Environmental Practices and Firm Performance in the Hospitality Industry: Does National Culture Matter?

Abstract

Addressing a research gap regarding organizational outcomes and financial implications of environmental practices of hospitality firms in culturally diverse locations, this study employed a sample of publicly traded hospitality firms across 29 countries. This study’s primary focus was to explore the moderating influence of national culture on the relationship between different types of environmental practices and financial performance, drawing on institutional theory. The findings suggest that whether or not the investment in environmental practices significantly translates to financial performance is contingent on cultural orientation. Specifically, the study revealed a positive moderating impact of individualism and a negative moderating impact of power distance cultures, while masculinity and uncertainty avoidance have insignificant moderating impacts. The research findings and methodological approach offer novel and valuable insights into the current knowledge base on environmental practices. Furthermore, the findings have practical implications for industry practitioners, potential investors, and analysts in the hospitality sector.