Appraising the influence of internal factors on organizational greenwashing through mckinsey 7s framework

Greenwashing is a critical barrier to genuine environmental initiatives in the construction sector. Current studies focus on external aspects of greenwashing. However, understanding of the internal organizational factors behind greenwashing remains critically limited. This study addresses this gap by examining how internal organizational factors influence greenwashing within Vietnamese construction firms using the McKinsey 7S Framework. Research hypotheses were first developed based on the Fraud Triangle Theory. Data were then collected from 142 construction practitioners and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results revealed that organizational strategy, structure, system, shared values, style, and staff are positively associated with greenwashing practices. However, no significant relationship was found between employee skills and corporate greenwashing. These findings underscored the importance of addressing internal organizational factors to combat greenwashing. The lack of a significant relationship between employee skills and greenwashing highlighted the need for broader systemic changes rather than focusing solely on skill enhancement. Future research is encouraged to explore how external pressures interact with internal organizational factors to shape corporate greenwashing.