GREENING THE SERVICE PROFIT CHAIN: THE IMPACT OF ENVIRONMENTAL MANAGEMENT PRACTICES

Authors

  • GEORGE I. KASSINIS,

    1. Department of Public and Business Administration, University of Cyprus, P.O. Box 20537, CY 1678, Nicosia, Cyprus
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      George Kassinis is an Assistant professor of Management in the Department of Business Administration of the University of Cyprus. He received his Ph.D. in Public Policy from Princeton University. His research interests include strategy, environmental management, and stakeholder management. His work has been published in journals such as Strategic Management Journal, Journal of Environmental Planning and Management, and Environmental Impact Assessment Review. He is a member of the Editorial Review Board of Progress in Industrial Ecology and a member of the American Academy of Management and the Strategic Management Society.

    • 2

      Andreas Soteriou is an Associate Professor of Operations Management in the Department of Business Administration of the University of Cyprus. He holds a Ph.D. degree from the University of Southern California, in Business Administration. His primary research interests focus in the areas of operations management, quality and productivity improvement in the service sector. His work has been published in journals such as Management Science, Decision Sciences, Manufacturing and Service Operations Management, the Journal of Operations Management, Production and Operations Management, the European Journal of Operational Research, and Interfaces. He is an Associate Editor of the Journal of Applied Mathematics and Decision Sciences and member of the Editorial Review Board of Production and Operations Management and of the Journal of Operations Management.

  • ANDREAS C. SOTERIOU

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      George Kassinis is an Assistant professor of Management in the Department of Business Administration of the University of Cyprus. He received his Ph.D. in Public Policy from Princeton University. His research interests include strategy, environmental management, and stakeholder management. His work has been published in journals such as Strategic Management Journal, Journal of Environmental Planning and Management, and Environmental Impact Assessment Review. He is a member of the Editorial Review Board of Progress in Industrial Ecology and a member of the American Academy of Management and the Strategic Management Society.


Abstract

This paper explores the relationship between environmental practices and performance in services and the impact of such practices on the external portion of the service profit chain. Using structural equation modeling, it tests the hypotheses developed with data from the European hospitality industry. The findings suggest that environmental practices are positively related to performance through the mediating effect of enhanced customer satisfaction and loyalty. The paper's contributions include: the conceptual development of the relationship between environmental practices and performance in services, the incorporation of environmental practices within the service profit chain, and the testing of their impact on customer satisfaction.

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