Green Management and Sustainable Performance of Small- and Medium-Sized Hospitality Businesses: Moderating the Role of an Employee’s Pro-Environmental Behaviour

Abstract

As green management practices (GMPs) matter not only for improving the organizations’ tribble line performance (environmental, economic, and social) but also can sustain a competitive advantage. Since the tourism and hospitality industry is subject to environmental expectations from visitors, governments, and the community, it is vital to understand what motivates GMPs to overcome environmental obstacles and satisfy those demands. However, the current literature fails to comprehensively justify how small- and medium-sized businesses (SMEs) tackle green management difficulties when implementing their plans, even though these SMEs could be a leading contributor to environmental concerns. Although many scholars assert that employees’ pro-environmental behaviours are decisive in boosting efforts of green management to improve corporate sustainable performance, only limited studies probed the importance of employees’ pro-environmental behaviours in SMEs in developing countries. To fill this research gap, the data was gathered from 304 small- and medium-sized hotels and travel agency middle managers using a self-administered survey approach. The collected data was analysed using the Smart PLS-structural equation modelling technique. The PLS-SEM results demonstrated that GMPs can improve environmental, economic, and social performance and these relationships can be strengthened through the moderating effects of employees’ pro-environmental behaviour. The study findings revealed that small- and medium-sized hospitality businesses should focus on creating a culture of environmental stewardship and actively involve employees in green initiatives to enhance sustainable performance. The study is important as it helps to understand the role of employee pro-environmental behaviour in green management and sustainable performance in small- and medium-sized hospitality businesses and can help the industry to adopt more sustainable practices. Several theoretical and practical implications were discussed and opportunities for further research were elaborated.