Quality management, environmental management and firm performance: direct and mediating effects in the hotel industry

Although much has been written about the effects of quality management (QM) and environmental management (EM) systems on firm performance, little attention has been paid to the potential influence of QM on EM. The aim of this study is to examine the joint impact of QM and EM on firm performance, and the influence of QM on EM. The population of this study is formed by 3-, 4-, and 5-star Spanish hotels. We propose a structural model considering QM and EM as formative constructs tested using partial least squares (PLS) as the statistical tool. The results show that QM and EM affect several dimensions of firm performance positively, and also that QM implementation facilitates the development of skills for EM in the hotel industry. Our findings may help hotel managers to realise that QM and EM influence some performance variables within their industry and that a real commitment to QM will promote EM and reduce its costs.