Let’s go green: achieving consumer-related performance outcomes in banks

Abstract

PurposeDue to the increased pollution and global warming, the banking sector is also implementing green practices in their operations to improve business ethics. However, there are few studies that have looked at how green practices affect performance outcomes. Considering this, the study aims to examine the impact of green banking adoption practices (GRBP) on consumer-related performance outcomes (i.e. consumer green satisfaction, consumer green perceived quality, consumer green trust, environmental friendliness and continuing relations with bank). The study used resource-based view theory and triple bottom line in connecting GBRP and consumer-related performance outcomes.Design/methodology/approachThe data was gathered via a Likert scale questionnaire from banking personnel and consumers using a non-probability purposive sampling technique. The data of GRBP was collected from the banking employees, whereas the data for consumer-related performance outcomes were gathered from the banking consumers, and “Partial least square-structural equation modeling” (PLS-SEM) was used to examine research hypotheses.FindingsThe results of PLS-SEM reveal that GRBP positively affects consumer green trust, green perceived quality and green satisfaction. However, GRBP does not have any impact on environmental friendliness. The results further reveal that GRBP largely affects consumer green trust followed by green perceived quality and green satisfaction, respectively. Moreover, consumer green perceived quality, green trust and environmental friendliness positively affect the continuing relationship with the bank.Originality/valueTo the best of the authors’ knowledge, this is the first study in the context of green banking, i.e. two-dimensional, as it examines the impact of GRBP on consumer-related performance outcomes and confirms that GRBP enhances consumer-related performance outcomes. The findings of the study provide numerous insights to bank managers, environmentalists and policymakers.