DOI: 10.3390/su18136669 ISSN: 2071-1050

Assessing the Relationship Between Green Leadership and Financial Performance: The Role of Resource Management and Market Positioning in Hospitality

Wagih M. E. Salama, Yasmeen Abdelmoaty Attia

This study investigates the impact of green leadership on financial performance in the hospitality sector, focusing on the mediating roles of resource management and market positioning. Drawing upon the Resource-Based View and Stakeholder Theory, data were collected from 390 employees working in five-star hotels in Egypt and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The findings reveal that green leadership positively influences financial performance both directly and indirectly. Specifically, green leadership enhances resource management practices and strengthens market positioning, which in turn contribute to improved financial outcomes. The mediation analysis confirms that both resource management and market positioning serve as significant mechanisms through which green leadership translates sustainability-oriented strategies into economic benefits. These findings extend current knowledge on sustainable leadership by identifying key organizational pathways linking environmental responsibility with financial success. This study also provides practical implications for hospitality managers seeking to integrate sustainability initiatives into strategic and operational decision-making to achieve long-term competitive advantage.

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