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The impact of the institutional environment on green consumption in India

Article in Journal of Consumer Marketing · December 2020

DOI: 10.1108/JCM-12-2019-3536

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 The impact of the institutional environment on
green consumption in India
Naman Sreen
Department of Marketing Management, OP Jindal Global University, Sonipat, India
Rambalak Yadav
Department of Marketing Management, Institute of Management Technology, Hyderabad, India
Sushant Kumar
Department of Marketing Management, Indian Institute of Management Raipur, Raipur, India, and
Mark Gleim
Department of Marketing, Auburn University, Auburn, Alabama, USA

Abstract
Purpose – This paper aims to develop an institutional framework to examine the role of governmental and social pressures on green product
purchase intentions. Because of the increased focus on environmental issues in emerging markets, an examination of the institutional environment
in India can provide unique insights into the drivers of green consumption.
Design/methodology/approach – A large-scale data collection is conducted via an online survey to test the validity of the theorized model. A
survey methodology is used to collect responses from a sample of 400 consumers in India and analyzed via Smart PLS 3.0.
Findings – The findings suggest moral norms, injunctive and descriptive, have varying influences on consumers. Further, governmental influence, at
least in India, may not have a positive impact one would expect. The results indicate the institutional framework developed in this research has a
good predictive ability in green marketing settings and offers insights for businesses and policymakers to enhance consumers’ motivations to
purchase green products.
Originality/value – From a theoretical perspective, this research is the first to examine the institutional environment on green consumption in India
and provides unique insights into the influences of green consumption. The results suggest the institutional environment in India presents unique
opportunities for practitioners and policymakers.
Keywords Sustainability, Institutional theory, Green consumption, Government influence, Moral norms
Paper type Research paper

1. Introduction Green consumption is defined as the purchase of

The past decade has seen increased attention to green
consumption in academic literature (Emekci, 2019; Lawson
et al., 2016). However, the majority of the literature has focused
on understanding an individual’s green purchasing behavior by
demographics (Diamantopoulos et al., 2003), psychological
beliefs (Ajzen, 1991) or by extending rational choice theories
through the inclusion of extra constructs that aim to explain the
attitude-behavior gap (Gleim and Lawson, 2014). While these
studies provide insights into consumers’ beliefs, research
examining how consumers’ beliefs develop and nurture is
scant. Research has examined moral values as antecedents to
belief formation (Sreen et al., 2018), however, it ignores the
institutions such as government and society, which play a vital
role in the formation of beliefs and behavior (Gleim et al.,
2018).
The current issue and full text archive of this journal is available on Emerald
Insight at: https://www.emerald.com/insight/0736-3761.htm
environmentally friendly products to minimize the
environmental impact of purchases (Gleim et al., 2013).
Consumers’ beliefs regarding green product consumption are
formed from a variety of factors. Without a better
understanding of the impact government and society can have
on the formation of an individual’s beliefs, it may prove
challenging for policymakers and practitioners to implement
effective change. Thus, the present research seeks to address
the need to examine the formation of an individual’s belief and
intentions toward green consumption through the lens of the
institutional environment.
There is a growing interest in research related to institutional
influences on organizations’ adoption of green practices (Hawn
and Ioannou, 2016). Similarly, individuals live in an
institutional environment that influences their socially
responsible behaviors through the formation of their knowledge
and beliefs (Handelman and Arnold, 1999; Scott, 2005). To
fully understand an individual’s psychological beliefs toward
green products, emphasizing only moral principles is not

Received 12 December 2019

Journal of Consumer Marketing Revised 9 July 2020
© Emerald Publishing Limited [ISSN 0736-3761] 12 October 2020
[DOI 10.1108/JCM-12-2019-3536] Accepted 15 October 2020
 Impact of the institutional environment
Naman Sreen, Rambalak Yadav, Sushant Kumar and Mark Gleim
sufficient, therefore research needs to understand the impact of
the interaction an individual has within social and institutional
contexts (Cronin et al., 2011). The lack of research on the
impact of institutional influences on an individual’s green
beliefs presents an opportunity to examine the role of
institutions on an individual’s beliefs and behavior.
Because of the increased focus on environmental issues
around the globe, in particular in developing markets, an
examination of the institutional framework is presented.
Research suggests emerging markets have shown a propensity
to focus less attention on environmental issues and more on
economic growth, thus they are a fitting market to study for
environmental strategies (Peng et al., 2008). The present
research uses India as our developing market of study. India has
the world’s fastest-growing economy and is the second-most
populous country in the world, both of which have led to
environmental issues and enhanced scrutiny of the country
(Dhasmana, 2016). Given the economic growth and
tremendous population, India provides an excellent source by
which to investigate the institutional framework.
This research is the first of its kind to develop an institutional
framework to examine an individual’s green purchase intention
in India. The effect of institutions on an individual’s knowledge
perceived expected outcomes, self-efficacy and green purchase
intentions will provide insights to practitioners and
policymakers as they seek to develop strategies for promoting
green consumption.
2. Theoretical background and hypothesis
development
2.1 Determinants of green consumption
To better understand how the beliefs of consumers toward
green consumption may be formed, we first seek to examine
previous research on the determinants of green consumption.
Table 1 summarizes previous research on the determinants of
green consumption. In addition, the country of interest for the
research and type of variable under study is noted. Previous
research suggests there are four types of variables that predict
green consumption, namely, socio-demographic, intrapsychic,
contextual and a combination of intrapsychic and contextual.
Table 1 Prior research on the determinants of green consumption
Author Determinant of green consumption
Schlegelmilch et al. (1996) Environmental consciousness
Moser (2015) Attitudes, personal norms and willingness to pay the premium
Gleim and Lawson (2014) Financial resources, perceived consumer effectiveness, personal and social norms
and product type
Ertz et al. (2016) Perceived busyness, perceived wealth, perceived power, attitude, importance and
cost
Atkinson and Rosenthal Argument specificity, information source, product involvement, trust and attitude
(2014)
Patel et al. (2017) Demographics
Jain and Kaur (2006) Demographics
Brooks and Wilson (2015) Perceived Status
Thøgersen (2003) Government policies/incentives
Hage et al. (2009) Economic incentives and moral norms
Journal of Consumer Marketing
Socio-demographics have been used to predict green
consumption in various studies (Patel et al., 2017; Jain and
Kaur, 2006). The prevalence of socio-demographics within
marketing research suggests the data is relatively easy to gather,
and one can generate actionable segments of consumers
through socio-demographics. However, the role of socio-
demographics to predict consumption has produced
inconclusive and inconsistent results. Intrapsychic is defined as
the psychological phenomenon that occurs within the mind
(Grimmer et al., 2016). Intrapsychic variables have been
examined to help identify the psychological phenomenon that
affects a person’s willingness to purchase green products.
Contextual factors, such as recycling programs or
governmental policies, have been examined to predict pro-
environmental behaviors (Thøgersen, 2003; Brooks and
Wilson, 2015; Ertz et al., 2017). Contextual factors alter the
process of decision-making and possess the potential to change
choice outcomes. Given intrapsychic variables focus on the
consumer, and contextual variables focus on the environment,
a combination of contextual and intrapsychic variables have
been advocated in previous research. Ertz et al. (2016) combine
contextual and intrapsychic variables to predict private and
public-sphere behaviors. The present research seeks to address
the need to examine institutional factors as noted by Ertz et al.
(2016). Additionally, research examining multiple factors is
very limited. The current research seeks to examine the impact
of consumers’ perceptions of their institutional environment on
knowledge, perceived expected outcomes, self-efficacy and
green purchase intentions.
2.2 Institutional theory
The institutional theory provides a framework for analyzing
social phenomena while considering the cultural and social
influences within society (Scott, 2005; Handelman and Arnold,
1999). Traditional organizational theories have focused on the
production or exchange systems of an organization but
neglected to consider the social or cultural factors that could
impact the business. Interest in examining institutional
pressures on green organizational practices has grown in the
past couple of decades as businesses continue to evolve to meet
the ever-changing demands of society (Hawn and Ioannou,
2016).
Country Type of variables
UK Intrapsychic
Germany Intrapsychic
USA Intrapsychic
USA Contextual and
intrapsychic
Greece Contextual and
intrapsychic
India Socio-demographics
India Socio-demographics
USA Contextual
Denmark Contextual
Sweden Contextual
 Impact of the institutional environment
Naman Sreen, Rambalak Yadav, Sushant Kumar and Mark Gleim
The environmental regulations imposed by the government
often require firms to be environmentally innovative and more
committed to green practices (Porter and van der Linde, 1995).
In the case of a highly regulated environment, organizations can
implement green initiatives to decrease costs and increase
efficiencies (Chan et al., 2012). Similarly, research has shown
social pressure to be one of the main factors that encourage
companies to be environmentally conscious (Handelman and
Arnold, 1999). Despite the influence of the institutional
environment on businesses, there is a lack of research that
examines the impact of institutional pressures on an
individual’s green behavior in a non-organizational setting,
despite the role it may have on consumers.
The institutional framework accentuates the importance of
regulatory, normative and cognitive factors that may impact an
individual’s decision (Scott, 2005). Regulatory factors are the
product of market forces, rules and regulations that seek to
compel individuals to change their behavior (McKay-Nesbitt
et al., 2013). Normative factors define the role of social
obligation, hence comprise the moral norms that are often
followed by individuals (Nyborg et al., 2006). Both regulatory
and normative factors are contextual variables. Cognitive
factors focus on the mind and interpretation of the contextual
variables (Ertz et al., 2016). In this research, we examine the
interplay between regulatory, normative and cognitive factors
and the subsequent impact on green purchase behavior.
The institutional perspective ignores individual differences in
decision-making as it suggests that to gain legitimacy every
individual exposed to similar pressures will have similar
behavior. Building on institutional theory, we propose that each
individual’s behavior is heterogeneous. Even though
individuals are exposed to the same institutional pressures, they
likely interpret these pressures differently, thus leading to
varying effects and behave differently. Therefore, we consider
two institutions; government and society, to examine the
influence on an individual’s green knowledge and behavior
(Figure 1).
2.3 Government influence
The government can influence environmental knowledge and
behavior through policies, regulations, monetary incentives and
public campaigns (Newman and Fernandes, 2016). We define
governmental influence as an individual’s perception of the
Figure 1 Hypothesized model
Hypothesized Model
H1a
GI
H4a
H1b
KNW
H2a H5b
IN
H3a H5a
H6a
H2b PEO H6b
H3b
DN
H4b
Notes: GI: Government Influence; IN: Injunctive
Norms; DN: Descriptive Norms; KNW: Knowledge;
PEO: Perceived Expected Outcomes; SE: Self-Efficacy;
GPI: Green Purchase Intention
Journal of Consumer Marketing
environmental rules and regulations enacted by the
government to promote pro-environmental behaviors. The
rules and regulations put forth by the government have a
tremendous impact on businesses, yet the impact on consumers
is less known (Gleim et al., 2018).
Green purchase behavior often includes an extra search cost,
price and effort on the part of the consumer, yet provides a little
direct benefit to the consumer (Borin et al., 2013; Gleim et al.,
2013). As these issues can create doubt in the mind of
consumers when considering the purchase of green products,
governmental policies that encourage pro-environmental
behavior can act as a positive signal to engage in the behavior.
For example, the government may provide financial incentives
for electric vehicle purchases or reducing electricity
consumption or they may be punitive for actions that run
counter to regulations. As consumers seek to understand the
regulations, they should gain more knowledge of green
products and behaviors (Akenji, 2014).
Conversely, Frey (1999) suggests “an environmental policy
via controls and commands (regulations) undermines
environmental morale.” This builds on the cognitive evaluation
theory that suggests governmental rules and regulations can be
counterproductive as they may reduce an individual’s intrinsic
motivation to act on a behavior (Deci and Ryan, 1985). In such
a case, the perception of external pressure crowds out an
individual’s internal motivation to act in an environmentally
friendly manner. Given green consumption is viewed as
altruistic behavior, a consumer’s internal motivation to be “a
good person” may get undermined through governmental
policies (Kalamas et al., 2014). Thus, the government
implementing environmental policies, coupled with societal
perceptions, will impact how the policies are perceived. Hence,
the following:
H1a. Government influence impacts an individual’s
knowledge of green products.
Perceived expected outcomes are the personal and social
benefits a consumer can expect to achieve by having a pro-
environmental focus (Axelrod and Lehman, 1993; Follows and
Jobber, 2000). Consumers may feel destitute in a situation
where the outcome is in doubt, as there is uncertainty regarding
their ability to generate positive outcomes from the green
behavior (Thøgersen, 2005). Governmental policies to
promote sustainability can encourage the participation of
citizens in adhering to regulations and altering their behaviors.
Rules and regulations put forth by the government provide
assurance to citizens that their pro-environmental behavior can
help reduce their environmental impact. As a result, consumers
feel more confident in their ability to achieve the desired
H7
outcome from a green purchase (Gleim et al., 2013).
SE GPI
On the contrary, consumers may follow the manipulation
discourse due to a lack of trust in dominant powers such as the
government and form negative expectancies for green actions
as a form of resistance to governmental pressures (Izberk-
Bilgin, 2010). Additionally, governmental regulations can take
away an individual’s autonomous power and does not allow
him/her to experience a predictive relationship between the
action and outcome (Thøgersen, 2005). Given the discrepancy
in consumer reactions to governmental influence on perceived
 Impact of the institutional environment
Naman Sreen, Rambalak Yadav, Sushant Kumar and Mark Gleim
expected outcomes, we seek to examine it in the model. Thus,
we hypothesize the following:
H1b. Government influence impacts an individual’s
perceived expected outcomes.
2.4 Moral norms
Moral norms often require people to sacrifice their own self-
interest for the benefit of others. In general, moral norms are
defined as the rules of morality people ought to follow
(Thøgersen, 2005). Society plays a large role in the
development of these rules of morality. To this end, while
studies show green purchase behavior is viewed as a moral
norm in the USA (Gleim et al., 2013), evidence of support in an
Indian context is lacking. Research suggests knowledge of
norms can be transferred among people in a couple of ways
(Thøgersen, 2005). First, the pattern of behavior that is
exemplified by others in a group will encourage people to act in
a similar manner (i.e. descriptive norms) (Harries et al., 2013).
For instance, in a theater, after a play has ended, an individual
will stand up and applaud to follow the normative influence of
the rest of the audience, as everyone else is doing the same.
The second pattern of behavior is induced when an
individual believes that not following the act will lead to
negative consequences (i.e. injunctive norms) (Harries et al.,
2013). For example, individuals guided by injunctive norms,
are less likely to litter, as they perceive that most individuals do
not approve of this behavior (Cialdini et al., 1990). As a result,
injunctive and descriptive norms help form the moral norms of
an individual, as they help define the socially acceptable
behaviors (Fishbein and Ajzen, 2010).
Additionally, the Theory of Planned Behavior (TPB) has
been used extensively to examine green purchase intentions
and behaviors (De Leeuw et al., 2015; Sreen et al., 2018).
Despite the extensive use of the TPB framework for
environmental research, there are concerns about its
completeness related to factors such as moral norms (Ertz et al.,
2017). Moral norms act as guiding principles of behavior.
Reasons to follow perceived social morals are attributed to
reward, punishment, expert opinions and an individual’s desire
to be like others (Fishbein and Ajzen, 2010). Individuals not
only perform a behavior because they seek reward or fear
punishment but also because following others provides
evidence of effective behavior (Kallgren et al., 2000).
As consumers seek to gain knowledge on how to act
regarding green consumption, they look to the moral norms for
guidance. Consumers can gain information by observing the
green purchase behavior of their family and friends (Sukhu and
Scharff, 2018). Thus, the moral norms of society will likely
influence the information sought by consumers (Fishbein and
Ajzen, 2010). As consumers seek to be a part of the social
group, and not do something that may put them at odds with
others, they are more likely to seek information on green
products. Therefore, normative influences should help to
create knowledge regarding green products:
H2a. Injunctive norms positively influence an individual’s
knowledge of green products.
Journal of Consumer Marketing
H2b. Descriptive norms positively influence an individual’s
knowledge of green products.
Norms are activated through negative sanctions such as guilt
and positive sanctions such as pride (Kallgren et al., 2000).
Research suggests people are concerned about the environment
and feel guilty (injunctive norms) if they act in a manner that
harms the environment (Cialdini et al.,1991). Emotions such as
guilt are pro-social as it results in a felt obligation (moral
norms) for compensating the damages done (Bamberg and
Möser, 2007). Conversely, research has found hotel guests are
willing to pay a premium for environmental initiatives if other
guests (descriptive norms) also perform the same behavior
(Kang et al., 2012). Moral norms provide the cues that
consumers evaluate when deciding whether or not to conform
to the influence of others. If the normative influence is
prominent enough, that will impact an individual’s willingness
to adhere to the cues of the group.
Consumption is a way to develop social ties and represent
one’s culture. Hence, an individual that follows the moral
norms should gain acceptance into a social circle (Cho et al.,
2013). Individuals that believe they are a part of the community
tend to make decisions that benefit the community as a
whole and are willing to sacrifice their personal gains for
collective gains (Cho et al., 2013). There is an expectation of
positive outcomes (e.g. acceptance) and alleviation of negative
outcomes (e.g. denial/outcast) when following the moral
norms. If others believe making a green product purchase is
good for the environment, then an individual in that normative
group should adhere to the belief. Adhering to the normative
belief should lead to a positive expectancy for green products.
Therefore, the following hypotheses are proposed:
H3a. Injunctive norms positively influence an individual’s
perceived expected outcomes.
H3b. Descriptive norms positively influence an individual’s
perceived expected outcomes.
Research also suggests a direct effect of moral norms on
intentions to engage in environmentally friendly actions
(Bamberg and Möser, 2007; De Leeuw et al., 2015). Further,
moral norms are associated with increased intentions to
participate in pro-environmental behaviors among high school
students (De Leeuw et al., 2015). Given the direct effect of
moral norms on pro-environmental behaviors, it stands to
reason they should also impact the purchase intentions of green
products. The intention to buy green products may be
motivated by the desire to avoid negative sanctions by others
brought on by injunctive norms (Harries et al., 2013).
Additionally, the purchase of green products may be motivated
by a desire to conform to the actions of the group through
descriptive norms (Harries et al., 2013). Thus, the green
purchase intentions of consumers should be impacted by his/
her desire to adhere to injunctive and descriptive norms.
H4a. Injunctive norms positively influence an individual’s
green product purchase intentions.
H4b. Descriptive norms positively influence an individual’s
green product purchase intentions.
 Impact of the institutional environment
Naman Sreen, Rambalak Yadav, Sushant Kumar and Mark Gleim
2.5 Knowledge
Knowledge in a green context is an individual’s memory where
associations are linked to green products and how they benefit
the environment and oneself (Keller, 1993). Knowledge is a
personal constraint that reduces the amount of effort an
individual is likely to put forth to engage in environmentally
responsible behavior (Mostafa, 2007). For example, a lack of
knowledge will inhibit a consumer from differentiating a green
product from a conventional product, thus reducing the
likelihood of purchase. Increasing knowledge regarding green
consumption and behaviors is an important barrier to break
when seeking to alter consumers’ behavior (Laroche et al.,
2001; Gleim et al., 2013).
Knowledge increases the positive outcome expectancies of
an individual regarding a behavior (Schlegelmilch et al., 1996).
In particular, the knowledge that considers the perceived
outcomes as important amplifies the desirability to obtain those
outcomes (Nuttavuthisit and Thøgersen, 2017). Thus, it is
important that individuals be made aware of the expected
outcomes that may result from their behavior. When an
individual is knowledgeable about the positive (negative)
consequences of green product consumption to society and
oneself, he/she will likely form positive (negative) expectations
regarding the green product outcome (Stern, 2000). Therefore,
the following hypothesis is proposed:
H5a. Knowledge about green products positively influences
an individual’s perceived expected outcomes.
In addition, it has been asserted that knowledge offers the
power to predict future outcomes of an action or the self-
efficacy of an individual (Bandura, 1989). People with more
knowledge possess more control over their behavior and hold
more confidence regarding their ability to perform the behavior
(Wood and Bandura, 1989). Essentially, a knowledgeable
individual is likely to have stronger beliefs in his/her perceived
capabilities or self-efficacy, to perform the desired behavior. It
stands to reason an individual with more knowledge of green
products would perceive his/her ability to achieve the desired
outcome greater than someone with less knowledge. Therefore,
we hypothesize:
H5b. Knowledge of green products positively influences an
individual’s self-efficacy.
2.6 Perceived expected outcomes
Perceived expected outcomes can be divided into personal
benefits and social benefits (Axelrod and Lehman, 1993).
Personal benefits include personal satisfaction or a sense of
achievement, whereas social benefits focus on society and the
environment (Follows and Jobber, 2000). Research suggests an
individual with positive self-efficacy toward a behavior, also
expects a positive outcome from following that behavior
(Bandura, 1991). In turn, the expectation of a positive outcome
should motivate individuals to perform a particular behavior.
Expectancy-value theories such as the Theory of Reasoned
Action and Self-Efficacy Theory, suggest an individual behaves
in a way because one expects a positive outcome from a
behavior (Ajzen and Fishbein, 1980; Bandura, 1982). An
individual that perceives positive outcomes from adopting a
Journal of Consumer Marketing
green behavior should have higher levels of self-efficacy, and a
more positive intention toward a green activity or product
(Jaiswal and Kant, 2018). We theorize that anticipating a
positive outcome should increase an individual’s self-efficacy
regarding green behavior and increase purchase intentions
toward green products. Therefore, we propose:
H6a. Perceived expected outcomes positively influence an
individual’s self-efficacy.
H6b. Perceived expected outcomes positively influence an
individual’s green purchase intentions.
2.7 Self-efficacy
Self-efficacy is an individual’s confidence in one’s ability to
carry out a behavior (Bandura, 2001). It is a prime determinant
of learning and action and regulates cognitive, social, emotional
and behavioral skills required to perform a task (Bandura,
1982). The knowledge an individual has regarding green
products and the positive outcomes from a green purchase
should increase an individual’s confidence in his/her ability to
perform a task. In addition, research suggests the significance of
self-efficacy in developing favorable intentions toward green
products (Gupta and Ogden, 2009; Sreen et al., 2018). The
more confidence an individual has in his/her green product
purchase decision should lead to more favorable green
purchase intentions. Thus, we formulate the following
hypothesis:
H7. Self-efficacy positively influences an individual’s green
product purchase intentions.
3. Research methodology
To test the validity of the theorized hypotheses, a large-scale
data collection was conducted via an online survey. The
following sections outline the administration and validation
procedures that were used.
3.1 Measures
All measures used were adapted from scales published in
existing research and modified to fit the context. Specifically,
we adapted scales on government influence (Delmas and
Toffel, 2004), injunctive norms (Armitage and Conner, 1999),
descriptive norms (Kollmuss and Agyeman, 2002), green
knowledge (Mostafa, 2007), perceived expected outcomes
(Mostafa, 2007; Leonidou et al., 2010), self-efficacy
(Tarkiainen and Sundqvist, 2005) and green purchase
intentions (Armitage and Conner, 1999).
To ensure the survey items were appropriate to use, two
experts in sustainability and marketing critically reviewed the
questionnaire before sending it out for a pilot study. During the
review, item modifications were done to match the context of
the study.
3.2 Survey implementation
A survey containing seven-point Likert type scales was sent in
two waves to minimize potential response biases. The first wave
contained the following scales: government influence,
 Impact of the institutional environment Journal of Consumer Marketing
Naman Sreen, Rambalak Yadav, Sushant Kumar and Mark Gleim

injunctive norms, descriptive norms, green knowledge,
perceived expected outcomes, self-efficacy and demographic
information. One month later the same respondents were asked
for their green purchase intentions. The time gap can help
resolve biases that can arise by filling independent and
dependent variables at the same time (Podsakoff, 2003).
3.3 Sample and data collection
Previous research suggests that educated individuals are better
able to understand green products (Bailey et al., 2016; Sreen
et al., 2018). Thus, we sought respondents with at least an
intermediate level of education (comparable in the USA to take
general education college courses). Using a more educated
sample may not be representative of the population; however, it
provides a more stringent examination of the model. Thus, we
used a quota sampling technique with respect to the level of
education of the respondents.
Respondents were recruited through online directories
available for educational institutions that offer graduate-level
courses. The survey was sent to 2,156 potential respondents
and each person was offered INR 70 (approx. $1) as an
incentive for participation. That resulted in 452 responses. In
total, 52 responses are removed due to missing data and
suspicious data patterns. Table 2 provides demographic
information for the respondents.
3.4 Analysis and results
The psychometric properties of the items were evaluated through
comprehensive confirmatory factor analysis (CFA). The results of
the confirmatory factor analysis are identified in Table 3.
Reliability was measured via the composite reliability (Fornell and
Larcker, 1981) with results indicating the constructs were reliable
as each exceeded the recommended criterion of 0.70 (Nunnally,
1978). Convergent and discriminant validity was shown as the
average variances extracted (AVE) were greater than 0.50, while
the square root of the AVE for each construct was greater than
the correlation between the construct and other constructs in the
model (Fornell and Larcker, 1981). In addition, an SRMR of
0.05, below the 0.08 threshold suggests the model has a good fit
(Hair et al., 2011).
The Q-square value for green purchase intentions was 0.58,
which intimates the predictive relevance for green purchase
intention. Further, Harman’s one-factor test was performed to
check for common method bias. A single factor extracted from
all the items explained 47.51% variance, suggesting there is no
issue. In addition, the one-month time gap between completing
the independent and dependent variables should help minimize
the impact of common method bias (Podsakoff, 2003).
Partial least squares (PLS) structural equation modeling (SEM)
was used to test the theoretical model, as it performs well when
examining new theoretical frameworks and predicting variance in
endogenous constructs (Hair et al., 2019). The results indicate that
government influence does not have a significant impact on
knowledge of green products (b = 0.044, p > 0.05) and negatively
impacts perceived expected outcomes (b =
0.108, p < 0.02).
Injunctive norms have a significant impact on knowledge (b =
0.484, p < 0.001), perceived expected outcomes (b = 0.329, p <
0.001) and green product purchase intentions (b = 0.120, p <
0.01). Descriptive norms have an insignificant relationship with
perceived expected outcomes (b = 0.025, p > 0.05) and green
product purchase intentions (b = 0.000, p > 0.05), but a
significant impact on knowledge (b = 0.268, p < 0.001). In
addition, knowledge has a significant impact on perceived
expected outcomes (b = 0.480, p < 0.001) and self-efficacy (b =
0.592, p < 0.001). Perceived expected outcomes have a significant
impact on self-efficacy (b = 0.303, p < 0.001) and green product
purchase intention (b = 0.420, p < 0.001). Further, self-efficacy
has a significant impact on green purchase intention (b = 0.301,

Table 2 Respondent profiles

Gender Male Female
257 (64.25%) 143 (35.75%)
Age (in years) <20 20–29 30–39 Above 40
66 (16.5%) 241 (60.25%) 68 (17%) 25 (6.25%)
Household income (INR) <3 lakh 3–6 lakh 6–10 lakh Above 10 lakh
72 (18%) 142 (35.5%) 116 (29%) 70(17.5)
Note: Conversion: 10 lakh = 1m INR  $14,425

Table 3 Measurement model results

Constructs CR AVE DN GI GPI IN KNW PEO SE
DN 0.92 0.80 0.89
GI 0.91 0.84 0.48 0.91
GPI 0.93 0.82 0.55 0.36 0.91
IN 0.87 0.68 0.61 0.46 0.67 0.83
KNW 0.92 0.70 0.59 0.39 0.75 0.67 0.84
PEO 0.92 0.74 0.46 0.24 0.77 0.62 0.67 0.86
SE 0.90 0.68 0.67 0.43 0.80 0.71 0.80 0.70 0.83

Notes: Values bolded on the diagonal represent the square root of AVE and values below are the correlations between constructs. GP: government influence;
IN: injunctive norms; DN: descriptive norms; KNW: knowledge; PEO: perceived expected outcomes; SE: self-efficacy; GPI: green purchase intention
 Impact of the institutional environment Journal of Consumer Marketing
Naman Sreen, Rambalak Yadav, Sushant Kumar and Mark Gleim

p < 0.001). Collectively, the results provide evidence of support for
H1b, H2a, H2b, H3a, H4a, H5a, H5b, H6 and H7 (Table 4).
Conversely, H1a, H3b and H4b were not supported by the
findings. Figure 2 illustrates the R-square values and beta
coefficients for the model.
For additional insight, we examined the mediation effects
from moral norms (i.e. descriptive norms and injunctive
norms) to green product purchase intentions through
knowledge, perceived expected outcomes and self-efficacy
(Table 5). For the mediation analysis, we first checked the prior
conditions. The pre-condition reveals a significant relationship
between each mediator and green product purchase intentions.
Injunctive norms show a significant relationship with all
mediators, whereas descriptive norms show a significant
relationship with knowledge. Thus, mediation analysis can be
conducted using all the mediators for injunctive norms, but
only knowledge for descriptive norms. Next, we adopted a non-
bootstrapping procedure by Preacher and Hayes (2008) to test
for mediation. The results suggest full mediation between
descriptive norms and green purchase intentions through
knowledge as a mediator. Conversely, partial mediation
between injunctive norms and green purchase intentions
through knowledge, perceived expected outcomes and self-
efficacy (Table 5).
4. Discussion
4.1 Theoretical implications
The purpose of the research is to develop a model that
examines the impact of external institutions on an individual’s
green purchase intentions. The results indicate governmental
pressure has a non-significant relationship with green product
knowledge and a negative association with perceived expected
outcomes. Past research suggests governmental influence may
help increase knowledge and outcome expectancies through
awareness campaigns (Paul et al., 2016; Sreen et al., 2018).
However, the current research provides contradictory findings
compared to recent studies that suggest the government may be

Table 4 Structural model results

Relationships Direct effect Indirect effect Total Effect Hypothesis Supported
GI ! GPI 0.00(0.58) 0.00(0.58)
GI ! KNW 0.04(0.33) 0.04(0.33) H(1a) No
GI ! PEO
0.11(0.01) 0.02(0.35) 0.02(0.35) H(1b) Yes
GI ! SE 0.03(0.33) 0.03(0.33)
IN ! GPI 0.12(0.01) 0.43(0.00) 0.43(0.00) H(4a) Yes
IN ! KNW 0.48(0.00) 0.48(0.00) H(2a) Yes
IN ! PEO 0.33(0.00) 0.23(0.00) 0.23(0.00) H(3a) Yes
IN ! SE 0.39(0.00) 0.39(0.00)
DN ! GPI 0.00(0.99) 0.17(0.00) 0.17(0.00) H(4b) No
DN ! KNW 0.27(0.00) 0.27(0.00) H(2b) Yes
DN !PEO 0.03(0.69) 0.12(0.00) 0.12(0.00) H(3b) No
DN ! SE 0.21(0.00) 0.21(0.00)
KNW ! GPI 0.60(0.00) 0.60(0.00)
KNW ! PEO 0.48(0.00) 0.48(0.00) H(5a) Yes
KNW ! SE 0.59(0.00) 0.15(0.00) 0.15(0.00) H(5b) Yes
PEO ! GPI 0.42(0.00) 0.15(0.00) 0.15(0.00) H(6b) Yes
PEO ! SE 0.30(0.00) 0.30(0.00) H(6a) Yes
SE ! GPI 0.50(0.00) H(7) Yes
Note:  The bracket values are p-values and non-bracket values are beta coefficient values

Figure 2 Hypothesized model results

GI 0.044

0.120 –0.110
KNW
0.484 0.593
IN
0.329 0.481 SE 0.504 GPI
0.301

0.268 PEO 0.417

DN 0.025
0.000

Note: R2 values: KNW: 49.8% PEO: 51.1% SE: 68.3% GPI: 72.3%
 Impact of the institutional environment
Naman Sreen, Rambalak Yadav, Sushant Kumar and Mark Gleim
Table 5 Mediation analysis
Relationships Direct effect Indirect effect Mediation type

DN fi KNW fi GPI 0.00 (0.99) 0.05 (0.03) Full mediation
IN fi KNW fi GPI 0.12 (0.01) 0.08 (0.01) Partial mediation
IN fi PEO fi GPI 0.12 (0.01) 0.12 (0.00) Partial mediation
IN fi SE fi GPI 0.12 (0.01) 0.09 (0.00) Partial mediation
Note: **p < 0.05
influential in increasing consumers’ green purchase intentions
(Gleim et al., 2018; Paul et al., 2016; Sreen et al., 2018).
The moral norms appear to have varying amounts of
influence on consumers. Injunctive norms have a positive and
significant relationship with knowledge, perceived expected
outcomes and green product purchase intentions. In an Indian
context, previous research has found a non-significant
relationship between injunctive norms and green purchase
intention (Paul et al., 2016). The results of this study challenge
the findings of previous research that claim injunctive norms do
not play a role in promoting green behaviors. Further, these
findings add to the extant green literature by establishing that
injunctive norms have a significant indirect relationship with
green purchase intention directly, and through knowledge,
perceived expected outcomes and self- efficacy.
In addition, descriptive norms show a positive and significant
relationship with green product knowledge. The impact of
descriptive norms on knowledge provides a unique
contribution to the existing literature on green behavior.
Descriptive norms also have a non-significant relationship with
perceived expected outcomes and green product purchase
intentions. A possible reason for the insignificant relationships
may be descriptive norms are followed without any
expectations (Cialdini et al., 1991).
Knowledge has a significant positive relationship with
perceived expected outcomes and self-efficacy. However, the
literature on the effect of knowledge on self-efficacy and
perceived expected outcomes is scant in a green context. This
study supports past research that suggests knowledge is an
essential component for increasing confidence and
expectancies regarding a behavior (Gleim et al., 2013).
4.2 Managerial implications
The results of the present study have important implications for
managers and policymakers. First, governmental pressure did
not have the positive impact that was expected. Given the data
was collected in India, where individuals have lower levels of
confidence in governmental rules and regulations, that likely
had an impact on the results. Consumers in India have
witnessed direct negative experiences through past
governmental policies. In addition, there are various
environmental policies the government has largely failed to
implement at the manufacturing level (Green Purchasing
Network of India, 2014). To win back individuals,
policymakers should consider working with local agencies and
environmentalists that are connected to the community.
Involving local leaders in policymaking, and shifting policies
from financial capitalism to natural capitalism, may help to win
peoples’ trust and help them believe in the efforts of the
government (Pellegrini and Scandura, 2006).
Journal of Consumer Marketing
Societies high on collectivism such as India, tend to have a
greater concern for the livelihood of future generations and
should be impacted by the normative influence (Sreen et al.,
2018). For injunctive norms, it should be stressed to
individuals that certain behaviors are frowned upon. That
could include actions such as excess electricity use, not
recycling or consuming products that are harmful to the
environment. The stigma of doing something that is not
deemed appropriate by society may motivate some individuals
to alter their behavior. From a descriptive norms standpoint, it
is important to inform individuals why the actions they are
asked to perform can make a difference. Individuals need to
understand the impact they can have by acting in an
environmentally friendly manner if behavioral modification is
to continue.
Increasing self-efficacy can be achieved through the vicarious
experiences and actual experiences of consumers (Bandura,
1982). To reduce consumer skepticism, organizations need to
provide consumers with detailed information regarding the
green practices of the business. For example, Patagonia shows
on its website all information regarding the benefits or harm of
its products to the environment. Such a strategy should make
consumers more knowledgeable and help to increase trust and
purchase intentions toward green products.
Policymakers should also design favorable policies for
manufacturers to offer green products. For example, in the
USA there are tax credits for the purchase of electric cars and
environmentally-friendly modifications made to homes.
Manufacturers need to understand that offering more green
products should help to generate product awareness,
knowledge and acceptance. These efforts should help to make
green products more socially acceptable and available for
consumers seeking them.
5. Limitations and future research
The results of this research contribute to our understanding of
the institutional environment on green product consumption;
however, it is not without limitations. The data was collected
from single sources measuring behavioral intentions rather than
actual usage for the dependent variables. However, by sending
the survey with the dependent variable a month later we
attempted to mitigate this issue (Podsakoff, 2003).
Additionally, other constructs may provide additional insight
into factors that impact green purchase behavior and should be
considered for future research. An extension of this framework
may be helpful in explaining further variation in green purchase
intentions.
There are additional opportunities for future researchers.
Given the nature of green research, it would be very beneficial
to examine actual behavior by individuals. Consumers may
inflate their intentions, however, research that is able to capture
actual actions or consumption patterns would be well received.
Additional research may examine the cross-cultural impact of
the framework developed in this study. For example, does the
framework hold in other collectivist societies or how does it
change in individualist societies? The governmental pressures
likely vary by country, but the impact would be interesting to
understand for policymakers in each country. In addition,
understanding the normative influence in other countries
 Impact of the institutional environment
Naman Sreen, Rambalak Yadav, Sushant Kumar and Mark Gleim
would allow marketers to create more effective green marketing
campaigns. It would also be beneficial to understand the
impact of green product consumption by product category.
The present research has considered green products as a
general product category; however, the results may be different
across categories.
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Corresponding author
Mark Gleim can be contacted at: mark.gleim@auburn.edu