Green initiatives and their competitive advantage for the hotel industry in developing countries

Abstract

The purpose of this study is to identify the organisational capabilities that complement the adoption of a proactive environmental strategy, and the specific benefits that can arise from such a strategy. The study focuses on developing countries that depend heavily on the tourism industry, but where environmental problems challenge the future of this industry. The study proposes that learning orientation, innovativeness, and quality management positively affect the adoption of proactive environmental strategies. Based on empirical data from hotels in Thailand, PLS-SEM was applied to explore these relationships. The results confirm the hypotheses but also show that the green strategy positively affects environmental performance and organisational competitive advantage. More specifically, green strategies lead directly to positive environmental performance in terms of the consumption of utilities, waste management, and environmental risk management, leading to cost competitiveness and competitive advantage through differentiation.