Exploring the impacts of greenwashing on green business model innovation: the mediating effect of green organizational identity and opportunism

Purpose Green business model innovation (GBMI) has become an essential strategy for companies seeking to balance profitability with environmental sustainability. Nevertheless, implementing GBMI is difficult and demands significant organizational investments. Rather than making substantial changes, many companies greenwash to boost their public image. While greenwashing is widely recognized as a common practice, there is limited understanding of its impact on GBMI’s effectiveness. Thus, this study aims to explore the relationship between greenwashing and GBMI, focusing on the construction sector. Design/methodology/approach The research hypotheses were formulated based on the theoretical foundations of organizational learning and organizational culture theories. A questionnaire was developed to collect data from 142 Vietnamese construction practitioners, and Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test the proposed hypotheses. Findings The results indicated that greenwashing negatively affects GBMI, with this relationship being partially mediated by opportunism and green organizational identity. Originality/value This study underscores the urgent need for construction firms to focus on genuine environmental practices rather than greenwashing. For policymakers, the findings emphasize the importance of reinforcing regulations and enforcement to combat greenwashing and promote authentic sustainability in the construction sector.