Green transition in the hospitality industry: The influence of market forces and customer dynamics on sustainable performance in the digital era

Abstract

In recent years, the ongoing environmental challenges have caused hotel firms to experience stress from stakeholders (i.e., customers and competitors). These stringent ecological changes have compelled hospitality firms to go green. This study investigates the influence of customer and competitive pressures on green innovation and sustainability in the hospitality industry. Utilizing a sample of 309 employees from multiple hospitality companies, the study rigorously tests a series of hypotheses using Smart PLS and Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings supported all the hypotheses, indicating that customer and competitive pressures significantly foster green product and process innovations, enhance sustainable firm performance, and encourage green CSR initiatives in the Chinese hospitality sector. Furthermore, green product innovation, green process innovation, and green CSR were found to be critical mediators in enhancing firm performance under the influence of these pressures. These results have substantial implications for theory and practice, highlighting the importance of external pressures in promoting sustainable practices in the hospitality industry.