Document Type
Article
Publication Date
3-2025
Publication Title
Business Strategy and the Environment
Keywords
brand image, cognitive dissonance theory, greenwashing, legitimacy theory, service industry, sustainability implementation, sustainability orientation
Abstract
This paper uses legitimacy theory and cognitive dissonance theory to explore the relationship between sustainability orientation, sustainability implementation, and brand image in the service sector. Specifically, we examine the mediating role of implementation—the translation of strategic intent into actionable practices—on customers' perceptions. Using multilevel analyses of 31 US service firms and a survey of 6891 customers, we find that sustainability implementation is a strong positive predictor of brand image. However, sustainability orientation alone has a negative direct effect on brand image, suggesting that stated commitments without corresponding action can harm perceptions. Crucially, sustainability implementation positively mediates the relationship between orientation and brand image. This research addresses a key gap in the literature by demonstrating that, in the service sector, genuine action, not just communication of intent, is essential for building a sustainable brand. From a practical standpoint, the findings highlight that strategic intent toward sustainability, while necessary, is insufficient. To avoid greenwashing perceptions, firms must couple their sustainability orientation with effective and visible implementation of environmental and social initiatives.
Funding Source
This work was supported by the University Research Grant (URG) 2019, Illinois State University. This article was published Open Access thanks to a transformative agreement between Milner Library and Wiley.
DOI
10.1002/bse.4273
Recommended Citation
Jagani, S. and Saboori-Deilami, V. (2025), Sustainability Orientation, Sustainability Implementation, and Brand Image in Service Firms. Bus Strat Env. https://doi.org/10.1002/bse.4273
Comments
First published in Business Strategy and the Environment: https://doi.org/10.1002/bse.4273
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/ licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.