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Purpose

While research on sustainability practices in hotels is growing, most existing studies focus on their environmental benefits or financial outcomes, with limited attention to the potential factors driving their successful adoption and their impact on various dimensions of firm performance (financial, environmental and societal). The purpose of this study is to introduce a holistic model incorporating internal (top management support, green open innovation and organizational resources) and external (collaboration with green suppliers and customer demands) factors, examining their role in adopting sustainability practices. Additionally, the moderating effect of competitive intensity on the relationship between sustainability practices and business performance is analyzed.

Design/methodology/approach

Data were collected from 361 hotel managers in Japan. The responses were analyzed using the partial least squares approach.

Findings

The findings of this study support all the internal and external factors in the proposed model, which had a positive impact on all performance types. Overall, they confirm the importance of aligning both internal and external factors to address environmental concerns more effectively.

Practical implications

This study demonstrates that the integration of sustainable practices in the hospitality and food industries requires a fundamental change in company strategy, focusing on a long-term planning perspective that goes beyond short-term financial results to include environmental, social and economic factors.

Originality/value

To the best of the authors’ knowledge, this study contributes to the literature by providing one of the first empirical examinations of how green open innovation interacts with sustainability practices to influence performance. By integrating insights from the resource-based view and stakeholder theory, this study highlights the importance of aligning internal resources with external stakeholder demands to foster sustainability. These findings advance theoretical understanding and provide practical guidelines for integrating sustainability into the strategic operations of hotels.

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