Green Business Leadership Model Development in Driving Green Performance Towards Sustainable Practices: A Simultaneous Approach in the Hospitality Industry

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Authors: Vivi Candra, Gloria Miagina Palako Djurubassa, Marto Silalahi, Wirda Lilia, Hery Pandapotan Silitonga
Cited by: 1

Abstract

Green performance in the hospitality industry increasingly depends on how green business leadership mobilizes green intellectual capital and strengthens organizational green commitment. However, existing studies typically examine these elements separately, offering limited understanding of their combined interaction in driving sustainable practices. This study addresses this gap by developing an integrated model linking green business leadership, green intellectual capital, and green commitment to enhance green performance, particularly within hospitality contexts in developing regions. The study aims to develop and test a comprehensive model that explains the influence of green leadership, green intellectual capital, and green commitment on green performance within the hospitality industry in North Sumatra. Data were collected in 2025 through a survey administered in Indonesia, involving 170 employees from hotels located in the Lake Toba–Samosir tourism region and Simalungun Regency, including both operational and managerial staff. The survey consisted of structured questions, and the data were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS software. The findings demonstrate that green leadership has a positive and significant effect on green performance (β = 0.234, p < 0.01), indicating that sustainability-oriented leadership practices enhance environmental performance in hospitality firms. Green intellectual capital also has a significant effect on green performance (β = 0.398, p < 0.001), suggesting that environmental knowledge, innovation capability, and organizational learning play a critical role in improving sustainability outcomes. Furthermore, green commitment significantly influences green performance (β = 0.210, p < 0.01), confirming that sustained organizational dedication enhances the effectiveness of environmental initiatives. These findings provide valuable implications for future research and managerial practice in business leadership, particularly regarding the integration of leadership, knowledge resources, and organizational commitment to improve sustainable performance in the hospitality industry.

Fields of Study & Subjects

Environmental Sustainability in Business Cyberloafing and Workplace Behavior Employee Performance and Management

Publication details

Journal / source
Business Ethics and Leadership
Publisher
Academic Research and Publishing U.G.
Volume
10
Issue
1
Pages
323–344
Publication date
1 April 2026