Exploring the nexus between green initiatives and hotel sustainable performance via circular economy practices

Purpose This study explores the influence of green dynamic capabilities (GDC) and green knowledge sharing (GKS) on circular economy practices (CEP) and enhances the outcomes of hotel sustainable performance (HSP) within hotels by employing a natural resource-based view theory and a triple bottom line framework. Design/methodology/approach A quantitative method was applied in this study in order to achieve research objectives. Findings The finding supports the assertion that GKS is a significant influence and a necessary condition of CEP, whereas GDC is important but not essential. Next, GDC, GKS and CEP are vital determinants as well as necessary conditions of HSP. The findings demonstrate that CEP mediates the link between GKS, GDC and HSP. Furthermore, this study indicates green employee behavior (GEB) positively and significantly moderates the relationship between CEP and HSP. Originality/value This study contributes to methodological development by weaving the PLS-SEM and necessary condition analysis (NCA) methods together, which offers a holistic view of complex sustainable hotel management exchange issues. It also provides practical strategies for encouraging sustainability within the hospitality industry, particularly in developing economies.