How Green Practices Enhance Competitive Advantage: Evidence from the Hospitality Industry

Abstract

The growth of tourism in Indonesia demonstrates favorable progress; however,Indonesia's competitive position in the tourism sector remains below that ofSingapore, Malaysia, and Thailand. Empirical research findings reveal acrucial fact: the presence of shifting travel preferences and the rise of greentourism. The objective of this study is to analyze the factors contributing to theattainment of Green Competitive Advantage within the Hotel Industry in theNusa Dua region. This study employs a quantitative approach. Primary data iscollected through the use of questionnaires and interviews, and data analysisemploys Structural Equation Modeling-Partial Least Squares (SEM-PLS). Theresearch results indicate that Dynamic Managerial Capabilities (DMC) have apositive influence on Environmental Capabilities (EC). DMC also has apositive impact on Green Innovation Capabilities (GIC), yet DMC does nothave a direct positive effect on Green Competitive Advantage (GCA). Indirectly,DMC does not significantly and positively affect GCA through GIC. A similarpattern emerges regarding the indirect influence of DMC on GCA through EC.The combined indirect effect of DMC on GCA through EC and GIC does notyield a significant positive impact. However, in terms of overall impact, DMChas a positive and significant influence on GCA. EC has a positive andsignificant impact on GIC, yet EC's direct and indirect impact on GCA is notpositive. Similarly, GIC does not exhibit a significant positive impact on GCA,aligning with the obtained findings.