TY - JOUR
T1 - The moderating role of national economic development on the relationship between ESG and firm performance in the global hospitality industry
AU - Hwang, Da Hyun S.
AU - Song, Hyoung Ju
AU - Lee, Seoki
AU - Kang, Kyung Ho
N1 - Publisher Copyright:
© 2024 Elsevier Ltd
PY - 2024/7
Y1 - 2024/7
N2 - This study examines the effect of national economic development (NED) on the relationship between Environmental, Social, and Governance (ESG) and firm performance. While ESG principles are embraced collectively by firms and nations, the influence and benefits of implementing ESG practices may vary across countries and firms operating within them. Drawing on the market-orientated perspective and Maslow's hierarchy of needs model, we attempt to fill the gap within the global hospitality context by examining NED as a country-level boundary condition. With a sample of 1383 observations of global hospitality firms from 2002 to 2022, the findings suggest that the more economically developed a country is, the more firms can generate firm performance by engaging in sustainability performances. Moreover, it suggests the varying effects of individual ESG factors on firm performance regarding their short- and long-term effects. The study findings have important implications, providing valuable insights for researchers, policymakers, and practitioners.
AB - This study examines the effect of national economic development (NED) on the relationship between Environmental, Social, and Governance (ESG) and firm performance. While ESG principles are embraced collectively by firms and nations, the influence and benefits of implementing ESG practices may vary across countries and firms operating within them. Drawing on the market-orientated perspective and Maslow's hierarchy of needs model, we attempt to fill the gap within the global hospitality context by examining NED as a country-level boundary condition. With a sample of 1383 observations of global hospitality firms from 2002 to 2022, the findings suggest that the more economically developed a country is, the more firms can generate firm performance by engaging in sustainability performances. Moreover, it suggests the varying effects of individual ESG factors on firm performance regarding their short- and long-term effects. The study findings have important implications, providing valuable insights for researchers, policymakers, and practitioners.
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U2 - 10.1016/j.ijhm.2024.103788
DO - 10.1016/j.ijhm.2024.103788
M3 - Article
AN - SCOPUS:85192815914
SN - 0278-4319
VL - 120
JO - International Journal of Hospitality Management
JF - International Journal of Hospitality Management
M1 - 103788
ER -