The Implication of Green Balanced Scorecard on Sustainable Performance in the Hospitality Industry
The environmental oriented decision-making process under the umbrella of sustainability has gained significant attention across the globe. However, many entities yet have not implemented sustainable measures that require to be viewed through a strategic lens to evaluate their performance although such a measure influences the entities' image, competitiveness, profitability, market share, and survival at large. Therefore, the conventional Balanced scorecard that provides the holistic picture of organizational performance in a need for articulating environmental-sustainable measures.
Accordingly, the hospitality industry as a vital industry in the Sri Lankan economy intensely in need of an acculturating environmental-sustainable model with a great emphasis on energy, waste, and resource usage that directly acute environmental responsibility along with the financial benefits. Nevertheless, diversified utilization of Green Balanced Scorecard Practices in the hotel industry shows a lack in the Sri Lankan Context. Therefore, the study overviewed the implication of greening the balanced scorecard that articulates financial and nonfinancial environmental measures on achieving the environmental pillar within the Hospitality Industry.
The study design followed a quantitative approach in attempting the aims of the study, employing 188 self-administered questionnaires to observe the perception of managerial level employees in classified Hotels within Colombo District, Sri Lanka. Data were analyzed using the Structural Equation Model approach in Smart PLS. The reliability and validity of the model were approached with strong path-coefficients and the model ascertained a significant relationship between the implementation of green balanced scorecard and sustainable performance. Furthermore, the environmental dynamism that reflects the organizational ability to respond to the demand for environmental changes mediated the relationship between the green balanced scorecard and environmental performance. Thereby, the study witnessed that environmental measures aligned with sustainable performance would drive the organization towards environmental sustainability.
Keywords: Green Balanced scorecard, Sustainable Performance, Environmental Dynamism