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

ABSTRACT 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 implementation—the translation of strategic intent into actionable practices—on customers' perceptions. Using multilevel analyses of 31 US service firms and a survey of 6891 customers, we find that sustainability implementation is a strong positive predictor of brand image. However, sustainability orientation alone has a negative direct effect on brand image, suggesting that stated commitments without corresponding action can harm perceptions. Crucially, sustainability implementation positively mediates the relationship between orientation and brand image. This research addresses a key gap in the literature by demonstrating that, in the service sector, genuine action, not just communication of intent, is essential for building a sustainable brand. From a practical standpoint, the findings highlight that strategic intent toward sustainability, while necessary, is insufficient. To avoid greenwashing perceptions, firms must couple their sustainability orientation with effective and visible implementation of environmental and social initiatives.