Environmental management and operational cost: the case of hotel sector in Sri Lanka

Abstract

The goal of this study was to determine the effect of environmental management on hotels' operational costs. To determine the strength of the relationship between operational cost and environmental management, Environmental management constructs of energy management, waste reduction and recycling, water conservation, green procurement, and organizational system control as an independent variable were used. Additionally, data were collected from ten selected hotels in Sri Lanka to investigate the influence of environmental management on operational costs. This study elicited responses from 150 individuals. The data were gathered using a five-point Likert structured questionnaire produced by the lodging firms. The measuring scales are based on the available literature. The collected data were evaluated for dependability in order to determine their suitability for further investigation. According to the analysis's findings, the was determined to be fit. Following that, correlation and multiple regression analyses were conducted. The correlation coefficient of spearmen was used to test the hypothesis. Multiple linear regression analysis was used to determine the relationship between independent and dependent variables. The multicollinearity test was used to ensure the data set's normality. Correlation analysis revealed a positive significant correlation between energy management and green procurement and operational costs, and a negative significant correlation between waste reduction and recycling, water conservation, and organizational systems. Additionally, regression analysis was used to determine the effect of independent variables on dependent variables. The final finding indicates that operating costs have a significant link with environmental management components at a level of 0.004 (P0.05). The study's final findings indicate that there is a considerable relationship between operational cost and environmental management components, and that environmental management was a significant determinant of operational cost for hotel enterprises.