Unraveling the drivers of greenwashing in China's new energy sector: A PLS‐SEM and fsQCA analysis

Abstract ESG greenwashing behaviors (GWBs) of firms have become a pressing issue globally nowadays. Combining partial least square‐structural equation model (PLS‐SEM) and FUZZY set qualitative comparative analysis (fsQCA), this article explores the drivers of ESG greenwashing behaviors in China's new energy industry, which provides valuable insight into understanding GWBs. Results show that (1) GWBs present causal asymmetry, with internal factors dominating in high GWBs configurations, while external factors are more critical in low GWBs configurations. (2) There are offsetting or compensating interactions between the variables. (3) “Rationalization” dominates the level of GWBs when it is used as a core factor.