IDEAS home Printed from https://ideas.repec.org/a/pal/jbkreg/v22y2021i4d10.1057_s41261-021-00150-8.html
   My bibliography  Save this article

Evaluating the relevance of green banking practices on Saudi Banks’ green image: The mediating effect of employees’ green behaviour

Author

Listed:
  • Ali Saleh Alshebami

    (King Faisal University)

Abstract

A considerable number of companies focus solely on maximizing their profit and give less or almost no concern about environmental sustainability and protection. Financial institutions being a part of these developmental entities tend to play a crucial role in economies' development and sustainability due to their intermediary role between economies and the investing industries. Despite the belief that banks do not directly contribute to the emission maximization or carbon footprint still, evidence reported that they are indirectly contributing to that by financing those projects which may harm the environment and its surroundings. Accordingly, the concept of green banking practices has been recently introduced in support of the theory of socially responsible investment (SRI), which looks for both financial return and social/environmental good to bring about social change regarded as positive by proponents. Hence, this study investigates green banking practices' relevance among banks in Saudi Arabia and their effect on the Saudi banks' green image with the mediating effect of the employees' green behaviour. The study targeted all banks operating in Saudi Arabia, and results were tabulated and analyzed with the help of the structural equation modeling partial least square (PLS) and SPSS software. The study's findings revealed a significant positive relationship between green banking practices and the Saudi banks' green image, indicating that the more green banking practices are practiced, the more the banks' image improves. The results further disclosed that the green behaviour of employees is affected by green banking practices directly. However, employees' green banking behaviour does not mediate the relationship between green banking practices and the Saudi banks' green image. Since green banking practices impact the banks' green image, banks should spread awareness among their employees, clients, and other stakeholders to ensure more benefits. Since it is in some studies reported as a voluntary behaviour, not a compulsory one, which may affect the seriousness of employees to follow it.

Suggested Citation

  • Ali Saleh Alshebami, 2021. "Evaluating the relevance of green banking practices on Saudi Banks’ green image: The mediating effect of employees’ green behaviour," Journal of Banking Regulation, Palgrave Macmillan, vol. 22(4), pages 275-286, December.
    • Handle: RePEc:pal:jbkreg:v:22:y:2021:i:4:d:10.1057_s41261-021-00150-8
    DOI: 10.1057/s41261-021-00150-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41261-021-00150-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41261-021-00150-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Welsch, Heinz & Kühling, Jan, 2018. "How Green Self Image is Related to Subjective Well-Being: Pro-Environmental Values as a Social Norm," Ecological Economics, Elsevier, vol. 149(C), pages 105-119.
    2. Thian Vui Shau, 2017. "The Confirmatory Factor Analysis (CFA) of Preschool Management Model in Sarawak," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(6), pages 221-231, June.
    3. Pui Ng & Muhammad Butt & Kok Khong & Fon Ong, 2014. "Antecedents of Green Brand Equity: An Integrated Approach," Journal of Business Ethics, Springer, vol. 121(2), pages 203-215, May.
    4. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    5. Aseem Prakash, 2002. "Green marketing, public policy and managerial strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 11(5), pages 285-297, September.
    6. van Dooren, Bono & Galema, Rients, 2018. "Socially responsible investors and the disposition effect," Journal of Behavioral and Experimental Finance, Elsevier, vol. 17(C), pages 42-52.
    7. Yu-Shan Chen, 2008. "The Positive Effect of Green Intellectual Capital on Competitive Advantages of Firms," Journal of Business Ethics, Springer, vol. 77(3), pages 271-286, February.
    8. Yujing Zhang & Yilin Luo & Xinjing Zhang & Jing Zhao, 2019. "How Green Human Resource Management Can Promote Green Employee Behavior in China: A Technology Acceptance Model Perspective," Sustainability, MDPI, vol. 11(19), pages 1-19, September.
    9. Mayer, Robert & Ryley, Tim & Gillingwater, David, 2012. "Passenger perceptions of the green image associated with airlines," Journal of Transport Geography, Elsevier, vol. 22(C), pages 179-186.
    10. Falcone, Pasquale Marcello & Morone, Piergiuseppe & Sica, Edgardo, 2018. "Greening of the financial system and fuelling a sustainability transition," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 23-37.
    11. Yuan, Fei & Gallagher, Kevin P., 2018. "Greening Development Lending in the Americas: Trends and Determinants," Ecological Economics, Elsevier, vol. 154(C), pages 189-200.
    12. Grace Ibe-enwo & Nicholas Igbudu & Zanete Garanti & Temitope Popoola, 2019. "Assessing the Relevance of Green Banking Practice on Bank Loyalty: The Mediating Effect of Green Image and Bank Trust," Sustainability, MDPI, vol. 11(17), pages 1-16, August.
    13. Pratima Bansal, 2005. "Evolving sustainably: a longitudinal study of corporate sustainable development," Strategic Management Journal, Wiley Blackwell, vol. 26(3), pages 197-218, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hung-Yu Chen & Raofeng Guo & Chin-Chao Hung & Zong-Han Lin & Mengshan Wu, 2023. "Behavioral Intentions of Bank Employees to Implement Green Finance," Sustainability, MDPI, vol. 15(15), pages 1-20, July.
    2. Rahman Aulia Fuad & Agusti Rosalita Rachma & Kurniawati Desi Tri, 2024. "Mediating Role of Sustainability Reporting Quality on the Relationship Between Green Banking and Firm Value," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 34(4), pages 105-129.
    3. Xijia Huang & Yiting Guo & Yuming Lin & Liping Liu & Kai Yan, 2022. "Green Loans and Green Innovations: Evidence from China’s Equator Principles Banks," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    4. Joachim P. Hasebrook & Leonie Michalak & Anna Wessels & Sabine Koenig & Stefan Spierling & Stefan Kirmsse, 2022. "Green Behavior: Factors Influencing Behavioral Intention and Actual Environmental Behavior of Employees in the Financial Service Sector," Sustainability, MDPI, vol. 14(17), pages 1-35, August.
    5. Wajeeha Aslam & Syed Tehseen Jawaid, 2023. "Systematic Review of Green Banking Adoption: Following PRISMA Protocols," IIM Kozhikode Society & Management Review, , vol. 12(2), pages 213-233, July.
    6. Ali Saleh Alshebami, 2023. "Green Innovation, Self-Efficacy, Entrepreneurial Orientation and Economic Performance: Interactions among Saudi Small Enterprises," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    7. Vera Mirovic & Branimir Kalas & Ines Djokic & Nikola Milicevic & Nenad Djokic & Milos Djakovic, 2023. "Green Loans in Bank Portfolio: Financial and Marketing Implications," Sustainability, MDPI, vol. 15(7), pages 1-14, March.
    8. Jing Sun & Muhammad Safdar Sial & Dasong Deng & Darina Saxunova & Ahsanuddin Haider & Mohammed Arshad Khan, 2022. "The Significance of Urban Rail Transit Systems in Mitigating Air Pollution Effects: The Case of China," Sustainability, MDPI, vol. 14(21), pages 1-10, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grace Ibe-enwo & Nicholas Igbudu & Zanete Garanti & Temitope Popoola, 2019. "Assessing the Relevance of Green Banking Practice on Bank Loyalty: The Mediating Effect of Green Image and Bank Trust," Sustainability, MDPI, vol. 11(17), pages 1-16, August.
    2. Ching-Hsun Chang, 2011. "The Influence of Corporate Environmental Ethics on Competitive Advantage: The Mediation Role of Green Innovation," Journal of Business Ethics, Springer, vol. 104(3), pages 361-370, December.
    3. Yu-Shan Chen & Cui Wang & Ying-Rong Chen & Wei-Yuan Lo & Kuan-Ling Chen, 2019. "Influence of Network Embeddedness and Network Diversity on Green Innovation: The Mediation Effect of Green Social Capital," Sustainability, MDPI, vol. 11(20), pages 1-17, October.
    4. Caroline Gauthier & Corine Genet, 2014. "Nanotechnologies and Green Knowledge Creation: Paradox or Enhancer of Sustainable Solutions?," Journal of Business Ethics, Springer, vol. 124(4), pages 571-583, November.
    5. Naili Farida & Elia Ardyan, 2015. "Repeat Purchase Intention of Starbucks Consumers in Indonesia: A Green Brand Approach," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 27(2), pages 189-202.
    6. Guoyou Qi & Hailiang Zou & Xuemei Xie, 2020. "Governmental inspection and green innovation: Examining the role of environmental capability and institutional development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1774-1785, July.
    7. Lin, Jialing & Lobo, Antonio & Leckie, Civilai, 2017. "The role of benefits and transparency in shaping consumers’ green perceived value, self-brand connection and brand loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 35(C), pages 133-141.
    8. Krishnadas Nanath & R Radhakrishna Pillai, 2021. "Towards a framework for sustaining Green IT initiatives: an empirical investigation," Information Technology and Management, Springer, vol. 22(3), pages 193-206, September.
    9. Jianfeng Meng & Majid Murad & Cai Li & Ayesha Bakhtawar & Sheikh Farhan Ashraf, 2022. "Green Lifestyle: A Tie between Green Human Resource Management Practices and Green Organizational Citizenship Behavior," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
    10. Gema Albort-Morant & Jörg Henseler & Antonio Leal-Millán & Gabriel Cepeda-Carrión, 2017. "Mapping the Field: A Bibliometric Analysis of Green Innovation," Sustainability, MDPI, vol. 9(6), pages 1-15, June.
    11. Yingjie Hao & Congcong Fan & Yunguang Long & Jieyi Pan, 2019. "The role of returnee executives in improving green innovation performance of Chinese manufacturing enterprises: Implications for sustainable development strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 804-818, July.
    12. Qiong Yao & Suzhen Zeng & Shibin Sheng & Shiyuan Gong, 2021. "Green innovation and brand equity: moderating effects of industrial institutions," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 573-602, June.
    13. Stanley Kam Sing Wong, 2013. "Environmental Requirements, Knowledge Sharing and Green Innovation: Empirical Evidence from the Electronics Industry in China," Business Strategy and the Environment, Wiley Blackwell, vol. 22(5), pages 321-338, July.
    14. Elwira Gross-Gołacka & Marta Kusterka-Jefmańska & Bartłomiej Jefmański, 2020. "Can Elements of Intellectual Capital Improve Business Sustainability?—The Perspective of Managers of SMEs in Poland," Sustainability, MDPI, vol. 12(4), pages 1-23, February.
    15. Shun-Pin Chuang & Sun-Jen Huang, 2018. "The Effect of Environmental Corporate Social Responsibility on Environmental Performance and Business Competitiveness: The Mediation of Green Information Technology Capital," Journal of Business Ethics, Springer, vol. 150(4), pages 991-1009, July.
    16. Abbas Mardani & Dalia Streimikiene & Edmundas Kazimieras Zavadskas & Fausto Cavallaro & Mehrbakhsh Nilashi & Ahmad Jusoh & Habib Zare, 2017. "Application of Structural Equation Modeling (SEM) to Solve Environmental Sustainability Problems: A Comprehensive Review and Meta-Analysis," Sustainability, MDPI, vol. 9(10), pages 1-65, October.
    17. Yu-Shan Chen & Ching-Hsun Chang, 2013. "Utilize structural equation modeling (SEM) to explore the influence of corporate environmental ethics: the mediation effect of green human capital," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(1), pages 79-95, January.
    18. Yu-Shan Chen & Yu-Hsien Lin & Ching-Ying Lin & Chih-Wei Chang, 2015. "Enhancing Green Absorptive Capacity, Green Dynamic Capacities and Green Service Innovation to Improve Firm Performance: An Analysis of Structural Equation Modeling (SEM)," Sustainability, MDPI, vol. 7(11), pages 1-19, November.
    19. Palmer, Mark & Truong, Yann, 2017. "The Impact of Technological Green New Product Introductions on Firm Profitability," Ecological Economics, Elsevier, vol. 136(C), pages 86-93.
    20. Mercedes Úbeda‐García & Bartolome Marco‐Lajara & Patrocinio C. Zaragoza‐Sáez & Encarnación Manresa‐Marhuenda & Esther Poveda‐Pareja, 2022. "Green ambidexterity and environmental performance: The role of green human resources," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(1), pages 32-45, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jbkreg:v:22:y:2021:i:4:d:10.1057_s41261-021-00150-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.