Improving brand performance through environmental reputation: the roles of ethical behavior and brand satisfaction

Although previous research has shown the benefits of corporate reputation, few studies have directly investigated the effects of environmental reputation in the context of branding. Using insights from signaling and resource-based view theories, we investigate the impact of environmental reputation on brand performance through the mediating mechanism of brand satisfaction. In addition, we examine the moderating impact of ethical behavior on this relationship. Using time-lagged data from 211 industrial buyers from pharmaceutical firms in Ghana, the empirical results show that (1) environmental reputation significantly influences brand satisfaction, (2) ethical behavior moderates the relationship between environmental reputation and brand satisfaction, and (3) brand satisfaction mediates the relationship between environmental reputation and brand performance. The findings contribute to our understanding of environmental reputation’s role in B2B branding. Theoretical and practical implications are discussed.