Shades of green deception—An empirical examination into the consequences of greenwashing of innovations

Abstract

The urgency to launch sustainable innovations rapidly in competitive markets increases the risk of greenwashing, as companies may overstate their products' envi ronmental benefits. This article sheds light on the potential repercussions of decep tive sustainability claims within the realm of product innovations. Using four scenario-based experiments, this study reveals that exposure of greenwashing dam ages brand perception, a critical factor in the diffusion of innovations, even more than if products lacked green attributes at all. Findings from mediation analyses reveal that these reactions stem from negative disconfirmations, arising from a per ceived discrepancy between expected sustainability and quality beliefs and the prod uct's failure to meet these expectations. Moreover, this research deepens our understanding of greenwashing by providing the first empirical evidence that the intensity and focus of greenwashing activities on core components of product inno vations significantly exacerbate the adverse effects. Overall, our study not only repli cates findings on the detrimental effects of greenwashing in product innovation contexts but also advances the theoretical understanding by identifying the psycho logical processes behind these effects and their variations with greenwashing inten sity and focus. In doing so, results advocate for a shift from a one-dimensional, uniformly perspective to a more nuanced understanding of the interplay between greenwashing intensity and focus on consumer responses. From a practical perspec tive, the results underscore the risks of greenwashing in sustainable innovation con texts and emphasize the crucial role of transparency and authenticity in sustainability claims.