Sustainable Hotel Finance: Green Leadership and Governance Integration
DOI:
https://doi.org/10.18196/jbti.v16i1.26023Keywords:
Hospitality industry, Green leadership, Financial management, GovernanceAbstract
Environmental and sustainability issues are becoming increasingly urgent in today’s global business. The rapidly growing hospitality industry in Indonesia faces significant challenges in integrating green leadership principles into financial management to achieve sustainable business performance. This study aims to empirically examine the influence of green leadership on sustainable financial management, as well as the moderating role of governance within the hospitality sector. A quantitative approach was adopted, with data collected through structured questionnaires distributed to 150 hotel respondents across various regions in Indonesia. Purposive sampling was employed to select respondents with decision-making authority in sustainability-related practices. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the research hypotheses. The results unveiled that green leadership significantly influenced sustainable financial management in the hospitality industry. Furthermore, governance played a moderating role, strengthening this relationship. Specifically, strategic governance practices such as transparency, accountability, and ethical compliance enhanced the positive impact of green leadership on sustainability performance. This study provides practical implications for hospitality industry players, highlighting the importance of fostering proactive green leadership and implementing effective governance mechanisms as essential steps to address environmental pressures and achieve long-term business sustainability.
References
Abdou, A. H., Al Abdulathim, M. A., Hussni Hasan, N. R., Salah, M. H. A., Ali, H. S. A. M., & Kamel, N. J. (2023). From Green Inclusive Leadership to Green Organizational Citizenship: Exploring the Mediating Role of Green Work Engagement and Green Organizational Identification in the Hotel Industry Context. Sustainability, 15(20), 14979. https://doi.org/10.3390/su152014979
Alkaraan, F., Floyd, D., Rahman, M., & Nuery, N. (2023). A New Era of Strategic Investment Decision-Making Practices in UK Companies: Towards Sustainable Supply Chains and Circular Economy. Theoretical Economics Letters, 13(3), 666–682. https://doi.org/10.4236/tel.2023.133040
Asante, K. (2024). Hotels’ green leadership and employee pro-environmental behaviour, the role of value congruence and moral consciousness: evidence from symmetrical and asymmetrical approaches. Journal of Sustainable Tourism, 32(7), 1370–1391. https://doi.org/10.1080/09669582.2023.2229534
Asghar, M., Gull, N., Xiong, Z., Shu, A., Faraz, N. A., & Pervaiz, K. (2023). The influence of inclusive leadership on hospitality employees’ green innovative service behavior: A multilevel study. Journal of Hospitality and Tourism Management, 56, 347–355. https://doi.org/10.1016/j.jhtm.2023.07.007
Aslam, N., Sahibzada, U. F., Ahmad, M. S., & Stevenson, A. (2024). Green transformational leadership theory and practice in Italian luxury hotels: toward environmental performance and green image. International Journal of Productivity and Performance Management, ahead-of-p(ahead-of-print). https://doi.org/10.1108/IJPPM-06-2024-0364
BPS-Statistics Indonesia. (2021). International Visitor Arrivals Statistics 2021. BPS-Statistics Indonesia. https://www.bps.go.id/en/publication/2022/04/28/d79faad2c263388e94e160ee/international-visitor-arrival-statistics-2021.html.
Brohi, N. A., Qureshi, M. A., Shaikh, D. H., Mahboob, F., Asif, Z., & Brohi, A. (2024). Nexus between Environmentally Specific Servant Leadership, Green Knowledge Sharing, Green Capacities, Green Service Innovation, and Green Competitive Advantage in the Hospitality Sector of Pakistan: An SDG & ESG Stakeholder Compliance Framework. Journal of Marketing Strategies, 6(3), 211. https://doi.org/10.52633/jms.v6i3.388
Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? an institutional theory of corporate social responsibility. Academy of Management Review, 32(3), 946–967. https://doi.org/10.5465/amr.2007.25275684
Carvalho, A., & Hersugondo, H. (2024). Pengaruh Corporate Governance Terhadap Corporate Sustainability Performance Dengan Financial Performance Sebagai Variabel Mediasi (Studi Kasus Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Periode 2018-2022). Prosiding Management Business Innovation Conference (MBIC), 7. https://jurnal.untan.ac.id/index.php/MBIC/article/view/77038
Darnall, N., Henriques, I., & Sadorsky, P. (2008). Do environmental management systems improve business performance in an international setting? Journal of International Management, 14(4), 364–376. https://doi.org/10.1016/j.intman.2007.09.006
Elshaer, I. A., Azazz, A. M. S., Semlali, Y., Mansour, M. A., Elziny, M. N., & Fayyad, S. (2024). The Nexus between Green Transformational Leadership, Employee Behavior, and Organizational Support in the Hospitality Industry. Administrative Sciences, 14(6), 107. https://doi.org/10.3390/admsci14060107
Gartner. (2021). Definition of Digitalization-Gartner Information Technology Glossary. https://www.gartner.com/en/information-technology/glossary/digitalization#:~:text=Digitalization is the use of,moving to a digital business.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Han, H., Hsu, L.-T. (Jane), & Sheu, C. (2010). Application of the Theory of Planned Behavior to green hotel choice: Testing the effect of environmental friendly activities. Tourism Management, 31(3), 325–334. https://doi.org/10.1016/j.tourman.2009.03.013
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Höhne, N., Khosla, S., Fekete, H., & Gilbert, A. (2012). Mapping of Green Finance Delivered by IDFC Members in 2011. https://www.idfc.org/wp-content/uploads/2019/03/idfc_green_finance_mapping_report_2012_06-14-12.pdf
International Federation of Accountants. (2005). International Guidance Document: Environmental Management Accounting. International Federation of Accountants. https://www.ifac.org/knowledge-gateway/professional-accountants-business-paib/publications/international-guidance-document-environmental-management-accounting
Janjua, N. A., SHI, D., & Sahibzada, U. F. (2024). Harnessing green innovation via green transformational leadership in Italian luxury hotels: Key strategic takeaways. International Journal of Hospitality Management, 120, 103739. https://doi.org/10.1016/j.ijhm.2024.103739
Kaplan, R. S. (2001). Strategic Performance Measurement and Management in Nonprofit Organizations. Nonprofit Management and Leadership, 11(3), 353–370. https://doi.org/10.1002/nml.11308
Kiss, A. N., Cortes, A. F., & Herrmann, P. (2022). CEO proactiveness, innovation, and firm performance. The Leadership Quarterly, 33(3), 101545. https://doi.org/10.1016/j.leaqua.2021.101545
Krechovská, M., & Procházková, P. T. (2014). Sustainability and its Integration into Corporate Governance Focusing on Corporate Performance Management and Reporting. Procedia Engineering, 69, 1144–1151. https://doi.org/10.1016/j.proeng.2014.03.103
Lee, W.-H., & Cheng, C.-C. (2018). Less is more: A new insight for measuring service quality of green hotels. International Journal of Hospitality Management, 68, 32–40. https://doi.org/10.1016/j.ijhm.2017.09.005
Lindenberg, N. (2014). Definition of Green Finance. In German Development Institute. https://scholar.archive.org/work/tgtjvkykqrfkpek5wcyvtlauue/access/wayback/https://www.die-gdi.de/uploads/media/Lindenberg_Definition_green_finance.pdf
Lusiani, M., Abidin, Z., Fitrianingsih, D., & Yusnita, E. (2020). Effect of Servant, Digital and Green Leadership toward Business Performance: Evidence from Indonesian Manufacturing. Systematic Reviews in Pharmacy, 11(11), 1351–1361. https://doi.org/10.31838/srp.2020.11.192
Paridhi, Ritika, Arora, H., Arora, P., & Saini, N. (2024). Unlocking the Path to Sustainability: A Hierarchical Model for Understanding Corporate Barriers to ESG Reporting Adoption. Journal of Risk and Financial Management, 17(12), 527. https://doi.org/10.3390/jrfm17120527
Patwary, A. K., Mohd Yusof, M. F., Bah Simpong, D., Ab Ghaffar, S. F., & Rahman, M. K. (2023). Examining proactive pro-environmental behaviour through green inclusive leadership and green human resource management: an empirical investigation among Malaysian hotel employees. Journal of Hospitality and Tourism Insights, 6(5), 2012–2029. https://doi.org/10.1108/JHTI-06-2022-0213
Perkumienė, D., & Pranskūnienė, R. (2019). Overtourism: Between the Right to Travel and Residents’ Rights. Sustainability, 11(7), 2138. https://doi.org/10.3390/su11072138
Prasetya, S. G., Alam, S., Safitri, J., & Arifin, A. H. (2024). Building Sustainability Bridges: Analyzing the Relationship Between Risk-Taking and the Effectiveness of Green Finance in Companies Listed on the IDX. International Journal of Sustainable Development and Planning, 19(12), 4793–4801.
Prasetya, S. G., & Safitri, J. (2023). The Effect of Environmental Management Accounting (EMA) on Financial Performance and Working Capital Management (WCM) as Mediating Variables. Jurnal Manajemen, 14(1), 14. https://doi.org/10.32832/jm-uika.v14i1.9778
Samimi, A. J., Sadeghi, S., & Sadeghi, S. (2011). Tourism and Economic Growth in Developing Countries: P-VAR Approach. Middle East Journal of Scientific Research, 10. https://doi.org/10.1007/s12494-011-0008-2
Terjesen, S., Aguilera, R. V., & Lorenz, R. (2015). Legislating a Woman’s Seat on the Board: Institutional Factors Driving Gender Quotas for Boards of Directors. Journal of Business Ethics, 128(2), 233–251. https://doi.org/10.1007/s10551-014-2083-1
Yanti, Y., & Nawangsari, L. C. (2019). Pengaruh Green Transformational Leadership dan Green Training terhadap Sustainable Corporate Performance melalui Employee Green Behaviour: Pendekatan Konsep. Prosiding Seminar Nasional Peningkatan Mutu Perguruan Tinggi. file:///C:/Users/HPP/Downloads/7963-16622-1-SM.pdf
Zadek, S., & Flynn, C. (2013). South-Originating Green Finance: Exploring the Potential. Geneva International Finance Dialogues. https://www.iisd.org/system/files/publications/south-originated_green_finance_en.pdf
Downloads
Published
Issue
Section
License
Copyright (c) 2025 JBTI : Jurnal Bisnis : Teori dan Implementasi
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
JBTI : Jurnal Bisnis : Teori dan Implementasi is licensed under 
Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges and earlier and greater citation of published work (See The Effect of Open Access).
