Assessing the economic and social impacts of greenwashing: moderating impact of big data analytics adoption

Purpose: This study empirically examines the impact of greenwashing practices on consumers’ intention to purchase green products. It also investigates whether greenwashing has any impact on economic and social risks. Moreover, this research captures the moderating impact of big data analytics (BDA) on the relationships between intention to purchase green products and its predictors. Design/methodology/approach: With the support of literature in the field of greenwashing, economics, consumer behavior, as well as emerging technologies and theories on consumer behavior, a conceptual model is developed. The model was validated using partial least squares (PLS) structural equation modeling (SEM) technique considering 356 respondents from European countries who are aware of greenwashing practices. Findings: This study highlights that greenwashing practices negatively impact people both economically and socially. But greenwashing practices also have a profound impact on consumers’ intention to purchase ecofriendly products. It also demonstrates a significant moderating impact of big data analytics adoption on the relationship between intention to purchase green products with its predictors. Research limitations/implications: The study presents insights on greenwashing and its impact on society and the economy. It also shows that technologies like BDA could help minimize the challenges of greenwashing activities as well as the social and economic risks. Moreover, the study provides vital insights into the influence of greenwashing practices on the intention to purchase green products. Finally, as this is a cross-sectional study, there are some limitations. Originality/value: This study takes a fresh look at greenwashing practices and BDA technology to overcome some of the challenges. It provides a unique research model that is (1) unique in this research domain; (2) provides a solid foundation for future researchers to further nurture; (3) extends the understanding of how using technology can minimize the risks caused by greenwashing; and (4) contributes to the body of literature on consumer behavior, economics, technology and social risks.