Fostering perceived wealth among SMEs through green business: unveiling the mediating influence of consumers' green attitude

Abstract

PurposeThis research aims to determine the impact of green business (GB) on the perceived wealth of small and medium-scale enterprises (PWSMEs). The study also analyses the mediating role of a green attitude in this relationship.Design/methodology/approachA questionnaire based on a comprehensive literature study was used to develop a scale for measuring GB parameters. A survey involving 400 small and medium enterprise (SME) owners and managers across India was conducted. Regression analysis is used to determine the impact of GB on PWSMEs, and mediation analysis is used to explore the role of green attitude in this relationship.FindingsThe study reveals that GB components such as intent, processes, measurement, communication and capacity building have a positive impact on perceived wealth and green attitude. The association between perceived wealth and GB aspects is moderated by a green attitude, with the indirect effect being more significant than the direct effect.Practical implicationsTo improve customers' green attitudes toward buying goods and services, small and medium enterprises (SMEs) should develop a technique to implement GB aspects into their overall strategy. This will undoubtedly improve the performance of SMEs.Originality/valueThis study adds to the body of knowledge on GB by emphasizing the benefits that SMEs can get from implementing GB practices, thereby improving their performance in markets such as India.