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

The urgency to launch sustainable innovations rapidly in competitive markets increases the risk of greenwashing, as companies may overstate their products' environmental benefits. This article sheds light on the potential repercussions of deceptive sustainability claims within the realm of product innovations. Using four scenario-based experiments, this study reveals that exposure of greenwashing damages 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 perceived discrepancy between expected sustainability and quality beliefs and the product'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 innovations significantly exacerbate the adverse effects. Overall, our study not only replicates findings on the detrimental effects of greenwashing in product innovation contexts but also advances the theoretical understanding by identifying the psychological processes behind these effects and their variations with greenwashing intensity 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 perspective, the results underscore the risks of greenwashing in sustainable innovation contexts and emphasize the crucial role of transparency and authenticity in sustainability claims.