Motivating from research gap, this study aims to analyze the two-way influence of green banking practices (GBP) and green electronic word of mouth (GEWOM) in driving green trust (GT) and green loyalty (GL), using trust transfer theory (TTT).
Working with a sample of 453 bank customers, partial least structure-based equation modeling was used to test the hypothesis.
This study finds that GBP and GEWOM directly build GT and develop GL among banking customers. GT was also positively related to GL. This study further validated that GT serves as a partial mediator in the relationship between GBP-GL and GEWOM-GL.
Banks should incorporate GEWOM alongside GBP as a part of their corporate strategy. By actively showcasing their green initiatives, commitment and engaging with customers on social media platforms, banks can effectively build GT and foster GL.
This study developed a novel framework and uniquely contributes to the extant literature by revealing the two-way influence of GBP and GEWOM in driving GT and GL through a TTT perspective.
