Leading Green Innovation to Enhance the Environmental Performance of Malaysian Hotels

Leading Green Innovation to Enhance the Environmental Performance of Malaysian Hotels | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Leading Green Innovation to Enhance the Environmental Performance of Malaysian Hotels Rasidah Hamid, Mohd Hanafi Azman Ong, Siti Zuraini Ramley Alan This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7449884/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This research aims to explore the factors affecting green innovation and their consequent influence on environmental performance within the hotel industry context, focusing on Kuala Lumpur, Malaysia. Employing a quantitative, cross-sectional research design, structured questionnaires were utilized to collect primary data. Analysis was conducted using AMOS software, incorporating exploratory factor analysis (EFA) to refine the measurement model, and confirmatory factor analysis (CFA) to validate and assess model fitness. Structural equation modeling (SEM) was employed to test hypotheses. Results reveal that green organizational culture, strategies, energy conservation practices, and environmental regulations are significant factors influencing the adoption of green innovation within hotels. Additionally, the study demonstrates a positive correlation between green innovation and hotel environmental performance. Notably, this research is constrained to hotels within Kuala Lumpur, Malaysia, suggesting a need for broader geographical and cultural diversity in future investigations. Furthermore, while the focus is on the hotel industry, there is potential for extending this inquiry to other sectors. This study addresses a gap in current literature by specifically examining green innovation within the hotel industry, offering insights into its impact on environmental sustainability. It underscores the importance of understanding the interplay between green practices and environmental performance in fostering sustainable tourism practices. This research lays the groundwork for further exploration into the dynamics of green innovation and its implications for environmental stewardship in hospitality contexts. Green innovation Environmental performance Sustainability Hotel industry Malaysia Figures Figure 1 Figure 2 Figure 3 1. Introduction The growing population and global economy have significantly strained the environment and natural resources. There is an urgent need to balance environmental development and environmental degradation before it is too late (Abrahao et al., 2017 ). The environmental management system (EMS) can help companies become more environmentally responsible and competitive because better environmental performance can lead to waste reduction and redesigning products/processes to have a lower environmental impact. The implementation of EMS can lead to environmental performance (Chan & Pusiran, 2018 ). Achieving ecologically sustainable standards is one of humanity’s most crucial challenges today (Oyuntsetseg Densmaa et al., 2022). As a result, in today's technological landscape, it is critical to embrace green processes and products (Hussain & Haley, 2022 ). We must use green products and techniques to prevent environmental degradation and reduce pollution (Basuki et al., 2023 ). Green innovation is discovering ecologically sustainable and environmentally friendly methods of producing and operating products and services without sacrificing quality or productivity. Green innovation is improving management, products, systems, technologies, and operations while remaining sustainable (Dang & Wang, 2022 ). The practical application of green innovations has enormous potential. It can aid in the resolution of issues concerning environmental protection and the promotion of green development. It is also an important factor in improving various organizations' financial, social, and environmental outcomes (Ahmed et al., 2021 ). Green innovation relates to three concepts of innovation: organization, product, and process. Green innovation’s product and process concepts combine production efficiency, process innovation, and product innovation with environmental objectives (Sun et al., 2022 ). Green practices are growingly crucial in business today (Gu, 2022 ). Regulatory bodies, policies, societal pressures, and an increase in ecologically sensitive customers drive firms to achieve ecological sustainability and environmental growth. Malaysia is a good example, where businesses are shifting toward green innovation and green processes in order to conform to the "green mindset" (Asadi et al., 2020 ). The tourism industry is one of the world's fastest growing industries.It has immense potential and has brought several benefits globally. It is using millions, generating the country’s gross domestic product (GDP) and benefitting other industries (Asadi et al., 2020 ; Noor et al., 2022 ). Statistically speaking, the tourism industry is the second-fastest-growing industry in the world. The sector provides 219 million jobs, accounting for 10.4% of the global GDP. However, besides its benefits, it has created several environmental challenges for us over the years. It has a crucial role in global warming and contributes 5% of the total CO 2 emissions (WTTC, 2021 ). Hence, creating an environmentally stable environment without revolutionizing the tourism industry is impossible. Despite having considerable differences, the principles of continuity and fairness are shared among the sustainability models in different countries. Malaysia is striving hard to incorporate sustainable development within its industrial practices. Since 1998, the government has successfully launched several ecological construction projects such as grassland, forestation, and environmental management Rahman & Dura, 2022 ). The deforestation rate is decreasing, and the area under plantation is increasing, which will go a long way toward enhancing environmental protection policies in Malaysia. Malaysia's green sustainability primarily aims to minimize environmental pollution and reduce damage caused by mismanagement by adopting better ecological management practices (Jayashree et al., 2022 ). The tourism industry in Malaysia has grown exponentially since the development and enviromental reforms in 1978, which has improved the lifestyle of Malaysian people, attracting foreign tourists and investments. According to the reports, the annual tourism income for the year 2023 in Malaysia has been recorded as RM28.2 billion, which is the contribution of both international visitors, 10 million, and local tourists 20 million (Rahman et al., 2022 ). Another reason for the increase in tourism is Malaysia's multicultural and technologically advanced society, which entertains religious, business, medical, marine, and eco- tourism (Asadi et al., 2020 ). Malaysia’s adaptive policy and fast environmental growth in recent years have contributed to the country's tourism sector's rapid growth country (Chin, 2022 ). Once we have discussed Malaysia’s role in adopting green practices, it is time to discuss Malaysia’s tourism industry; the industry contributes 11.04% to the Malaysian economy practice used by more than 8.0 million people (WTTC, 2021 ). Therefore, tourism is crucial for the Malaysia economy, and it must become ecologically stable to minimize its environmental impacts. Growth in the tourism industry is beneficial for the Malaysia economy, but it negatively impacts environmental conditions (Rahman et al., 2022 ). The tourism industry negatively affects wildlife, generates waste and pollution (Rajaonson & Tanguay, 2022 ). The negative impacts on the environment due to tourism result in the vulnerability of the global system (Nguyen & Su, 2022 ), reduce the competence of tourism destinations (Raihan et al., 2022 ) and reduce the quality of life for the host population (Hassan et al., 2022 ). However, the lack of environmental regulations (Asnor et al., 2022 ) and the negative impact of tourism in Malaysia means that any ecological policies are implemented in Malaysia restaurants are voluntary and for advertisement and goodwill purposes (Langgat, 2020 ; Tan et al., 2019 ). The tourism industry’s immense contribution to the Malaysia economy must not be an excuse to avoid ecological regulations. This industry must be strictly regulated for environmental production due to the extent of ecological damage caused by it annually (Ching et al., 2022 ). The hotel industry of Malaysia, like other industries, focuses on profit maximization. The major difference between the hotel industry and any other industry is the emphasis on green strategies for customer satisfaction. The manufacturing industry adopts such strategies for their profit, but the hotel industry adopts them to satisfy the customers. Industry adopts such strategies for their profit, but the hotel industry adopts them to satisfy their customers (Wan Norhidayah et al., 2022 ) highlighted that most hotels offer not just lodging but also provide additional services such as cuisine and entertainment. The hotels’ multiactivity character is inextricably linked to their profit- maximizing strategy. The primary motivation for hotels to offer multiple services is to increase profit margins. In other words, their profit-maximizing behaviour drives their multiactivity nature. Furthermore, considering many activities implies the presence of scope economies for hotels, which is a primary environmental motive to offer multiple services. The aim of this paper is to contribute to the literature on the relationship between green innovation and firm environmental performance while also investigating the extension of green innovation and firm evidence. The relationship between environmental performance and green innovation is well established (Sahoo et al., 2023 ). Still, it is not fully understood how sustainable environmental performance is contributed by green innovation in the tourism industry. This study will provide empirical evidence toward the discussion above by evaluating evidence that emphasizes the relationship between environmental performance and green innovation in the hotel industry. The discussion will be based on data obtained from hotels in Malaysia, the world’s leading economy and the most significant greenhouse gas contributor. However, the government of Malaysia has implemented pro-green innovation regulations in the country. The impact of green innovation on firms’ profitability has been well documented in production and other industries, but there is a lack of literature on the hotel industry (Asnor et al., 2022 ; Elkhwesky et al., 2022 ). Several studies have discussed sustainability in the hotel industry of Malaysia, for example, (Patwary et al., 2022 ; Shaharudin et al., 2022 ), but literature on green innovation is scarce (Ching et al., 2022 ). Sustainability in a firm’s performance is positively affected by the implementation of green innovation. Literature suggests that green innovation is an abstract notion leading to apprehensions among many hotels about its adoption (Asnor et al., 2022 ). Moreover, there is a lack of literature investigating the relationship between green innovation and firm environmental performance (Sahoo et al., 2023 ). In addition, this study has highlighted the need to identify the strategies that can enable the organization to adopt green innovation, which can lead to performance. It has presented the four important green strategies, including environmental regulations, green innovation strategies, green conservation and green organizational culture. Therefore, it has filled the gap of attaining green innovation, as the mentioned strategies are important for the development of green innovation. Hence, this research is conducted to understand the relationship between hotels’ environmental performance and green innovation. Relatively, the already established literature tries to address the issue through empirical evidence collection to encourage hotels to adopt green initiatives and enhance both competitive potential and environmental performance. This study has presented a practical model to investigate the relationship between environmental performance and green innovation in Malaysia’s hotel industry. This research is unique to the author’s knowledge as there is no available study on green innovation adoption and hotels’ environmental performance in the Malaysia context. 2. Theoretical framework and hypothesis development Sahoo et al., ( 2023 ) highlighted that green hotels include the hotels that strive to be more ecologically friendly in terms of efficiency and low use of energy, water and materials but still their emphasis is on providing high-quality services. Many advantages have already been found by hoteliers as a result of implementing green techniques. These advantages include brand value, building a positive image in the eyes of guests, cutting expenses and liabilities and more profit. Besides these advantages, several hotels have begun to engage in corporate social responsibility (CSR) activities and implement social programmes because the hotel sector has had harmful consequences on the environment; CSR is the correct thing to do to give back to nature (Kamarudin et al., 2023 ). In 2008, the intercontinental hotel group (IHG) became the first green hotel to open. It was the world’s first 100% environmentally friendly hotel. The utilization of solar panels on the roofs, a rainwater harvesting system to feed water to the toilets, electricity generated by wind power, recycled glass windows and furniture and fixtures constructed entirely of recycled materials were among the green features provided by the hotel (Hamid et al., 2020 ). The literature review on green innovation and other green strategies considered by this research is given below. 2.1 Transaction-cost theory The development of stable network relationships can help in reducing transaction costs of environmental collaborations with partners. The investment in social capital is also a green strategy for the company because of its efficiency in building new green intellectual capital. Therefore, the transaction cost, either social capital or any other, can help the companies in achieving effective green innovation (Gu, 2022 ). This research is based on the transaction-cost environmental theory for investigating the impact of green innovation on hotels’ environmental performance in Malaysia. Transaction cost theory states that an optimum organizational structure achieves environmental efficiency by minimizing exchange costs (Sahoo et al., 2023 ). This theory implies that the coordination costs of managing, controlling and monitoring transactions are incurred with each kind of transaction. The theory works on the general theory of governance, exchange relationships and environmental organization while focusing on the make or buy decision, also known as the “canonical transaction” (Bowman et al., 2021 ). This theory is an extension of agency theory. Companies innovate to cut costs and reduce the time required for production or operation while improving performance. Hence, this theory supports green innovation in this study. According to this theory, green innovation helps a company enhance and develop it is environmental, social sustainability, environmental and social performance. The conceptual framework describing the research hypothesis is displayed in Fig. 1 . 2.2 Environmental regulations Several past studies have found that environmental regulations are drivers for investment in environmental initiatives (Nilashi et al., 2023 ; Patwary et al., 2020 ; Sahoo et al., 2023 ; Shaharudin et al., 2022 ) and presented that innovation-driving environmental policies positively influence technological innovation and incentivize green innovation in companies. However, some empirical studies show a different picture. They discovered that regulatory policies do not directly impact the green behavior of companies (Khammadee & Ninaroon, 2022 ; Patwary et al., 2022 ; Sahoo et al., 2023 ). Moreover, some studies have shown that companies’ green development depends on environmental regulations (Sarmiento & El Hanandeh, 2018)). Hence, there is a lack of literature addressing the relationship between green innovation and environmental regulations. Based on the differences between the researchers regarding the effect of environmental regulations on corporate green innovation concerns and understanding that the rules constitute a formal structure that imposes substantial institutional pressure on firms, the study established the following hypothesis: H1. There is a positive impact of environmental regulations on green innovation. 2.3 Green innovation strategy Green innovation is defined as the improvement or development of companies’ software or hardware related to green processes and products. It can include innovative technologies that help develop corporate environmental practices that positively design green products, recycle waste, prevent pollution, and help save energy that positively influences sustainability (Quintana-García et al., 2022 ). Green innovation requires originality in developing green processes and products to improve a company’s sustainability and satisfy environmental preservation requirements (Patwary et al., 2020 ). Many studies have focused on enhancing green innovation by achieving green sustainability, greening the suppliers, and building green core competence (Aldaas et al., 2022 ; Ching et al., 2022 ; Langgat, 2020 ; Shaharudin et al., 2022 ). However, as mentioned above, literature concerning green innovation and strategy is lacking. This study believes that the green innovation strategy positively influences green innovation. Green innovation in organizations is possible by effectively implementing green innovation strategies. This innovation promotes EMSs, preventing pollution and reducing waste (Qarooni & Al-Sartawi, 2023 ). A firm must use its technical, human capabilities, and heterogeneous resources to achieve its green innovation goal (Wan Norhidayah et al., 2022 ). It is known that a company’s potential for innovation depends on its resources (Hamid et al., 2020 ; Patwary et al., 2022 ), and these resources can be used in the development of green strategies. The companies prefer to stimulate a green innovation strategy to reduce legal and regulatory pressures. Firms prefer a proactive approach toward developing a green innovation strategy that results in green innovation instead of reacting to government-imposed restrictions (X. Wang et al., 2023 ). A firm can coordinate its resources toward achieving green innovation and developing green processes and products to implement its green innovation strategy. Finally, firms can exploit new market opportunities and gain a competitive advantage while avoiding environmental and social costs of ecological degradation by devising a green innovation strategy and its implementation (Aftab et al., 2022 ; Skordoulis et al., 2022 ). Consumers are becoming more environmentally sensitive, prefer firms that produce green products, and are willing to pay a higher price for such services and products (Hao et al., 2022 ; Mahasuweerachai & Suttikun, 2022 ). Green innovation strategies are crucial for bringing about green product innovation and fulfilling customer demands for sustainable and green products. Environmental systems help companies to bring innovation in products and processes that contribute to green creation (Sahoo et al., 2023 ). Therefore, the second hypothesis for this study is as follows: H2. Green innovation strategy positively influence green innovations. 2.4 Green organizational culture Organizational culture plays a crucial role in developing and implementing innovation in a company (Santana et al., 2020 ). Corporate culture can either promote or demote innovation in a firm. Hotels must establish and maintain environmental sensitivity and consciousness if they wish to adopt green innovation. Environmental practices depend highly on the organizational culture, which helps share the firm’s policies and actions regarding ecological problems. A green organizational structure is crucial in implementing green innovation by motivating and addressing the company and its employees (Khammadee & Ninaroon, 2022 ). Moreover, senior management’s efforts toward bringing green innovation are not alone sufficient to ensure its implementation. The organization must ensure a green organizational culture because it provides a convenient environment for green activities to bring about green innovation (Thabet et al., 2023 ) (CSR). An organizational structure prepares and formulates the mentality within and outside an organization that facilitates innovation adoption (Umrani et al., 2022 ). A green organizational structure is essential for green innovation because green values sharing helps enact green innovations (Aftab et al., 2022 ). An environmentally oriented organizational structure would ensure the successful implementation of environmental inventions and policies. Creating a green corporate culture is a sustainability effort and can help better integrate environmental policies (Chen et al., 2022 ). However, the relationship between organizational structure and green innovation has been studied in the manufacturing industry, but there is a lack of literature for the service industry. For instance, a study by Khammadee & Ninaroon ( 2022 ) discovered a direct relationship between green innovation and green organizational culture in the manufacturing industry. However, there is a lack of any such literature that studies the relationship in the service industry. Some studies discovered that various kinds of organizational structures were positively related to innovation. Aftab et al. ( 2022 ) and Skordoulis et al. ( 2022 ) found that long-term orientation and, individualism, organizational culture dimensions positively impacted innovative behaviors. Similarly, team culture was found to be directly related to innovation performance. Research indicates that organizational culture is a positive enforcer of innovation. The following hypothesis is developed based on the arguments mentioned above: H3. Green organizational culture has a positive effect on green innovation. 2.5 Energy conservation Energy consumption is linked to environmental growth and modernization but is also responsible for environmental pollution (Raihan et al., 2022 ). Several studies that studied the relationship between environmental growth and energy consumption found environmental pollution and greenhouse gas emissions to be a critical environmental concern regarding energy expenditure (Azam et al., 2022 ; A. R. A. Rahman et al., 2022 ; Raihan et al., 2022 ). Environmental implications associated with energy expenditure cannot be removed entirely, but sensible energy use can help minimize these environmental concerns (Sultana et al., 2022 ). Energy efficiency is the term that addresses minimal use of energy to gain maximum outcomes. Achieving energy efficiency ensures the solution of problems such as greenhouse emissions and energy security threats without compromising the environmental development of a country/company (Gu, 2022 ). Energy efficiency is considered very important, so energy efficiency policies have been introduced into the national agendas by governments worldwide (X. Wang et al., 2023 ). Significant investments are being made into green technology by governments and companies to achieve energy efficiency goals and ambitions dictated by government policies (Gu, 2022 ). Management bodies are put into shape to oversee such energy efficiency monitoring policies (Ben Youssef & Zeqiri, 2022 ). However, despite the investments and regulations, energy efficiency targets are still far from achieving (Nisar, Akbar, et al., 2022 ). The energy efficiency levels are not constant between countries because of several contemporary factors such as technological development, degree of scientific development, the efficiency of governmental organizations, forms of specialization, and relative factor prices. Recently, green innovation has been in demand, and pressure for green innovation is pressing hard, mainly due to the visible effects of environmental pollution and global warming. Green innovation is vital in energy efficiency because it can help cut carbon mitigation costs through clean and renewable energy (Fonseca et al., 2020 ; Fulzele et al., 2022 ; Zakari et al., 2022 ) studied factors affecting energy efficiency, who concluded that energy efficiency is promoted by green innovation and institutional quality. Based on the above discussion, we hypothesized that: H4. Energy conservation is positively related to green innovation. 2.6 Green Innovation and environmental performance Innovation is an intangible asset that reflects itself in providing a competitive advantage and improving the company’s international performance (Khammadee & Ninaroon, 2022 ). Companies wish and expect to reap benefits such as reduced cost of production and higher customer demand by implementing green innovation. A company’s performance is judged by its outputs, which are influenced by several external and internal factors (Q. J. Wang et al., 2022 ). These outputs can be tangible or intangible. Tangible outputs include higher profit margin, increased customers, and higher revenue, whereas intangible outputs include reputation and company image. Studies divide them into two dimensions, competitive advantage, and environmental performance. Several studies of green innovation processes with their competitive advantage and environmental performance, and according to them, process innovation and green products are directly proportional to competitive advantage. Environmental performance is the increase in marketing and financial capabilities due to applying green methods that enable businesses to outperform the industry norm (Sahoo et al., 2023 ). In addition, green environmental performance is based on a reduction of cost for energy consumption, an improvement in capacity utilization, a decrease in waste treatment fees, and penalty costs for environmental accidents. Green innovation is the most crucial thing which can help in environmental advancement. Therefore, many companies are emphasizing clean technology to achieve environmental success in the future. Shell and BP invested in solar, wind, and many other renewable energy sources by believing that these sources of energy have the potential to quickly replace nonrenewable sources (Gollakota & Shu, 2023 ). The adoption of green innovation techniques not only improves the organizational performance but also enhances the organization’s image and competitive advantage (Azam et al., 2022 ). Water treatment and discharge ensure that the company does not incur any environmental accidents and that useless products are discarded. On the one hand, it helps the company reduce losses; on the other, it allows the company to improve its image and gain a competitive advantage (A. R. A. Rahman et al., 2022 ). In the hotel industry (Nisar, Haider, et al., 2022 ), this innovation is linked with many factors that are ignored by prior studies. Also, those studies have not focused on green innovation in Malaysian hotels. According to Nisar et al. ( 2022 ), the hotel industry emphasizes programs like green innovation because of their numerous advantages. Similarly, (Asadi et al. ( 2020 ) highlighted that green innovation could increase the environmental as well as environmental performance of the hotel. Green innovation also improves existing operations’ performance (Quintana-García et al., 2022 ). According to Rasidah et al. ( 2018 ), successfully adopting green innovations creates new competitive regions and “win-win” situations by reducing the hotel industry’s environmental results and improving their environmental conditions. Social, ecological, and environmental benefits are also associated with green innovation due to reduced costs and waste. Therefore, studies show that green innovation directly affects environmental performance (Nisar et al., 2022 ). Based on the above discussion, the following hypothesis is developed: H5. There is a positive impact of green innovation on environmental performance. Based on the literature above, the following research model is designed for this research (Fig. 1 ). 3. Methods 3.1 Research instrument The conceptual model was empirically tested by adopting a 23-item-questionnaire that comprises environmental regulation [four items adopted from the studies of (Zhu et al., 2011 ) and (Yu et al., 2022 ), green innovation strategy [four items adopted from the studies of Xue et al., ( 2022 ) and Asadi et al., ( 2020 ), energy conservation [three items adopted from the study of Abbas & Khan, ( 2022 ), green organizational culture [four items adopted from the study of Abbas & Khan, ( 2022 ), green innovation [four items adopted from the studies of Ahmed et al., ( 2023 ) and Asadi et al., ( 2020 ) and environmental performance [four items adopted from the studies of Nisar et al., ( 2022 ) and Zhu et al., 2011 ). To measure the items, a 5-point Likert scale was used (where 1 = strongly disagree, 5 = strongly agree). 3.2 Sampling and data collection The study’s target sample consists of hotel managers working in 4 to 5-star hotels in Kuala Lumpur, Malaysia. The main reason for selecting the study sample from Kuala Lumpur was its popularity among local and international visitors, and the top-most visited Malaysian city. The convenience sampling technique in which respondents are selected as per the researcher’s convenience was adopted to select the target respondents. The data were collected face-to-face for two months, from August to October 2022. Nine hundred fifty questionnaires were delivered, from which only 486 were returned; hence, the response rate was 44%. Thirteen responses were excluded from the received responses due to incomplete information, so the utilizable sample size was 473 hotel managers. This sample size is acceptable for measuring the causal model, as a sample of 200 or plus is adequate for using Maximum Likelihood Estimation. Table 1 presents the demographic characteristics of the respondents. 3.3 Data analysis To purify the measurement model, an exploratory factor analysis (EFA) was conducted, and to test the validities, confirmatory factor analysis (CFA) was applied using AMOS-24. Structural equation modeling (SEM) was performed to test the study hypothesis. In line with (Hair et al., 2021 ; Henseler et al., 2015 ) recommendations, measurement, and structural models were tested simultaneously to estimate the hypothesized construct relationships without the confounding effects of estimation error. Demographics (age, gender, education, and work experience) were considered control variables, and a one-way ANOVA was performed to test the impact of control variables. The results of one-way ANOVA indicate an insignificant impact of demographics on our outcome variable; therefore, no control variable is used in the current study. The detail of demographic profiles is given in Table 1 . Most respondents were males with 5–7 years of experience in the hotel industry. In terms of qualification, most of the respondents were graduates. 4. Results 4.1 Harman’s one-factor test Harman’s one-factor test was performed to identify common factor bias. The results reveal a 31.92 cumulative percentage of the variance between variables, which is less than the recommended value of 50% of the total variance (Min et al., 2016 ). Table 1 Respondents’ Demographic Profiles Demographic characteristics Frequency (%) Gender Male 255 54 Female 218 46 Age 18–25 years 157 33.2 26–33 years 227 48 34–40 years 55 11.6 41–50 years 26 5.5 Above 50 years 8 1.7 Work experience Less than one year 68 14.4 2–4 years 119 25.2 5–7 years 267 56.4 Above seven years 19 4.00 Education level Undergraduate 80 17.00 Graduate 269 57.00 Postgraduate 124 26.00 Note: N = 473 4.2 Exploratory factor analysis EFA was conducted to determine the relationship structure between the constructs and the respondent, and the results are presented in Table 2 . The results demonstrate excellent item loadings that ranged between 0.56 and 0.95. Moreover, Cronbach’s alpha values of all constructs are greater than 0.70, which confirms the study variables' high internal consistency. 4.3 Discriminant and divergent validity Discriminant and convergent validities are determined based on average variance extracted (AVE) and composite reliability (CR) values (Hair et al., 2021 ). According to (Bagozzi et al., 1991 ), if AVE’s values are more significant than 0.50 and CR is higher than 0.60, there will be excellent convergent validity. Fornell & Lacker ( 1981 ) recommended that the values of AVE’s square root should be higher than the construct’s correlation values, which will confirm divergent validity. Table 2 Exploratory Factor Analysis Variables Items Loadings a AVE Energy (1) Providing public transportation for guests 0.899 0.933 0.83 conservation (2) The hotel industry purchases equipment with energy- 0.931 saving/water-saving marks or green-label items (3) The hotel’s transportation fleet uses alternatively 0.893 fueled or hybrid vehicles Green (1) Destruction or containment of waste 0.742 0.807 0.51 innovation (2) Capital and technology investment 0.721 strategy (3) ISO 14000 0.735 (4) Changes in pollution prevention 0.660 Environmental (1) Regional resource-saving and conservation 0.911 0.954 0.84 regulation regulations (2) National resource-saving and conservation 0.921 regulations (3) Regional environmental regulations (such as waste 0.945 emissions and cleaner production (4) Developed countries’ environmental regulations 0.885 Green (1) Our hotel industry makes a concerted effort to make 0.694 0.812 0.52 organizational every employee understands the importance of culture environmental preservation (2) Environmental preservation is a high-priority activity 0.763 in our hotel industry (3) Preserving the environment is a central corporate 0.742 value in our hotel industry (4) Our hotel industry develops products and processes 0.686 that minimize environmental impact Green (1) Our hotel industry uses less or nonpolluting/toxic 0.748 0.823 0.54 innovation materials (2) Our hotel industry improves environmentally friendly 0.755 packaging for existing and new products (3) Our hotel industry recovers from hotel’s end-of-life 0.763 products and recycling (4) Our hotel industry uses eco-labeling 0.666 Environmental (1) Improved energy consumption 0.724 0.809 0.53 performance (2) Improved capacity utilization 0.782 (3) Increased waste treatment initiatives 0.806 (4) Increase employee awareness 0.563 The results shown in Table 3 demonstrate that all CR values are more significant than 0.60, AVE greater than 0.50, and the square root of AVE are higher than correlations, which confirm both discriminant and divergent validities. Furthermore, all the correlation values are positive, significant, and consistent with the study hypotheses. 4.4 Confirmatory factor analysis Bagozzi et al. ( 1991 ) recommended that it is necessary to check the measurement model fitness before testing hypotheses. To test the fitness of the measurement model, CFA was performed. Six-factor measurement model (as shown in Fig. 2 ) tested for fitness using standard fit indices such as “Chi-square (x 2/df), Tucker–Lewis index (TLI), comparative fit index (CFI), incremental fit index (IFI) and root mean square error of approximation (RMSEA)”. CFA results, as shown in Table 4 , real excellent model fitness as all the fit indices for the six-factor baseline model is according to the cutoff criteria for fit indexes (x 2/df = 1.898, RMSEA = 0.044, IFI = 0.970, TLI = 0.964 and CFI = 0.970) as recommended by McNeish, ( 2022 ). 4.5 Test of Hypotheses The degree of relationship between study variables is tested by performing SEM through AMOS-24. Table 5 presents the result of the direct effect, which reveals significant effect of environmental regulation (b = 0.283, p < 0.001), green innovation strategies (b = 0.258, p < 0.001), energy conservation (b = 0.371, p < 0.001) and green organizational culture (b = 0.364, p < 0.001) on green innovation. Moreover, results reveal a significant direct effect of green innovation on environmental performance (b = 0.256, p < 0.001). Consequently, all hypothesized relationships are well supported by study results. The results of hypotheses testing are also shown in Fig. 3 . 5. Discussion and Conclusions Innovation’s continuous arrival is positively related to firm performance and competitiveness. Therefore, in the past, much research on innovation was conducted. However, limited studies have investigated the relationship between green innovation and environmental performance. This study explores organizational factors, such as green organizational culture, energy-saving, green innovation strategy, and environmental regulations, which significantly contribute to green innovation. Moreover, the study also aims to explore the impact of green innovation on firms’ environmental performance, especially in the context of the hotel industry of Malaysia. To attain the study objectives, various hypotheses were developed and tested. H1 predicted a significant and positive relationship between environmental regulation and green innovation. Table 3 Discriminant and divergent validity Variables CR AVE MSV 1 2 3 4 5 6 1. EC 0.93 0.83 0.29 0.908 2. GIS 0.81 0.51 0.21 0.458*** 0.715 3. ER 0.95 0.84 0.15 0.391*** 0.381*** 0.916 4. GOC 0.81 0.52 0.29 0.534*** 0.370*** 0.263*** 0.722 5. GI 0.82 0.54 0.26 0.467*** 0.423*** 0.332*** 0.513*** 0.734 6. EP 0.81 0.53 0.22 0.349*** 0.281*** 0.233*** 0.377*** 0.465*** 0.725 Notes: N = 473, ***P < 0.001; EC: energy conservation; GIS: green innovation strategies; ER: environmental regulations; GOC: green organizational culture; GI: green innovation; EP: environmental performance Table 4 Confirmatory Factor Analysis Measurement model fit CMIN/DF RMSEA IFI TLI CFI Measurement model 1.898 0.044 0.970 0.964 0.970 The cut-off for good fit* < 3.00 < 0.08 2'0.95 2'0.95 2'0.95 Note: *Cutoff criteria for fit indexes by McNeish, ( 2022 ) The results reveal that environmental regulations significantly and positively influence green innovation (b = 0.283, p < 0.001), as we have hypothesized. Environmental regulations and green innovation are two key pillars of a sustainable environment for environmental development (Feng and Chen, 2018). The studies of Feng et al. (2018), Tang et al. (2020), and Qiu et al. (2020) also established environmental regulation as significant external pressure on organizations for green innovation. H2 predicted that organizational green innovation strategy positively influences green innovation. Results demonstrated a positive relationship between green organizational strategy and green innovation (b = 0.258, p < 0.001), which supports our hypothesized relationship. To stimulate green innovation, organizations must have to formulate a green innovation strategy (Song and Yu, 2018). Malaysia's tourism industry companies have incorporated the green innovation strategy to gain a competitive advantage and overcome ecological pollution. However, green innovation must complement the company’s strategic objectives to generate revenue (Li, 2014). The study of Soewarno et al. (2019) also proved that green organizational strategy positively impacts green innovation. Our study findings are also consistent with the study results of Asadi et al. ( 2020 ). Table 5 Test of hypotheses Hypotheses and relationship Estimate SE P Result H1 : Environmental regulations green innovation 0.283 0.049 *** Accepted H2 : Green innovation strategy green innovation 0.258 0.041 *** Accepted H3 : Energy conservation green innovation 0.371 0.050 *** Accepted H4 : Green organizational culture green innovation 0.364 0.051 *** Accepted H5 : Green Innovation environmental performance 0.256 0.040 *** Accepted Note: *** P < 0.001 H3 predicted a positive effect of energy conservation on green innovation. Results reveal a significant and positive impact of green innovation’s energy efficiency (b = 0.371, p < 0.001). These study findings are consistent with the study of Gerstlberger et al. (2014), which explored a positive correlation between energy conservation and green innovation. Sun et al. (2019) also established a positive relationship between green innovation and energy efficiency. Green innovation helps in the efficient use of resources and reduces environmental pollution by improving production efficiency, energy-saving, and emissions reduction (Feng and Chen, 2018). The H4 of the study predicted a significant and positive impact of green organizational culture on green innovation. Results also support the predicted relationship as there is a significant and positive effect of green organizational culture on green innovation (b = 0.364, p < 0.001). Numerous past studies have investigated green organizational culture as a critical predictor of green innovation. A study by KüçükogVlu and Pınar (2016) founds a positive correlation between green organizational culture and green innovation. The positive relationship between sustainability and green innovation is more robust in the presence of green organizational culture (KüçükogVlu and Pınar, 2016). Green organizational culture and innovation reinforce its competitive advantage (Gürlek and Tuna, 2018). Green organizational culture positively affects green performance (Wang, 2019). The current study results are also aligned with the study of Hardika et al. (2019), which also found a positive influence of green organizational culture on green innovation. The H5 predicts a significant and positive direct effect of green innovation on hotels’ environmental performance. Consistent with the study hypothesis, results (b = 0.256, p < 0.001) demonstrate green innovation's significant and positive direct effect on the hotel industry’s environmental performance. The primary purpose of green innovation is to enhance both the environmental and environmental performance of firms (Arfi et al., 2018). Companies need to find out whether incorporating green innovation will or will not increase their environmental productivity. Extensive research has been conducted to understand the relationship between green innovation and the company’s profitability. Nevertheless, these studies were unable to reach a unanimous conclusion. One study suggests that companies face inefficiency and lack of productivity if they engage in green innovation (Palmer et al., 1995). Another study concludes that green innovation positively impacts performance (Huang and Li, 2017). Similarly, Fernando et al. (2019) discovered that green innovation can improve business performance and service innovation. Green innovation positively influences the firm’s social, environmental, and environmental performance (Asadi et al., 2020 ). The study of El-Kassar and Singh (2019) also found a significant effect of green innovation on overall organizational sustainable performance. Furthermore, the current study finding is also supported by Saudi et al. (2019) and Zhang et al. (2019). 6. Implications and limitations Drawing on the transaction-cost environmental theory and green innovation, we examined the impact of green innovation on the Malaysian hotel industry’s environmental performance. The study findings suggest several theoretical as well as practical implications. There is limited research on the hotel industry's green innovation and environmental performance (Asadi et al., 2020 ). The concept of green innovation for the hotel industry is initially evolving. Therefore, the study findings present significant theoretical and practical implications for the hotel industry managers and policymakers, and they can get substantial benefits using these. From a theoretical perspective, the suggested model and the defined internal and external factors that influence green innovation can help hoteliers and policymakers understand the factors related to implementing the initiatives in the hospitality industry as there is a past study investigating the influencing factors in adopting green innovation leading to environmental performance, especially in the context of the Malaysia hotel industry. Hence, this study contributes significantly to the existing knowledge, theory, and practice body. Environmental performance seems to be a critical factor that influences the implementation of green innovation. The environmental performance evaluation of different hotel industries by de Azevedo Rezende et al. (2019) shows that hotels with the highest environmental practices are generally more profitable than hotels with low green practices. So, hotel managers must develop strategies to reduce wastage and protect natural resources to cope with the prevailing ecological problems. In reality, hotel managers must develop readiness for green innovation in their industry and make practical improvements to contribute to a sustainable environment. In the meantime, the government must show commitment, make strategies, and take meaningful actions to engage the hospitality industry in implementing green practices to ensure sustainable business growth. By switching and transforming to green businesses, companies will become more profitable than traditional organizations. Despite significant implications, this study has numerous limitations that suggest opportunities for future researchers. First, this study is limited to hotels operating in the only city of Kuala Lumpur, Malaysia. For more generalized results, future research can be done by incorporating hotels in other cities. Second, the study is conducted in Malaysia, and this research can be replicated in different cultural and environmental contexts. Further studies can be conducted in any other developed country. Moreover, this study addresses only the hotel industry, and future studies could be made to investigate green practices in SMEs. Furthermore, the research has highlighted the four major strategies that can lead to green innovation, but still, many green initiatives or strategies are ignored. The researchers aiming to explore the factors behind green innovation can extend the model by adding more strategies leading to green innovation. Declarations Acknowledgement We are grateful to the participants from the Hotel Industry in Kuala Lumpur Malaysia for devoting their time to this study. We are also thanking to the Ministry of Tourism, Arts and Culture (MoTAC) officers for their cooperations and support. We extend our gratitude to the Universiti Teknologi MARA (UiTM) for providing ethical clearance for this research. Author Contributions Rasidah and Mohd Hanafi developed the concept and study design. Data collection was conducted by Siti Zuraini. Data cleaning and formal analysis were carried out by Mohd Hanafi. The initial manuscript was drafted by Siti Zuraini, and all three authors subsequently reviewed, edited and approved the final version. Ethical Approval and Accordance All methods were conducted following relevant guidelines Ethical approval was granted by Research Ethics Committee (REC) at the Universiti Teknologi MARA (UiTM) Consent to participate The study involved voluntary participation, with informed consent obtained from each respondent. Consent for publication Not applicable. Clinical trial registration This study did not involve any clinical trials. Competing interest The authors declare no competing interest. 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Transportation Research Part E: Logistics and Transportation Review , 47 (6). https://doi.org/10.1016/j.tre.2010.09.013 Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-7449884","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":513428043,"identity":"b64a19bc-05d4-4cd6-8351-25257af199c8","order_by":0,"name":"Rasidah Hamid","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA+UlEQVRIiWNgGAWjYJCCAzwMB+T42ZsPPmAwAAsYEKXFWLLnWLIBg4EBcVoYgFoSN9zIMZOAqsavxbz9+MMDb2ruJM6ckZZWzVPwJ5qBvXmbBGPOYZxaZM7kGBycc+yZcT/P42O3eQwMcht4jpVJMG7DrUWCIYfhMA/bYdmZ7WlpEC0SQBfi1cL//MFhnn+HGTccyDErBmuRf0NAi0SCwWHetsOKG07kmDFDbOEhpOWNwcG5fYfBgSw5x8A4t40nrdgicVs6HoelP/7w5tthcFR+ePNHLref/fDGGx+3WePUggnYQEQCQzMJWqCgjnQto2AUjIJRMFwBAH12W/AR1CNwAAAAAElFTkSuQmCC","orcid":"","institution":"Universiti Teknologi MARA","correspondingAuthor":true,"prefix":"","firstName":"Rasidah","middleName":"","lastName":"Hamid","suffix":""},{"id":513428044,"identity":"636743a6-c787-4b38-8d6d-b26711fb16c6","order_by":1,"name":"Mohd Hanafi Azman Ong","email":"","orcid":"","institution":"Universiti Teknologi MARA Segamat Campus","correspondingAuthor":false,"prefix":"","firstName":"Mohd","middleName":"Hanafi Azman","lastName":"Ong","suffix":""},{"id":513428045,"identity":"17fd5092-4b33-4d99-9873-98b6fad95722","order_by":2,"name":"Siti Zuraini Ramley Alan","email":"","orcid":"","institution":"Universiti Teknologi MARA","correspondingAuthor":false,"prefix":"","firstName":"Siti","middleName":"Zuraini Ramley","lastName":"Alan","suffix":""}],"badges":[],"createdAt":"2025-08-25 05:23:29","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-7449884/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-7449884/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":91145968,"identity":"3e394a8f-b93e-4b97-b274-e8734466048c","added_by":"auto","created_at":"2025-09-12 06:11:04","extension":"png","order_by":1,"title":"Figure 1","display":"","copyAsset":false,"role":"figure","size":55605,"visible":true,"origin":"","legend":"\u003cp\u003eResearch model\u003c/p\u003e","description":"","filename":"1.png","url":"https://assets-eu.researchsquare.com/files/rs-7449884/v1/a83fb94beb86694d68a8eb1a.png"},{"id":91145953,"identity":"2d276dce-bd2e-40a4-9a8a-c10a9b988b99","added_by":"auto","created_at":"2025-09-12 06:11:02","extension":"jpg","order_by":2,"title":"Figure 2","display":"","copyAsset":false,"role":"figure","size":159092,"visible":true,"origin":"","legend":"\u003cp\u003eSix-factor measurement model\u003c/p\u003e","description":"","filename":"2.jpg","url":"https://assets-eu.researchsquare.com/files/rs-7449884/v1/5e504ea4b5570af1cc166802.jpg"},{"id":91145952,"identity":"a4bd107c-896f-4006-a56a-f290eb46c754","added_by":"auto","created_at":"2025-09-12 06:11:02","extension":"png","order_by":3,"title":"Figure 3","display":"","copyAsset":false,"role":"figure","size":68258,"visible":true,"origin":"","legend":"\u003cp\u003eResults of hypothesis testing\u003c/p\u003e","description":"","filename":"3.png","url":"https://assets-eu.researchsquare.com/files/rs-7449884/v1/51517716eb8275dbca1ce2b5.png"},{"id":103399992,"identity":"b360da5e-8207-4f79-b19f-07e7524d5bbc","added_by":"auto","created_at":"2026-02-25 09:13:33","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1410882,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-7449884/v1/2f5cfe8c-2554-4ef1-9bc0-0eb7b50ff0ff.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Leading Green Innovation to Enhance the Environmental Performance of Malaysian Hotels","fulltext":[{"header":"1. Introduction","content":"\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eThe growing population and global economy have significantly strained the environment and natural resources. There is an urgent need to balance environmental development and environmental degradation before it is too late (Abrahao et al., \u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2017\u003c/span\u003e). The environmental management system (EMS) can help companies become more environmentally responsible and competitive because better environmental performance can lead to waste reduction and redesigning products/processes to have a lower environmental impact. The implementation of EMS can lead to environmental performance (Chan \u0026amp; Pusiran, \u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). Achieving ecologically sustainable standards is one of humanity\u0026rsquo;s most crucial challenges today (Oyuntsetseg Densmaa et al., 2022). As a result, in today's technological landscape, it is critical to embrace green processes and products (Hussain \u0026amp; Haley, \u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). We must use green products and techniques to prevent environmental degradation and reduce pollution (Basuki et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eGreen innovation is discovering ecologically sustainable and environmentally friendly methods of producing and operating products and services without sacrificing quality or productivity. Green innovation is improving management, products, systems, technologies, and operations while remaining sustainable (Dang \u0026amp; Wang, \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). The practical application of green innovations has enormous potential. It can aid in the resolution of issues concerning environmental protection and the promotion of green development. It is also an important factor in improving various organizations' financial, social, and environmental outcomes (Ahmed et al., \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Green innovation relates to three concepts of innovation: organization, product, and process. Green innovation\u0026rsquo;s product and process concepts combine production efficiency, process innovation, and product innovation with environmental objectives (Sun et al., \u003cspan citationid=\"CR66\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eGreen practices are growingly crucial in business today (Gu, \u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Regulatory bodies, policies, societal pressures, and an increase in ecologically sensitive customers drive firms to achieve ecological sustainability and environmental growth. Malaysia is a good example, where businesses are shifting toward green innovation and green processes in order to conform to the \"green mindset\" (Asadi et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). The tourism industry is one of the world's fastest growing industries.It has immense potential and has brought several benefits globally. It is using millions, generating the country\u0026rsquo;s gross domestic product (GDP) and benefitting other industries (Asadi et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Noor et al., \u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Statistically speaking, the tourism industry is the second-fastest-growing industry in the world. The sector provides 219\u0026nbsp;million jobs, accounting for 10.4% of the global GDP. However, besides its benefits, it has created several environmental challenges for us over the years. It has a crucial role in global warming and contributes 5% of the total CO\u003csub\u003e2\u003c/sub\u003e emissions (WTTC, \u003cspan citationid=\"CR74\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Hence, creating an environmentally stable environment without revolutionizing the tourism industry is impossible. Despite having considerable differences, the principles of continuity and fairness are shared among the sustainability models in different countries. Malaysia is striving hard to incorporate sustainable development within its industrial practices. Since 1998, the government has successfully launched several ecological construction projects such as grassland, forestation, and environmental management Rahman \u0026amp; Dura, \u003cspan citationid=\"CR55\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). The deforestation rate is decreasing, and the area under plantation is increasing, which will go a long way toward enhancing environmental protection policies in Malaysia. Malaysia's green sustainability primarily aims to minimize environmental pollution and reduce damage caused by mismanagement by adopting better ecological management practices (Jayashree et al., \u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eThe tourism industry in Malaysia has grown exponentially since the development and enviromental reforms in 1978, which has improved the lifestyle of Malaysian people, attracting foreign tourists and investments. According to the reports, the annual tourism income for the year 2023 in Malaysia has been recorded as RM28.2\u0026nbsp;billion, which is the contribution of both international visitors, 10\u0026nbsp;million, and local tourists 20\u0026nbsp;million (Rahman et al., \u003cspan citationid=\"CR54\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Another reason for the increase in tourism is Malaysia's multicultural and technologically advanced society, which entertains religious, business, medical, marine, and eco- tourism (Asadi et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Malaysia\u0026rsquo;s adaptive policy and fast environmental growth in recent years have contributed to the country's tourism sector's rapid growth country (Chin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Once we have discussed Malaysia\u0026rsquo;s role in adopting green practices, it is time to discuss Malaysia\u0026rsquo;s tourism industry; the industry contributes 11.04% to the Malaysian economy practice used by more than 8.0\u0026nbsp;million people (WTTC, \u003cspan citationid=\"CR74\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Therefore, tourism is crucial for the Malaysia economy, and it must become ecologically stable to minimize its environmental impacts.\u003c/p\u003e\u003cp\u003eGrowth in the tourism industry is beneficial for the Malaysia economy, but it negatively impacts environmental conditions (Rahman et al., \u003cspan citationid=\"CR54\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). The tourism industry negatively affects wildlife, generates waste and pollution (Rajaonson \u0026amp; Tanguay, \u003cspan citationid=\"CR57\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). The negative impacts on the environment due to tourism result in the vulnerability of the global system (Nguyen \u0026amp; Su, \u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), reduce the competence of tourism destinations (Raihan et al., \u003cspan citationid=\"CR56\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) and reduce the quality of life for the host population (Hassan et al., \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). However, the lack of environmental regulations (Asnor et al., \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) and the negative impact of tourism in Malaysia means that any ecological policies are implemented in Malaysia restaurants are voluntary and for advertisement and goodwill purposes (Langgat, \u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Tan et al., \u003cspan citationid=\"CR67\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). The tourism industry\u0026rsquo;s immense contribution to the Malaysia economy must not be an excuse to avoid ecological regulations. This industry must be strictly regulated for environmental production due to the extent of ecological damage caused by it annually (Ching et al., \u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). The hotel industry of Malaysia, like other industries, focuses on profit maximization. The major difference between the hotel industry and any other industry is the emphasis on green strategies for customer satisfaction. The manufacturing industry adopts such strategies for their profit, but the hotel industry adopts them to satisfy the customers. Industry adopts such strategies for their profit, but the hotel industry adopts them to satisfy their customers (Wan Norhidayah et al., \u003cspan citationid=\"CR70\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) highlighted that most hotels offer not just lodging but also provide additional services such as cuisine and entertainment. The hotels\u0026rsquo; multiactivity character is inextricably linked to their profit- maximizing strategy. The primary motivation for hotels to offer multiple services is to increase profit margins. In other words, their profit-maximizing behaviour drives their multiactivity nature. Furthermore, considering many activities implies the presence of scope economies for hotels, which is a primary environmental motive to offer multiple services.\u003c/p\u003e\u003cp\u003eThe aim of this paper is to contribute to the literature on the relationship between green innovation and firm environmental performance while also investigating the extension of green innovation and firm evidence. The relationship between environmental performance and green innovation is well established (Sahoo et al., \u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Still, it is not fully understood how sustainable environmental performance is contributed by green innovation in the tourism industry. This study will provide empirical evidence toward the discussion above by evaluating evidence that emphasizes the relationship between environmental performance and green innovation in the hotel industry. The discussion will be based on data obtained from hotels in Malaysia, the world\u0026rsquo;s leading economy and the most significant greenhouse gas contributor. However, the government of Malaysia has implemented pro-green innovation regulations in the country.\u003c/p\u003e\u003cp\u003eThe impact of green innovation on firms\u0026rsquo; profitability has been well documented in production and other industries, but there is a lack of literature on the hotel industry (Asnor et al., \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Elkhwesky et al., \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Several studies have discussed sustainability in the hotel industry of Malaysia, for example, (Patwary et al., \u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Shaharudin et al., \u003cspan citationid=\"CR63\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), but literature on green innovation is scarce (Ching et al., \u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Sustainability in a firm\u0026rsquo;s performance is positively affected by the implementation of green innovation. Literature suggests that green innovation is an abstract notion leading to apprehensions among many hotels about its adoption (Asnor et al., \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Moreover, there is a lack of literature investigating the relationship between green innovation and firm environmental performance (Sahoo et al., \u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). In addition, this study has highlighted the need to identify the strategies that can enable the organization to adopt green innovation, which can lead to performance. It has presented the four important green strategies, including environmental regulations, green innovation strategies, green conservation and green organizational culture. Therefore, it has filled the gap of attaining green innovation, as the mentioned strategies are important for the development of green innovation. Hence, this research is conducted to understand the relationship between hotels\u0026rsquo; environmental performance and green innovation. Relatively, the already established literature tries to address the issue through empirical evidence collection to encourage hotels to adopt green initiatives and enhance both competitive potential and environmental performance. This study has presented a practical model to investigate the relationship between environmental performance and green innovation in Malaysia\u0026rsquo;s hotel industry. This research is unique to the author\u0026rsquo;s knowledge as there is no available study on green innovation adoption and hotels\u0026rsquo; environmental performance in the Malaysia context.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e"},{"header":"2. Theoretical framework and hypothesis development","content":"\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eSahoo et al., (\u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) highlighted that green hotels include the hotels that strive to be more ecologically friendly in terms of efficiency and low use of energy, water and materials but still their emphasis is on providing high-quality services. Many advantages have already been found by hoteliers as a result of implementing green techniques. These advantages include brand value, building a positive image in the eyes of guests, cutting expenses and liabilities and more profit. Besides these advantages, several hotels have begun to engage in corporate social responsibility (CSR) activities and implement social programmes because the hotel sector has had harmful consequences on the environment; CSR is the correct thing to do to give back to nature (Kamarudin et al., \u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). In 2008, the intercontinental hotel group (IHG) became the first green hotel to open. It was the world\u0026rsquo;s first 100% environmentally friendly hotel. The utilization of solar panels on the roofs, a rainwater harvesting system to feed water to the toilets, electricity generated by wind power, recycled glass windows and furniture and fixtures constructed entirely of recycled materials were among the green features provided by the hotel (Hamid et al., \u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). The literature review on green innovation and other green strategies considered by this research is given below.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003cdiv id=\"Sec3\" class=\"Section2\"\u003e\u003ch2\u003e2.1 \u003cem\u003eTransaction-cost theory\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eThe development of stable network relationships can help in reducing transaction costs of environmental collaborations with partners. The investment in social capital is also a green strategy for the company because of its efficiency in building new green intellectual capital. Therefore, the transaction cost, either social capital or any other, can help the companies in achieving effective green innovation (Gu, \u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). This research is based on the transaction-cost environmental theory for investigating the impact of green innovation on hotels\u0026rsquo; environmental performance in Malaysia. Transaction cost theory states that an optimum organizational structure achieves environmental efficiency by minimizing exchange costs (Sahoo et al., \u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). This theory implies that the coordination costs of managing, controlling and monitoring transactions are incurred with each kind of transaction. The theory works on the general theory of governance, exchange relationships and environmental organization while focusing on the make or buy decision, also known as the \u0026ldquo;canonical transaction\u0026rdquo; (Bowman et al., \u003cspan citationid=\"CR13\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). This theory is an extension of agency theory. Companies innovate to cut costs and reduce the time required for production or operation while improving performance. Hence, this theory supports green innovation in this study. According to this theory, green innovation helps a company enhance and develop it is environmental, social sustainability, environmental and social performance. The conceptual framework describing the research hypothesis is displayed in Fig.\u0026nbsp;\u003cspan refid=\"Fig1\" class=\"InternalRef\"\u003e1\u003c/span\u003e.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec4\" class=\"Section2\"\u003e\u003ch2\u003e2.2 \u003cem\u003eEnvironmental regulations\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eSeveral past studies have found that environmental regulations are drivers for investment in environmental initiatives (Nilashi et al., \u003cspan citationid=\"CR42\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Patwary et al., \u003cspan citationid=\"CR49\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Sahoo et al., \u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Shaharudin et al., \u003cspan citationid=\"CR63\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) and presented that innovation-driving environmental policies positively influence technological innovation and incentivize green innovation in companies.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eHowever, some empirical studies show a different picture. They discovered that regulatory policies do not directly impact the green behavior of companies (Khammadee \u0026amp; Ninaroon, \u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Patwary et al., \u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Sahoo et al., \u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Moreover, some studies have shown that companies\u0026rsquo; green development depends on environmental regulations (Sarmiento \u0026amp; El Hanandeh, 2018)). Hence, there is a lack of literature addressing the relationship between green innovation and environmental regulations. Based on the differences between the researchers regarding the effect of environmental regulations on corporate green innovation concerns and understanding that the rules constitute a formal structure that imposes substantial institutional pressure on firms, the study established the following hypothesis:\u003c/p\u003e\u003cp\u003eH1. There is a positive impact of environmental regulations on green innovation.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec5\" class=\"Section2\"\u003e\u003ch2\u003e2.3 \u003cem\u003eGreen innovation strategy\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eGreen innovation is defined as the improvement or development of companies\u0026rsquo; software or hardware related to green processes and products. It can include innovative technologies that help develop corporate environmental practices that positively design green products, recycle waste, prevent pollution, and help save energy that positively influences sustainability (Quintana-Garc\u0026iacute;a et al., \u003cspan citationid=\"CR53\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Green innovation requires originality in developing green processes and products to improve a company\u0026rsquo;s sustainability and satisfy environmental preservation requirements (Patwary et al., \u003cspan citationid=\"CR49\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Many studies have focused on enhancing green innovation by achieving green sustainability, greening the suppliers, and building green core competence (Aldaas et al., \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Ching et al., \u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Langgat, \u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Shaharudin et al., \u003cspan citationid=\"CR63\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). However, as mentioned above, literature concerning green innovation and strategy is lacking.\u003c/p\u003e\u003cp\u003eThis study believes that the green innovation strategy positively influences green innovation. Green innovation in organizations is possible by effectively implementing green innovation strategies. This innovation promotes EMSs, preventing pollution and reducing waste (Qarooni \u0026amp; Al-Sartawi, \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). A firm must use its technical, human capabilities, and heterogeneous resources to achieve its green innovation goal (Wan Norhidayah et al., \u003cspan citationid=\"CR70\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). It is known that a company\u0026rsquo;s potential for innovation depends on its resources (Hamid et al., \u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Patwary et al., \u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), and these resources can be used in the development of green strategies.\u003c/p\u003e\u003cp\u003eThe companies prefer to stimulate a green innovation strategy to reduce legal and regulatory pressures. Firms prefer a proactive approach toward developing a green innovation strategy that results in green innovation instead of reacting to government-imposed restrictions (X. Wang et al., \u003cspan citationid=\"CR72\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). A firm can coordinate its resources toward achieving green innovation and developing green processes and products to implement its green innovation strategy. Finally, firms can exploit new market opportunities and gain a competitive advantage while avoiding environmental and social costs of ecological degradation by devising a green innovation strategy and its implementation (Aftab et al., \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Skordoulis et al., \u003cspan citationid=\"CR64\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eConsumers are becoming more environmentally sensitive, prefer firms that produce green products, and are willing to pay a higher price for such services and products (Hao et al., \u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Mahasuweerachai \u0026amp; Suttikun, \u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Green innovation strategies are crucial for bringing about green product innovation and fulfilling customer demands for sustainable and green products. Environmental systems help companies to bring innovation in products and processes that contribute to green creation (Sahoo et al., \u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Therefore, the second hypothesis for this study is as follows:\u003c/p\u003e\u003cp\u003eH2. Green innovation strategy positively influence green innovations.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec6\" class=\"Section2\"\u003e\u003ch2\u003e2.4 \u003cem\u003eGreen organizational culture\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eOrganizational culture plays a crucial role in developing and implementing innovation in a company (Santana et al., \u003cspan citationid=\"CR60\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Corporate culture can either promote or demote innovation in a firm. Hotels must establish and maintain environmental sensitivity and consciousness if they wish to adopt green innovation. Environmental practices depend highly on the organizational culture, which helps share the firm\u0026rsquo;s policies and actions regarding ecological problems. A green organizational structure is crucial in implementing green innovation by motivating and addressing the company and its employees (Khammadee \u0026amp; Ninaroon, \u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eMoreover, senior management\u0026rsquo;s efforts toward bringing green innovation are not alone sufficient to ensure its implementation. The organization must ensure a green organizational culture because it provides a convenient environment for green activities to bring about green innovation (Thabet et al., \u003cspan citationid=\"CR68\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) (CSR). An organizational structure prepares and formulates the mentality within and outside an organization that facilitates innovation adoption (Umrani et al., \u003cspan citationid=\"CR69\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). A green organizational structure is essential for green innovation because green values sharing helps enact green innovations (Aftab et al., \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). An environmentally oriented organizational structure would ensure the successful implementation of environmental inventions and policies. Creating a green corporate culture is a sustainability effort and can help better integrate environmental policies (Chen et al., \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eHowever, the relationship between organizational structure and green innovation has been studied in the manufacturing industry, but there is a lack of literature for the service industry. For instance, a study by Khammadee \u0026amp; Ninaroon (\u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) discovered a direct relationship between green innovation and green organizational culture in the manufacturing industry. However, there is a lack of any such literature that studies the relationship in the service industry. Some studies discovered that various kinds of organizational structures were positively related to innovation. Aftab et al. (\u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) and Skordoulis et al. (\u003cspan citationid=\"CR64\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) found that long-term orientation and, individualism, organizational culture dimensions positively impacted innovative behaviors.\u003c/p\u003e\u003cp\u003eSimilarly, team culture was found to be directly related to innovation performance. Research indicates that organizational culture is a positive enforcer of innovation. The following hypothesis is developed based on the arguments mentioned above:\u003c/p\u003e\u003cp\u003eH3. Green organizational culture has a positive effect on green innovation.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec7\" class=\"Section2\"\u003e\u003ch2\u003e2.5 \u003cem\u003eEnergy conservation\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eEnergy consumption is linked to environmental growth and modernization but is also responsible for environmental pollution (Raihan et al., \u003cspan citationid=\"CR56\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Several studies that studied the relationship between environmental growth and energy consumption found environmental pollution and greenhouse gas emissions to be a critical environmental concern regarding energy expenditure (Azam et al., \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; A. R. A. Rahman et al., \u003cspan citationid=\"CR54\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Raihan et al., \u003cspan citationid=\"CR56\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Environmental implications associated with energy expenditure cannot be removed entirely, but sensible energy use can help minimize these environmental concerns (Sultana et al., \u003cspan citationid=\"CR65\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Energy efficiency is the term that addresses minimal use of energy to gain maximum outcomes. Achieving energy efficiency ensures the solution of problems such as greenhouse emissions and energy security threats without compromising the environmental development of a country/company (Gu, \u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Energy efficiency is considered very important, so energy efficiency policies have been introduced into the national agendas by governments worldwide (X. Wang et al., \u003cspan citationid=\"CR72\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Significant investments are being made into green technology by governments and companies to achieve energy efficiency goals and ambitions dictated by government policies (Gu, \u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Management bodies are put into shape to oversee such energy efficiency monitoring policies (Ben Youssef \u0026amp; Zeqiri, \u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). However, despite the investments and regulations, energy efficiency targets are still far from achieving (Nisar, Akbar, et al., \u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). The energy efficiency levels are not constant between countries because of several contemporary factors such as technological development, degree of scientific development, the efficiency of governmental organizations, forms of specialization, and relative factor prices. Recently, green innovation has been in demand, and pressure for green innovation is pressing hard, mainly due to the visible effects of environmental pollution and global warming. Green innovation is vital in energy efficiency because it can help cut carbon mitigation costs through clean and renewable energy (Fonseca et al., \u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Fulzele et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Zakari et al., \u003cspan citationid=\"CR78\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) studied factors affecting energy efficiency, who concluded that energy efficiency is promoted by green innovation and institutional quality. Based on the above discussion, we hypothesized that:\u003c/p\u003e\u003cp\u003eH4. Energy conservation is positively related to green innovation.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec8\" class=\"Section2\"\u003e\u003ch2\u003e2.6 \u003cem\u003eGreen Innovation and environmental performance\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eInnovation is an intangible asset that reflects itself in providing a competitive advantage and improving the company\u0026rsquo;s international performance (Khammadee \u0026amp; Ninaroon, \u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Companies wish and expect to reap benefits such as reduced cost of production and higher customer demand by implementing green innovation. A company\u0026rsquo;s performance is judged by its outputs, which are influenced by several external and internal factors (Q. J. Wang et al., \u003cspan citationid=\"CR71\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). These outputs can be tangible or intangible. Tangible outputs include higher profit margin, increased customers, and higher revenue, whereas intangible outputs include reputation and company image. Studies divide them into two dimensions, competitive advantage, and environmental performance. Several studies of green innovation processes with their competitive advantage and environmental performance, and according to them, process innovation and green products are directly proportional to competitive advantage.\u003c/p\u003e\u003cp\u003eEnvironmental performance is the increase in marketing and financial capabilities due to applying green methods that enable businesses to outperform the industry norm (Sahoo et al., \u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). In addition, green environmental performance is based on a reduction of cost for energy consumption, an improvement in capacity utilization, a decrease in waste treatment fees, and penalty costs for environmental accidents. Green innovation is the most crucial thing which can help in environmental advancement. Therefore, many companies are emphasizing clean technology to achieve environmental success in the future. Shell and BP invested in solar, wind, and many other renewable energy sources by believing that these sources of energy have the potential to quickly replace nonrenewable sources (Gollakota \u0026amp; Shu, \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). The adoption of green innovation techniques not only improves the organizational performance but also enhances the organization\u0026rsquo;s image and competitive advantage (Azam et al., \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eWater treatment and discharge ensure that the company does not incur any environmental accidents and that useless products are discarded. On the one hand, it helps the company reduce losses; on the other, it allows the company to improve its image and gain a competitive advantage (A. R. A. Rahman et al., \u003cspan citationid=\"CR54\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). In the hotel industry (Nisar, Haider, et al., \u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), this innovation is linked with many factors that are ignored by prior studies. Also, those studies have not focused on green innovation in Malaysian hotels. According to Nisar et al. (\u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), the hotel industry emphasizes programs like green innovation because of their numerous advantages.\u003c/p\u003e\u003cp\u003eSimilarly, (Asadi et al. (\u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) highlighted that green innovation could increase the environmental as well as environmental performance of the hotel. Green innovation also improves existing operations\u0026rsquo; performance (Quintana-Garc\u0026iacute;a et al., \u003cspan citationid=\"CR53\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). According to Rasidah et al. (\u003cspan citationid=\"CR58\" class=\"CitationRef\"\u003e2018\u003c/span\u003e), successfully adopting green innovations creates new competitive regions and \u0026ldquo;win-win\u0026rdquo; situations by reducing the hotel industry\u0026rsquo;s environmental results and improving their environmental conditions. Social, ecological, and environmental benefits are also associated with green innovation due to reduced costs and waste. Therefore, studies show that green innovation directly affects environmental performance (Nisar et al., \u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Based on the above discussion, the following hypothesis is developed:\u003c/p\u003e\u003cp\u003eH5. There is a positive impact of green innovation on environmental performance.\u003c/p\u003e\u003cp\u003eBased on the literature above, the following research model is designed for this research (Fig.\u0026nbsp;\u003cspan refid=\"Fig1\" class=\"InternalRef\"\u003e1\u003c/span\u003e).\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e"},{"header":"3. Methods","content":"\u003cdiv id=\"Sec10\" class=\"Section2\"\u003e\u003ch2\u003e3.1 \u003cem\u003eResearch instrument\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eThe conceptual model was empirically tested by adopting a 23-item-questionnaire that comprises environmental regulation [four items adopted from the studies of (Zhu et al., \u003cspan citationid=\"CR79\" class=\"CitationRef\"\u003e2011\u003c/span\u003e) and (Yu et al., \u003cspan citationid=\"CR77\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), green innovation strategy [four items adopted from the studies of Xue et al., (\u003cspan citationid=\"CR75\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) and Asadi et al., (\u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), energy conservation [three items adopted from the study of Abbas \u0026amp; Khan, (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), green organizational culture [four items adopted from the study of Abbas \u0026amp; Khan, (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), green innovation [four items adopted from the studies of Ahmed et al., (\u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) and Asadi et al., (\u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) and environmental performance [four items adopted from the studies of Nisar et al., (\u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) and Zhu et al., \u003cspan citationid=\"CR79\" class=\"CitationRef\"\u003e2011\u003c/span\u003e). To measure the items, a 5-point Likert scale was used (where 1\u0026thinsp;=\u0026thinsp;strongly disagree, 5\u0026thinsp;=\u0026thinsp;strongly agree).\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec11\" class=\"Section2\"\u003e\u003ch2\u003e3.2 \u003cem\u003eSampling and data collection\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eThe study\u0026rsquo;s target sample consists of hotel managers working in 4 to 5-star hotels in Kuala Lumpur, Malaysia. The main reason for selecting the study sample from Kuala Lumpur was its popularity among local and international visitors, and the top-most visited Malaysian city. The convenience sampling technique in which respondents are selected as per the researcher\u0026rsquo;s convenience was adopted to select the target respondents. The data were collected face-to-face for two months, from August to October 2022. Nine hundred fifty questionnaires were delivered, from which only 486 were returned; hence, the response rate was 44%. Thirteen responses were excluded from the received responses due to incomplete information, so the utilizable sample size was 473 hotel managers. This sample size is acceptable for measuring the causal model, as a sample of 200 or plus is adequate for using Maximum Likelihood Estimation. Table\u0026nbsp;\u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e presents the demographic characteristics of the respondents.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec12\" class=\"Section2\"\u003e\u003ch2\u003e3.3 \u003cem\u003eData analysis\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eTo purify the measurement model, an exploratory factor analysis (EFA) was conducted, and to test the validities, confirmatory factor analysis (CFA) was applied using AMOS-24. Structural equation modeling (SEM) was performed to test the study hypothesis. In line with (Hair et al., \u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Henseler et al., \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2015\u003c/span\u003e) recommendations, measurement, and structural models were tested simultaneously to estimate the hypothesized construct relationships without the confounding effects of estimation error. Demographics (age, gender, education, and work experience) were considered control variables, and a one-way ANOVA was performed to test the impact of control variables. The results of one-way ANOVA indicate an insignificant impact of demographics on our outcome variable; therefore, no control variable is used in the current study. The detail of demographic profiles is given in Table\u0026nbsp;\u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e. Most respondents were males with 5\u0026ndash;7 years of experience in the hotel industry. In terms of qualification, most of the respondents were graduates.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e"},{"header":"4. Results","content":"\u003cdiv id=\"Sec14\" class=\"Section2\"\u003e\u003ch2\u003e4.1 Harman\u0026rsquo;s one-factor test\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eHarman\u0026rsquo;s one-factor test was performed to identify common factor bias. The results reveal a 31.92 cumulative percentage of the variance between variables, which is less than the recommended value of 50% of the total variance (Min et al., \u003cspan citationid=\"CR40\" class=\"CitationRef\"\u003e2016\u003c/span\u003e).\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eRespondents\u0026rsquo; Demographic Profiles\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"3\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDemographic characteristics\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFrequency\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003e(%)\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e\u003cem\u003eGender\u003c/em\u003e\u003c/p\u003e\u003cp\u003eMale\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e255\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e54\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFemale\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e218\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e46\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e\u003cem\u003eAge\u003c/em\u003e\u003c/p\u003e\u003cp\u003e18\u0026ndash;25 years\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e157\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e33.2\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e26\u0026ndash;33 years\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e227\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e48\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e34\u0026ndash;40 years\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e55\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e11.6\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e41\u0026ndash;50 years\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e26\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e5.5\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eAbove 50 years\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e8\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e1.7\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e\u003cem\u003eWork experience\u003c/em\u003e\u003c/p\u003e\u003cp\u003eLess than one year\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e68\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e14.4\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e2\u0026ndash;4 years\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e119\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e25.2\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e5\u0026ndash;7 years\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e267\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e56.4\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eAbove seven years\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e19\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e4.00\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e\u003cem\u003eEducation level\u003c/em\u003e\u003c/p\u003e\u003cp\u003eUndergraduate\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e80\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e17.00\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eGraduate\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e269\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e57.00\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ePostgraduate\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e124\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e26.00\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eNote: \u003cem\u003eN\u0026thinsp;=\u0026thinsp;473\u003c/em\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec15\" class=\"Section2\"\u003e\u003ch2\u003e4.2 \u003cem\u003eExploratory factor analysis\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eEFA was conducted to determine the relationship structure between the constructs and the respondent, and the results are presented in Table\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e. The results demonstrate excellent item loadings that ranged between 0.56 and 0.95. Moreover, Cronbach\u0026rsquo;s alpha values of all constructs are greater than 0.70, which confirms the study variables' high internal consistency.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec16\" class=\"Section2\"\u003e\u003ch2\u003e4.3 \u003cem\u003eDiscriminant and divergent validity\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eDiscriminant and convergent validities are determined based on average variance extracted (AVE) and composite reliability (CR) values (Hair et al., \u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). According to (Bagozzi et al., \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e1991\u003c/span\u003e), if AVE\u0026rsquo;s values are more significant than 0.50 and CR is higher than 0.60, there will be excellent convergent validity. Fornell \u0026amp; Lacker (\u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e1981\u003c/span\u003e) recommended that the values of AVE\u0026rsquo;s square root should be higher than the construct\u0026rsquo;s correlation values, which will confirm divergent validity.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab2\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 2\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eExploratory Factor Analysis\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"5\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eVariables\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eItems\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eLoadings\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003e\u003cem\u003ea\u003c/em\u003e\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eAVE\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eEnergy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(1) Providing public transportation for guests\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.899\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.933\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.83\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003econservation\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(2) The hotel industry purchases equipment with energy-\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.931\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003esaving/water-saving marks or green-label items\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(3) The hotel\u0026rsquo;s transportation fleet uses alternatively\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.893\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003efueled or hybrid vehicles\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eGreen\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(1) Destruction or containment of waste\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.742\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.807\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.51\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003einnovation\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(2) Capital and technology investment\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.721\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003estrategy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(3) ISO 14000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.735\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(4) Changes in pollution prevention\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.660\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eEnvironmental\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(1) Regional resource-saving and conservation\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.911\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.954\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.84\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eregulation\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eregulations\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(2) National resource-saving and conservation\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.921\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eregulations\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(3) Regional environmental regulations (such as waste\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.945\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eemissions and cleaner production\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(4) Developed countries\u0026rsquo; environmental regulations\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.885\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eGreen\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(1) Our hotel industry makes a concerted effort to make\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.694\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.812\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.52\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eorganizational\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eevery employee understands the importance of\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eculture\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eenvironmental preservation\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(2) Environmental preservation is a high-priority activity\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.763\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ein our hotel industry\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(3) Preserving the environment is a central corporate\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.742\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003evalue in our hotel industry\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(4) Our hotel industry develops products and processes\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.686\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ethat minimize environmental impact\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eGreen\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(1) Our hotel industry uses less or nonpolluting/toxic\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.748\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.823\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.54\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003einnovation\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ematerials\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(2) Our hotel industry improves environmentally friendly\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.755\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003epackaging for existing and new products\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(3) Our hotel industry recovers from hotel\u0026rsquo;s end-of-life\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.763\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eproducts and recycling\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(4) Our hotel industry uses eco-labeling\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.666\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eEnvironmental\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(1) Improved energy consumption\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.724\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.809\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.53\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eperformance\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(2) Improved capacity utilization\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.782\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(3) Increased waste treatment initiatives\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.806\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e(4) Increase employee awareness\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.563\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eThe results shown in Table\u0026nbsp;\u003cspan refid=\"Tab3\" class=\"InternalRef\"\u003e3\u003c/span\u003e demonstrate that all CR values are more significant than 0.60, AVE greater than 0.50, and the square root of AVE are higher than correlations, which confirm both discriminant and divergent validities. Furthermore, all the correlation values are positive, significant, and consistent with the study hypotheses.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec17\" class=\"Section2\"\u003e\u003ch2\u003e4.4 \u003cem\u003eConfirmatory factor analysis\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eBagozzi et al. (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e1991\u003c/span\u003e) recommended that it is necessary to check the measurement model fitness before testing hypotheses. To test the fitness of the measurement model, CFA was performed. Six-factor measurement model (as shown in Fig.\u0026nbsp;\u003cspan refid=\"Fig2\" class=\"InternalRef\"\u003e2\u003c/span\u003e) tested for fitness using standard fit indices such as \u0026ldquo;Chi-square (x 2/df), Tucker\u0026ndash;Lewis index (TLI), comparative fit index (CFI), incremental fit index (IFI) and root mean square error of approximation (RMSEA)\u0026rdquo;. CFA results, as shown in Table\u0026nbsp;\u003cspan refid=\"Tab4\" class=\"InternalRef\"\u003e4\u003c/span\u003e, real excellent model fitness as all the fit indices for the six-factor baseline model is according to the cutoff criteria for fit indexes (x 2/df\u0026thinsp;=\u0026thinsp;1.898, RMSEA\u0026thinsp;=\u0026thinsp;0.044, IFI\u0026thinsp;=\u0026thinsp;0.970, TLI\u0026thinsp;=\u0026thinsp;0.964 and CFI\u0026thinsp;=\u0026thinsp;0.970) as recommended by McNeish, (\u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec18\" class=\"Section2\"\u003e\u003ch2\u003e4.5 \u003cem\u003eTest of Hypotheses\u003c/em\u003e\u003c/h2\u003e\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eThe degree of relationship between study variables is tested by performing SEM through AMOS-24. Table\u0026nbsp;\u003cspan refid=\"Tab5\" class=\"InternalRef\"\u003e5\u003c/span\u003e presents the result of the direct effect, which reveals significant effect of environmental regulation (b\u0026thinsp;=\u0026thinsp;0.283, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001), green innovation strategies (b\u0026thinsp;=\u0026thinsp;0.258, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001), energy conservation (b\u0026thinsp;=\u0026thinsp;0.371, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) and green organizational culture (b\u0026thinsp;=\u0026thinsp;0.364, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) on green innovation. Moreover, results reveal a significant direct effect of green innovation on environmental performance (b\u0026thinsp;=\u0026thinsp;0.256, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001). Consequently, all hypothesized relationships are well supported by study results. The results of hypotheses testing are also shown in Fig.\u0026nbsp;\u003cspan refid=\"Fig3\" class=\"InternalRef\"\u003e3\u003c/span\u003e.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e"},{"header":"5. Discussion and Conclusions","content":"\u003cp\u003eInnovation\u0026rsquo;s continuous arrival is positively related to firm performance and competitiveness. Therefore, in the past, much research on innovation was conducted. However, limited studies have investigated the relationship between green innovation and environmental performance. This study explores organizational factors, such as green organizational culture, energy-saving, green innovation strategy, and environmental regulations, which significantly contribute to green innovation. Moreover, the study also aims to explore the impact of green innovation on firms\u0026rsquo; environmental performance, especially in the context of the hotel industry of Malaysia. To attain the study objectives, various hypotheses were developed and tested. H1 predicted a significant and positive relationship between environmental regulation and green innovation.\u003c/p\u003e\n\u003cdiv class=\"gridtable\"\u003e\n \u003ctable id=\"Tab3\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 3\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eDiscriminant and divergent validity\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eVariables\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eCR\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eAVE\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eMSV\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e1\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e2\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e3\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e4\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e5\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e6\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003e1. EC\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.93\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.83\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.29\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e\u003cem\u003e0.908\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003e2. GIS\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.81\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.51\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.21\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.458***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e\u003cem\u003e0.715\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003e3. ER\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.95\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.84\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.15\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.391***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.381***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e\u003cem\u003e0.916\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003e4. GOC\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.81\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.52\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.29\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.534***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.370***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.263***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e\u003cem\u003e0.722\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003e5. GI\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.82\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.54\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.26\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.467***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.423***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.332***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.513***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e\u003cem\u003e0.734\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003e6. EP\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.81\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.53\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.22\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.349***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.281***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.233***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.377***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.465***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e\u003cem\u003e0.725\u003c/em\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n\u003c/div\u003e\n\u003cdiv class=\"BlockQuote\"\u003e\n \u003cp\u003eNotes: N\u0026thinsp;=\u0026thinsp;473, ***P\u0026thinsp;\u0026lt;\u0026thinsp;0.001; EC: energy conservation; GIS: green innovation strategies; ER: environmental regulations; GOC: green organizational culture; GI: green innovation; EP: environmental performance\u003c/p\u003e\n\u003c/div\u003e\n\u003cdiv class=\"gridtable\"\u003e\n \u003cdiv align=\"char\" class=\"colspec\"\u003e\u003cbr\u003e\u003c/div\u003e\n \u003ctable id=\"Tab4\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 4\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eConfirmatory Factor Analysis\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eMeasurement model fit\u003c/em\u003e\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eCMIN/DF\u003c/em\u003e\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eRMSEA\u003c/em\u003e\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eIFI\u003c/em\u003e\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eTLI\u003c/em\u003e\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eCFI\u003c/em\u003e\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eMeasurement model\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e1.898\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.044\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.970\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.964\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.970\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eThe cut-off for good fit*\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e\u0026lt;\u0026thinsp;3.00\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e\u0026lt;\u0026thinsp;0.08\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e2\u0026apos;0.95\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e2\u0026apos;0.95\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e2\u0026apos;0.95\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003ctfoot\u003e\n \u003ctr\u003e\n \u003ctd colspan=\"6\"\u003eNote: *Cutoff criteria for fit indexes by McNeish, (\u003cspan class=\"CitationRef\"\u003e2022\u003c/span\u003e)\u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tfoot\u003e\n \u003c/table\u003e\n\u003c/div\u003e\n\u003cdiv class=\"BlockQuote\"\u003e\n \u003cp\u003eThe results reveal that environmental regulations significantly and positively influence green innovation (b\u0026thinsp;=\u0026thinsp;0.283, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001), as we have hypothesized. Environmental regulations and green innovation are two key pillars of a sustainable environment for environmental development (Feng and Chen, 2018). The studies of Feng et al. (2018), Tang et al. (2020), and Qiu et al. (2020) also established environmental regulation as significant external pressure on organizations for green innovation. H2 predicted that organizational green innovation strategy positively influences green innovation. Results demonstrated a positive relationship between green organizational strategy and green innovation (b\u0026thinsp;=\u0026thinsp;0.258, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001), which supports our hypothesized relationship. To stimulate green innovation, organizations must have to formulate a green innovation strategy (Song and Yu, 2018). Malaysia\u0026apos;s tourism industry companies have incorporated the green innovation strategy to gain a competitive advantage and overcome ecological pollution. However, green innovation must complement the company\u0026rsquo;s strategic objectives to generate revenue (Li, 2014). The study of Soewarno et al. (2019) also proved that green organizational strategy positively impacts green innovation. Our study findings are also consistent with the study results of Asadi et al. (\u003cspan class=\"CitationRef\"\u003e2020\u003c/span\u003e).\u003c/p\u003e\n\u003c/div\u003e\n\u003cdiv class=\"gridtable\"\u003e\n \u003cdiv align=\"left\" class=\"colspec\"\u003e\u003cbr\u003e\u003c/div\u003e\n \u003ctable id=\"Tab5\" border=\"1\"\u003e\n \u003ccaption language=\"En\"\u003e\n \u003cdiv class=\"CaptionNumber\"\u003eTable 5\u003c/div\u003e\n \u003cdiv class=\"CaptionContent\"\u003e\n \u003cp\u003eTest of hypotheses\u003c/p\u003e\n \u003c/div\u003e\n \u003c/caption\u003e\n \u003cthead\u003e\n \u003ctr\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eHypotheses and relationship\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eEstimate\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eSE\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eP\u003c/em\u003e\u003c/p\u003e\n \u003c/th\u003e\n \u003cth align=\"left\"\u003e\n \u003cp\u003eResult\u003c/p\u003e\n \u003c/th\u003e\n \u003c/tr\u003e\n \u003c/thead\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eH1\u003c/em\u003e: Environmental regulations \u003cimg src=\"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAACUAAAAbBAMAAAAJwFvtAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAVUExURQAAAAAAAAAAAAAAAAAAAAAAAAAAABIBAKQAAAAHdFJOUwBg/9+AIJ/9wjq2AAAACXBIWXMAABcRAAAXEQHKJvM/AAAAQUlEQVQoz2MYdIARixiTIRYxJUMsYpiCQDEMQZAYkqCTEhyYYqpTC8AQQxMCiaELAcUwhBiYMIUY2DCFBgVgYAAAK5sIIu10gekAAAAASUVORK5CYII=\" style=\"width: 27px;\"\u003egreen innovation\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.283\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.049\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eAccepted\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eH2\u003c/em\u003e: Green innovation strategy \u003cimg src=\"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAACUAAAAbBAMAAAAJwFvtAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAVUExURQAAAAAAAAAAAAAAAAAAAAAAAAAAABIBAKQAAAAHdFJOUwBg/9+AIJ/9wjq2AAAACXBIWXMAABcRAAAXEQHKJvM/AAAAQUlEQVQoz2MYdIARixiTIRYxJUMsYpiCQDEMQZAYkqCTEhyYYqpTC8AQQxMCiaELAcUwhBiYMIUY2DCFBgVgYAAAK5sIIu10gekAAAAASUVORK5CYII=\" style=\"max-width: 100%; cursor: pointer; color: rgb(0, 0, 0); font-family: \u0026quot;Times New Roman\u0026quot;; font-size: medium; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: -webkit-left; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; width: 27px;\"\u003egreen innovation\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.258\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.041\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eAccepted\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eH3\u003c/em\u003e: Energy conservation \u003cimg src=\"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAACUAAAAbBAMAAAAJwFvtAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAVUExURQAAAAAAAAAAAAAAAAAAAAAAAAAAABIBAKQAAAAHdFJOUwBg/9+AIJ/9wjq2AAAACXBIWXMAABcRAAAXEQHKJvM/AAAAQUlEQVQoz2MYdIARixiTIRYxJUMsYpiCQDEMQZAYkqCTEhyYYqpTC8AQQxMCiaELAcUwhBiYMIUY2DCFBgVgYAAAK5sIIu10gekAAAAASUVORK5CYII=\" style=\"max-width: 100%; cursor: pointer; color: rgb(0, 0, 0); font-family: \u0026quot;Times New Roman\u0026quot;; font-size: medium; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: -webkit-left; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; width: 27px;\"\u003egreen innovation\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.371\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.050\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eAccepted\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eH4\u003c/em\u003e: Green organizational culture\u0026nbsp;\u003cimg src=\"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAACUAAAAbBAMAAAAJwFvtAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAVUExURQAAAAAAAAAAAAAAAAAAAAAAAAAAABIBAKQAAAAHdFJOUwBg/9+AIJ/9wjq2AAAACXBIWXMAABcRAAAXEQHKJvM/AAAAQUlEQVQoz2MYdIARixiTIRYxJUMsYpiCQDEMQZAYkqCTEhyYYqpTC8AQQxMCiaELAcUwhBiYMIUY2DCFBgVgYAAAK5sIIu10gekAAAAASUVORK5CYII=\" style=\"max-width: 100%; cursor: pointer; color: rgb(0, 0, 0); font-family: \u0026quot;Times New Roman\u0026quot;; font-size: medium; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: -webkit-left; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; width: 27px;\"\u003e\u0026nbsp;green innovation\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.364\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.051\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eAccepted\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e\u003cem\u003eH5\u003c/em\u003e: Green Innovation\u0026nbsp;\u003cimg src=\"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAACUAAAAbBAMAAAAJwFvtAAAAAXNSR0IArs4c6QAAAARnQU1BAACxjwv8YQUAAAAVUExURQAAAAAAAAAAAAAAAAAAAAAAAAAAABIBAKQAAAAHdFJOUwBg/9+AIJ/9wjq2AAAACXBIWXMAABcRAAAXEQHKJvM/AAAAQUlEQVQoz2MYdIARixiTIRYxJUMsYpiCQDEMQZAYkqCTEhyYYqpTC8AQQxMCiaELAcUwhBiYMIUY2DCFBgVgYAAAK5sIIu10gekAAAAASUVORK5CYII=\" style=\"max-width: 100%; cursor: pointer; color: rgb(0, 0, 0); font-family: \u0026quot;Times New Roman\u0026quot;; font-size: medium; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: -webkit-left; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; width: 27px;\"\u003e\u0026nbsp;environmental performance\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.256\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"char\"\u003e\n \u003cp\u003e0.040\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003e***\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eAccepted\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd align=\"left\"\u003e\n \u003cp\u003eNote: ***\u003cem\u003eP\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.001\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003ctd align=\"left\"\u003e\u0026nbsp;\u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n \u003c/table\u003e\n\u003c/div\u003e\n\u003cdiv class=\"BlockQuote\"\u003e\n \u003cp\u003eH3 predicted a positive effect of energy conservation on green innovation. Results reveal a significant and positive impact of green innovation\u0026rsquo;s energy efficiency (b\u0026thinsp;=\u0026thinsp;0.371, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001). These study findings are consistent with the study of Gerstlberger et al. (2014), which explored a positive correlation between energy conservation and green innovation. Sun et al. (2019) also established a positive relationship between green innovation and energy efficiency. Green innovation helps in the efficient use of resources and reduces environmental pollution by improving production efficiency, energy-saving, and emissions reduction (Feng and Chen, 2018).\u003c/p\u003e\n \u003cp\u003eThe H4 of the study predicted a significant and positive impact of green organizational culture on green innovation. Results also support the predicted relationship as there is a significant and positive effect of green organizational culture on green innovation (b\u0026thinsp;=\u0026thinsp;0.364, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001). Numerous past studies have investigated green organizational culture as a critical predictor of green innovation. A study by K\u0026uuml;\u0026ccedil;\u0026uuml;kogVlu and Pınar (2016) founds a positive correlation between green organizational culture and green innovation. The positive relationship between sustainability and green innovation is more robust in the presence of green organizational culture (K\u0026uuml;\u0026ccedil;\u0026uuml;kogVlu and Pınar, 2016). Green organizational culture and innovation reinforce its competitive advantage (G\u0026uuml;rlek and Tuna, 2018). Green organizational culture positively affects green performance (Wang, 2019). The current study results are also aligned with the study of Hardika et al. (2019), which also found a positive influence of green organizational culture on green innovation.\u003c/p\u003e\n \u003cp\u003eThe H5 predicts a significant and positive direct effect of green innovation on hotels\u0026rsquo; environmental performance. Consistent with the study hypothesis, results (b\u0026thinsp;=\u0026thinsp;0.256, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) demonstrate green innovation\u0026apos;s significant and positive direct effect on the hotel industry\u0026rsquo;s environmental performance. The primary purpose of green innovation is to enhance both the environmental and environmental performance of firms (Arfi et al., 2018). Companies need to find out whether incorporating green innovation will or will not increase their environmental productivity. Extensive research has been conducted to understand the relationship between green innovation and the company\u0026rsquo;s profitability. Nevertheless, these studies were unable to reach a unanimous conclusion.\u003c/p\u003e\n \u003cp\u003eOne study suggests that companies face inefficiency and lack of productivity if they engage in green innovation (Palmer et al., 1995). Another study concludes that green innovation positively impacts performance (Huang and Li, 2017). Similarly, Fernando et al. (2019) discovered that green innovation can improve business performance and service innovation. Green innovation positively influences the firm\u0026rsquo;s social, environmental, and environmental performance (Asadi et al., \u003cspan class=\"CitationRef\"\u003e2020\u003c/span\u003e). The study of El-Kassar and Singh (2019) also found a significant effect of green innovation on overall organizational sustainable performance. Furthermore, the current study finding is also supported by Saudi et al. (2019) and Zhang et al. (2019).\u003c/p\u003e\n\u003c/div\u003e"},{"header":"6. Implications and limitations","content":"\u003cp\u003e\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eDrawing on the transaction-cost environmental theory and green innovation, we examined the impact of green innovation on the Malaysian hotel industry\u0026rsquo;s environmental performance. The study findings suggest several theoretical as well as practical implications. There is limited research on the hotel industry's green innovation and environmental performance (Asadi et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). The concept of green innovation for the hotel industry is initially evolving. Therefore, the study findings present significant theoretical and practical implications for the hotel industry managers and policymakers, and they can get substantial benefits using these. From a theoretical perspective, the suggested model and the defined internal and external factors that influence green innovation can help hoteliers and policymakers understand the factors related to implementing the initiatives in the hospitality industry as there is a past study investigating the influencing factors in adopting green innovation leading to environmental performance, especially in the context of the Malaysia hotel industry. Hence, this study contributes significantly to the existing knowledge, theory, and practice body.\u003c/p\u003e\u003cp\u003eEnvironmental performance seems to be a critical factor that influences the implementation of green innovation. The environmental performance evaluation of different hotel industries by de Azevedo Rezende et al. (2019) shows that hotels with the highest environmental practices are generally more profitable than hotels with low green practices. So, hotel managers must develop strategies to reduce wastage and protect natural resources to cope with the prevailing ecological problems. In reality, hotel managers must develop readiness for green innovation in their industry and make practical improvements to contribute to a sustainable environment. In the meantime, the government must show commitment, make strategies, and take meaningful actions to engage the hospitality industry in implementing green practices to ensure sustainable business growth. By switching and transforming to green businesses, companies will become more profitable than traditional organizations.\u003c/p\u003e\u003cp\u003eDespite significant implications, this study has numerous limitations that suggest opportunities for future researchers. First, this study is limited to hotels operating in the only city of Kuala Lumpur, Malaysia. For more generalized results, future research can be done by incorporating hotels in other cities. Second, the study is conducted in Malaysia, and this research can be replicated in different cultural and environmental contexts. Further studies can be conducted in any other developed country. Moreover, this study addresses only the hotel industry, and future studies could be made to investigate green practices in SMEs. Furthermore, the research has highlighted the four major strategies that can lead to green innovation, but still, many green initiatives or strategies are ignored. The researchers aiming to explore the factors behind green innovation can extend the model by adding more strategies leading to green innovation.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e"},{"header":"Declarations","content":"\u003cp\u003e\u003cstrong\u003eAcknowledgement\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eWe are grateful to the participants from the Hotel Industry in Kuala Lumpur Malaysia for devoting their time to this study. We are also thanking to the Ministry of Tourism, Arts and Culture (MoTAC) officers for their cooperations and support. We extend our gratitude to the Universiti Teknologi MARA (UiTM) for providing ethical clearance for this research.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eAuthor Contributions\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eRasidah and Mohd Hanafi developed the concept and study design. Data collection was conducted by Siti Zuraini. Data cleaning and formal analysis were carried out by Mohd Hanafi. The initial manuscript was drafted by Siti Zuraini, and all three authors subsequently reviewed, edited and approved the final version.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eEthical Approval and Accordance\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eAll methods were conducted following relevant guidelines Ethical approval was granted by Research Ethics Committee (REC) at the Universiti Teknologi MARA (UiTM)\u0026nbsp;\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eConsent to participate\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe study involved voluntary participation, with informed consent obtained from each respondent.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eConsent for publication\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eNot applicable.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eClinical trial registration\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThis study did not involve any clinical trials.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eCompeting interest\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThe authors declare no competing interest.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eFunding declaration\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eThis study did not receive any financial support from funding agencies in the public, commercial, or not-for profit sectors.\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\u003cli\u003e\u003cspan\u003eAbbas J, Khan SM. 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Evaluating green supply chain management among Chinese manufacturers from the ecological modernization perspective. \u003cem\u003eTransportation Research Part E: Logistics and Transportation Review\u003c/em\u003e, \u003cem\u003e47\u003c/em\u003e(6). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1016/j.tre.2010.09.013\u003c/span\u003e\u003cspan address=\"10.1016/j.tre.2010.09.013\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Green innovation, Environmental performance, Sustainability, Hotel industry, Malaysia","lastPublishedDoi":"10.21203/rs.3.rs-7449884/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-7449884/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis research aims to explore the factors affecting green innovation and their consequent influence on environmental performance within the hotel industry context, focusing on Kuala Lumpur, Malaysia. Employing a quantitative, cross-sectional research design, structured questionnaires were utilized to collect primary data. Analysis was conducted using AMOS software, incorporating exploratory factor analysis (EFA) to refine the measurement model, and confirmatory factor analysis (CFA) to validate and assess model fitness. Structural equation modeling (SEM) was employed to test hypotheses. Results reveal that green organizational culture, strategies, energy conservation practices, and environmental regulations are significant factors influencing the adoption of green innovation within hotels. Additionally, the study demonstrates a positive correlation between green innovation and hotel environmental performance. Notably, this research is constrained to hotels within Kuala Lumpur, Malaysia, suggesting a need for broader geographical and cultural diversity in future investigations. Furthermore, while the focus is on the hotel industry, there is potential for extending this inquiry to other sectors. This study addresses a gap in current literature by specifically examining green innovation within the hotel industry, offering insights into its impact on environmental sustainability. It underscores the importance of understanding the interplay between green practices and environmental performance in fostering sustainable tourism practices. This research lays the groundwork for further exploration into the dynamics of green innovation and its implications for environmental stewardship in hospitality contexts.\u003c/p\u003e","manuscriptTitle":"Leading Green Innovation to Enhance the Environmental Performance of Malaysian Hotels","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-09-12 06:10:57","doi":"10.21203/rs.3.rs-7449884/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"033098a4-fcf4-4307-86d8-a7a2513ac280","owner":[],"postedDate":"September 12th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2026-02-25T09:12:14+00:00","versionOfRecord":[],"versionCreatedAt":"2025-09-12 06:10:57","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-7449884","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-7449884","identity":"rs-7449884","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}