Organisational Culture and Environmental Performance of Hospitality Firms in South Africa

  • Olawale FATOKI Department of Business Management University of Limpopo, South Africa

Abstract

The purpose of the study is to investigate the impact of organisational culture on firm environmental performance in the context of the hospitality sector. The study used the quantitative research approach with descriptive and causal research design. The Denison organisational culture questionnaire was used to measure organisational culture. The Denison questionnaire contains four traits namely involvement, consistency, adaptability and mission. The questionnaire was distributed among 500 owner/managers of formal hotels and guest accommodations in South Africa. Data gathered were analysed using descriptive statistics and structural equation modelling. The results of the study indicate that the four traits of organisational culture (involvement, consistency, adaptability and mission) have significant positive impacts on the environmental performance of firms in the hospitality sector. The findings of the study can assist firms in the hospitality sector to understand the significance of internal intangible factors such as the organisational culture in the implementation of environmental sustainability initiatives.

References

[1] Abor, J. and Quartey, P. 2010. Issues in SME development in Ghana and South Africa. International Research Journal of Financial Economics, 39: 215–228.
[2] Adams, R., et al. 2016. Sustainability-oriented Innovation: A Systematic Review. International Journal of Management Reviews, 18: 180–205. DOI: https://doi.org/10.1111/ijmr.12068
[3] Aguilera-Caracuel, J., and Ortiz-de-Mandojana, N. 2013. Green Innovation and Financial Performance: An Institutional Approach. Organization & Environment, 26: 365–385. DOI:10.1177/1086026613507931
[4] Ahmedova, S. 2015. Factors for Increasing the Competitiveness of Small and Medium-Sized Enterprises (SMEs) In Bulgaria. Procedia—Social and Behavioral Sciences, 195: 1104-1112. DOI:10.1016/j.sbspro.2015.06.155
[5] Alarape, A. 2013. Entrepreneurial orientation and the growth performance of small and medium enterprises in Southwestern Nigeria. Journal of Small Business & Entrepreneurship, 26: 553-577. DOI:10.1080/08276331.2014.892308
[6] Amores-Salvadó, J., and Navas-lópez. J. 2014. Green corporate image: Moderating the connection between environmental product innovation and firm performance. Journal of Cleaner Production, 83: 356–365. DOI:10.1016/j.jclepro.2014.07.059
[7] Amini, M., and Bienstock, C. 2014. Corporate sustainability: an integrative definition and framework to evaluate corporate practice and guide academic research. Journal of Cleaner Production, 76: 12-19. DOI:10.1016/j.jclepro.2014.02.016
[8] Antunes, M., Quirós, J., and Justino, M. 2017. The relationship between innovation and total quality management and the innovation effects on organizational performance. International Journal of Quality & Reliability Management, 34:1-29. DOI: 10.1108/IJQRM-02-2016-0025
[9] Abbett, L., Coldham, A. and Whisnant, R. 2010. Organizational culture and the success of corporate sustainability initiatives: An empirical analysis using the Competing Values Framework. Masters dissertation, University of Michigan.
[10] Amah, E. and Ahiauzu, A. 2013. Employee involvement and organizational effectiveness. Journal of Management Development, 32(7): 661-674.
[11] Babin, B.J., Hair, J.F. and Boles, J.S. 2008. Publishing research in marketing journals using structural equation modelling. Journal of Marketing Theory & Practice, 16(4): 279–285.
[12] Bae, H. and Grant, D. 2018. Investigating effects of organisational culture and learning on environmental collaboration and performance of Korean exporting firms. International Journal of Logistics Research and Applications, 6: 614-630.
[13] Bohdanowicz, P., Zientara, P. and Novatna, E. 2011. International hotel chains and environmental protection: An analysis of Hilton’s we care programme (Europe, 2006–2008). Journal of Sustainable Tourism, 19(7): 797–816.
[14] Bansal, P. 2003. From issues to actions: The importance of individual concerns and organizational values in responding to natural environmental issues’. Organization Science, 14(5): 510-527.
[15] Barney, J. B. 1986. Organizational culture: Can it be a source of sustained competitive advantage. Academy of Management Review, 11: 656–665.
[16] Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17: 99–120.
[17] Cameron, K.S. and Quinn, R.E. 1999. Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Addison-Wesley, Reading. MA.
[18] Casey, D. and Sieber, S. 2016. Employees, sustainability and motivation: Increasing employee engagement by addressing sustainability and corporate social responsibility. Research in Hospitality Management, 6(1): 69–76.
[19] Chin, W.W. 2010. Bootstrap cross-validation indices for PLS path model assessment. In: EspositoVinzi, V., Chin, W.W., Henseler, J., Wang, H. (eds.) Handbook of Partial Least Squares: Concepts, Methods and Applications, pp. 83–97. Springer, Heidelberg.
[12] Department of Labour 2016. Sectorial Determination 14: Hospitality Sector, South Africa. Available at: http: www.labour.gov.za/DOL/legislation/sectoral.../sectoral-determination-14-hospitality.
[21] Denison, D.R. 1990. Corporate Culture and Organizational Effectiveness. John Wiley & Sons. New York:
[22] Denison, D.R. and Spreitzer, G. 1991. Organizational culture and organizational development: A competing values approach. Research in Organizational Change and Development, 5: 1-21.
[23] Denison consulting. 2007. The Denison Advantage. Available at: http://www.denisonconsulting.com/dc/DenisonAdvantage/ResearchbasedModelltabid/1241Default.aspx
[24] Dijkstra, T.K. and Henseler, J. 2015. Consistent and asymptotically normal PLS estimators for linear structural equations. Computer Statistics Data Analysis, 81: 10–23.
[25] Du Plessis, E. and Saayman, M. 2011. Factors influencing pricing in the accommodation sector in South Africa. The Southern African Journal of Entrepreneurship and Small Business Management, 4: 24-47.
[26] Emas, R. 2015. The Concept of Sustainable Development: Definition and Defining Principles. Available at : https://sustainabledevelopment.un.org/content/documents/5839GSDR%202015_SD_concept_definiton_rev.pdf
[27] Fiol, M. 1991. Managing Culture as a Competitive Resource: An Identity-Based View of Sustainable Competitive Advantage. Journal of Management, 17(1): 191-211.
[28] Government Gazette of the Republic of South Africa. . National Small Business Amendment Act, 2003
[29] Hamann, R., Smith, J., Tasman, P. and Marshall, S. 2015. Why do SMEs go green? An analysis of wine farms in South Africa. Business and Society, 56(1): 23-56.
[30] Henri, J. and Journeault, M. 2008. Environmental performance indicators: an empirical study of Canadian manufacturing firms. Journal of Environmental Management, 87(1): 165-176.
[31] Henseler, J., Ringle, C.M. and Sarstedt, M. 2015. A new criterion for assessing discriminant validity in variance-based structural equation modelling. Journal of the Academy of Marketing Science, 43(1): 115–135.
[32] Heifetz, R, Grashow, A. and Linsky, M. 2009. The Theory behind the Practice: A Brief Introduction to the Adaptive Leadership Framework. Available http://communitydoor.org.au/sites/default/files/MODULE_4_Adaptive_leadership_theory_behind_practice.pdf
[33] Han, H., Hsu, J. and Sheu, C. 2010. Application of the theory of planned behaviour to green hotel choice: Testing the effect of environmental friendly activities. Tourism Management, 31(3): 325–334.
[34] Hair, JF., Sarstedt, M., Hopkins, L. and Kuppelwieser, V. 2014. Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2): 106-121.
[35] Hair, JF, Risher, JJ. Sarsstedt, M., and Ringle, C.M. 2019. When to use and how to report the results of PLS-SEM. European Business Review, 31(1): 2-24.
[36] Hofstede, G., Neuijen, B., Ohayv, D. and Sanders, G. 1990. Measuring organizational cultures: a qualitative and quantitative study across twenty cases. Administrative Science Quarterly, 35(2): 286-316.
[37] Hourneaux, F., Carneiro-da-Cunha, J. and Corrêa, H. 2017. Performance measurement and management systems: Different usages in Brazilian manufacturing companies. Managerial Auditing Journal, 32(2): 148-166.
[38] Idahosa, L., Marwa, N. and Akotey, J. 2017. Energy Consumption in South African Hotels: A Panel Data Analysis. Available https://econrsa.org/system/files/publications/working_papers/working_paper_685.pdf
[39] Iljins, J., Skvarciany, V. and Gaile-Sarkane, E. 2015. Impact on Organizational Climate trough Organizational Culture factors. Case Study of Latvia and Lithuania. Trends Economics and Management, 9(24): 9-17.
[40] Jaiswal, J. 2014. Environmental Impact on SMEs Growth and Sustainability Challenges and Opportunities. Journal of Studies in Dynamics and Change, 1(2): 101-112.
[41] Kilmann, R.H., Saxton, M. and Serpa, R. 1986. Issues in understanding and changing culture. California Management Review, 28(2): 87‐94.
[42] Kock, N. 2015. Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4): 1-10.
[43] Kotter, J.P. and Heskett, J.L. 1992. Corporate Culture and Performance. The Free Press. New York:
[44] Küçükoğlu, M.T. and Pınar, R.İ. 2015. Positive influences of green innovation on company performance. Procedia-Social and Behavioural Sciences, 195: 1232-1237.
[45] Lee, K.H., Barker, M. and Mouasher, A. 2013. Is it even espoused? An exploratory study of commitment to sustainability as evidenced in vision, mission, and graduate attribute statements in Australian universities. Journal of Cleaner Production, 48: 20-28.
[46] Linnenluecke, M, and Griffiths, A. 2010. Corporate Sustainability and Organisational Culture. Journal of World Business, 45(4):357-366. ·
[47] Little, DL. 2014. Defining Sustainability in Meaningful Ways for Educators. Journal of Sustainability Education, 7: 1-18.
[48] Magombo, A., Rogerson, C. and Rogerson, J. 2017. Accommodation services for competitive tourism in Sub-Saharan Africa: Historical evidence from Malawi. Bulletin of Geography. Socio–economic Series, 38: 73-92
[49] Magsi, H., Ong, T., Ho, J. and Hassan, A. 2018. Organizational Culture and Environmental Performance. Sustainability, 10(8): 2690-2707.
[50] Markulev, A. and Long, A. 2013. On sustainability: an economic approach. Available at: https://www.pc.gov.au/research/supporting/sustainability/sustainability.pdf
[51] Masouleh, Z. D. and Allahyari, M. S. 2017. The predictability of organisational culture for commitment among faculty members: evidence from Iran higher education. International Journal of Management in Education, 11(1): 95–109.
[52] Mbasera, M., Du Plessis, E., Saayman, M. and Kruger, M. 2016. Environmentally-friendly practices in hotels. Acta Commercii, 16(1): a362.
[53] Merriman, K.K. and Sen, S. 2012. Incenting managers towards the triple bottom line: an agency and social norm perspective”, Human Resource Management, 51(6): 851-872.
[54] Merriman, K.K., Sen, S., Felo, A. J. and Litzky, B.E. 2016. Employees and Sustainability: the role of incentives. Journal of Managerial Psychology, 31: 820–836.
[55] Morelli, J. 2011. Environmental Sustainability: A Definition for Environmental Professionals”,.Journal of environmental sustainability, 1(1): 1-9.
[56] Neneh, B.N. and van Zyl, J. 2017. Entrepreneurial orientation and its impact on firm growth amongst SMEs in South Africa. Problems and Perspectives in Management, 15(3): 166-178.
[57] Negruţ, V. and Maftei, J. 2011. The Impact of SMEs on the Environment. Legislation and Best Practice. EuroEconomica, 5(30): 81-85.
[58] Nunnally, J.C. 1978. Psychometric theory. McGraw-Hill, New York.
[59] Nyambe, N., Breen, C. and Fincham, R. 2007. Organizational Culture as a Function of Adaptability and Responsiveness in Public Service Agencies. In: Governance as a Triologue: Government-Society-Science in Transition”.Springer, New York.
[60] Pawirosumarto, S. and Khumaedi, E. 2017. The influence of organizational culture on the performance of employees at Universityof Mercu Buana. International Journal of Law and Management, 59(66): 950-963.
[61] Qorri, A., Mujkić, Z, and Kraslawski, A. 2018. A conceptual framework for measuring sustainability performance of supply chains. Journal of Cleaner Production, 1-32
[62] Rogerson, JM. 2014. Unpacking the Growth of Hotel Chains in Africa: Enterprises and Patterns. Mediterranean Journal of Social Sciences, 5(14): 135-146.
[63] Schein, E. 1992. Organizational Culture and Leadership: A Dynamic View. Jossey-Bass. San Francisco, CA.
[64] Sucheran, R. 2016. Corporate Social Responsibility (CSR) in the hotel and lodge sector in KwaZulu-Natal, South Africa. African Journal of Hospitality, Tourism and Leisure, 5(3): 1-17.
[65] Sunarsih, N. and Mashithoh, H. 2016. The Influence of Organizational Culture Adaptability in Regard to the Organizational Commitment of the Staff of Universitas Terbuka. Review of Integrative Business and Economics Research, 5(1): 199-209.
[66] Tjosvold, D. 1998. Cooperative and competitive goal approach to conflict: accomplishments and challenges. Applied Psychology: An International Review, 47(3): 285-342.
[67] The Brundtland Report. 1987. Our common future. Available at: https://www.sustainabledevelopment2015.org/AdvocacyToolkit/index.php/earth-summit-history/historical-documents/92-our-common-future.
[68] Warrick, D.D., Milliman, J. and Ferguson, J. 2016. Building high performance cultures. Organizational Dynamics, 45(1): 64–70. 
[69] Warrick, D.D. 2017. What leaders need to know about organizational culture. Business Horizons, 60: 395-404
[70] Wiewiora, A., Trigunarsyah, B., Murphy, G. and Coffey, V. 2013. Organizational culture and willingness to share knowledge: A competing values perspective in Australian context. International Journal of Project Management, 31: 1163–1174.
[63] The World Summit on Sustainable Development (2002) overview. Available at: http: www.un-documents.net/aconf199-20.pdf.
[72] World Travel and Tourism Council (2018). Travel & tourism economic impact. South Africa. Available at:https://tbcsa.travel/wp-content/uploads/2018/03/WTTC-Report-SouthAfrica2018.pdf.
[73] Yang, M.G.M., Hong, P. and Modi, S.B. 2011. Impact of Lean Manufacturing and Environmental Management on Business Performance: An Empirical Study of Manufacturing Firms. International Journal of Production Economics, 129(2): 251–261.
[74] Zakari, M., Poku, K. and Owusu-Ansah, W. 2013. Organizational Culture and Organisational Performance: Empirical Evidence from the Banking Industry in Ghana. International Journal of Business, Humanities and Technology, 3(1): 95-197.
[75] Zheng, W., Yang, B.and McLean, G.N. 2010. Linking organizational culture, structure, strategy, and organizational effectiveness: mediating role of knowledge management. Journal of Business Research, 63(7): 763-771.
[76] Zwaan, L. 2006. Assessing Organization Culture in a Private Hospital in the Western Cape Master's dissertation. University of the Western Cape, Cape Town.
Published
2019-08-29
How to Cite
FATOKI, Olawale. Organisational Culture and Environmental Performance of Hospitality Firms in South Africa. Journal of Environmental Management and Tourism, [S.l.], v. 10, n. 3, p. 575-589, aug. 2019. ISSN 2068-7729. Available at: <https://journals.aserspublishing.eu/jemt/article/view/3833>. Date accessed: 20 nov. 2024. doi: https://doi.org/10.14505//jemt.10.3(35).12.