Investigating Influence of Green Innovation on Sustainability Performance: A Case on Malaysian Hotel Industry

Abstract Since consumers, governments, and society in general are increasingly concerned about the loss of natural resources, along with pollution of the environment, there is currently a significant tendency to recognize the value of green innovation toward the achievement of sustainable development. Hotels are considered responsible for a considerable proportion of the environmental pollution caused by the tourism industry. Yet, few studies have considered the effects that green innovation may have on sustainable performance in the hotel industry. Consequently, the present study aimed to investigate the factors influencing the adoption of green innovation, and its potential effects on the performance of the hotel industry. Data collection was performed through inspection of 183 hotels in Malaysia. Data analysis was carried out employing the partial least squares method. The two factors of environmental and economic performance were determined to have the strongest influence, affecting the green innovation procedures positively and significantly. The results of the present study have major implications for hospitality research, since they demonstrate the importance and potential of green innovation in promoting sustainable performance in the hotel industry. The proposed model and the identified influencing factors of green innovation can assist policy makers and hotel managers in understanding the drivers leading to the adoption of these practices in the hotel industry.