International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

Do quality and Environmental Management Systems help Hotels to Achieve their Financial Goals? :Evidences from the Egyptian Hotel Industry

Author Affiliations

  • 1 Department of Hotel Studies, Faculty of Tourism and Hotels, Menoufiya University, EGYPT

Res. J. Management Sci., Volume 2, Issue (5), Pages 6-13, May,6 (2013)


The relationship between quality and environmental management systems and corporate financial performance has always been an important topic in the management literature. However, only few studies have mutually analyzed these two management systems. Most of these studies have focused on the industrial and business sectors (such as banks and insurance companies), but these studies have ignored the hotel and tourism sector, with a few exceptions. Therefore, the purpose of this study is to determine the level of commitment of Egyptian 4 and 5-star hotels to implement quality and environmental management systems and to evaluate the impact of this commitment on the financial performance of these hotels. The study grouped hotels according to their commitment to quality and environmental systems, and a two-stage cluster analysis was used to identify the significant differences between groups of hotels. Then, ANOVA and regression analysis were used to test the relationship between the commitment levels and hotel financial performance. The results determined three levels of quality and environmental commitment. These three levels have been classified as proactive, committed, and reactive. Moreover, the results indicated that 5-star hotels can increase their investments in quality and environmental management systems to enhance both short-term and long-term financial performance. For 4-star hotels, however, results showed that quality and environmental management systems have no simultaneous or particular effect on their financial performance. This supports the findings related to this issue in other literature on quality management in the hotel industry.


  1. Álvarez J., de Burgos J. and Céspedes J., An analysis of environmental management, organizational context and performance of Spanish hotels, Omega, (29), 457-471 (2001)
  2. Kaynak H., The relationship between TQM Practices and their effects on firm performance, Journal of Operations Management, 21(4), 405-435 (2003)
  3. Pereira-Moliner J., Claver-Cortés E., Molina-Azorín F. and Tarí L., Quality management, environmental management and firm performance: direct and mediating effects in the hotel industry, Journal of Cleaner Production, (37), 8292 (2012)
  4. York K. and Miree C., Causation or variation: An empirical re-examination of the link between TQM and financial performance, Journal of Operations Management, (22), 291-311 (2004)
  5. Zeng S., Shi J. and Lou G., A synergetic model for implementing an integrated management system: an empirical study in China, Journal of Cleaner Production, (15), 17601767 (2007)
  6. Kimes S., How product quality drives profitability, Cornell Hotel and Restaurant Administration Quarterly, 42(3), 25-28 (2001)
  7. Antony J., Antony F. and Ghosh S., Evaluating service quality in a UK hotel chain: A case study, International Journal of Contemporary Hospitality Management, 16(6), 380-384 (2004)
  8. Claver-cortés E., Molina-azorín J., Pereira-moliner J. and Tarí J., Quality management, environmental management and firm performance in the Spanish hotel industry, International Journal of Management Reviews, 11(2), 197-222 (2008)
  9. Wilkins H., Merrilees B. and Herington C., Towards an understanding of total service quality hotelsm, International Journal of Hospitality Management, (26), 840853 (2007)
  10. Chan W., Partial analysis of the environmental costs generated by hotels in Hong Kong, Tourism Management, (24), 517-531 (2005)
  11. McNamara K. and Gibson C., Environmental sustainability in Practice? A macro-scale profile of tourist accommodation facilities in Australia’s coastal zone, Journal of Sustainable Tourism, 16(1), 85-100 (2008)
  12. Ayuso S., Adoption of voluntary environmental tools for sustainable tourism, analyzing the experience of Spanish hotels, Corporate Social Responsibility and Environmental Management, 13(4), 207-220 (2006)
  13. Bohdanowicz P., Environmental awareness and initiatives in the Swedish and Polish hotel industries-survey results. International Journal of Hospitality Management, 25(4), 662-682 (2006)
  14. Melnyk S., Stroufe R., and Calantone R., Assessing the impact of environmental management systems on corporate and environmental performance, Journal of Operations Management, 21(3), 329-351 (2003)
  15. Sila I. and Ebrahimpour M., Critical linkages among TQM factors and business results, International Journal of Operations and Production Management, (25), 11231155 (2005)
  16. Bou-Llusar J., Escrig-Tena A., Roca-Puig V. and Beltrán-Martín I., An empirical assessment of the EFQM Excellence Model: evaluation as a TQM framework relative to the MBNQA Model, Journal of Operations Management, (27), 122 (2009)
  17. Heras-Saizarbitoria I., Molina-Azorín J. and Dick G., ISO 14001 certification and financial performance: selection-effect versus treatment-effect, Journal of Cleaner Production, (19), 112 (2011)