Environmental practices and firm performance: an empirical analysis in the Spanish hotel industry

The impact of environmental practices on firm performance raises an ongoing debate in which the review of the existing literature yields no conclusive results. Different methods have been used to study this relationship and most of the analyses have focused on manufacturing companies. This paper examines the link between environmental practices and firm performance in the Spanish hotel industry using two methods: a cluster analysis and a regression analysis. First, three groups were defined according to their environmental proactivity, and hotels showing a stronger commitment to environmental practices proved to reach higher performance levels. Second, through the regression analysis, findings showed that environmental practices impact significantly on several performance variables.