Transformations  in
Business & Economics

RELATIONSHIPS AMONG GREEN BRAND, BRAND EQUITY AND FIRM PERFORMANCE: EMPIRICAL EVIDENCE FROM CHINA
Juan Li, Xixiang Sun, Gen Li

ABSTRACT. In the context of green consumption, firms seek for green competitive advantages by cultivating a green brand. However, how green brand affects brand equity and firm performance is still unknown by the green-brand firms. This study aims to investigate the relationships among green brand, brand equity, and firm performance. Using the data from top 500 Chinese valuable brands listed in China's A-share market in 2017, and multiple linear regression model, the impacts of green brand on brand equity and firm performance have been examined. The moderating effect of firm innovation capability on the relationship between green brand and brand equity and the mediating effect of market performance on the relationship between brand equity and firm performance have been explored. The results show that green branding has a positive effect on brand equity, and this relationship is positively moderated by firm innovation capability.
Moreover, brand equity exerts a positive effect on market performance and firm performance, and market performance plays a mediating role in the relationship between brand equity and firm performance. The conclusions have revealed that investing resources in green branding helps to foster firm performance in green consumption situations and it also provides crucial insights into how firms can cultivate green brand and enhance brand equity and firm performance.

KEYWORDS:  green brand, brand equity, firm performance, firm innovation ability, market performance.

JEL classification:  M21, M31, O16, O32.