Drivers of environmental innovation in Majorcan hotels

Abstract

Using a database of Majorcan hotels, this paper examines several previously untested determinants of environmental innovations in hotels derived from the Porter hypothesis and from the specifics of knowledge transfer in the tourism industry. The empirical analysis is original in that it distinguishes between eight types of environmental innovations. The results show that hotels' general predisposition to implement innovations, manager remuneration based on environmental performance, staff satisfaction, environmental accounting, and trainings are important determinants of the overall environmental innovation activity of Majorcan hotels. Moreover, the use of environmental management systems is associated with innovations with cost-saving potential, whereas the hotel star category is associated with innovations that contribute to hotel quality, such as wastewater treatment, noise reduction, noise isolation, and visual impact improvements. Furthermore, high levels of staff satisfaction are related to the implementation of water-saving and noise reduction innovations, as such innovations require staff participation, whereas the role of information sources in explaining innovation adoption varies based on the technical complexity of innovations. The paper concludes with policy implications for sustainable tourism development, recommendations for the hoteliers, and directions for future research.