Sustainability in small tourist businesses: the link between initiatives and performance

This study explores the combined effects of adopting sustainable practices on small tourism companies’ performance. The existing literature provides insufficient data on sustainable behaviour because most studies on environmental practices focus on larger companies in the tourism sector, and a gap exists in social practices. This study is based on a survey of 374 restaurant managers. It uses structural equation modelling to study direct links between three dimensions – quality, environmental practices and social practices – and financial performance and market success factors. Significant differences with earlier studies are found. This study suggests that proactive sustainable practices can benefit small service companies by improving competitiveness even in difficult times. Practical implications are discussed in relation to sustainable practices.