The mediating role of green dynamic capability in the relationship between top management green commitment and hotel performance

This study examines how green dynamic capability mediate the green commitment of top management and hotels’ financial and environmental performance in Thailand using Structural Equation Modeling (SEM). The data were gathered via questionnaires from 332 hotels in Thailand employing a multistage sampling method. The study results indicate that top management’s commitment to green practices significantly enhances both green dynamic capability and environmental performance. While this commitment does not have a direct effect on financial performance, the findings suggest that green dynamic capability serves as a crucial mediator that influences the relationship between management commitment and financial performance. This study reveals the importance of top management in the hotel industry in transforming green practices into a green dynamic capability that ultimately drives financial performance.