Understanding the Connection between Sustainable Human Resource Management and the Hotel Business Outcomes: Evidence from the Green-Certified Hotels of Egypt

Abstract

Sustainable human resource management (SHRM) practices are extensively believed to cause a strategic advantage for the hotel industry. However, while a growing body of evidence indicates that SHRM practices are related to superior organization-level outcomes, it is rather unclear as to how these practices could affect such outcomes and whether they result in desirable hotel outcomes. This paper aimed to examine the moderation effect of hotels’ environmental strategy (ES) on the relationship between SHRM practices and hotel business outcomes: operational performance (OP), competitive advantage (C), and corporate performance (CP). Following a positivism philosophy, a proposed hypothesised model was validated through a survey strategy. Data were obtained from 247 green-certified hotel managers based in Egypt’s top-two major cities involving green-certified hotels. Structural equation modelling was used to test the model relationships. The findings lent credence to the significant connectedness between SHRM practices and hotel business outcomes. The moderation effect of ES was positively confirmed by 83.4% of the SHRM practices, demonstrating that ES is a crucial driver of hotel business outcomes through the optimal usage of SHRM. Negatively, it was revealed that only sustainable promotion practice (16.6%) does not moderate its impact on the hotel business outcomes. This research is the first empirical study to examine the moderation effect of ES on the nexus between the SHRM and hotel business outcomes in the green-certified hotels of Egypt.