Environmental management and hotel profitability: operating performance matters

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Yenidogan A., Gurcaylilar-Yenidogan T., Tetik N.

TOURISM & MANAGEMENT STUDIES, vol.17, no.3, pp.7-19, 2021 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 17 Issue: 3
  • Publication Date: 2021
  • Doi Number: 10.18089/tms.2021.170301
  • Journal Name: TOURISM & MANAGEMENT STUDIES
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, Hospitality & Tourism Complete, Hospitality & Tourism Index, Directory of Open Access Journals, DIALNET
  • Page Numbers: pp.7-19
  • Keywords: Environmental management practices, cost savings, revenue enhancement, profitability, accounting information, lodging industry, CORPORATE SOCIAL-RESPONSIBILITY, RESOURCE-BASED VIEW, FINANCIAL PERFORMANCE, SUSTAINABILITY, IMPACT, TOURISM, SYSTEMS, BARON
  • Akdeniz University Affiliated: Yes

Abstract

While there is growing consensus on the benefits of going green, the relative benefits of revenue-enhancing and cost-cutting effects of environmental practices over performance have remained a more conservative and less explored phenomenon in corporate management studies. The present study investigates the two parallel mediation effects of cost-saving and revenue generation on profitability through environmental management practices. A bootstrap method is employed to make a statistical inference of the causal mediation effects. The data collected from the lodging industry in Antalya/Turkey revealed that the revenue-enhancing and cost-cutting effects of environmental participation have a positive impact on profitability, while no difference was identified in the strength of the indirect effects. In conclusion, the findings of this study indicate a complementary effect of cost reduction and revenue enhancement for green profit.