JOURNAL ARTICLE

Improving Hotels' Operational Efficiency Through ESG Investment: A Risk Management Perspective.

  • Published In: Service Science (INFORMS), 2024, v. 16, n. 3. P. 172 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Chung, Kyunghwa; Nguyen, Lan Thi Mai; Nguyen, Dung Thi Thuy 3 of 3

Abstract

This article examines the impact of environment-social-governance (ESG) standards on the operational efficiency of 24 international hotel firms from 2013 to 2019, using data envelopment analysis (DEA). The study finds that ESG practices, particularly the social and environmental components, significantly enhance hotel efficiency in revenue generation. Additionally, during the COVID-19 pandemic, hotels with top-tier ESG performance demonstrated greater efficiency compared to others, suggesting ESG as an effective strategy for both sustainable operations and crisis management. Governance aspects showed no significant effect on efficiency, indicating that hotels may prioritize social and environmental initiatives in their ESG strategies. The findings offer valuable insights for hotel managers aiming to improve operational performance and resilience through targeted ESG investments.

Additional Information

  • Source:Service Science (INFORMS). 2024/09, Vol. 16, Issue 3, p172
  • Document Type:Article
  • Subject Area:Social Sciences and Humanities
  • Publication Date:2024
  • ISSN:2164-3962
  • DOI:10.1287/serv.2023.0080
  • Accession Number:179644888
  • Copyright Statement:Copyright of Service Science (INFORMS) is the property of INFORMS: Institute for Operations Research & the Management Sciences and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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