Building Organizational Sustainability Performance Through Environmental Strategy: An Integrated Moderated Mediation Framework for the Tourism and Hospitality Industry

ABSTRACT This study examines how environmental strategy is associated with organizational sustainability performance in the tourism and hospitality industry through the mediating roles of organizational environmental ethics and green intangible assets and the moderating roles of green transformational leadership and green organizational culture. Data were collected through a structured questionnaire from 493 managers and supervisors working in five‐star hotels and travel agencies in Saudi Arabia and analyzed using partial least squares structural equation modeling (PLS‐SEM). The findings show that environmental strategy is positively associated with organizational sustainability performance, organizational environmental ethics, and green intangible assets. Organizational environmental ethics and green intangible assets are also positively associated with organizational sustainability performance, while both constructs partially mediate the environmental strategy–performance relationship. Green transformational leadership strengthens the positive association between environmental strategy and organizational sustainability performance, whereas green organizational culture strengthens the association between organizational environmental ethics and sustainability performance. Multi‐group analysis, conducted after establishing measurement invariance, revealed no significant differences in the structural relationships between five‐star hotels and travel agencies. The study extends environmental strategy and organizational sustainability research by integrating strategic, institutional, capability‐based, leadership, and cultural mechanisms within a unified mediation and moderation framework. It further contributes to the Natural Resource‐Based View, Stakeholder Theory, and Upper Echelons Theory by clarifying the complementary mechanisms and contextual conditions associated with organizational sustainability performance. The findings provide practical guidance for tourism and hospitality organizations seeking to institutionalize environmental responsibility, strengthen green organizational capabilities, and improve economic, social, and environmental sustainability performance.