INTERNATIONAL JOURNAL OF ENGINEERING MANAGEMENT AND
SOCIAL SCIENCES

GREEN OPERATIONS AS A STRATEGIC TOOL: EXAMINING ITS INFLUENCE ON CUSTOMER PERCEPTION AND BRAND EQUITY

This study explores the strategy of green operations and its impact on customer perception, brand trust and brand loyalty. Based on the Theory of Planned Behavior (TPB) and stakeholder theory, a conceptual model was created that connects Green Operations (GO), Perceived Transparency (PT), Brand Trust (BT), and Customer Loyalty (CL), with the Green Skepticism (GS) as a moderating variable. A structured questionnaire was used to collect primary data from 350 respondents. The hypothetical relationships were tested with Pearson correlation and regression analysis with SPSS after assessing psychometric properties of the instrument by Principal Component Analysis (PCA). Based on the results, it can be seen that (i) Green Operations positively and significantly affect Perceived Transparency (P = <.001, β = 0.681), (ii) Perceived Transparency significantly predicted Brand Trust (P < .001, β = 0.625), and (iii) Brand Trust strongly affected Customer Loyalty (P < .001, β = 0.643). The overall skepticism regarding green claims had no significant moderating effect, suggesting that in the current sample, general skepticism towards green claims has no impact on the link between operations and perception. The construct validity was confirmed by 77.93% cumulative variance obtained from the five-factor solution of PCA. The study is unique as it empirically documents how invisible green operational practices (sustainable sourcing, energy efficiency and waste reduction) affect brand outcomes in the downstream firms down a transparency and trust channel.