Eco-innovation strategies in hospitality: A case study of star-rated hotels in Batam

  • Zias Sathia(1)
    Department of Tourism, Faculty of Business and Management, Batam International University
  • Dame Afrina Sihombing(2*)
    Department of Tourism, Faculty of Business and Management, Batam International University
  • Oda Ignatius Besar Hariyanto(3)
    Department of Tourism, Faculty of Business and Management, Batam International University
  • (*) Corresponding Author
Keywords: Eco-Innovation, Sustainable Performance, Marketing Innovation, Organizational Innovation, Hospitality

Abstract

This study examines the influence of eco-innovation on the sustainable performance of hotels in Batam, a destination characterized by a rapidly growing tourism and hospitality sector. Given the substantial environmental footprint of hotel operations through energy consumption and waste generation, understanding the effectiveness of different eco-innovation strategies is essential for advancing sustainability within the industry. Employing a quantitative research design, data were collected through surveys administered to managers of hotels that had been operating for at least ten years. A total of 120 valid responses were analyzed using Structural Equation Modeling with the Partial Least Squares approach through SmartPLS. The study evaluated four dimensions of eco-innovation: eco-product, eco-process, eco-organizational, and eco-marketing innovation. The findings reveal that eco-process, eco-organizational, and eco-marketing innovations exert significant positive effects on sustainable hotel performance, highlighting the importance of environmentally efficient operational practices, sustainability-oriented organizational systems, and green marketing initiatives in enhancing economic, environmental, and social outcomes. In contrast, eco-product innovation was not found to significantly influence sustainable performance, suggesting that environmentally friendly products alone may be insufficient to generate substantial sustainability improvements without complementary organizational and operational changes. These findings contribute to the literature on sustainable tourism and hospitality management by demonstrating the differentiated effects of eco-innovation dimensions on organizational sustainability. The study further suggests that future research should incorporate additional factors, such as green human resource management, green competitive advantage, and tourism development, to provide a more comprehensive understanding of sustainability drivers within the hotel industry.

Keywords: Eco-Innovation; Sustainable Performance; Marketing Innovation; Organizational Innovation; Hospitality

Downloads

Download data is not yet available.

References

Abdullah, R. (2022). Analisis Karakteristik Penyerapan Tenaga Kerja Pada Perhotelan Di Kota Baubaustudi Kasus Hotel Berbintang. JIDE : Journal Of International Development Economics, 1(01), 56–75. https://doi.org/10.62668/jide.v1i01.115

Adnyana, I. M. (2020). Dampak Green Tourism Bagi Pariwisata Berkelanjutan Pada Era Revolusi Industri 4.0. Manajemen, Ekonomi, Dan Akuntansi, 4(3), 1582–1592.

Ahmed, A., Change, C., Education, O., Islamia, M., & Delhi, N. (n.d.). Implementing Sustainable Tourism practices in luxury resorts of Maldives: Sustainability principles & Tripple Bottomline Approach.

Aidil, M., Rauzana, A., & Muhammad, N. (2021). A Study on Drinking Water Distribution Project in Banda Aceh. Journal of Physics: Conference Series, 1933(1). https://doi.org/10.1088/1742-6596/1933/1/012091

Alfadel, A., Al-Kahtani, S. M., Al-Mekhlafi, A. W. A. G. S., Alhebri, A., & Ahmed, A. (2025). Fostering sustainable development: the role of green HRM and green work engagement. Discover Sustainability, 6(1). https://doi.org/10.1007/s43621-025-01167-z

Alinda, K., Tumwine, S., & Kaawaase, T. K. (2024). Environmental innovations and sustainability practices of manufacturing firms in Uganda. Asia Pacific Journal of Innovation and Entrepreneurship, 18(2), 102–130. https://doi.org/10.1108/apjie-08-2023-0164

Altuzarra Artola, A. (2024). Does eco-innovation lead to company growth? Innovation and Management Review, 21(4), 230–243. https://doi.org/10.1108/INMR-04-2023-0052

Aly, Y. Z. (2023). The Role of Green Marketing in Improving the Hotel ’ s Image and Enhancing Loyalty : from the Customer ’ s Perspective The Role of Green Marketing in Improving the Hotel ’ s Image and Enhancing Loyalty : from the Customer ’ s Perspective. December. https://doi.org/10.21608/JAAUTH.2023.248515.1519

Arbeni, W., Windiani, A., Sariyani, D., & Sihotang, B. (2025). Test Reliability Analysis in Educational Evaluation : A Quantitative Approach to Consistency and Validity. 5(1), 59–64.

Asiedu, E., Alhassan, S., Majeed, M., & Malcalm, E. (2025). Green dynamic capability and sustainability performance: the roles of green innovation and green sustainability of manufacturing firms. Discover Sustainability, 6(1).
https://doi.org/10.1007/s43621-025-01445-w

Bachri, B. (2024). Peran Hospitality Industry Dalam Pengembangan Pariwisata Berkelanjutan. Jurnal Pariwisata Dan Budaya, 15(1), 12330. https://doi.org/10.31294/khi.v15i2.25152

Barry, A., & Rametsteiner, J. (2024). How Important is ESG to Hospitality Investors shared their insights and expertise :

Bisnis, J. A., Akuntansi, P. S., & Riau, U. M. (2024). Pengaruh Keunggulan Kompetitif Hijau Dan Inovasi Hijau Terhadap Kinerja Berkelanjutan 1,2 Nadila Hary Pratiwi 1* , Siti Rodiah 2. 22(2), 155–173.

Braik, A., Saleh, Y., & Jaaron, A. A. M. (2023). Green marketing practices and organizational sustainable performance in developing countries context: an empirical study. Journal of Foodservice Business Research, 27(6), 769–809. https://doi.org/10.1080/15378020.2023.2205337

Chege, S. M., & Wang, D. (2020). The influence of technology innovation on SME performance through environmental sustainability practices in Kenya. Technology in Society, 60(September 2019), 101210.
https://doi.org/10.1016/j.techsoc.2019.101210

Chen, G., Sabir, A., Rasheed, M. F., Belascu, L., & Su, C. W. (2024). Green marketing horizon: Industry sustainability through marketing and innovation. Journal of Innovation and Knowledge, 9(4), 100606. https://doi.org/10.1016/j.jik.2024.100606

Cheung, G. W., Cooper, H. D., Rebecca, T., & Wang, L. C. (2024). Reporting reliability , convergent and discriminant and best ‑ practice recommendations. In Asia Pacific Journal of Management (Vol. 41, Issue 2). Springer US.
https://doi.org/10.1007/s10490-023-09871-y

Conti, E., Jevnaker, B. H., Camillo, F., & Musso, F. (2024). Traditional and environmentally friendly attributes in products of highly design-oriented firms: an exploratory study in the perception of Italian entrepreneurs. TQM Journal, 36(9), 114–135. https://doi.org/10.1108/TQM-09-2023-0306

Eusebio, E. J. G. (2025). How eco-innovation affects sustainable performance: A systematic review. Multidisciplinary Reviews, 8(6).
https://doi.org/10.31893/multirev.2025166

Freund, D., & Hernandez-Maskivker, G. (2021). Women managers in tourism: Associations for building a sustainable world. Tourism Management Perspectives, 38(October 2020), 100820. https://doi.org/10.1016/j.tmp.2021.100820

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), 3rd ed.

Hair, J. F., Hult, G. T., Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) - Joseph F. Hair, Jr., G. Tomas M. Hult, Christian Ringle, Marko Sarstedt. In Sage.

Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128

Haji-othman, Y., Sholeh, M., & Yusuff, S. (2022). Assessing Reliability and Validity of Attitude Construct Using Partial Least Squares Structural Equation Modeling Assessing Reliability and Validity of Attitude Construct Using Partial Least Squares Structural Equation Modeling (PLS-SEM). 12(5), 378–385.
https://doi.org/10.6007/IJARBSS/v12-i5/13289

Hendriawan, G., Sarifiyono, A. P., & Foster, B. (2022). Penerapan Green Marketing dan Inovasi Produk untuk Meningkatkan Minat Beli Konsumen Sepatu Eco-Friendly Pijakbumi. JMK (Jurnal Manajemen Dan Kewirausahaan), 7(2), 32. https://doi.org/10.32503/jmk.v7i2.2446

Islamic, B. (2025). Environmentally Friendly Behavior : Perceptions of Students As. 18(2), 3–7.

Judijanto, L., & Muhtadi, M. A. (2024). Pengaruh Kepemimpinan Berkelanjutan, Inovasi Ramah Lingkungan, dan Keterlibatan Masyarakat terhadap Keberhasilan Pembangunan Berkelanjutan di Sektor Perkebunan Kelapa Sawit Sumatera. Jurnal Bisnis Dan Manajemen West Science, 3(02), 164–177. https://doi.org/10.58812/jbmws.v3i02.1149

Kholina, E. E. (2025). Analisa Properti Hotel yang Mendorong Minat Menginap Masyarakat Indonesia terhadap Hotel Bintang 4 dan 5 di Yogyakarta. 3(1), 219–226.

Lainnya, D. A. N. A. (2024). Statistik hotel dan akomodasi lainnya. 39.

Langgat, J., Ramdani, B., Pavic, S., & Tok, E. (2023). Environmentally Sustainable Practices and Hotel Performance: Evidence from Malaysia. Sustainability (Switzerland), 15(6), 1–15. https://doi.org/10.3390/su15065289

Lim, W. M. (2026). A typology of validity : content , face , convergent , discriminant , nomological and predictive validity. 12(3), 155–179. https://doi.org/10.1108/JTS-03-2024-0016

Lin, M., & Huynh, L. (2024). Research in Business & Social Science Bridging causal explanation and predictive modeling : the role of PLS-. 13(10), 197–206.

Lopes, J. L., & Basso, L. F. C. (2023). The Impact of Eco-Innovation Adoption on Business Performance—A Study of the Hospitality Sector in Brazil. Sustainability (Switzerland), 15(11). https://doi.org/10.3390/su15118696

Moise, M. S., Gil-saura, I., & Ruiz-molina, M. (2020). Implications of Value Co-Creation in Green Hotels : The Moderating E ff ect of Trip Purpose and Generational Cohort.

Muchlisin, M. (2025). Analisis Pengaruh Eco-Innovation Terhadap Sustainability Performance Dengan Innovative Performance Sebagai Variabel Mediasi. Ratio : Reviu Akuntansi Kontemporer Indonesia, 6(1).
https://doi.org/10.30595/ratio.v6i1.24996

Nainggolan, M. M. T., & Murwaningsari, E. (2024). Green Competitive Advantage Dan Green Habit Meningkatkan Business Performance. Jurnal Ekonomi Trisakti, 4(2), 103–112. https://doi.org/10.25105/jet.v4i2.20298

Nguyen-Viet, B. (2023). The impact of green marketing mix elements on green customer based brand equity in an emerging market. Asia-Pacific Journal of Business Administration, 15(1), 96–116. https://doi.org/10.1108/APJBA-08-2021-0398

Njonge, T. (2023). Influence of Psychological Well-Being and School Factors on Delinquency , During the Covid-19 Period Among Secondary School Students in Selected Schools in Nakuru County : Kenya. VII(2454), 1175–1189.
https://doi.org/10.47772/IJRISS

Nursalam, N., & Djaha, A. S. A. D. (2023). Pelatihan Pembuatan Kuesioner Penelitian Bagi Mahasiswa Prodi Administrasi Negara Fisip Universitas Nusa Cendana. Jdistira, 3(1), 25–31. https://doi.org/10.58794/jdt.v3i1.433

Oduro, S. (2024). Eco-innovation and SMEs’ sustainable performance: a meta-analysis. In European Journal of Innovation Management (Vol. 27, Issue 9, pp. 248–279). Emerald Publishing. https://doi.org/10.1108/EJIM-11-2023-0961

Pascasarjana, S., Ibn, U., & Bogor, K. (2025). anajemen (E. 16(2), 316–338. https://doi.org/10.32832/jm-uika.v16i2.18804

Penerapan, A., Slovin, F., Kesalahan, D. A. N., & Perspektif, D. (2024). Jurnal multidisiplin sosisal humaniora. 1, 53–63.

Purnama, D., Akmaliah, N., Setiadi, A., & Mazia, L. (2021). Management Science Letters. 11, 1407–1414. https://doi.org/10.5267/j.msl.2020.10.027

Rahman, M. M. (2023). Sample Size Determination for Survey Research and Non-Probability Sampling Techniques: A Review and Set of Recommendations. Journal of Entrepreneurship, Business and Economics, 11(1), 42–62. www.scientificia.comS

Raji, V. (2026). Statistical Hypothesis Testing : A Comprehensive Review of Theory , Methods , and Applications.

Rama, S., & Wulung, P. (2025). Bencana dan Destinasi : Tata Kelola Pariwisata Berkelanjutan di Kawasan Bandung Utara. 16, 9–19.
https://doi.org/10.31294/khi.v16i1.21377

Rodríguez-Rebés, L., Ibar-Alonso, R., Gómez, L. M. R., & Navío-Marco, J. (2024). The use and drivers of organisational eco-innovation in European SMEs. Research in International Business and Finance, 70(March).
https://doi.org/10.1016/j.ribaf.2024.102297

Sarstedt, M., Richter, N. F., Hauff, S., & Ringle, C. M. (2024). Combined importance – performance map analysis ( cIPMA ) in partial least squares structural equation modeling ( PLS – SEM ): a SmartPLS 4 tutorial. Journal of Marketing Analytics, 746–760. https://doi.org/10.1057/s41270-024-00325-y

Sihombing, D. A., Ellysabeth, E., & Ariyanto, H. H. (2024). Analisis Place Attachment Dan Familiarity Terhadap Destination Loyalty Pada Pengunjung Pantai Di Kota Batam. Journal of Management : Small and Medium Enterprises (SMEs), 17(3), 1083–1091. https://doi.org/10.35508/jom.v17i3.14537

Sihombing, D. A., & Hellen, H. (2021). Faktor Yang Mempengaruhi Kepuasan Pelanggan Menginap di Chain Hotel. Khasanah Ilmu - Jurnal Pariwisata Dan Budaya, 12(1), 22–29. https://doi.org/10.31294/khi.v12i1.9445

Sri Widari, D. A. D. (2020). Kebijakan Pengembangan Pariwisata Berkelanjutan: Kajian Teoretis Dan Empiris. Jurnal Kajian Dan Terapan Pariwisata, 1(1), 1–11. https://doi.org/10.53356/diparojs.v1i1.12

Stoffers, J., Eringa, K., Niks, J., & Kleefstra, A. (2021). Workplace innovation and organizational performance in the hospitality industry. Sustainability (Switzerland), 13(11), 1–13. https://doi.org/10.3390/su13115847

Styles, C., Women, O. F., In, L., & Hospitality, T. H. E. (2024). Gaya komunikasi perempuan pemimpin di industri perhotelan. 3(3), 367–374.

Syamsul Hidayat, M., & Heru Dwihandoko, T. (n.d.). The Relationship between Green Marketing and Business Performance: A Systematic Literature Review. INNOVATIVE: Journal Of Social Science Research, 4, 3966–3978.

Szab, R. Z., & Tajti, A. (2023). Environmental Sustainability , Digitalisation , and the Entrepreneurial Perception of Distances as Drivers of SMEs ’ Internationalisation.

Thi, H., Huynh, N., Thi, N., Nguyen, T., Ngoc, N., & Vo, Y. (2024). Journal of Open Innovation : Technology , Market , and Complexity The influence of knowledge management , green transformational leadership , green organizational culture on green innovation and sustainable performance : The case of Vietnam. Journal of Open Innovation: Technology, Market, and Complexity, 10(4), 100436. https://doi.org/10.1016/j.joitmc.2024.100436

Widyastuti, H., Deandra Azies, K., Isnaini Rohmah, R., Yulaeli, T., & Author Heny Widyastuti, C. (2024). Jurnal Manajemen, Akuntansi dan Logistik Pengaruh Inovasi Hijau, Budaya Organisasi Hijau Terhadap Kinerja Perusahaan: Vol. II (Issue 2).

Zheng, S., Han, J., Gandolfi, F., Alturise, F., & Alkhalaf, S. (2025). Acta Psychologica Fostering eco-conscious tourists : How sustainable marketing drives green consumption behaviors. Acta Psychologica, 255(January), 104900. https://doi.org/10.1016/j.actpsy.2025.104900

PlumX Metrics

Published
2026-07-09
How to Cite
Sathia, Z., Sihombing, D., & Hariyanto, O. (2026). Eco-innovation strategies in hospitality: A case study of star-rated hotels in Batam. Journal of Management : Small and Medium Enterprises (SMEs), 19(2), 1137-1151. https://doi.org/10.35508/jom.v19i2.25448

Most read articles by the same author(s)

Obs.: This plugin requires at least one statistics/report plugin to be enabled. If your statistics plugins provide more than one metric then please also select a main metric on the admin's site settings page and/or on the journal manager's settings pages.