The Green Pulse of Hospitality: Assessing Green Supply Chain Practices on Organisational Performance in the Sri Lankan Hotel Industry

• Implementation of GSCM practices improves organizational performance in Sri Lanka’s star-rated hotels. • Findings reveal that GSCM has a positive direct impact on cost efficiency, reputation, and customer satisfaction. • SR did not change the GSCM-performance relation significantly by hotel categories. • Evidence shows that organizational commitment is more dependent on effectiveness of GSCM than hotel rating. • The study provides contextual evidence in the hotel industry of a developing economy. In the modern competitive business environment, sustainability has become the key theme in organizational performance, compelling organizations to adopt environmentally friendly operations in the business world. The hotel industry is a significant contributor to national economies, and it is steadily incorporating green practices to improve operational efficiency and reduce environmental impact. Though green supply chain management has been a subject of significant interest in manufacturing and logistic settings, green supply chain management in the hospitality industry, particularly in developing nations such as Sri Lanka is still a largely unexplored area. To bridge this gap, the current study investigates the relationship between GSCM practices and organizational performance with a particular focus on the moderating effects of hotel star classification. A cross-sectional, deductive research design was used, and Partial Least Squares Structural Equation Modelling (PLS-SEM) was the method of analysis. A web-based survey of 167 star-class hotels in Sri Lanka gained a high response rate of 88.44%. GSCM practices were represented as a second-order construct with five dimensions: eco design, green purchasing, internal environment management, investment recovery, and reverse logistics. The findings reveal that GSCM practices have a positive significant impact on OP. However, the star ratings of the hotels had no significant effect on this relationship, meaning the positive impact of GSCM is consistent across the industry. The finding indicates the need to investigate additional moderating variables like ownership patterns and environmental certifications. Future comparative studies in various Asian nations with different cultural, legislative, and market settings may advance our understanding of GSCM in hospitality.