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Do firms get what they want from green management adoption? : an Taiwan International Hotel Perspective Allen H. Hu Institute of Environmental Engineering and Management, National Taipei University of Technology 1, Sec. 3, Zhongxiao E. Rd. Taipei 10608 Taiwan, R.O.C. Chia-Hsiang Chen 1 Institute of Environmental Engineering and Management, National Taipei University of Technology 1, Sec. 3, Zhongxiao E. Rd. Taipei 10608 Taiwan, R.O.C. Tel: (+886)-(2)-2771-2171 ext.4151 Fax: (+886)-(2)-2776-4702 E-mail: [email protected] Te-Hsiu Sun Department and Graduate Institute of Industrial Engineering and Management, Chaoyang University of Technology 168, Jifeng E. Rd., Wufeng District, Taichung, 41349 Taiwan, R.O.C. 1 Corresponding author

Do firms get what they want from green management adoption? : an Taiwan International Hotel Perspective

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Green management is the concept of environmental protection and social responsibility which have being in grated into corporate. While the decision maker evaluate the environmental protection and social responsibility of corporate, he also has to measure if the corporate can gain better business performance in order to have sustained business. Although a few researches attempt to explore the intention of corporate, the empirical study of business performance of systematized and correlation is still wanted. This study is based on the qualitative study via literature review to explore the correlation among green management, environmental performance and business performance and then create questionnaires.

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Page 1: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

Do firms get what they want from green management adoption? :

an Taiwan International Hotel Perspective

Allen H. Hu Institute of Environmental Engineering and Management,

National Taipei University of Technology

1, Sec. 3, Zhongxiao E. Rd. Taipei 10608 Taiwan, R.O.C.

Chia-Hsiang Chen1 Institute of Environmental Engineering and Management,

National Taipei University of Technology

1, Sec. 3, Zhongxiao E. Rd. Taipei 10608 Taiwan, R.O.C.

Tel: (+886)-(2)-2771-2171 ext.4151

Fax: (+886)-(2)-2776-4702

E-mail: [email protected]

Te-Hsiu Sun Department and Graduate Institute of Industrial Engineering and Management,

Chaoyang University of Technology

168, Jifeng E. Rd., Wufeng District, Taichung, 41349 Taiwan, R.O.C.

1 Corresponding author

Page 2: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

Do firms get what they want from green management adoption? : an

Taiwan International Hotel Perspective

Abstract

Green management is the concept of environmental protection and social responsibility which

have being in grated into corporate. While the decision maker evaluate the environmental

protection and social responsibility of corporate, he also has to measure if the corporate can

gain better business performance in order to have sustained business. Although a few

researches attempt to explore the intention of corporate, the empirical study of business

performance of systematized and correlation is still wanted. This study is based on the

qualitative study via literature review to explore the correlation among green management,

environmental performance and business performance and then create questionnaires.

Furthermore, the empirical object of this quantitative study is Taiwan international tourist

hotels and analyses to induce the corporate to move on and target on the sustainable

development according to the empirical result. The result offers interesting implications for

managers, pointing out that a real commitment to green management may result in a positive

influence on environmental Performance and financial performance. This is the basis of

sustainable developmental framework, which can provide the decision maker and managers

with bigger belief and confidence to execute the environmental protection issue and lead to

positive effect on business performance and achieve the goal on sustainable development.

Page 3: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

Keywords: green management, environmental performance, business performance,

sustainable development, international tourist hotel

Page 4: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

1. Introduction

According to the 2014 WTTC (World Travel & Tourism Council) Economic Impact Report,

in 2013 the Travel & Tourism’s total contribution to global GDP grew by 3.0% in 2013, faster

than overall economic growth for the third consecutive year and outperforming other global

sectors such as manufacturing, retail and distribution, public services and financial and

business services. Travel & Tourism represents US$7.0 trillion, the industry supported nearly

266 million jobs (accounting for 9% of the global job market) and 4.7 million new jobs were

created as a result of tourism activity. These statistics show that the tourism industry plays a

pivotal role in global economic development. However, the operation of the tourism industry

creates an enormous amount of greenhouse gas emissions, particularly carbon dioxide.

According to UNWTO-UNEP-WMO(2008), emissions from tourism, including transports,

accommodation and activities (excluding the energy used for constructions and facilities for

example) account for about 5% of global CO2 emissions (Simpson et al., 2008).This

phenomenon is in large part due to extensive reliance on fossil fuels to generate power for

transport and hotel facilities in tourism industry (Gössling and Svensson, 2006;Wu and Lee

2010). While the world continues to develop economically; the ecological environment upon

which such development relies is extremely limited. Although most would view the growth of

tourism in a positive attitude, the accompanying negative effects have driven many

researchers to investigate the real impact of tourism, noting such issues as traffic congestion,

over-development of natural resources, and misconduct by tourists. Apart from negatively

Page 5: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

affecting the populace, the natural environment and the Cultural Heritage, these side effects of

tourism create many problems with pollution (Holden, 2000; Lim and McAleer, 2002;Black,

2004;Kasim, 2007;Erdogan and Baris, 2007). Many consumers nowadays are choosing

environmentally friendly travel destinations, services and products (Alexander and Kennedy,

2002;Choi et al., 2009;Lee et al., 2010;Teng et al., 2013).

A key question in the field of environmental management is why green management. In

general, business ethics and social responsibility, especially in environmental

management, should be taken into account by decision makers. In fact, corporate and

communities are paying more attention to the idea of corporate social responsibility (Lamond,

2007, 2008;Molina-Azorin et al., 2009;Wong et al., 2012;Roya et al., 2013;Sara et al.,

2013), on green management and regard it as an important part. Molina-Azorin et al. (2009)

reported their findings after reviewing 32 literatures with the topic of green management and

financial performance. Results are mixed, but there is a significant result was obtained which

is a positive impact of environment on financial performance. In addition, the findings

show there are different objects, such as corporate, industries and countries, some studies use

environmental management as a variable and others use environmental performance. The

main analysis is regression analysis. From an empirical point of view, the increasing

researcher of quantitative studies has examined the connection between environmental

proactivity and corporate performance, the results were varied. Some works find a positive

Page 6: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

relationship (Judge and Douglas, 1998; King and Lenox, 2002; Melnyk et al., 2003) but

others do not identify a positive impact of environmental proactivity on financial performance

(Cordeiro and Sarkis, 1997; Gilley et al., 2000; Link and Naveh, 2006).

However, the domestic and international studies of green management on the relationship

among environmental stress, green management motivation, environmental management and

performance are in the majority. Few of them concentrated on the system think

study and empirical analysis on green management. Therefore, the purpose of this study is to

examine the definition of green management, environmental performance and business

performance and questionnaire design by literature review and then use the way of

questionnaire on the object, which is Taiwan international tourist hotel, by empirical method

on their overview and achievement of green management as well as reviewing the relationship

of study hypothesis and the usability of questionnaire. The findings show the Cronbach’s α

reliability is 0.925 after the In-Depth Interview according to questionnaire, and all the

indicators are higher than 0.9. It presents highly conformability and usability of questionnaire

on In-Depth Interview and actual application. The findings from Regression analysis and Path

analysis also show: 1) the positive correlation on green management and environmental

performance; 2) the positive correlation on environmental performance and business

performance; 3) the positive correlation on green management and business performance; 4)

there is highly connection and explanation of green management and business performance

Page 7: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

when the mediator is environmental performance.

The remainder of this paper is organized as follows. Section 2 presents the framework and

hypotheses. Sections 3 describe the proposed model and study methodology. SPSS analysis is

illustrated in the case of Taiwan International Hotel in Section 4. Section 5 discusses the

proposed framework. Concluding remarks and suggestions for future research are provided in

Section 6.

2. Literature review and hypotheses

2.1 Green management (GM)

Green management is a kind of concept of business administration and management system

which is emphasized not only on Ecological interests and social benefits but also economic

benefits. Corporate have to consider the environmental protection during the process of

production and sales, and create green design, green purchasing, green production and green

marketing through technology, as well as make every effort on energy conservation and

ensure there is no public hazard, and also seek for environmental and economic benefits, then

we can call it Green corporate (National Sun Yat-sen University, Taiwan, 2004). The main

idea of green hotel management practice is energy Conservation & Carbon Reduction, which

is in order to minimize the negative impact on the environment. The most important

practice is on energy conservation, water saving and waste management( Mensah, 2006;

Page 8: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

Sloan et al., 2009;Mensah, 2006;Tzschentke et al., 2008;Bohdanowicz et al., 2011).

Peng and Lin (2008) showed that green management practices as producing environmental

friendly products and minimizing the impact through three constructs: green production,

green R&D, and green marketing. Furthermore, Wang et.al.(2013) showed that green supply

chain management (GrSCM) with process of food production to construct green management

indicators for restaurants, the green restaurant management standards comprise three facets:

green foods; green environment and equipment; and green management and social

responsibility. Moreover, Yi-Chun Huang(2001) concluded the green management which is

Corporate go through with clean production (process improvement, waste reducing, energy

conservation and recycling), green marketing (green product development, promotion and

communication), and the aggressive administrative management (ISO14000, responsible care,

environmental protection audit, office environmental protection, and involving community

activities initiatively), manufacturing the environmental friendly products to minimize the

impacts; Corporate adjust their developing direction, reduce their cost and enhance quality in

order to keep their competitive advantage in the market according to the actions of green

management.

According to the literature review, this study defined of the green management included green

production, green marketing and green administration.

Page 9: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

2.2 Environmental Performance (EP)

According to ISO 14031: Environmental Performance Evaluation (ISO, 1999), there are three

categories of Environmental Performance Indicators: Management Performance Indicators

(MPIs) which provide information about the management efforts that influence the

environmental performance;Operational Performance Indicators (OPIs) which provide

information about the environmental performance and Environmental Condition Indicators

(ECIs) which provide information about the condition of the environment (Marti et. al., 2014).

Furthermore, Strasser (2008) concluded the environmental performance into three parts:

Routine Emissions, such as gas emission, the discharge of waste water or toxic substance;

Non-routine use of Resources, such as the use of energy, water, materials and Green

Production and Products. Moreover, Rikhardsson (1996) discovered that the environmental

performance should be measured in five dimensions: environmental efficiency and

effectiveness of the production processes;environmental aspects of the product and service;

environmental issues by management;environmental impact of a company's operations and

environmental costs, investments and liabilities.

It is generally difficult to choose the suitable performance indicators, as well as to define their

suitable number which can describe thoroughly what one wants to know. In EMS, the

classification of indicators recommended by standard ISO 14031 and the examples of

indicators provided should be considered first, even though they are not complete or

Page 10: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

comprehensive (Perotto et.al., 2008;Marsanich, 2000; Jasch, 2000). According to the

literature review, the environmental performance of this study is based on the definition of

ISO14301, and the main dimensions of environmental performance indicators

are Management Performance Indicators (MPIs) and Operational Performance Indicators

(OPIs).

2.3 Business Performance (BP)

There are three methods for the measurement of business performanc: Quantify and

Subjective Methods; Financial and Operational Criteria, and Primary Data Dases

(Venkatraman and Ramanujam, 1986 ; Sang, 2004;Sebahattin and Adem, 2012). In general,

existing literature often divides business performance indicators to financial performance such

as the average occupancy rate, lodging index, and market share; and non-financial

performance such as customer retention and reputation (Kirchoff, 1997;Hertenstein and Platt,

2000;Gupta and Zeitham, 2006;Ursula et.al., 2013; Alvarez et al., 2001; Orfila-Sintes and

Mattsson, 2009;Agarwal et al., 2003 , Chen et al., 2009;Wang et al., 2012;Zahra and Bogner,

2000).

According to the literature of business performance, in general there are two methods to

measure performance indicators, which are subjectivity and objectivity, both of them are often

used in marketing. Although the measuring method of subjectivity performance is focus on

the relationship of market orientation and performance, it still gets its advantage. Therefore,

Page 11: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

most of studies are measuring the performance by the method of subjectivity (Dawes, 1999;

Rodriguez Cano et al., 2004;Sebahattin and Adem, 2012). Due to the business performance

are usually confidential and difficult to access, so we took over the advice to measure the

internal business overview of corporate and industrial average level by respondents with the

method of subjectivity (Zahra and Garvis, 2000; Lumpkin and Dess, 2001;Ketokivi and

Schroeder, 2004;Wiklund and Shepherd, 2003;Slater and Olson, 2000;Santos and Brito,

2012).

Per the literature review, the business performance of this study is based on the financial

performance and non-financial performance indictor, and used the method of subjectivity

stand on the specialized of international tourist hotel to make a subjectivity measurement by

respondents.

2.4 Relationships among GM, EP, and BP and hypothesis

Since 1990, the studies on corporate and environmental issue are emerging successively, and

the results are pretty diverse (Christmann, 2010 ; Wagner et al., 2001 ; J. Gonzalez-Benito

and O. Gonzalez-Benito, 2005). The study results of positive correlation: Chen et al. (2006)

indicated green innovation performance of corporate has a positive impact on their

competitive advantage; when the ability of competitor is getting lower, the positive impact

degree of green innovation on corporate’s competitive advantage is greater. When the

Page 12: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

corporate has lasting improvement in environmental performance can increase the satisfaction

degree on interested parties in order to create corporate's competitive advantage and business

performance. Mensah (2004) found that 90% of hotel guests would prefer to stay in a hotel

that has a green management policy. Kim and Han (2010) found that participants were happy

to undergo minor inconveniences in order to support green initiatives. Furthermore, a green

hotel image can result in favorable behavioral intentions by hotel guests, including intention

to revisit ( Lee et al., 2010 and Manaktola and Jauhari, 2007 ). From an empirical point of

view, a growing body of quantitative studies has tested this linkage between environmental

proactivity and business performance, the results are varied too. Some researchers found

positive correlations (King and Lenox, 2002 ; Melnyk et al., 2003 ; Konar and Cohen, 2001 ;

King et al., 2005 ; Jorge et al., 2012 ; Roya et al., 2013).

The study results of negative correlation: There is a significant negative correlation on

environmental performance and business performance, the reason is that the increased and

un-returnable cost on the activities in order to accommodate the increasingly severe

environmental regulation, as well as the activities of minimizing investment capitals on

productivity and caused the decrease in business performance (Walley and Whitehead, 1994).

However, due to the huge investment involved, GSCM is unlikely to contribute to short-term

profitability or sales performance (Bowen et al., 2001). Hull and Rothenberg (2008) found a

negative correlation between environmental management and financial performance; they

Page 13: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

take resources and management effort away from core areas of the business, resulting in lower

profits. In this case, managers can’t make any improvements on environmental and

competitive. Also others do not identify a positive impact of environmental management on

financial performance (Cordeiro and Sarkis, 1997; Gilley et al., 2000 ; Watson et al., 2004 ;

Wagner, 2005 ; Link and Naveh, 2006).

Based on the results of literature review and the core purpose of this study, the discussed

concept on this study is that corporates need to realize the environmental benefits before they

expect to receive the social and market benefits. As a result, we propose that:

H1: There is positive correlation between green management and MPIs of environmental

performance.

H2: There is positive correlation between green management and OPIs of environmental

performance

H3: There is positive correlation between MPIs and OPIs

H4: There is positive correlation between MPIs and business performance.

H5: There is positive correlation between OPIs and business performance

H6: There is positive correlation between green management and business performance

3. Methodology

3.1 Study framework

Page 14: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

Green Management

Green production, green marketing, green administration

Business Performance

Financial performance, non-financial performance

Environmental

Performance

(EPIs)

Management performance

(MPIs)

Operating performance

(OPIs)

H2 H1

H3

H5 H4

H6

We aim to provide insights on why integrated research of green management systemic

thinking is valuable. This study also sort out how the GM, EP and BP outcomes are

inter-related with each other, and fill the research gap that previous environmental studies

mostly only focused on the linkage between economic and environmental performance. The

study model is shown in Fig. 1 where the relationships among GM, EP and BP which have

been discussed via literature review, hypotheses, developed regarding these variables and

adopt quantitative study.

Fig. 1. Study framework and hypotheses

3.2 Pre-test questionnaire and Subjects / Participants

The questionnaire of this study is created based on literature reference and former

relevant questionnaires. We also invited experts, scholars and industry insiders discussed

Page 15: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

deeply about the content of the questionnaire to have good face validity and then released the

pre-test questionnaire. The participants are interns with basic concept of hotel green

management and operation. 60 questionnaires were released, 46 questionnaires were returned

and after eliminating 5 invalid samples, there were 41 valid samples. After the reliability

analysis by SPSS 12.0, the Cronbach's α is 0.925 and all indicators are higher than 0.9. It was

a formal questionnaire after modifying some meaning of words. (Table –1)

According to the data from Tourism Bureau, R.O.C. website (http://taiwan.net.tw/), there

are 63 tourist hotels in Taiwan. Based on above, this questionnaire didn’t limit to the position

of participants, there are 6 sampling was taken by each hotels via mail and email. 378

questionnaires were released, 112 questionnaires were returned and after eliminating 8 invalid

samples, there were 104 valid samples. The response rate is 27.5%.

Table 1 Study questionnaire items

Variables constructs Items

Green

management

Green

production

Implementation of hotel waste abatement

Sewage treatment and disposal monitoring system

Energy consumption monitoring system set and record tracking

Green Marketing

Promote a green hotel concept

Promotion of green products and activities

Product life -cycle assessment to develop the goods

Green

Administration

Guiding environmental protection ideas to employee, customers and

suppliers

Participating in community environmental activities initiatively

Clear environmental protection policy and executive target

Environmental

Performance

Management

Performance

(MPIs)

Minimize the environmental fines

Improve employee’s usual behavior on using resource efficiently

The improvement of community relations

Increase the number of green product design and marketing

Operating Enhance the performance of the water conservation

Page 16: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

performance

(OPIs)

Enhance the performance of energy conservation

Improve the performance of waste management and prevention

Enhance the performance of the raw materials used in

Business

Performance

Financial

Performance

The total revenue is higher than others in the same industry

Room occupancy rate is higher than others in the same industry

Catering income is higher than others in the same industry

Revenue growth rate is higher than others in the same industry

Profit rate is higher than others in the same industry

Non-financial

performance

Corporate image is better than others in the same industry

Quality satisfied rate is better than others in the same industry

Customer satisfied rate is better than others in the same industry

Employee satisfied rate is better than others in the same industry

Facilities satisfied rate is better than others in the same industry

3.3 Measures

Some research aware that when surveying on the business performance in general

management field, the researchers often face the problems of hard to coincident performance

comparison criteria, hard to confirm the causal relations between survey subjects and

objective financial performance figures, or unable to obtain actual without window dressing

or surplus manipulation financial data. They advised adopting subjective performance criteria

on measuring indictor and believed that the advantages are more than disadvantages for

subjective performance measurement (Santos and Brito, 2012). Therefore, we adopted

subjective performance measurement by Likert Scale and SPSS 12.0 to analyze the raw data

with the method of descriptive statistics, reliability and validity analysis, correlation analysis,

nested regression model analysis, and path analysis etc. to discuss the relationship between

environmental performance and business performance on green management of international

tourist hotel.

Page 17: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

4. Results

4.1 Descriptive statistics

The empirical results show the means of “green production”, “green marketing” and

“green administration management” of green management are 3.01, 2.56 and 2.53 and the

standard deviations are 1.07, 1.01 and 0.97. In all dimensions, the means of green

management is the lowest and the standard deviation is higher. That’s to show there is larger

deviation on the concept of green management of international tourist hotel.

The means of “management performance” and “operation performance” are 3.68 and

4.08, and the standard deviations are 0.62 and 0.72. In all dimensions, the means of

environmental performance is the highest and the standard deviation is smaller. Therefore, we

can figure out there is greater coincident in environmental performance issue on

“management performance” and “operation performance” of international tourist hotel.

The means of “financial performance” and “non-financial performance” are 3.16 and

3.36, and the standard deviations are 0.71 and 0.83. We can know the performance of

business performance issue of international tourist hotel is above average; and the

performance of “non-financial performance” is better than “financial performance”. See Table

2.

Table 2 Means and Standard deviation of dimensions

Page 18: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

variable dimension mean Standard

deviation

Green management Green production 3.01 1.07

Green marketing 2.56 1.01

Green Administration 2.53 .97

Environmental

performance

Management

performance 3.68 .62

Operational performance 4.08 .72

Business performance Financial performance 3.16 .71

Non-financial

performance 3.36 .83

4.2 Regression and Path analysis

There is significant correlation between green management(GM) and management

performance(MPIs) from Pearson Correlation Analysis based on this study framework and

hypothesis, the correlation coefficient is 0.29; there is significant correlation between

green(GM) management and operational performance(OPIs), the correlation coefficient is

0.24; There is significant correlation between management performance(MPIs) and

operational performance(OPIs), the correlation coefficient is 0.68; There is significant

correlation between operational performance(OPIS) and business performance(BP), the

correlation coefficient is 0.66. That is to say, our hypothesis is tenable based on the result of

Pearson Correlation Analysis.

According to the regression analysis on the study hypothesis, there is significant

relationship between management performance and operational performance in environmental

Page 19: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

performance for green management, adj. R-square are 0.74 and 0.46 which are lower; there is

significant relationship between management performance and operational performance in

environmental performance, the adj. R-square is 0.463 which is medium; and there is

significant relationship between management performance and operational performance for

business performance, the adj. R-square are 0.470 and 0.4309 which are medium。According

to the multiple regression analysis, there is significant relationship between management

performance and operational performance of environmental performance for business

performance, the adj. R-square is increase to 0.533. Therefore, there is significant relationship

between non-financial performance and financial performance of business performance, the

adj. R-square is 0.309. See table 2.

Table 2 Regression analysis on the study hypothesis

Dependent variable Independent variable Adj.

R-square Beta α = 0.05

Management

performance Green management .074 .288 .003

Operational

performance Green management .046 .235 .016

Operational

performance

Management

performance .463 .684 .000

Business performance Management

performance .470 .690 .000

Business performance Operational .430 .660 .000

Page 20: Do firms get what they want from green management adoption? :    an Taiwan International Hotel Perspective

performance

Business performance

Management

performance

Operational

performance

.533 .477

.352 .000

Financial performance Non-financial

performance .309 .562 .000

According to the path analysis framework, figure 2, of this study, we can detect that before

put into the independent variable of environmental performance by the objects, there is

positive correlation between green management and business performance, the Beta is 0.288

and Adj. R-square is 0.539. When the mediator “environmental performance” has been put,

Beta is increased sharply to 0.741 and Adj. R-square is also up to 0.5549. The mediating

effect is very significant of environmental performance in this study, that’s to say this

systematic framework can be a core concept and benefit to establish persistent and sustainable

development.

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21

Figure 2 Path analysis framework

5. Discussion and Conclusions

First, this study established the systemic framework of green management,

environmental performance and business performance and found out the positive

correlation by empirical study. This is the basis of sustainable developmental

framework. The issue of sustainable development is become more seriously, people

aware of human would unable to survive and develop in the earth if we don’t protect

the ecosystem of the earth that we rely for existence. Enterprise shouldn’t regard the

social responsibility and environmental protection as additional cost; oppositely, an

explicit policy would be a value added of enterprises and could enhance their image

Green management

Management performance

Operational performance

Business performance

Environmental performance

.684**

.288**

.235*

.690**

.660**

R²=0.463

R²=0.430

R²=0.470 R²=0.074

R²=0.046

R²=0.549 .741**

.288**

R²=0.539 (Environmental performance as a Mediator)

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22

positively and also explore new business opportunities. It is the basic principle and

core value of business for an international class enterprise to carry out the sustainable

development and social responsibility (Becker-Olsen et al., 2006).

Second, the study of quantitative and qualitative is getting importance; an interesting

alternative to these two methods is the application of a mixed methods approach

(Creswell and Plano Clark, 2007), that is, the combined use of quantitative and

qualitative methods in a study which the same as we use in this study. The study of

Krajnc and Glaviˇc (2005) detected that there is no universal measured scale for

enterprise’s sustainable performance; but the new models of measured methods or

measured indicators are keeping update internationally in the dimensions from

different area, culture, polity, economy, society and environment, and each with its

characteristic, advantage and disadvantage. Therefore, the framework of this study

refers to the international study and trend in plenty, but for the indicator is focus on

the studies in domestic Taiwan. Additionally, except the multi-complex measured

principle on enterprise’s sustainable performance, we can also experience from

manager, environmental experts and economist that there is enormous cognition

difference on the issue of cognition and weighting.

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23

Third, the enormous greenhouse gas emission from tourism, the reason is large fossil

fuels are used in their operation (Gössling and Svensson, 2006). Researchers begin to

investigate the situation of carbon emission from different star-rated hotels and

initially discovered the higher carbon emissions are from higher star-rated hotels (Yi

Liqin, 2010). While the world continues to develop economically; the ecological

environment upon which such development relies is extremely limited. In this case,

the five-star hotel is our priority as the empirical objects and hope the result of this

study would benefit to the international tourist hotel to pay more attention on their

behavior in green management and then upgrade the environmental and business

performance. The result of this study detected that the concept and activities of green

management of international tourist hotels in Taiwan are most focus on the basic

minimizing waste, set up sewage treatment systems and record and track energy

monitor systems; and absence from the issues of green hotel idea, green product,

community environmental protection activity and environmental protection policy. On

the other hand, the result shows there is significant relationship among green

management, environmental performance and business performance, the correlation

and adj. R-square are also pretty high which can definitely convey the importance of

green management activity and environmental performance. Meanwhile, it can also

explain the green marketing and environmental performance are not just a native

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24

environmental protection activity, there is significant relationship on the business

performance in the industry, which can provide the decision maker and managers with

bigger belief and confidence to execute the environmental protection issue and lead to

positive effect on business performance and achieve the goal on sustainable

development.

Fourth, this study creates a brand new study framework based on literature review and

verify by quantitative study. In addition, the paper offers interesting results for

managers, pointing out that a real commitment to green management may result in a

positive influence of financial performance. For future study, the In-Depth Interview

can be made after empirical analysis in order to explore the key factor of

environmental performance and practical overview and implicit demand for current

green management in industry to develop a valuable study direction with the method

of structural equation model for explaining the causation of study hypothesis by

confirmatory factor analysis and path analysis.

Finally, despite personal, enterprise or government when developing the sustainable

issue from simple environmental protection (prevent pollution) to the whole

framework evaluation of green management and business performance is valuable.

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25

However, under the concept of systemic thinking, we found another interesting topic

during the ongoing investigate the cause-and-effect relationship of sustainable

development: What affect the force of green management? What are our reaction and

strategy when run into the unavoidable sustainable development issue? It is a worth

issue to keep investigate in the future for different management model and business

performance in different reaction and strategy.

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