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Strategic integration of CSR, innovation-performance models, and upper echelon theory for predicting green business performance in Indonesia’s hospitality industry

Research output: Contribution to journal › Article › peer-review

Abstract

This study examines how Corporate Social Responsibility (CSR), green innovation, and executive attributes—grounded in Upper Echelon Theory (UET)—collectively drive green business performance in Indonesia’s hospitality sector during the post-pandemic recovery. Despite the growing emphasis on sustainable practices, prior research has often neglected the interactive roles of executive psychological traits and organisational strategies, particularly in emerging economies. To fill this void, an integrative multi-mediator model was developed and empirically tested using data from 200 managers and business owners in East Java, analysed with PLS-SEM. The findings reveal that CSR and green innovation have a positive effect on green business performance. Executive Social Orientation (ESO) and Pro-Environmental Behaviour (PEB) emerge as pivotal psychological drivers, with PEB identified as the most robust mediator translating executive orientation into improved business outcomes. However, the mediating role of green innovation is constrained by sector-specific challenges, underscoring the importance of behavioural and leadership mechanisms. Theoretically, this study extends UET to the domain of sustainability within service industries. At the same time, practically, it offers actionable guidance for industry leaders and policymakers—highlighting the need for leadership development and regulatory frameworks that incentivise green transformation. The research also suggests future avenues for cross-sectoral and longitudinal investigation.

Original languageEnglish
Article number2538708
JournalCogent Business and Management
Volume12
Issue number1
DOIs
Publication statusPublished - 2025

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 9 - Industry, Innovation, and Infrastructure
    SDG 9 Industry, Innovation, and Infrastructure
  2. SDG 12 - Responsible Consumption and Production
    SDG 12 Responsible Consumption and Production
  3. SDG 17 - Partnerships for the Goals
    SDG 17 Partnerships for the Goals

Keywords

  • Corporate social responsibility
  • Corporate Social Responsibility
  • green business performance
  • green innovation
  • hospitality industry
  • Indonesia
  • Organisational Behaviour
  • The Hospitality Industry
  • upper echelon theory

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