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Organizational antecedents and competitive consequences of environmental proactivity in the hotel industry

ABSTRACT This research simultaneously examines the influence of organizational design variables (specialization, decentralization, formalization, link mechanisms, and informal social relations) on environmental proactivity, and the impact of this environmental proactivity on the competitiveness of hotels. The joint analysis of causes and consequences of environmental proactivity, and the relationship between organizational design and environmental management are topics that have rarely been explored in the literature. Using structural equation modeling methodology, a model is empirically tested using a survey instrument that was distributed to hotels in Spain. The findings indicate that specialization, formalization, link mechanisms, and informal social relations are effective coordination mechanisms to foster environmental proactivity. Moreover, the most effective way of encouraging the implementation of environmental practices is formalization. The findings also show that environmental proactivity contributes to improving competitive advantage in terms of both cost and differentiation.