Jin Sun, Ruining Liu and Pan Miao
This study aims to investigate how the effectiveness of green advertising can be improved by matching benefit appeals (self vs other) and message sidedness (one-sided vs…
Abstract
Purpose
This study aims to investigate how the effectiveness of green advertising can be improved by matching benefit appeals (self vs other) and message sidedness (one-sided vs two-sided) in consumer evaluations of green products.
Design/methodology/approach
Four scenario experiments and one field experiment were conducted to investigate the interaction effects of benefit appeals and message sidedness on green consumption. It aims to verify the psychological mechanisms that promote green consumption when benefit appeals and message sidedness are matched and to explore the persuasiveness of this matching on consumers with different power states engaging in green consumption.
Findings
Studies 1 and 4 provide evidence that when advertising conveys self-benefit appeals (vs other-benefit appeals), two-sided messages (vs one-sided messages) positively promote green consumption. Importantly, Study 2 concluded that perceived manipulative intent was the psychological mechanism underlying the interaction effects of green advertising benefit appeals and message sidedness. Studies 3 and 5 confirm that the power state plays a moderating role in these effects.
Research limitations/implications
This study contributes to the growing research on green marketing, especially green advertising, and advances the theoretical knowledge of how to match benefit appeal with message sidedness to promote green consumption effectively.
Practical implications
This study provides a more comprehensive understanding of consumer evaluations of green products under the influence of benefit appeals and message sidedness. The match between benefit appeal and message sidedness can promote green consumption. These findings can help marketers and policymakers promote green consumption by designing advertisements that match benefit appeal with message sidedness. When considering the power state’s impact, marketers should consider consumers’ high- or low-power states when selecting appropriate advertisement designs. Alternatively, they can manipulate the power state to optimise the effectiveness of advertisements.
Originality/value
Although previous research has focused on the difference in persuasiveness between self-benefit and other appeals, little is known about how to match green benefit appeals and message sidedness to heighten the persuasiveness of green advertising to consumers. Therefore, in this study, this paper attempts to fill this research gap by exploring how green benefit appeals and message sidedness match and how green advertising may produce better persuasion effects on green consumption.
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Raúl Sánchez Francés, Silvia Gómez Valle, Nuria García Rueda, Benedetta Lucchitta and Edoardo Croci
Nature-based solutions (NBS) generate different impacts at the urban scale, such as the ability to regulate water or store carbon, comparable to traditional, gray infrastructures…
Abstract
Nature-based solutions (NBS) generate different impacts at the urban scale, such as the ability to regulate water or store carbon, comparable to traditional, gray infrastructures in a more cost-efficient way. On the other hand, by their intrinsic nature, NBS do deliver a series of other services that are commonly defined as social, economic, and environmental cobenefits. These benefits are not always valued in a consistent and complete way, so there is the need to compile a more comprehensive evidence base on the social, economic, and environmental effectiveness of NBS. The chapter attempts to identify a categorization of the existing NBS and define the ecosystem services (ES) provided by them. Furthermore, starting from the results achieved through the definition of the existing NBS frameworks assessment, the chapter will identify a set of key performance indicators KPIs, based on the ES produced by NBS, to measure the economic, social, and environmental benefits generated in by NBS at the urban level taking into account their multifunctional character. In total, 66 key performance indicators have been individuated: 3 for provisioning services, 38 for regulating services, 17 for cultural services, and 8 for supporting services. Each indicator has been associated to a category of ES in order to measure and evaluate the performances of NBS implemented in cities.
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Ning Liu, Linyu Zhou, LiPing Xu and Shuwei Xiang
As the cost of completing a transaction, the green merger and acquisition (M&A) premium paid on mergers can influence whether the acquisition creates value or not. However…
Abstract
Purpose
As the cost of completing a transaction, the green merger and acquisition (M&A) premium paid on mergers can influence whether the acquisition creates value or not. However, studies linking M&A premiums to firm value have had mixed results, even fewer studies have examined the effect of green M&A premiums on bidders’ firm value. The purpose of this paper is to investigate whether and how green M&A premiums affect firm value in the context of China’s heavy polluters.
Design/methodology/approach
Using 323 deals between 2008 and 2019 among China’s heavy polluters, this paper estimates with correlation analysis and multiple regression analysis.
Findings
Green M&A premiums are negatively associated with firm value. The results are more significant when firms adopt symbolic rather than substantive corporate social responsibility (CSR) strategies. Robustness and endogeneity tests corroborate the findings. The negative relation is stronger when acquiring firms have low governmental subsidy and environmental regulation, when firms have overconfident management, when firms are state-owned and when green M&A occurs locally or among provinces in the same region. This study also analyzes agency cost as an intermediary in the relationship between green M&A premium and firm value, which lends support to the agency-view hypothesis.
Originality/value
This study provides systemic evidence that green M&A premiums damage firm value through agency cost channel and the choice of CSR strategies from the perspective of acquirers. These findings enrich the literature on both the economic consequences of green M&A premiums and the determinants of firm value and provide a plausible explanation for mixed findings on the relationship between green M&A premiums and firm value.
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Sinead Mellett, Felicity Kelliher and Denis Harrington
The purpose of this paper is to evaluate key criteria underpinning network-facilitated green innovation capability development in micro-firms.
Abstract
Purpose
The purpose of this paper is to evaluate key criteria underpinning network-facilitated green innovation capability development in micro-firms.
Design/methodology/approach
Micro-firms, those firms with less than ten full-time employees, need to continuously innovate in order to sustain their business in the emerging green economy. This study uses an interpretive multiple case approach to explore micro-firm owner-manager (O/M) green innovation activities, encompassing O/M views on facilitated network engagement in Ireland and Canada over a 12-month period.
Findings
The findings show that proactive implementation of green innovation is influenced by the O/M’s natural environment orientation and the potential for economic gain, while facilitated networks provide an additional resource that the O/M can draw from that allows the O/M to test new ideas, comprehend new and existing legislation and identify potential supports in pursuit of green innovation capability development within the micro-firm.
Research limitations/implications
This study offers a contribution to knowledge in the areas of green innovation, micro-firm capabilities and facilitated network engagement. However, the sample size is small and distance was a challenge, yet data and case protocols are in place which allow for replication of the study. As the research is embedded in the resource and capability theories, alternative theoretical frameworks may shed a different light on the research question.
Originality/value
Prior studies have found that facilitated networks have a positive impact on micro-firm sustainability as these networks enhance the firm’s constrained resource base. The proposed framework can be used as a guideline for support organisations including facilitated networks in assisting micro-firms in reaching their green innovation goals and objectives. It can also be used by micro-firms in the attainment of the green innovation capability.
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Soumita Ghosh, Abhishek Chakraborty and Alok Raj
This study aims to examine how fairness concerns and power structure in dyadic green supply chains impact retail price, supply chain profits and greening level decisions.
Abstract
Purpose
This study aims to examine how fairness concerns and power structure in dyadic green supply chains impact retail price, supply chain profits and greening level decisions.
Design/methodology/approach
This study develops game-theoretic models considering fairness concerns and asymmetric power structures under an iso-elastic demand setting. The research paper employs the Stackelberg game approach, taking into consideration the fairness concern of the channel leader.
Findings
The findings indicate that under fairness, there is an increase in both wholesale and retail prices, as well as greening expenditures. Notably, when comparing the two models (manufacturer Stackelberg and retailer Stackelberg), double marginalization is more pronounced in the retailer Stackelberg setup than in the manufacturer Stackelberg setup. In a traditional supply chain with iso-elastic demand, the follower typically extracts higher profit compared to the leader; however, our results show that, under fairness conditions, the leader achieves higher profit than the follower. Additionally, our study suggests that supply chain coordination is unattainable in a fairness setup. This paper provides insights for managers on the optimal supply chain structure and the level of fairness to maximize profit.
Originality/value
This paper investigates the impact of a leader's fairness on the optimal decisions within a green supply chain, an area that has received limited attention previously. Additionally, the study investigates how fairness concerns manifest in distinct power dynamics, specifically, in the contexts of manufacturer Stackelberg and retailer Stackelberg.
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Cecilia Souto Maior, Danielle Mantovani, Diego Costa Pinto and Mário Boto Ferreira
Earlier research indicates that brand choices may display different identity signals, such as altruism and benevolence for green brands or high status and exclusiveness for…
Abstract
Purpose
Earlier research indicates that brand choices may display different identity signals, such as altruism and benevolence for green brands or high status and exclusiveness for premium brands. This research adds to the literature by exploring how opting for green (vs premium) brands leads consumers to feel authentic (vs hubristic) pride.
Design/methodology/approach
Three experimental studies were conducted to test the hypotheses related to green versus premium choices (Studies 1–3), public accountability (Study 2) and the underlying process of anticipated judgment (Study 3).
Findings
The findings reveal that choosing a green (vs premium) brand results in higher authentic pride and lower hubristic pride. However, the green pride effects were only observed when consumers' brand choices were publicly accountable. Finally, anticipated judgment mediates changes in authentic pride driven by green (vs premium) brands.
Originality/value
The study findings contribute preponderantly to the green consumer behavior literature and practice by providing primary evidence that green (vs premium) branding can trigger distinct patterns of pride in comparative decisions.
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Chengli Zheng, Jiayu Jin and Liyan Han
This paper originally proposed the fuzzy option pricing method for green bonds. Based on the requirements of arbitrage equilibrium, this paper draws on Merton's corporate bond…
Abstract
Purpose
This paper originally proposed the fuzzy option pricing method for green bonds. Based on the requirements of arbitrage equilibrium, this paper draws on Merton's corporate bond option pricing model.
Design/methodology/approach
Describing the asset value behavior of green bond issuing enterprises through diffusion-jump processes to reflect the uncertainty brought by carbon emission reduction policies and technologies, using approximation methods to get the analytical pricing formula and then, using a fuzzification technique of Choquet expectation under λ-additive fuzzy measures after considering fuzzy factors, the paper provides fuzzy intervals for the parity coupon rates of green bonds with different subjective levels for investors.
Findings
The paper proposes and argues the classical and fuzzy option pricing methods in turn for both corporate ordinary bonds and green bonds, considering carbon risk or climate risk. It implements the scenario analysis varying with industry emission standards and discusses the sensitiveness of the related key parameters of the option.
Practical implications
The fuzzy option pricing for the green bonds provides the scope of the variable equilibrium values, operational theoretical supports and some policy implications of carbon reduction and promoting green funding.
Originality/value
The logic of introducing the fuzziness of the option pricing for the green bonds lies with considering the existence of fuzzy information about the project supported by the green bond and the subjectivity of investors and it also responds to changes in technological uncertainty and policy uncertainty in the process of “carbon peaking and carbon neutrality.”
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Anna Paola Codini, Giulia Miniero and Michelle Bonera
The purpose of this paper is to empirically test the effects of regulatory focus (RF) orientation (promotion/prevention) on decisions to purchase green products. The two…
Abstract
Purpose
The purpose of this paper is to empirically test the effects of regulatory focus (RF) orientation (promotion/prevention) on decisions to purchase green products. The two experimental studies conducted aimed to test whether individuals in a prevention (promotion) state were more (or less) inclined to buy green products.
Design/methodology/approach
To test the effect of RF on green and non-green consumption, the authors carried out two experimental studies (one considering a service – car sharing – the other a physical product – a laundry detergent). The studies are 2 (RF: prevention vs promotion) × 2 (product type: green vs non-green) between factorial design involving 196 and 92 participants, respectively.
Findings
Promotion-focus has a powerful influence on green consumption. In both studies, individuals with a promotion focus seemed to be more inclined to buy green products as opposed to individuals in a prevention state.
Research limitations/implications
The main limitations of this study first relate to the results of the two experiments. Even though both studies showed that promotion-focused rather than prevention-focused individuals are more inclined to buy green products, the differences between the two orientations in green condition are not statistically significant. As a result, the studies cannot determine whether to reject or accept the two main hypothesis.
Social implications
This paper provides some preliminary indications that could be useful to encourage consumers to adopt “green” styles of consumption. Focusing on an individual’s RF is a useful strategy to induce them to change their consumption choices abruptly. Relying more on a “promotion” rather than a “prevention” focus, individuals would be compelled to take immediate responsible behavior.
Originality/value
This paper aims to fill the gap on the role of RF in green consumption. Contrary to the accepted idea that a prevention state is more compatible with consumer ethics than promotion state, the studies showed the controversial role assumed by a prevention state in green consumption.
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Nurin Athilah Masron, Suhaiza Ismail and Zaini Zainol
The objectives of this study are twofold. Firstly, this study aims to examine the challenges of green public procurement (GPP) involvement among small- and medium-sized…
Abstract
Purpose
The objectives of this study are twofold. Firstly, this study aims to examine the challenges of green public procurement (GPP) involvement among small- and medium-sized enterprises (SMEs) government suppliers. Secondly, it investigates the differences in the perceived challenges between the small- and medium-sized groups of companies.
Design/methodology/approach
The study draws on the quantitative method. The questionnaire was distributed to SMEs that supply green goods or services to the government and which are listed in the MyHijau directory. Using convenience sampling, a total of 394 questionnaires were distributed and 126 usable questionnaires were received, representing a response rate of 31.98%. A descriptive analysis of the mean score, standard deviation and mean score ranking was used to analyse the overall results. The t-test analysis was carried out to examine the differences between the small- and medium-sized groups of companies.
Findings
All five categories of the barriers, i.e. financial, legal, people, knowledge and organizational challenges, are perceived as the important challenges for SMEs’ involvement in GPP. Of the five categories, “having lack of knowledgeable staff on GPP” under the category of “people” challenge is ranked as the most major barrier. In relation to the differences between the two groups of enterprises (small- and medium-sized), medium enterprises are more affected by two items under the “organization” challenge, i.e. “The company has not targeted suppliers that promote environmentally-friendly products/services” and “The company has not established a clear objective on purchase of green products and services”, as compared to the small-sized enterprises through their GPP involvement.
Social implications
By understanding the difficulties faced by SMEs in engaging with GPP, various practical measures can be formulated to support the SME businesses in mitigating the challenges faced for their involvement with GPP, which subsequently will lead to the country’s target to reach the sustainable development goals.
Originality/value
This study extends empirical evidence on barriers or challenges that may hinder the involvement in government green procurement, with a specific focus on SME government suppliers.
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The purpose of this paper is to examine current and prospective consumer perceptions, purchase intent and parent brand evaluation due to green brand – line and category extensions…
Abstract
Purpose
The purpose of this paper is to examine current and prospective consumer perceptions, purchase intent and parent brand evaluation due to green brand – line and category extensions by marketers of established (non‐green) brands for products with high vs low perceived environmental impact.
Design/methodology/approach
The paper analyses responses to online surveys by 602 pet‐owners at social networking websites. The quasi‐experiment considered perceived environmental impact of core product, parent‐brand user status, and green extension strategy (line vs category). Brand extension evaluation, purchase intent, and parent brand evaluation were then measured.
Findings
Results suggest that consumers are more likely to purchase green extensions of products with high perceived environmental impact and that current consumers prefer green line extensions to green category extensions. Both have similar reciprocal impact on parent brand evaluation among current consumers.
Research limitations/implications
The data have external validity but lack the control possible in laboratory experiments. Future research should replicate the study in other product categories.
Practical implications
Managers of established brands should consider brand extensions of products associated with high environmental impact only.
Originality/value
This paper examines managerial implications of line vs category extension strategies for green brand extensions of established brands.