The Effects of Quality and Environmental Management

Tourism Management 50 (2015) 41e54
Contents lists available at ScienceDirect
Tourism Management
journal homepage: www.elsevier.com/locate/tourman
The effects of quality and environmental management on competitive

advantage: A mixed methods study in the hotel industry
Tar, Jorge Pereira-Moliner*, Mara D. Lo
pez-Gamero,
Jose F. Molina-Azorn, Juan Jose
Eva M. Pertusa-Ortega
Business Management Department, University of Alicante, PO Box 99, E-03080 Alicante, Spain
h i g h l i g h t s
Quality management is related with competitive advantage.
Environmental management is related with competitive advantage.
Quality management is related with environmental management.
Mixed methods approach combining qualitative and quantitative methods.
a r t i c l e i n f o
a b s t r a c t
Article history:
Received 14 April 2014
Accepted 10 January 2015
Available online 30 January 2015
This paper reports results derived from a mixed methods study where 13 hotel managers were initially
interviewed, followed by a quantitative study of 355 additional managers. Data were analysed using
partial least squares path modelling. The research question related to the relationship between quality
and environmental management and the competitive advantage sought by hotels. The results indicate
that quality management and environmental management permit the improvement of competitive
advantage in terms of both costs and differentiation. Moreover, hotels implementing quality programmes
nd fewer obstacles in implementing environmental management.
2015 Elsevier Ltd. All rights reserved.
Keywords:
Quality management
Environmental management
Competitive advantage
Hotel
Mixed methods research
1. Introduction
The international environment for tourism has produced economic and social changes leading to greater uncertainty. Such
changes suggest the need for some reection, so that, by means of
continuous improvement, quality and sustainability, a response
may be given in the tourism industry to all the competitive challenges. Specically, an interesting issue is to analyse the impact of
quality and environmental management on competitive advantage
of tourist companies.
There is theoretical and empirical literature on the inuence of
quality management on rm competitive advantage and performance (Nair, 2006). Similarly, theoretical and empirical studies
* Corresponding author. Tel./fax: 34 965903606.

E-mail addresses: jf.molina@ua.es (J.F. Molina-Azorn), jj.tari@ua.es (J.J. Tar),
pez-Gamero),
jorge.pereira@ua.es (J. Pereira-Moliner), md.lopez@ua.es (M.D. Lo
eva.pertusa@ua.es (E.M. Pertusa-Ortega).
http://dx.doi.org/10.1016/j.tourman.2015.01.008
0261-5177/ 2015 Elsevier Ltd. All rights reserved.
have analysed the relationship between environmental management and rm competitive advantage (Molina-Azorn, Clavers, Lo
pez-Gamero, & Tar, 2009). As will be indicated in the
Corte
literature review section, this literature shows conicting evidence
regarding the relationship between these variables.
Most of this previous research has tackled the implementation
of quality practices and environmental practices separately, but
very few empirical works have carried out a joint analysis of the
two management systems (Curkovic, Melnyk, Handeld, &
Calantone, 2000). Therefore, while previous research has
enhanced our understanding about the relationship between
quality management and rm performance (Alonso-Almeida,
n, & Rubio-Andrada, 2012; Inoue & Lee, 2011;
Rodrguez-Anto
Ladhari, 2012; Prajogo & Sohal, 2006; Sila, 2007) and between
lezenvironmental management and rm performance (Gonza
Benito & Gonz
alez-Benito, 2005; Leonidou, Leonidou, Fotiadis, &
pez-Gamero, Molina-Azorn,
Zeriti, 2013; Link & Naveh, 2006; Lo
s, 2011), there is limited research that examines
& Claver-Corte
the joint impact of quality management and environmental
42
J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54
management on competitive advantage together with the inuences of quality management on environmental management in
the tourism industry.
The purpose of this paper is to analyse quality management and
environmental management simultaneously, examining the inuence of the two management systems on competitive advantage in
the hotel industry along with the impact of quality management on
environmental management. Consequently, this research sets out
to examine the following three main research questions:
1. Does quality management inuence hotel competitive
advantage?
2. Does environmental management inuence hotel competitive
advantage?
3. Is there any inuence between quality management and environmental management in the hotel industry?
This paper makes several contributions to the literature,
extending previous research in three distinct ways. First, this study
examines jointly the relationship between quality management
and environmental management in the hotel industry. Second, the
paper analyses the joint inuence of the two management systems
on hotel competitive advantage. Third, from a methodological point
of view, a mixed methods study is used, combining a qualitative
and a quantitative component. More specically, a qualitative study
is made rst, followed by a quantitative study. The main reason for
the qualitative study derives from the fact that the literature contains inconclusive results with regard to the connection between
quality management and competitive advantage, and the relationship between environmental management and competitive
advantage. Also, the qualitative study makes it possible to contextualize the study within the sector analysed.
2. Literature review
2.1. Quality management and competitive advantage
Quality management is a management system entailing the
development of a number of practices for the management of organizations. The most common practices identied in the literature
are leadership, people management, planning, information and
analysis, process management, supplier management, focus on
customers/stakeholders and design (Nair, 2006; Sila, 2007).
Initially, it was considered that the implementation of these
practices had a certain cost and, therefore, an increase in quality
implied increased costs. This view of quality has progressively
changed, and today it is believed that a commitment to quality
improvement may lead to reduced costs and increased productivity, which allow rms to gain market share and improve their
competitiveness (Deming, 1982). Therefore, quality may be applied
at all organizational levels, allowing a reduction in costs and an
increase in differentiation levels (Belohlav, 1993).
This connection between quality management and competitive
advantage and performance started to be analysed academically
and empirically in the 1990s, with conicting conclusions. While
some studies demonstrated a positive relationship between these
variables (Easton & Jarrell, 1998; Fotopoulos & Psomas, 2010;
Powell, 1995; Zhang, Linderman, & Schroeder, 2012), others have
pointed out that the relationship does not always exist, or is not a
clear one (Boje & Winsor, 1993; Taylor & Wright, 2003). The studies
examining these relationships through qualitative and quantitative
studies have analysed both manufacturing and service rms,
although the study of manufacturing rms has been more frequent.
Also, mention must be made of the analyses focussing on the total
quality management (TQM) variable and those considering the ISO

9001 certication as a variable to measure quality management.
The studies analysing quality management using the TQM variable show that quality management practices lead to improvements in customer satisfaction (Anderson, Rungtusanatham,
Schroeder, & Devaraj, 1995; Lai & Cheng, 2003; Lee, To, & Yu,
2009; Sila, 2007), quality perception, the percentage of errors in
products (Flynn, Schroeder, & Sakakibara, 1995), efciency and
employee results (Lee et al., 2009; Sila, 2007). In this way, these
studies show how quality management has positive effects on
quality performance (Fotopoulos & Psomas, 2010). In turn, such
improvement in quality performance may help the rm to improve
its competitive advantage (Deming, 1982).
When these studies have analysed the effects of the implementation and certication of the ISO 9001 standard, the results are
not particularly conclusive, since three types of results can be
found. Firstly, some research works point out that the ISO 9001
standard improves issues such as efciency, customer and
,
employee satisfaction, service quality and protability (H
aversjo
2000; Lee et al., 2009; Lo, Wiengarten, Humphreys, Yeung, &
Cheng, 2013; Mak, 2011; Tzelepis, Tsekouras, Skuras, & Dimara,
2006). According to this position, the ISO 9001 standard entails
operational benets, such as those related to quality performance
(customer and employee satisfaction, etc.). Secondly, other works
show that certied rms have improved economic results (ChowChua, Goh, & Wan, 2003; Heras, Dick, & Casadess, 2002;
Mokhtar & Muda, 2012). Finally, the third, most negative position, holds that certication has no inuence upon a rm's results
and competitiveness (Lo, Yeung, & Cheng, 2011; Martnez-Costa,
Choi, Marnez, & Martnez-Lorente, 2009; Rahman, 2001; Singels,
l, & van de Water, 2001; Tsekouras, Dimara, & Skuras, 2002).
Rue
Therefore, in general, the literature appears to show that the
effects of quality management on performance and competitive
advantage are not conclusive. On the one hand, some authors state
that quality management does not generate improved performance
in all rms (for instance, due to lack of motivation to implement a
real quality culture, or because the rm has implemented it in an
inefcient way, or because of lack of management support). On the
other hand, other authors indicate that quality management may
have positive effects on performance. Similarly, some studies also
indicate that quality management is related to differentiation
strategies, but not to leadership regarding costs (Prajogo, 2007;
Prajogo & Sohal, 2006).
In the specic case of the hotel industry, analyses have also been
made of the relationship between quality management and
competitive advantage, but to a lesser extent. The literature examines the implementation of quality management initiatives in
hotels through theoretical and empirical studies. Among the
empirical studies, both qualitative and quantitative, mention must
be made of those analysing the level of implementation of quality
management in hotels, without establishing a relationship with
ez, Fuentesperformance and competitive advantage (Albacete-Sa
ns-Montes, 2007; Arasli, 2002; Briggs, SutherFuentes, & Llore
land, & Drummond, 2007; Harrington & Keating, 2006; Soriano,
1999) and those which investigate the effects of quality management on the performance and competitive advantage of hotels
s, Pereira-Moliner, Tar, &
(Alonso-Almeida et al., 2012; Claver-Corte
Molina-Azorn, 2008; Inoue & Lee, 2011; Wang, Chen, & Chen,
2012). Qualitative and quantitative studies show that hotels may
successfully adopt quality management practices, like many
manufacturing rms.
In the case of those studies showing positive results, it may be
pointed out that such benets are related to improved satisfaction
among customers, employees and other interest groups, an
improvement in operational results, improved efciency, which in
turn leads to an improved hotel image and differentiation from

competitors (Alonso-Almeida et al., 2012; Callan, 1992; Nield &
Kozak, 1999; Rubio-Andrada, Alonso-Almeida, & Rodrguezn, 2011; Viada-Stenger, Balbastre-Benavent, & Redondo-Cano,
Anto
2010). Thus, as was the case with the general studies on quality
management, some of these analyses show that quality management has positive effects on competitive advantage (Birdir &
Pearson, 1998; Nield & Kozak, 1999). This indicates that quality
management may improve the internal functions of the hotel,
which leads to increased productivity of workers and facilities,
improved efciency, and a reduction in errors and waste when
providing services. In turn, it may also have positive results upon
customer satisfaction, which may make it possible to increase sales
and market share, reinforce guest loyalty, attract new guests, increase tourist satisfaction and improve the hotel's image. In this
way, quality management may increase quality performance, and
in turn, may improve the competitive advantage of hotel
establishments.
Nevertheless, the literature also emphasizes a number of
problems while implementing quality management in this sector,
which hinder its success and even may prevent some hotels from
obtaining positive results. In this respect, Breiter and Bloomquist
(1998) pointed out that 14 out of the 116 hotels they studied
which implemented quality management did not succeed. Nield
and Kozak (1999) showed only a few hotels improved customer
satisfaction and competitiveness by implementing quality management. This could be due mainly to lack of managerial commitment (Viada-Stenger et al., 2010) and lack of employee
participation (Baldacchino, 1995). Alongside these issues, other
barriers mentioned in the literature, which may hinder the
implementation of a quality management system in hotels, are
economic results, employees' resistance to change, employees not
considering quality as an important factor, and lack of enthusiasm
(Harrington & Keating, 2006). Lack of commitment, both by the
management and by employees, is a key problem, and the two
groups are mutually interconnected, since lack of managerial
commitment prevents employees from being given responsibility
and receiving enough training.
In summary, both the general literature on quality management
and the specic studies dealing with the hotel industry show
inconclusive results regarding the inuence of quality management
on competitiveness.
2.2. Environmental management and competitive advantage
The inuence of environmental management on competitive
advantage may be analysed through its impact on costs and dif n-Correa, 1998; Gonza
lez-Benito & Gonza
lezferentiation (Arago
Benito, 2005; Shrivastava, 1995). Proactive environmental management may allow the rm to save on costs, inputs and energy
consumption, and to re-use materials through recycling (Hart,
1997). Thus, the notion of eco-efciency implies the production
and development of goods while simultaneously reducing environmental impact and the use of resources (Starik & Marcus, 2000).
In this context, pollution is seen as a sign of inefciency (Porter &
Van der Linde, 1995) and rms must learn to see environmental
improvement in terms of resource productivity. As regards
competitive advantage through differentiation, by reducing pollution it may be possible to increase demand from environmentallysensitive consumers, whose purchase decisions are inuenced by a
product's environmental features (Elkington, 1994). Also, a rm
with good environmental initiatives may enhance its environmental reputation (Miles & Covin, 2000). Firms adopting proactive
environmental strategies may benet from higher prices and
increased sales thanks to their greater market legitimacy and social
43
s, Lo
pez-Gamero, et al.,
approval (Molina-Azorn, Claver-Corte
2009). In this respect, Jacobs, Singhal, and Subramanian (2010)
indicate that announcements of philanthropic gifts for environmental causes are associated with signicant positive market reactions, and ISO 14001 certication is associated with signicant
positive market reaction.
Environmental management is also linked to improved relez-Torre, & Alonsolationships with stakeholders (Sarkis, Gonza
Daz, 2010), and may prevent potential conict with them (Hull &
Rothenberg, 2008). Relationships with institutions and stakeholders play a signicant role in a rm's success (Donaldson &
Preston, 1995). In fact, such relationships may contribute to
improve corporate performance through the creation, development or maintenance of bonds which provide rms with important
resources (Brammer & Millington, 2008). Prevention techniques
may, therefore, help rms to reach a winewin situation from which
both the rm and the environment may benet. This approach
incorporates the idea that environmental investment may have a
positive inuence on a rm's competitive advantage and performance, and is known as Porter's hypothesis (Porter & Van der
Linde, 1995).
However, this positive approach coexists with a negative
approach, according to which environmental investment may
reduce a rm's competitiveness and performance. From this point
of view, it is suggested that complying with environmental laws
entails high costs, which harms a rm's ability to compete (Jaffe,
Peterson, Portney, & Stavins, 1995). In addition, those who hold
this negative view respond to those supporting Porter's hypothesis
by pointing out that, although cost savings may be easily obtained
by adopting a few preventive measures, more ambitious prevention
practices may imply costs which exceed any savings which might
derive from them (Walley & Whitehead, 1994). Thus, they suggest
that there is a negative relationship between environmental
management and a rm's performance and competitiveness,
arguing that rms try to improve their environmental performance
(environmental impacts) by withdrawing resources and managerial effort from other key areas, which results in lower prots. According to this analysis, managers may not invest in the
environment and be more competitive at the same time (Hull &
Rothenberg, 2008). Agency theory, as applied to the environmental sphere, emphasizes that, if there is not strict control by
shareholders, managers may inappropriately allocate corporate
resources in order to advance goals increasing their own utility
function in areas where the rm is not likely to obtain important
prots. Therefore, good environmental performance is obtained at
the cost of good corporate results, because the rm's resources are
devoted to reducing environmental impacts, thus preventing the
rm from allocating them to alternative investment projects or
simply returning them to shareholders.
In order to examine empirically the links between environmental management and competitive advantage, the studies carried out have resorted to qualitative and quantitative methods.
Some empirical studies used case study as a qualitative method.
These contributions analysed specic rms, and therefore they
could not be generalized statistically (Blanco, Rey-Maquieira, &
Lozano, 2009). Alongside these qualitative studies, other works
have used statistical methods in order to analyse how environmental management relates to performance and competitive
advantage. It might be said that, as was the case with quality
management, the results are inconclusive. Molina-Azorn, Clavers, Lo
pez-Gamero, et al. (2009) have reviewed the quantitaCorte
tive empirical works analysing this relationship, and have found
contributions that obtain a positive relationship (Al-Tuwaijri,
Christensen, & Hughes, 2004; Melnyk, Sroufe, & Calantone, 2003;
Wahba, 2008), but there are also works where a negative
44
relationship exists, or where no statistically signicant relationship

emerges (Link & Naveh, 2006; Wagner, Van Phu, Azomahou, &
Wehrmeyer, 2002). Jacobs et al. (2010) indicated that voluntary
emission reductions are associated with signicant negative market reaction.
Several works have studied environmental management in the
hotel industry. The rst studies dealing with this topic were of a
qualitative nature; they analysed the specic features of the hotel
under study, and the results could not be extrapolated to the whole
industry (Goodman, 2000). The subsequent studies adopted a
quantitative methodology, analysing more specic characteristics
of the hotel industry. Thus, some works classied hotels into
groups, in order to observe the difference between various degrees
of environmental proactivity with regard to certain contextual and
spedes-Lorente, & de
performance variables (Carmona-Moreno, Ce
nez, 2004; Claver-Corte
s, Molina-Azorn, PereiraBurgos-Jime
pez-Gamero, 2007; Molina-Azorn, Claver-Corte
s,
Moliner, & Lo
Pereira-Moliner, & Tar, 2009). There are also some contributions
that include competitive advantage and customer satisfaction and
loyalty as variables measuring the connection between environmental strategy and protability (Kassinis & Soteriou, 2005;
pez-Gamero, Claver-Corte
s, & MolinaLeonidou et al., 2013; Lo
~ a, Peiro
-Signes, Verma, and
Azorn, 2011). Finally, Segarra-On
Miret-Pastor (2012) check whether there are signicant differences between the economic performance of hotels with and
without ISO 14001 certication.
Some of the studies listed above point out the positive effects
that environmental management may have on hotels' performance
and competitive advantage, although a positive relationship is not
always conrmed. In fact, some works have found a positive impact
pez-Gamero, Molina-Azorn, et al.,
(Kassinis & Soteriou, 2005; Lo
s, Pereira-Moliner, et al., 2009),
2011; Molina-Azorn, Claver-Corte
but there are also others which have found a neutral relationship
s et al., 2007).
(Carmona-Moreno et al., 2004; Claver-Corte
In summary, and as in the case of quality management, both the
general literature on environmental management and the specic
studies carried out in the hotel sector show inconclusive results
regarding the impact of environmental management on
competitiveness.
2.3. The relationship between quality management and
environmental management
Both the relationships between quality management and environmental management, and the integration of the two management systems, are interesting topics for academic research and for
the practice of many rms. In fact, many rms are implementing
both management systems, either successively or simultaneously.
The implementation of the two management systems may be carried out in three ways (Karapetrovic & Willborn, 1998): implementing a quality management system rst, and then
environmental management; implementing an environmental
management system rst, and then quality management; or
simultaneously implementing the quality and environmental
management systems. The practice among many rms shows that
the rst option is the most usual one, that is, rms benet from the
knowledge acquired through the implementation of quality management in order to adopt environmental practices. This is due to
the fact that quality management may include the implementation
of certain resources and capabilities which are useful for the
development of environmental management practices (Darnall &
Edwards, 2006).
Quality management and environmental management differ in
some respects. For instance, although both systems focus on
satisfying the needs of customers and other stakeholders
(employees, suppliers, etc.), environmental management is a

wider approach, as it includes other stakeholders who are not
included in the literature on quality management (e.g. govern, Bergquist, &
ment, local community, general public, etc.) (Klefsjo
Garvare, 2008; Poksinska, Dahlgaard, & Eklund, 2003; Zutshi &
Sohal, 2005).
However, despite of the existence of some differences between
the two systems, the literature shows that quality management has
a number of parallels with environmental management (Klassen &
s,
McLaughlin, 1996; Kleiner, 1991; Molina-Azorn, Tar, Claver-Corte
pez-Gamero, 2009) which make it easier to develop environ& Lo
mental management practices. These similarities between the two
management systems lead some rms to rst adopt one system and
then the other (for instance, rst quality, then environment) or
even to implement both systems jointly (Karapetrovic & Willborn,
1998; Wilkinson & Dale, 1999). Some of these similarities include
the existence of common implementation factors. Thus, both
management systems require a cultural change directed by leaders
seeking to improve quality and environmental factors. Both systems emphasize long-term planning, improved relationships between the organization and its employees, suppliers and
customers, they reinforce the improvement of information,
communication, training and transparency, and require a culture of
evaluation and continuous improvement. In this respect, a wider
view of quality management might also include environmental
issues (Curkovic, 2003; Klassen & McLaughlin, 1993).
These common implementation factors, together with the fact
that both quality and environmental management focus on prevention, justify the positive relationships between the two management systems. In fact, the evolution of quality has progressively
included environment-related issues, and the concept of quality
management is now being applied to environmental management,
as some authors have pointed out (Curkovic, 2003; Klassen &
McLaughlin, 1993).
In view of these parallels, and considering that research on
quality management is more advanced than research on environmental management, one might expect benets from applying the
knowledge acquired on quality to environmental issues (Curkovic,
2003; Klassen & McLaughlin, 1993; Molina-Azorn, Tar, et al.,
2009). Therefore, environmental management may be more
widely adopted in those rms where quality management is most
developed (Curkovic et al., 2000). In this way, some rms may
obtain more benets from the implementation of environmental
management because they already possess the competencies
needed for the adoption of these environmental approaches. These
supplementary competencies derive from the fact that quality
management has been implemented previously (Darnall &
Edwards, 2006).
3. Methodology
In this study, a mixed methods approach has been used
(Creswell & Plano Clark, 2011; Tashakkori & Teddlie, 2010),
combining qualitative and quantitative methods. More specically,
a sequential study has been designed, where rst qualitative
research is performed, followed by quantitative research.
In this work, it has been considered appropriate to develop an
initial qualitative stage due to the inconclusive and even contradictory results found in the literature analysing the relationships
between quality management, environmental management and
competitive advantage, and also due to the need to contextualize
this analysis in the hotel industry. The purpose of this exploratory
qualitative stage is to establish a number of propositions which are
then tested in the quantitative stage.
This study examines the tourism industry, specically the

Spanish hotel sector. In the international sphere, Spain was the
second most important country regarding income from international tourism, after the United States, and the third most important in terms of the number of international tourist arrivals, after
France and the United States (UNWTO, 2013).
4. Qualitative research: methodology and results

4.1. Qualitative methodology
45
When we do things right, we save money.

Management is efcient [ ]. Therefore, efciency and organizational improvement allow us to reduce costs.
Quality measures help to reinforce customer loyalty, [] to
increase the quality of the service provided [], and to improve
the image, which will grow as the quality certicate issue becomes known.
Obviously, improvements in quality contribute towards
improving service quality and brand image.
The main technique for obtaining qualitative information was

a semi-structured depth-interview with open questions on
various issues related to the competitive implications of quality
management and environmental management in the hotel
industry.
A total of 13 interviews were conducted. Data collection was
stopped after theoretical saturation seemed to have been reached;
that is, new insights into the phenomena being examined were no
longer gained. We chose interviewees to represent various types of
actors in the hotel industry, who would have an adequate knowledge of quality and environmental issues in this industry. Specifically, we interviewed 7 hotel managers (who worked in
independent and chain-afliated hotels from 3 to 5 stars), 4 representatives of hotel associations (3 representatives of geographical
associations of hotels and 1 representative of a technological
institute), 1 representative of a quality institute in the tourism industry, and 1 manager of a consulting rm specializing in quality
and environmental management in hotels. We guaranteed data
condentiality and the informants' anonymity in order to enhance
trust and reduce the chance that interviewees might try to play the
role of good subjects by telling interviewers what they thought
they wanted to hear.
Interviews were performed at the hotels or the place where
interviewees worked. Interviews lasted approximately 2 h on
average. Two coauthors recorded the interviews and took notes.
Interviews were audiotaped and later transcribed verbatim. Interview transcripts were checked for accuracy by the interviewees.
The quotations that appear below are from the transcripts. The
information was supplemented with data from web pages, documents and direct observation. The questions were linked to the
relationship between the variables analysed in this paper.
These ideas indicate that quality management has positive effects on quality performance (for instance, customer satisfaction,
efciency, and process systematization) which can lead hotels to
save on costs and improve differentiation (e.g. by improving the
hotel's image). For example, a good management system means
that people know how to develop processes better, and this will
allow them to provide a better service. Similarly, as some respondents pointed out, when processes are managed more efciently, re-work is reduced, which results in lower costs.
Respondents explained these positive effects through an
improvement of the management system. Some hotel managers
and experts said:
4.2. Qualitative results
Regarding environmental management, respondents emphasized that the impact of environmental management on competitiveness in the hotel industry is mainly due to the cost advantages
obtained, as a result of practices basically related to lower water
and energy consumption. In this respect, a hotel manager stated:
With regard to quality management, all respondents pointed

out that quality management has positive results for customer and
employee satisfaction, service quality and efciency. They also
pointed out that improvements in these variables will lead to lower
costs and improved differentiation levels (e.g. image).
Some of the comments by respondents were as follows:
Quality makes it possible to document processes towards
continuous improvement [ ], therefore, it helps to improve
competitiveness.
Quality management helps to improve management [ ], this
systematization of management processes helps to improve
competitiveness.
Quality management improves the way the hotel is managed,

which leads to improved customer satisfaction, service quality
and hotel image.
Another expert pointed out:
Quality management systematizes the way the hotel is
managed in order to transform tacit knowledge into explicit
knowledge.
On the basis of these ideas, which conrm some of the conclusions from previous studies on quality management in general,
and specically on quality management in the hotel industry, the
following propositions are formulated:
P1. Quality management inuences quality performance.
P2. Quality performance inuences cost advantage.
P3. Quality performance inuences differentiation advantage.
One of the main advantages of environmental management

and certication is the implementation of measures helping the
hotel to save on costs. These measures are mainly related to
lower energy and water consumption.
Another manager pointed out:
By applying procedures, we can reduce the waste and errors,

and thus save on costs.
Basically, environmental measures provide hotels with an opportunity to save. Therefore, there is a direct connection between environmental practices and cost savings in the hotel.
The main savings can be obtained through the implementation
of measures to reduce water and energy consumption.
Quality makes it possible to systematize everything, and each

employee knows exactly what they have to do at every stage [
], this makes it possible to reduce costs from errors.
A representative of a hotel association also emphasized this

relationship:
46
The main argument we can use in order to persuade hotel

managers to implement environmental practices and certied
environmental management systems is that their hotels may
reduce their costs. Real savings may be obtained from a technological point of view, mainly through the reduction in water
and energy consumption.
Thus, it seems that environmental management helps to reduce
the environmental impact of hotels, or in other words, it helps to
improve their environmental performance, which entails saving on
costs.
Concerning differentiation, there is greater diversity among the
answers provided by the professionals in the industry. Thus, some
respondents pointed out that nowadays most consumers do not
consider the environmental characteristics of hotels to be a key
factor when it comes to choosing their accommodation. One hotel
manager said:
Although hotels try to use the implementation of environmental practices as a differentiation element against their
competitors, as a rule environmental management does not
have an inuence on customer satisfaction levels, and customers do not usually consider whether the hotel, for instance,
has a certied environmental management system.
On the other hand, several respondents stated that an adequate
environmental management may have an inuence on hotel differentiation. In addition, it was also pointed out that some customers from certain countries (e.g. Germany) do consider
environmental issues when choosing a hotel. For instance, one of
the managers mentioned:
Environmental management is helping us to differentiate
ourselves from our competitors, allowing us to improve our
image, and in this way we use environmental issues as a marketing tool. I think that, in the future, as environmental
awareness becomes greater, it will help us even more to
distinguish ourselves from our competitors.
Therefore, from the interviews it emerged that environmental
management in the hotel industry has positive effects upon
environmental performance, and this environmental performance may have an inuence on a hotel's competitiveness,
mainly regarding costs, although it may also affect differentiation.
On the basis of this, which is related to some arguments
mentioned in the literature review, the following propositions are
formulated:
P4. Environmental management inuences environmental
performance.
P5. Environmental performance inuences cost advantage.
P6. Environmental performance inuences differentiation
advantage.
Finally, with regard to the relationship between the two systems, most respondents pointed out that hotels rst implemented
quality management practices and then environmental management practices. One manager stated that:
First we introduced quality practices and certied our quality
management system based on the ISO 9001 standard. Later, we
implemented environmental measures, although we have not
obtained certication for our environmental management
system.
Another idea put forward by hotel managers and representatives from associations is that the implementation of environmental management practices becomes easier if quality
management has been implemented rst. According to a hotel
manager:
An environmental management system is very similar to a
quality management system. When a hotel implements a
quality management system, it is easier to introduce an environmental management system. Hotels implementing a quality
system start by introducing the idea of continuous improvement, and then the subsequent implementation of environmental management helps to make additional improvements to
the hotel.
Environmental management has a number of parallels with
quality management. Some respondents pointed out that environmental management practices may be a part of quality
management:
Quality management is a concept that includes environmental
management [] Environmental management could be a part
of quality management.
Environmental management is one of the aspects of our quality
management system.
Our quality management system leads to the development of
practices aimed at reducing environmental costs (for instance,
water, energy, etc.).
All these ideas suggest that quality management creates a
continuous improvement culture which facilitates the development of environmental management practices as a way to further
quality management. These arguments lead us to formulate the
following proposition:
P7.
Quality
management.
management
inuences
environmental
The propositions formulated above will be subject to statistical

verication. What follows is a description of the design and results
of the quantitative part of this research.
5. Quantitative research: methodology and results

5.1. Quantitative methodology
5.1.1. Population and sample
The population for this study includes all Spanish hotel establishments from 3 to 5 stars. The September 2011 edition of the
Censo de Hoteles Hostelmarket database was used. It was necessary to rene the population, because some rms had ceased to
operate and there were occasional duplications. In the end, the
population was 4770 hotels.
It was decided to study the whole population by means of a
structured questionnaire with closed questions, which was sent in
two waves by ordinary mail. For the distribution of the questionnaire, support was received from the Spanish Hotel Technological
gico Hotelero, ITH), which belongs to the
Institute (Instituto Tecnolo
Spanish Confederation of Hotels and Tourist Accommodation
n Espan
~ ola de Hoteles y Apartamentos Tursticos,
(Confederacio
CEHAT), who also distributed the questionnaire among all its hotel
associations. 355 hotel managers answered, a 7.44% response rate.
Table 1 shows the main characteristics of the sample.

Table 1
Category and size by rooms and beds in population and sample. Non-response bias
check.
Category
Sample (frequency)
Population (frequency)
3
4
5
Total
160 (45.07%)
169 (47.61%)
26 (7.33%)
355
2417 (50.67%)
2063 (43.25%)
290 (6.07%)
4770
ChieSquare test 3183.69***
No. of rooms
No. of beds
Sample (average)
Population (average)
Mann Whitney's U
129.36
267.63
117.55
249.02
872,360.50
576,358.00
***p 0.001, **0.001 < p 0.01, *0.01 < p 0.05, y0.05 < p 0.10.
Although the response rate may seem low, it is close to the

ndez, &
mean obtained by mail surveys in Spain (del Bro, Ferna
Junquera, 2002). There is not a strong tradition of collaboration
between industry and research centers in Spain. Some international studies have even had to admit that they had serious
problems with response rates in Spanish rms (Very, Lubatkin,
Calori, & Veiga, 1997). In addition, when it comes to studying
variables related to competitive advantage, companies are usually
reluctant to answer because they are afraid to show their strengths
and weaknesses. Stamped addressed envelopes for the answers
were enclosed in order to improve the response rate, together with
the promise of receiving a management report benchmarking results for the participants. Furthermore, any gaps detected in the
answers were corrected through follow-up telephone calls, fax and
e-mail.
In order to check non-response bias (see Table 1), the variables
category (number of stars), number of rooms and number of
beds were used. These variables were applied because they are
available both for the sample and for the population. There are no
signicant differences regarding the number of rooms and beds
between the population and the sample; moreover, the number of
stars is signicantly related between the population and the sample. Non-response bias was also checked following the method
proposed by Armstrong and Overton (1977), comparing early respondents to the questionnaire with late respondents. The rationale is that late respondents are more similar to non-respondents
that are early respondents. The data set was divided into three
groups according to the number of days from initial mailing until
receipt of the returned questionnaire. Comparing the rst (early
respondents) and the third (late respondents) groups of rms, it
was conrmed that there were no signicant differences in the
mean responses for all the variables measured in the questionnaire.
Therefore, it is presumed that the sample (hotels that answered the
questionnaire) is not affected by any non-response bias problems,
and then this group of hotels that participated in our study can be
considered as representative of the population.
In the introductory letter, it was indicated that the questionnaire was to be lled in by several people in each hotel: the hotel
manager had to answer the questions related to competitive
advantage, the person responsible for quality issues had to answer
questions on quality, and the person responsible for environmental
issues had to answer those questions. However, it was decided to
rule out the presence of common variance bias by applying Harman's single factor test (Podsakoff & Organ, 1986). After applying
an exploratory factor analysis with Varimax rotation to all the
variables measured, they were classied into 7 factors and the rst
one only explains around 25% of the total variance. Therefore, the
observed relationships among constructs are not largely accounted
for by the systematic variance associated with the measurement
technique.
47
5.1.2. Variables
Quality management. In order to measure this variable, the
quality management practices most frequently found in the literature were applied, grouped into four dimensions: operational
systems, information systems, strategic systems and technical
systems (Curkovic et al., 2000). The managers had to assess, in a
Likert 1e7 opinion scale, if their establishment had never adopted a
quality practice, or if it always applied it (Appendix A).
Quality performance. A variable was used consisting of 10 items,
in order to measure the impact of quality management on quality
performance, based on Curkovic et al. (2000) and Molina-Azorn,
Tar, et al. (2009). Each item was measured within a Likert scale,
from 1 (no impact) to 7 (very high impact) (Appendix A).
Environmental management. This variable was measured on a
Likert opinion scale, from 1 (that environmental practice had never
been adopted) to 7 (it was always applied). Also, four dimensions
were used: operational systems, information systems, strategic
systems and technical systems. These dimensions and their
pezconstituting items are based on Curkovic et al. (2000) and Lo
s, and Molina-Azorn (2008) (Appendix B).
Gamero, Claver-Corte
Environmental performance. This was measured through 10
items obtained from Wagner (2009). The managers had to indicate
to what extent their efforts to improve environmental management
contributed to reduce the environmental impacts indicated. Each
item was measured within a Likert scale, from 1 (no impact) to 7
(very high impact) (Appendix B).
Competitive advantage. This was measured using differentiation
(4 items) and cost (3 items) scales. These items were obtained from
the works by Miller (1988), Govindarajan (1988), Lee and Miller
(1996) and Beal (2000). The managers had to indicate in a scale
from 1 (the strategy was not used at all) to 7 (the strategy was very
important for their establishment) their opinion on the competitive
strategies followed by their organization (Appendix C).
5.1.3. Statistical analysis

This study applies PLS path modelling by means of the PLSGraph 3.0 software (Chin & Frye, 2003). This technique allows for
the joint use of formative and reective constructs in the same
model, which is usually not possible with structural equation
techniques based on the covariance method (Chin, 1998; Fornell &
Bookstein, 1982). Also, in the structural model to be analysed,
second-order constructs are used, that is, constructs made up of
rst-order factors. The measurement model contains formative
second-order constructs and reective rst-order constructs. More
specically, reective constructs include operational, technical,
strategic and information systems for quality and environment
management, quality performance and environmental performance, and competitive advantage regarding costs and differentiation. The consideration of formative constructs was applied to the
following second-order constructs: quality management and
environmental management.
In this way, for the reective elements of the model, construct
reliability, convergent validity and discriminant validity have been
analysed:
- Individual reliability of reective items. This reliability is
considered adequate when an item has a loading over 0.7 in its
construct (Carmines & Zeller, 1979). The analyses show that the
items meet this condition (see Appendix A, B, and C).
- Construct reliability. Construct reliability is checked through an
internal consistency measure called composite reliability (rc)
and its values should also be higher than 0.7 (Werts, Linn, &
reskog, 1974). In this case, this requirement is fullled in all
Jo
constructs (see Appendix A, B, and C).
48
- Convergent validity. For the assessment of convergent validity,

the average variance extracted (AVE) was used, whose values
must exceed 0.5 (Fornell & Larcker, 1981). This condition is met
in all cases (see Appendixes A, B, and C).
- Discriminant validity. For its assessment, the square root of the
AVE should be greater than the correlation coefcients between
the constructs, as is the case in this study (Table 2).
The diagonal values (between brackets) are the square root of
AVE. The other values in the matrix are the correlations between
the constructs. In order to check discriminant validity, the diagonal
values must be greater than the others.
For the formative constructs, different techniques are required
from those used for the analysis of the validity of reective constructs. These include checking for potential multicollinearity between its items and the weights from each item in order to explain
its construct (Diamantopoulos & Winklhofer, 2001; Podsakoff,
Shen, & Podsakoff, 2006).
- Multicollinearity was checked by calculating the values for the
variance ination factor (VIF) (which must be lower than 5) and
the condition indexes (under 30) for each item (Kleinbaum,
Kupper, & Muller, 1988). In the case of the second-order
construct quality management, the results show that there
are no multicollinearity problems, since the VIF ranges from
2.89 to 4.72, depending on the item, and the condition indexes
reach a maximum value of 4.75. Regarding the second-order
construct environmental management, the VIF of its items
ranges from 1.69 to 4.83, and the condition indexes are lower
than 30. Therefore, the formative constructs do not present
multicollinearity problems.
- As for the weights of the formative constructs, a canonical correlation analysis was used, yielding information on how each
indicator contributes to its respective construct. The analyses in
Appendix D show the weights of the rst-order factors in each
second order formative construct. The weights indicate the
items with greater inuence in the explanation of each
construct. Thus, the factor best accounting for quality management is the strategic system, and in the case of environmental
management, the technical system.
PLS is an iterative combination of principal components analysis, relating measures to constructs and path analysis, permitting
the construction of a system of constructs. The estimation of the
parameters representing the measurement and path relationships
is accomplished using ordinary least squares (OLS) techniques. The
PLS algorithm takes segments of complex models and applies the
same process until the entire model converges. It is this segmenting
of complex models that allows PLS to work with small sample sizes.
The subset estimation process consists of simple and multiple
regressions, so the sample required is that which would support the
most complex multiple regression encountered. In general, the
most complex regression will involve (1) the indicators of the most
complex formative construct, or (2) the largest number of antecedent constructs leading to an endogenous construct as predictors
in an OLS regression. Sample size requirements, using the rule of

thumb of ten cases per predictor, become ten times the number of
predictors from (1) or (2), whichever is greater. In our model, the
most complex regression involves two formative constructs with
ten items requiring a minimum sample of ten times ten, that is, 100.
Our sample size is 355.
Lastly, to evaluate the structural model, Fig. 1 in the following
section shows the explained variance for each construct (R2) and
the regression or path coefcients (b) between the various constructs. Also, after carrying out a bootstrap test with 500 subsamples, the t statistic values are obtained for each b, which makes
it possible to determine its signicance.
5.2. Quantitative results
Fig. 1 shows that quality management has signicant, positive
effects on quality performance (b 0.72; p 0.000), which in turn
allow rms to obtain competitive advantage regarding differentiation (b 0.45; p 0.000) and costs (b 0.38; p 0.000). In this
way, propositions 1, 2 and 3 are supported.
The same may be said about environmental management,
which permits rms signicantly to improve their environmental
performance (b 0.74; p 0.000), and in turn this environmental
performance results in competitive advantage concerning differentiation (b 0.21; p 0.001) and costs (b 0.23; p 0.000). In
this case, propositions 4, 5 and 6 are also supported. Fig. 1 also
shows that quality management also has a signicant inuence on
environmental management (b 0.69; p 0.000), which therefore
supports proposition 7.
6. Discussion and conclusions
This paper analyses the relationship between quality management and competitive advantage, environmental management and
competitive advantage, and the relationship between quality and
environmental management in the hotel industry. This joint relationship between quality and environmental management has
been scarcely analysed in the general literature. Furthermore, this
paper employs a mixed methods approach. Specically, we conduct
a qualitative study with personal interviews suggesting propositions and then we test these qualitative propositions carrying out a
quantitative study with PLS path modelling.
The results show, rst, that hotels applying quality management
practices (e.g., manager and employee training, cooperation with
intermediaries, use of indicators/data, dening and communicating
goals) improve their quality performance, which in turn gives them
advantages regarding differentiation and costs. Therefore, the more
advanced the degree of implementation of quality management
practices, the greater the possibility to improve customer satisfaction, reduce errors in service provision, increase the quality of the
service offered and improve employee satisfaction. In this way,
quality management may help to improve hotel management,
because the hotel is better managed and organized, the employees
are more productive, and more information is analysed, which can
help to improve processes. In turn, these positive results increase
Table 2
Discriminant validity analysis.
Constructs
Mean
S.D.
Quality
performance
Environmental
performance
Differentiation competitive
advantage
Costs competitive
advantage
Quality performance
Environmental performance
Differentiation competitive advantage
Costs competitive advantage
5.13
4.70
5.66
4.51
1.19
1.49
1.04
1.29
(0.81)
0.53
0.56
0.50
e
(0.82)
0.45
0.43
e
e
(0.83)
0.56
e
e
e
(0.84)
49
Fig. 1. Relationships between quality, environment and competitive advantage.
hotel differentiation, because the hotel has a better image, offers

better services than its competitors, and innovates in its services.
Similarly, this quality performance also allows hotels to reduce
costs. Regarding quality management, operational, information and
strategic systems are the most important ones to create these
positive effects. In addition, strategic practices are the most critical
as the denition and communication of policies and objectives and
customer focus are key quality practices to reinforce these positive
effects. These results support the conclusions reached by part of the
literature on quality management, which emphasizes its positive
impact on performance in general (Baird, Kristal, & Reeve, 2011),
and specically for the hotel industry (Alonso-Almeida et al., 2012;
Inoue & Lee, 2011).
Secondly, as was the case with quality management, environmental management practices (e.g., training managers and employees, using indicators/data, communicating policies and
strategies, and using techniques aimed at saving water, energy and
other resources) allow hotels to improve their environmental performance by reducing environmental impacts. This improved environmental performance contributes towards a greater development
of cost and differentiation advantage, insofar as it may help to
improve the hotel's image and to reduce the use of energy, water and
resources, and also to reduce other operational costs which are
important to hotels. Environmental management may become a
differentiation factor, as there are few hotels applying advanced
environmental management techniques. Technical and strategic
systems are the most important aspects to create these positive effects. These results agree with part of the literature, which shows the
positive effects of environmental management on results (Menguc,
Auh, & Ozanne, 2010), in the hotel industry (Leonidou et al., 2013).
Comparing quality management and environmental management, as shown in Fig. 1, an interesting nding is that the technical
dimension is the most important system for environmental management, but this technical system is not relevant to explain quality
management. Moreover, operational and information systems are

relevant for quality management, but these two systems have not an
important inuence on environmental management. Strategic systems are important for both quality and environmental management.
Thirdly, the results of our research show that quality management has an impact upon environmental management. When a
hotel develops quality management practices, it might nd it easier
to develop environmental management practices, since it possesses
the infrastructure and knowledge required for the development of
other similar management techniques, such as environmental
techniques. Thus, the results indicate that quality practices may
simplify the implementation of environmental practices, which
supports the theory on this relationship and some empirical analyses carried out in the manufacturing sector (Curkovic et al., 2000).
When a hotel has a management system in place, the hotel staff will
nd it easier to understand what environmental management is
about, as there is a certain awareness of, and commitment to,
quality. Nor will not be necessary to prepare some of the documents
for environmental management, because the hotel possessing a
quality system that already has such documents, or information
that can be used as the basis for the environmental management. In
this way, synergies will occur, because the hotel may use the indicators and plans used for quality management and then develop
from them, as required, new indicators and plans related to environmental management. Moreover, the employees are already
accustomed to working with quality records and to lling in documents, and know what a procedure is. Therefore it will be easier
for them to perform these tasks for environmental management.
From an academic point of view, this paper makes a contribution to the literature on quality management and environmental
management by jointly considering the two management systems
and examining their impact on competitive advantage regarding
costs and differentiation. An analysis has also been made of the
inuence that the implementation of a quality system may have on
50
environmental management. In order to measure quality management and environmental management, a full set of items has
been used, grouped into various systems that may serve as reliable
and valid scale for future studies. In addition, a further methodological contribution should be mentioned, consisting of the design
and use of a mixed research method, combining a qualitative and a
quantitative component.
Regarding implications for practice, hotel managers should be
aware that a suitable implementation of quality management and
environmental management has positive effects on quality performance and on environmental performance. These practices will
allow them to improve the way their hotel is managed and to create
an awareness of a continuous improvement culture, which will
make it possible to reduce customer complaints and increase
customer satisfaction, reduce service errors, provide services faster,
reduce the use of water, energy and other resources, and to cut
down on waste, emissions and pollution.
Furthermore, hotel managers should understand that, if quality
management practices are already suitably in place, it will be easier
to implement environmental management practices because of the
knowledge acquired previously. In addition, managers may use the
items in the questionnaire as a guide in order to identify which
aspects are better implemented in their hotels, and which issues
have not been implemented, or need some improvement. This will
allow them to identify strengths and areas for improvement, from
which improvement actions may be designed. As Fig. 1 shows, hotel
managers should pay special attention to strategic practices in the
case of quality management and to technical ones in the case of
environmental management because both are the most important

in explaining these management systems.
Concerning the limitations of this study, perceptual data have
been used for the variables, and not objective data, although the
problem is that such objective data are not available. In any case,
using perceptual scales is a commonly accepted practice, and a
number of issues have been considered to prevent this from leading
to biased results. Another limitation is that the study is not a longitudinal one.
As for future research, in addition to performing longitudinal
studies, it would be interesting to analyse how some variables, such
as the culture or certain resources or capabilities, may play a
moderating and/or mediating role in the relationship between
quality and environmental management, on the one hand, and
competitiveness on the other. Also, it might be relevant to study the
relationship between all the variables used in this research, distinguishing, for example, between quality and environmentally
certied rms (e.g., ISO 9001, ISO 14001) and those not possessing
such certication.
Acknowledgements
This work has been carried out as part of the research project
ECO2009-12231 funded by the Spanish Government. The authors
thank and acknowledge the support received.
Appendix A. Measurement model evaluation (quality
management).
Scale items
QUALITY MANAGEMENT (second order, formative)
Operational systems (reective)
1. Quality training courses are offered for all hotel managers and area managers
2. Quality training is offered to all employees
3. Employee motivation is encouraged
4. Quality issues are considered when the services are offered
5. The rm collaborates with intermediaries in order to improve the
product offered in the establishment
6. The rm collaborates with suppliers in order to improve the product
offered in the establishment
Information systems (reective)
1. Quality information/data is used in day to day in different areas
2. Quality information/data is available for all employees
3. Quality information/data is used to improve the quality of the service
4. Financial and operational indicators are used to measure quality effects
Strategic systems (reective)
1. Quality policy is formally communicated to all employees
2. Quality is highlighted by a well-dened set of policies and procedures
3. Required resources are provided to improve quality service
4. The needs of customers are used to improve the quality
5. Complaints and suggestions from customers are evaluated to improve the service quality
Technical systems (reective)
1. Internal audits are performed
2. Satisfaction surveys are conducted
3. Complaints and suggestions system is employed
4. A system of quality indicators is used for continuous improvement
QUALITY PERFORMANCE (rst order, reective)
1. Reduction in customer complaints
2. Increased customer satisfaction
3. Fewer service errors
4. Lower cost of quality
5. Lower employee absenteeism
6. Fewer employee complaints
7. Increased employee satisfaction
8. Increased service quality
9. Increased productivity
10. Service is provided faster
Weight
Loadings
(item reliability) (l)
0.20***
0.20***
0.23***
0.25***
0.22***
0.74
0.73
0.76
0.77
0.73
0.24***
0.79
0.30***
0.27***
0.30***
0.29***
0.89
0.87
0.90
0.81
0.23***
0.26***
0.25***
0.25***
0.22***
0.83
0.86
0.85
0.84
0.79
0.29***
0.27***
0.31***
0.34***
0.76
0.73
0.85
0.89
0.12***
0.14***
0.13***
0.12***
0.10***
0.11***
0.12***
0.14***
0.13***
0.14***
0.78
0.82
0.83
0.71
0.74
0.79
0.83
0.87
0.83
0.85
***p 0.001, **0.001 < p 0.01, * 0.01 < p 0.05, y0.05 < p 0.10 (based on t(499), two-tailed test).
t(0.001; 499) 3.31; t(0.01; 499) 2.56; t(0.05; 499) 1.96; t(0.10: 499) 1.65.
Composite
reliability (rc)
Average variance
extracted (AVE)
n.a.
0.89
n.a.
0.57
0.92
0.75
0.92
0.70
0.90
0.69
0.95
0.65
51
Appendix B. Measurement model evaluation (environmental

management).
Scale items
ENVIRONMENTAL MANAGEMENT (second order, formative)
1. Environmental training courses are offered for all CEOs and area managers
2. Environmental training are offered to all employees
3. Environmental issues are taken into account when offering the various services available
at the establishment
4. The environmental record of suppliers is assessed
1. Environmental information/data are periodically reviewed and updated
2. Environmental communication is fostered between the staff and the managers at the
establishment
3. An environmental report is prepared in order to disseminate the environmental activities
carried out by the establishment
4. Financial and operational indicators are used in order to measure and inform on the
establishment's environmental impact and its costs
1. The policy of the establishment and its environmental strategy are formally communicated
to all its employees
2. Procedures are dened and documented for all activities, products and processes
which have, or may have if not controlled, a direct or indirect, signicant impact on the
environment
3. There is an assessment of the results obtained by employees related to environmental
impact reduction
4. The necessary resources are provided in order to carry out environmental improvements
in the establishment
5. Customers' complaints and suggestions are assessed in order to improve environmental
practices
6. Indicators are developed in order to gauge the customers' degree of satisfaction with
environmental practices
1. Low environmental impacts products are chosen
2. A suitable disposal/treatment/storage of waste is performed
3. Practices are implemented in order to reduce water consumption
4. Techniques are used to reduce energy consumption
5. Practices are implemented towards lower resource intensity
6. Product re-use/recycling is encouraged
ENVIRONMENTAL PERFORMANCE (rst order, reective)
1. Lower water consumption
2. Lower energy consumption
3. Lower use of non-renewable resources
4. Lower use of toxic materials
5. Less solid waste
6. Fewer discharges
7. Fewer emissions
8. Noise abatement
9. Less damage to landscape
10. Lower risk of serious accidents
Weight
Loadings
0.30***
0.28***
0.29***
0.92
0.92
0.84
0.28***
0.85
0.27***
0.31***
0.92
0.91
0.25***
0.92
0.27***
0.91
0.19***
0.87
0.19***
0.91
0.18***
0.88
0.20***
0.88
0.19***
0.82
0.19***
0.87
0.23***
0.20***
0.22***
0.21***
0.22***
0.20***
0.76
0.79
0.82
0.80
0.81
0.74
0.13***
0.12***
0.14***
0.12***
0.13***
0.13***
0.13***
0.12***
0.11***
0.11***
0.79
0.81
0.84
0.84
0.85
0.89
0.86
0.79
0.74
0.74
***p 0.001, **0.001 < p 0.01, *0.01 < p 0.05, y0.05 < p 0.10 (based on t(499), two-tailed test).
t(0.001; 499) 3.31; t(0.01; 499) 2.56; t(0.05; 499) 1.96; t(0.10: 499) 1.65.
Composite
reliability (rc)
Average variance
extracted (AVE)
n.a.
0.93
n.a.
0.78
0.95
0.83
0.95
0.76
0.91
0.62
0.95
0.67
52
Appendix C. Measurement model evaluation (competitive

advantage).
Scale items
COMPETITIVE ADVANTAGE
Differentiation competitive advantage (reective)
1. Creation of a brand image identifying the rm
2. The quality of the service offered is better than that offered by competitors
3. A great number of supplementary services is offered, adding value for customers
4. Important innovations are made in the service
Costs competitive advantage (reective)
1. General costs are minimized
2. An attempt is made to improve productivity
3. Efforts are made to reach economies of scale, i.e. high occupancy rates
in order to obtain the maximum performance from hotel size
Weight
Loadings
0.25***
0.33***
0.29***
0.33***
0.75
0.85
0.85
0.86
0.35***
0.47***
0.37***
0.83
0.89
0.78
Composite
reliability (rc)
Average variance
extracted (AVE)
0.90
0.69
0.87
0.70
***p 0.001, **0.001 < p 0.01, *0.01 < p 0.05, y0.05 < p 0.10 (based on t(499), two-tailed test).
t(0.001; 499) 3.31; t(0.01; 499) 2.56; t(0.05; 499) 1.96; t(0.10: 499) 1.65.
Appendix D. Measurement model evaluation (Second order

formative constructs).
Scale items
QUALITY MANAGEMENT (second order, formative)
ENVIRONMENTAL MANAGEMENT (second order, formative)
Weight
Loadings (item reliability) (l)
0.27**
0.22y
0.57***
0.02
0.89
0.90
0.96
0.78
0.07
0.17
0.26**
0.64***
0.81
0.80
0.85
0.93
Composite reliability (rc)
Average variance extracted (AVE)
0.94
0.78
0.91
0.72
***p 0.001, ** 0.001 < p 0.01, *0.01 < p 0.05, y0.05 < p 0.10 (based on t(499), two-tailed test).
t(0.001; 499) 3.31; t(0.01; 499) 2.56; t(0.05; 499) 1.96; t(0.10: 499) 1.65.
Note: When an indicator's weight is not signicant but the corresponding item loading is relatively high (i.e., >0.50), the indicator should generally be retained (Hair, Hult,
n &
Ringle, & Sarstedt, 2014, p. 132), because dropping a formative indicator implies dropping a part of the composite latent construct (Roberts & Thatcher, 2009; Rolda
S
anchez-Franco, 2010). This fact could be due to nomological network effects that could differ depending on the context and the sample (Cenfetelli & Bassellier, 2009).
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Dr. Jose F. Molina-Azorn, Associate Professor in Business

Management at the University of Alicante, Spain. His
research focuses on strategic management and environmental management, specically the determinants of rm
performance, the competitive effects of environmental
management and the relationship between competitive
strategy and organizational design. His current research
interests are also focused on mixed methods research.
Tar, Associate Professor in Business ManDr. Juan Jose

agement at the University of Alicante, Spain. His Ph. D.
dissertation was an analysis of quality management. His
current research includes Total Quality Management and
its relationship with social responsibility, environmental
management and organization design.
Dr. Jorge Pereira-Moliner, Associate Professor in Business

Management at the University of Alicante, Spain. His Ph. D.
dissertation was an analysis of strategic groups in the hotel
industry. His current research includes strategic management and strategic groups of the hotel industry, and
quality and environmental management.
pez-Gamero, Associate Professor in BusiDr. Mara D. Lo

ness Management at the University of Alicante, Spain. Her
Ph. D. dissertation was an analysis of the relationship between environmental management and rm performance.
Her current research includes sustainable tourism, environmental management and its relationship with quality
management and organizational design.
Dr. Eva M Pertusa-Ortega, Associate Professor in Business

Management at the University of Alicante, Spain. Her Ph.
D. dissertation was an analysis of the relationship between
organizational design and competitiveness. His current
research includes organizational design and its relationship with environmental and quality management.

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Tourism Management 50 (2015) 41e54

Contents lists available at ScienceDirect

The effects of quality and environmental management on competitive

* Corresponding author. Tel./fax: 34 965903606.

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

quality management (TQM) variable and those considering the ISO

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

turn leads to an improved hotel image and differentiation from

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

relationship exists, or where no statistically signicant relationship

(employees, suppliers, etc.), environmental management is a

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

This study examines the tourism industry, specically the

4. Qualitative research: methodology and results

When we do things right, we save money.

The main technique for obtaining qualitative information was

4.2. Qualitative results

With regard to quality management, all respondents pointed

Quality management improves the way the hotel is managed,

One of the main advantages of environmental management

By applying procedures, we can reduce the waste and errors,

Quality makes it possible to systematize everything, and each

A representative of a hotel association also emphasized this

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

The main argument we can use in order to persuade hotel

The propositions formulated above will be subject to statistical

5. Quantitative research: methodology and results

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

ChieSquare test 3183.69***

Although the response rate may seem low, it is close to the

5.1.3. Statistical analysis

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

- Convergent validity. For the assessment of convergent validity,

in an OLS regression. Sample size requirements, using the rule of

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

Fig. 1. Relationships between quality, environment and competitive advantage.

hotel differentiation, because the hotel has a better image, offers

management. Moreover, operational and information systems are

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

environmental management because both are the most important

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

Appendix B. Measurement model evaluation (environmental

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

Appendix C. Measurement model evaluation (competitive

Appendix D. Measurement model evaluation (Second order

Loadings (item reliability) (l)

Composite reliability (rc)

Average variance extracted (AVE)

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

J.F. Molina-Azorn et al. / Tourism Management 50 (2015) 41e54

Powell, T. C. (1995). Total quality management as competitive advantage: a review

Wilkinson, G., & Dale, B. (1999). Integrated management systems: an examination

Dr. Jose F. Molina-Azorn, Associate Professor in Business

Tar, Associate Professor in Business ManDr. Juan Jose

Dr. Jorge Pereira-Moliner, Associate Professor in Business

pez-Gamero, Associate Professor in BusiDr. Mara D. Lo

Dr. Eva M Pertusa-Ortega, Associate Professor in Business

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