This study explores how strategic ambidexterity, public policy, and customer orientation influence greenwashing practices in the banking sector, focusing on multinational, Indian private and public sector banks.
A mixed-method research design was used, combining surveys and interviews with senior management from three types of banks: multinational banks operating in India, Indian private banks and Indian public sector banks, providing insights into their sustainability strategies. The survey measured exploration and exploitation capabilities, regulatory stringency, consumer advocacy and greenwashing tendencies. Qualitative and quantitative data were analyzed to assess sectoral differences in greenwashing behaviors. Results were triangulated using secondary analysis of banks’ published ESG reports.
The findings indicate notable differences across three banking sectors. Multinational banks showed moderate exploration and exploitation capabilities but higher greenwashing tendencies, suggesting symbolic sustainability efforts. Indian private banks demonstrated stronger innovation and optimization but were more prone to greenwashing, likely due to competitive pressures. Public sector banks had moderate capabilities and the lowest greenwashing scores, reflecting stricter regulatory oversight. Regulatory stringency and consumer advocacy emerged as significant influences across all banking sectors.
As a conceptual study, the research lacks empirical validation and focuses primarily on larger banking institutions. Future studies should empirically test the framework and explore the role of financial technologies in reducing greenwashing.
This study uniquely integrates strategic ambidexterity, public policy and customer orientation into a unified framework to examine greenwashing in banking, offering new insights into sector-specific sustainability strategies.
