Building Bridges Between ESG and Consumer Intentions: Unveiling the Trust Dynamics in Small and Medium Enterprises

Hyuck Jin Lee

Sustainable Development, 2025, vol. 33, issue 6, 9042-9054

Abstract: This study investigates the impact of ESG management on consumer trust and purchase intention in the context of small and medium‐sized enterprises (SMEs). By categorizing trust into expertise trust and benevolence trust, the research reveals how different dimensions of ESG activities influence these trust types and their subsequent effect on purchase behavior. Employing survey data from 628 participants and structural equation modeling, the findings indicate that while environmental, social, and governance activities positively affect benevolence trust, they do not significantly influence expertise trust. Notably, social activities exhibit the strongest impact on benevolence trust, underscoring their importance in shaping consumer perceptions. Expertise trust, however, plays a more critical role in driving purchase intention, suggesting that SMEs should strategically focus on enhancing technical capabilities and effectively communicating their competencies to consumers. The study highlights the need for SMEs to integrate ESG practices with targeted promotional strategies, such as leveraging social media, to bridge the gap in consumer awareness. These insights provide actionable guidance for SMEs to navigate the growing societal demands for sustainable and responsible business practices.

Date: 2025
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https://doi.org/10.1002/sd.70131

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Persistent link: https://EconPapers.repec.org/RePEc:wly:sustdv:v:33:y:2025:i:6:p:9042-9054

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