Sustainability Orientation, Sustainability Implementation, and Brand Image in Service Firms

This paper uses legitimacy theory and cognitive dissonance theory to explore the relationship between sustainability orientation,sustainability implementation, and brand image in the service sector. Specifically, we examine the mediating role of implemen-tation—the translation of strategic intent into actionable practices—on customers' perceptions. Using multilevel analyses of31 US service firms and a survey of 6891 customers, we find that sustainability implementation is a strong positive predictorof brand image. However, sustainability orientation alone has a negative direct effect on brand image, suggesting that statedcommitments without corresponding action can harm perceptions. Crucially, sustainability implementation positively mediatesthe relationship between orientation and brand image. This research addresses a key gap in the literature by demonstratingthat, in the service sector, genuine action, not just communication of intent, is essential for building a sustainable brand. From apractical standpoint, the findings highlight that strategic intent toward sustainability, while necessary, is insufficient. To avoidgreenwashing perceptions, firms must couple their sustainability orientation with effective and visible implementation of envi-ronmental and social initiatives.