DIGITAL GREENWASHING IN SUSTAINABLE SUPPLY CHAINS: IMPACT ON CONSUMER TRUST AND PURCHASE INTENTIONS

Abstract

This paper investigates the distribution of misleading and unsubstantiated environmental claims through digital supply chains and their potential impact on consumer trust and purchasing decisions in online marketplaces. It develops a framework of theorizing linking digital greenwashing practices, patterns of information diffusion, and consumer decision-making.

Design/methodology/approach through a systematic literature synthesis, we blend insights from information systems, consumer behavior, supply chain management, and organizational theory. Our framework uses signaling theory, information asymmetry theory, and trust transfer theory to chronicle the diffusion of sustainability misinformation through digital ecosystems.

Findings we have highlighted four key mechanisms of erosion of trust through digital greenwashing: platform amplification, algorithmic biases, manipulation of social proof, and false transparency. The misleading claims thus influence the purchase intention through consumer skepticism, which is in turn moderated by digital literacy, verification signals, and supply chain visibility. The e-commerce platforms further fuel misinformation with an engagement-oriented rather than accuracy-oriented approach.

Originality/value three contributions are made through this research: bridging supply chain sustainability with digital misinformation studies; extending a multi-level framework explaining how organizational deception is scaled through digital infrastructure; and providing directions for platform designers, regulators, and practitioners to tackle greenwashing in complex digital supply networks.

Research limitations/implications as conceptual work, our propositions require empirical testing. The testing needs to be conducted in different contexts, product categories, and platforms through mixed-methods approaches.