Impact of sustainable management policies on tourism companies' performance: the case of the metropolitan region of Madrid

Abstract

The adoption of sustainable management practices is booming among service companies, whether due to pressure exerted by external agents or the internal perception that not being aligned with sustainability distances companies from clients and puts companies' long-term prospects at risk. However, few studies have examined the combined effect of implementing environmental management practices and corporate social responsibility practices in the tourism sector. By analysing two surveys conducted with the managers of 370 hotels and 176 restaurants and using structural equations, this study concludes that sustainability practices have a direct and significant impact on the company's competitiveness and on the companies' financial results. However, a separate study of the two surveys shows significant differences between the two analysed groups. This article suggests that despite operating in the same sector, hotels and restaurants behave differently regarding sustainability practices, and they achieve significantly different results in their implementation. In addition, by focusing on the tourism industry, a highly competitive sector, this analysis sheds light on whether investing in sustainability is a good strategy for companies to differentiate themselves and survive in complex sectors.

Sustainability in small tourist businesses: the link between initiatives and performance

“…These assertions require further research. In part, this conclusion is aligned with previous studies that do not find a positive relationship between QMPs and FP in the tourism sector (Bagur-Femenías, Martí et al, 2015;Llach, Perramon et al, 2013).…”

“…Along these lines, Bagur-Femenías, Martí et al (2015) found that EMP practices had a direct and significant effect on a company's competitiveness and on financial results, but different tourist industries have different levels of implementation. Thus, hotels had higher levels of environmentally friendly practices (Pereira-Moliner et al, 2012) compared with restaurants (Alonso-Almeida, 2013; Perramon et al, 2014) and travel agencies (BagurFemenias, Perramon, & Amat, 2015).…”

Does intensive social network management lead to positive effects in quality practices?

“…QMP implementation can act as a positive signal for the market when the QMP is considered as a strategic bet on continuity and differentiation, thus creating competitive advantages and barriers to entry for potential consumers (Alonso-Almeida et al, 2012;Bagur-Femenías, Martí, & Rocafort, 2015).…”

A Micro-Level View of CSR: A Hospitality Management Systematic Literature Review

“…Articles in the CSR and performance domain prioritize the organizational and financial outcomes of CSR activities (e.g., Bagur-Femenías et al, 2015;Youn et al, 2015). This is another well-researched topic in hospitality (Farrington et al, 2017) and management studies (Aguinis & Glavas, 2012).…”