internal consistency for the items, suggesting that the questionnaire has good reliability in measuring a unidimensional underlying construct—most likely the business commitment towards and perception of environmentally friendly practices. Such reliability is crucial in being confident to interpret the outcomes, especially in understanding the relationships between sustainability attitude, strategic priorities, perceived institutional support, and finance constraints. It ensures that the items that were quantified are statistically reliable and sound and can be used in future inferential analysis like factor analysis, regression, or structural equation modeling. Overall, the reliability score enhances the credibility of the findings and confirms the validity of the subsequent interpretation of correlation and policy implications. Future studies may maintain and prolong this item set for longitudinal comparisons or apply the tool to other regional or sectoral contexts.

Table 5. Reliability statistics

Source: Authors’ contribution

Table 6. Item statistics

Source: Authors’ contribution

The survey's descriptive statistics (Table 6) provide valuable information on the overall impression and engagement of Kosovo businesses with green transformation and sustainable practices. The questions were rated using a Likert scale, where lower mean scores indicated stronger agreement with positive statements (e.g., commitment to sustainability), and higher scores indicated disagreement or skepticism. The lowest mean item was "Promoting green initiatives is as important as implementing them" (M = 1.53, SD = 0.783), secondly, "Investing in the green transition is a strategic priority for my business" (M = 1.61, SD = 0.776). These results suggest that a significant majority of firms not only recognize the importance of green investments but also place equal emphasis on the transparency and communication of their sustainability efforts. This agrees with earlier studies in the literature that determine the way firms approach sustainability as both an internal behavior and an external strategy.

Similarly, low mean scores for answers such as "Our employees are aware of how crucial it is to practice sustainability" (M = 1.64) and "Our customers appreciate our sustainability efforts" (M = 1.71) indicate a relatively high internal and external cognizance of sustainability issues. This reinforces the idea that firms are finding that green initiatives are no longer viewed solely as a matter of compliance, but rather as a source of reputational capital [3]. On the other hand, the item "There is sufficient support from institutions for the green shift" had a much greater mean (M = 3.74, SD = 1.384), which signifies a great feeling of institutional lack. This shows that companies feel that they are in an environment where government or institutional support mechanisms do not exist. This is consistent with local research that indicates modest public incentives and administrative hurdles as common green investment impediments in emerging economies [5]. The response "The green transition is a chance to become competitive in the market" registered a mean of 2.87 (SD = 1.126), showing a somewhat positive orientation towards the green economy as a chance within the marketplace. Even though there is potential within some firms to leverage sustainability to grow in competitiveness, this is yet to capture people's imagination, possibly due to perceived market immaturity or disbelief in financial gain. Interestingly enough, the answer "My company uses green marketing to influence consumers' decisions" had a relatively low mean (M = 1.77), which implies that while companies are aware of sustainability, they are still in early stages of its application through green marketing themselves. This could be due to the lack of knowledge, financial constraints, or the lack of clear signals from consumers.

Overall, the descriptive statistics reflect a high degree of commitment to green practices at the business level but also reflect substantial institutional and financial barriers constraining additional aggressive or strategic green uptake. The gap between business and institutional support registers the imperatives for targeted policy interventions, capacity-building efforts, and enhanced public-private sector coordination to facilitate a smoother transition toward a greener economy.

Table 7. OLS regression model summary

Source: Authors’ contribution

The multiple regression analysis (Table 7) conducted to check the relationship between green transition practices and primary business variables indicates a very good fit for the model. The model's R value was .978, indicating very high correlation of predictors with the outcome variable. Also, the R Square of .956 suggests that approximately 95.6% of the variance of the dependent variable is accounted for by the independent variables in the model. This result shows that the selected predictors — for example, difficulty in sponsoring the green transition, participation in green activities, institutional support, green transition significance perceived, and steps taken — together provide a very reliable explanation of green transition activities by companies. The Adjusted R Square (.956) also guarantees that the explanatory ability of the model is not reduced even after considering the number of predictors, solidifying its strength and suitability for similar business scenarios. Moreover, the standard error of the estimate (0.211) is very small, reinforcing the precision and reliability of the model in the prediction of the actual outcomes. These findings verify that a company's emphasis on the green transformation hinges heavily on a number of interlinking dimensions. Of these, value attached to green practices, the level of support derived, and the extent of involvement in green approaches specifically play pivotal roles. High R² further indicates that turning these drivers stronger can possibly play a large role in improving the effectiveness and adoption of green practices in companies. Overall, this regression model offers powerful evidence that enterprise-level sustainability needs a multidimensional and concerted strategy. Policy-makers as well as agents with a desire to accelerate the green transformation of the private sector should overcome institutional as well as financial barriers, increase awareness, and offer target-oriented support measures in accordance with the business interests.

Table 8. ANOVA

Source: Authors’ contribution

The study analyzed the impact of various factors on the success of green transition (Table 8). Regression sums of squares (385.430) and mean square for regression (77.086) reported significant results. A large sum of squares indicated good fit, and a very large F-statistic (1739.525) indicated fair fit to the data. The p-value of 0.000, which was less than the alpha value of 0.05, indicated statistical significance. Independent factors such as challenges in advocating for the green transition, engagement in green activities, support obtained for green activities, importance of the transition, and actions taken affected the perceived effect of promotion on the success of the green transition.

The ANOVA results confirm the hypothesis that various business-related factors are essential drivers of the green transition's success. Specifically, the results show that the businesses that actively participate in the green transition, practice sustainability, and are institutionally well-supported tend to perceive promotion as an essential driver of the success of their green transition. The statistical importance of the model also confirms the relationships. In light of the results, future policies and interventions need to focus on stimulating these key drivers to have the maximum spillover effect from the green transition in business life.

The OLS model's regression coefficients and associated statistical reliability values are shown in Table 9.

Table 9. Coefficient results (OLS)

Source: Authors’ contribution

Constant (B = 2.698): The constant value of 2.698 means that when all the predictors are held constant (i.e., when the values of the predictors are zero), the value predicted for the dependent variable is 2.698. This is a standard level of how much promotion effects the success of the green transition, holding other things constant. How important is the green transition to your business? (B = 1.138, Beta = 0.786): The perceived importance of the green transition coefficient is highly significant and positive (p = 0.000). The dependent variable rises by 1.138 units for every one-unit rise in the perceived importance of the green transition, holding all the other factors constant. The 0.786 standardized coefficient (Beta) indicates a strong positive relationship with the dependent variable. This would imply that firms engaged in the green transition also tend to believe that promotion is crucial for its success. What have you done on behalf of the green transition? (B = -0.185, Beta = -0.256): The negative coefficient indicates a negative relationship between what has been done on behalf of the green transition and promotion being crucial. Specifically, for each additional measure taken for the green transition, the dependent variable decreases by 0.185 units.

This means that firms with more extensive measures at their disposal for the green transition may place less focus on promotion as a success driver. Did you receive support for promotion of green initiatives? (B = -0.964, Beta = -0.326): The variable also has a negative and significant coefficient, indicating that firms that received the support for promotion of green initiatives may view promotion as less effective in the success of their green transition. The standard coefficient of -0.326 indicates a moderate negative relationship between received support and effectiveness perception of promotion.

Does your firm actively promote engagement in the green transition? (B = 0.136, Beta = 0.077): The positive coefficient (B = 0.136) and significance suggest that active promotion of the green transition positively impacts the assessment of its success. The relatively lower standard coefficient (Beta = 0.077), however, suggests that, while significant, active promotion is a less influential factor than the significance of the green transition. What are the greatest challenges you have in promoting the green transition? (B = -0.225, Beta = -0.229): The negative coefficient indicates that firms that face more challenges in promoting the green transition are likely to perceive promotion as contributing less to the success of the green transition. The moderate standardized coefficient (Beta = -0.229) also supports this reverse relationship.

Importance of the Green Transition: The results show that firms perceiving the green transition as important are more likely to view promotion as a key element in its success. Firms who have already taken action towards the green transition or had the support of institutions may see promotion as a less important driver, possibly suggesting that other internal and external drivers may be more powerfully driving their green transition success. Promotion Efforts: Intensive promotion works positively on the perceived success of the green transition but is less important compared to the perceived importance of the transition itself. These findings suggest that more committed and involved firms in the green transition may be more likely to believe in the power of promotion, while already green firms may be less dependent on promotional processes. Firms that face more impediments or have had fewer inducements might also consider promotion less effective.

4.1 Study limitations

This study looks at how important promotion is to the success of green transition initiatives in Kosovo’s businesses. However, the findings' generalizability is constrained by the small sample size and geographic restrictions. Since the study only looks at companies in Kosovo, a post-transition economy with unique institutional and political dynamics, it might not be representative of companies in other regions or more developed economies with different financial systems, regulatory frameworks, or cultural perspectives on sustainability. The use of a structured questionnaire to gather data raises the risk of self-reporting bias, in which participants may overestimate or underestimate the success of their marketing campaigns or sustainability initiatives. The evaluation of changes over time or the causal relationship between promotion and the success of the green transition are not possible due to the cross-sectional research design.