Green innovation; a way to enhance economic performance of Chinese hotels

Abstract

Purpose This study aims to examine the influencing factors of green innovation and their effect on economic performance of the hotel industry. Design/methodology/approach The study used a quantitative and cross-sectional research design, and primary data were collected using structured questionnaire. To analyze this data, AMOS software was used. Exploratory factor analysis (EFA) was performed to purify the measurement model. Moreover, validities and model fitness were confirmed through confirmatory factor analysis (CFA). Structural equation modeling (SEM) was used to test the study hypothesis. Findings The study results showed green organizational culture, green organizational strategies, energy conservations and environmental regulations as key influencing factors in the adoption of green innovation. Moreover, the results also reveal a significant positive effect of green innovation on hotels’ economic performance. Research limitations/implications This study is limited to hotels operating in the sole city of Shanghai, China, and for more generalized results, the future study can be made by incorporating hotels in other cities as well. Moreover, the study is conducted in China and replication of this research might be possible in a different cultural and environmental context. Furthermore, this study address only the hotel industry, and future study can be made to investigate the implementation of green practices in industries other than hotels. Originality/value Previously, many studies have highlighted the influencing factors of green innovation, but there is limited research in the context of the hotel industry. The relationship between economic performance and green innovation is well established, but still, it is not fully understood how sustainable economic performance is contributed by green innovation in the tourism industry. To the best of the authors’ knowledge, this study first examines the influencing factors of green innovation and its potential effect on economic performance in the context of the Chinese hotel industry.