How and when does perceived greenwashing affect employees' job performance? Evidence from China

Abstract Despite increasing interest in the implications of greenwashing, few studies have examined the underlying mechanism and contingency of how greenwashing affects employee outcomes. In this study, we develop a mediated moderation model to analyze the impact of perceived greenwashing on employee job performance (i.e., task performance and organizational citizenship behavior). Using a questionnaire survey of 400 employees in 20 Chinese companies, the results reveal that perceived greenwashing negatively affects job performance and that the relationship is mediated by organizational cynicism. Furthermore, employees' green values strengthen the indirect negative relationship between perceived greenwashing practices and job performance through organizational cynicism. The study contributes to addressing the long‐discussed problem of whether greenwashing pays vis‐à‐vis a human resource management perspective and micro‐level approach. The findings indicate that a close cooperation between the human resources and corporate environmental responsibility management departments is required to achieve the sustainable development of businesses.