Key Organizational and Operational Factors Influencing Environmental Sustainability Practices in Small to Medium-Sized Hotel Enterprises: A Literature Review

Tourism plays a prominent role in the global economy, being one of the economic sectors that has recovered best after the COVID-19 pandemic, contributing 10% to global GDP [1, 2]. Hospitality is an important link in the chain, with outstanding figures in economic terms. In the United States, for example, spending on accommodation was expected to increase by around US$777 billion by 2025, with the number of jobs recovering to pre-pandemic levels [3].

Associated with its economic growth, there are environmental problems in this sector. By 2008, Tourism was recognized as a contributor to climate change, with an estimated greenhouse gas (GHG) emissions of close to 5%, with 75% coming from transportation [4]. This is in line with the study by Lenzen et al. [5] a decade later, which mentions that the contribution to GHGs increased to 8%. These figures are derived from methodologies calculated by direct or indirect emissions (such as the case of electricity consumption (UN Tourism)). Highlighting the significance and implications of the tourism sector on environmental effects, the Glasgow Declaration on Tourism was created in 2021, which seeks to commit to reducing GHG emissions by half by 2030 and achieving net-zero emissions by 2050 [6]. Other environmental problems related to water use, plastic waste generation, and biodiversity impacts are also significant in this sector [7].

Besides its contribution, it is important to consider the composition of the tourism sector according to the types of companies, by size, given the importance of the environmental effects generated by the sector. For example, in the United Kingdom, it is estimated that 99.6% of accommodation businesses are small and medium-sized enterprises (SMEs) [8]. Similarly, in the United States, it was estimated that in 2018 the sector contributed 8.8 million jobs, equivalent to 15.4% of the total contribution of SMEs in that country [9]. Given their share of the market, SMEs in the hotel sector have a responsibility for the environmental aspects and impacts associated with their activity.

Despite growing academic interest in hotel environmental sustainability, the existing literature shows fragmentation. Some studies focus on large chains [10, 11], are isolated case studies [12, 13], or analyze variables individually [14, 15]. In this regard, there is a lack of comprehensive synthesis that identifies and organizes the key variables (drivers, barriers, and contextual factors) that determine the success of environmental sustainability, specifically in the context of SMEs.

In response to this fragmentation, the main objective of this article is to conduct a systematic review of the literature to identify, categorize, and synthesize the key variables that influence the adoption and implementation of environmental sustainability in hotel SMEs. The central research question was: "What are the key organizational and operational factors influencing environmental sustainability practices in small to medium-sized hotel enterprises (SME) in urban settings?".

To achieve this objective, the article is structured as follows: Section 2 details the review methodology, including search and selection criteria. Section 3 presents the results of the literature analysis. Section 4 discusses the implications of these findings. Finally, Section 5 offers conclusions, limitations, and an agenda for future research.

3.1 Study selection process

Following the search protocol described in the Methodology section, the initial search yielded a total of 79 records, extracted from Scopus, Web of Sciences, Science Direct, and Google Scholar. Upon consolidation, a total of 12 records from duplicate sources were removed. After removing duplicates, 67 records were filtered, of which 28 were discarded for not meeting the inclusion criteria (e.g., not focusing on SMEs or not addressing environmental practices), and 6 for not being accessible in full text.

A total of 33 records were considered for full-text review. Of these, 3 were not included due to lack of empirical data.  Finally, 30 studies met all eligibility criteria and were included for literature analysis (see Figure 1).

Regarding the analysis of the study design, it was found that studies using quantitative methods predominated, with 25 of them. It was also found that 4 used mixed methods; 4 used a qualitative approach; 3 studies used descriptive, content analysis, or conceptual approaches; and 2 studies used comparative analysis or review designs.

In terms of geographical context, 5 studies were found in Spain (including Barcelona, Catalonia, Tenerife); three in India (including Uttarakhand); two in China; three in Taiwan; two in Malaysia; two in Turkey; one in Poland, Italy, Zanzibar, South Africa, Scotland/United Kingdom, Portugal, Egypt, Oman, Ethiopia, Malawi, Saudi Arabia, Denmark, Maldives, Greece, New Zealand, and Thailand. One study was multinational (China, Japan, Australia, etc.), and four studies were global or included multiple countries.

Figure 1. Flow diagram of the literature review

Regarding the main subject area on which the study focused, 12 studies focused on environmental management, greening, or the implementation of environmental management systems; 9 studies focused on innovation, digital transformation, or the circular economy; 7 studies focused on sustainability strategy, policy, or certification; 5 studies focused on human resources, organizational culture, or leadership related to sustainability; 3 studies focused on sustainability reporting, transparency, or communication; and 2 studies focused on the Sustainable Development Goals or principles of ecological philosophy.

Table 2. Frequency of identified variables across the selected studies (n = 30)

The methodological quality of the 30 empirical studies included was assessed using the MMAT 2018 protocol. The evaluation revealed a generally high quality of evidence, with 65% of studies achieving a perfect score (5/5) (Table 2). However, a recurrent weakness identified in quantitative survey-based studies was the use of non-probability sampling methods (convenience or snowball sampling) or low response rates (< 20%), which introduces a potential non-response bias (Criteria 4.2 and 4.4). Studies utilizing secondary data or web-scraping techniques [16, 28] demonstrated high robustness due to large sample sizes covering nearly the entire target population.

A sensitivity analysis was conducted. Excluding studies with a high risk of bias (Score ≤ 3/5) did not alter the main thematic findings regarding the prevalence of energy and waste management practices, suggesting that the lower-quality studies were consistent with the broader body of literature.

Table 2 illustrates the prevalence of each thematic category within the analyzed literature. The code refers to the definitions established in the Thematic Codebook (See Appendix 1). This analysis reveals a clear hierarchy in the variables addressed by the literature.

Dominance of Operational Practices: The results indicate a heavy focus on operational efficiency, with Energy Management (OP-ENE) appearing in 83.9% of the studies, followed closely by Waste Management (71%) and Water Conservation (61.3%). This high frequency suggests that for hotel SMEs, environmental sustainability is primarily operationalized through tangible, cost-saving measures rather than abstract policies.

The Driver of Competitiveness: In terms of drivers, Market & Stakeholder Pressure (EXT-MKT) appears in over half of the studies (51.6%), often linked to financial determinants (48.4%). This confirms that the adoption of green practices in SMEs is largely driven by the dual need to satisfy customer demands and achieve economic efficiency, rather than purely regulatory compliance (which appears in only 25.8% of studies).

The Emerging Role of Leadership: While less dominant than operational factors, Leadership & Strategy (45.2%) emerges as a critical enabler, particularly in recent studies, highlighting a shift from viewing sustainability as a technical task to strategic management capability.

Table 3. Descriptive overview of analyzed studies

3.2 Identification and categorization of key variables

The identification of key variables related to environmental sustainability in hospitality SMEs encompasses both the specific environmental practices they implement and the internal and external factors that drive or limit such adoption [20, 28, 41]. The key variables extracted from the literature review are presented in Table 3.

3.2.1 Operational environmental impact indicators

These variables reflect the areas of operation where hotel SMEs should focus their efforts to reduce their environmental impact, often with the aim of achieving efficiency and reducing operating costs. The variables can be summarized in the five categories listed below:

Energy and Emissions Management:

Energy Consumption and Efficiency: Energy conservation is a fundamental practice. It is measured by energy consumption per occupied room (kWh/occupied room) [18, 19, 21-24, 41].

Investments in Renewable Energy: Use of alternative energy sources such as solar or wind power, and consumption of renewable energy [21].

Polluting Gas Emissions: Reduction of emissions, including direct and indirect emissions of CO₂ equivalent per occupied room (kg CO₂e/occupied room) [21, 25].

Water Management:

Water Consumption and Conservation: Reducing water consumption is a crucial environmental indicator. It is measured in liters of water consumption per occupied room (l/occupied room) [18, 19, 21, 23, 30, 41, 45].

Effluent Management: This includes the disposal of water as waste and the control of water withdrawal and discharge. Pay attention to water leaks [23, 45].

Waste Management:

Solid Waste Minimization, Recycling, and Reuse: Practices to reduce waste generation [21, 23, 30, 32, 41]. Recycling of plastics, glass, and other materials. Waste generation is measured in kg/occupied room [23].

Procurement and Products:

Use of Eco-Friendly/Green Products: Investment in the use of green food and non-food products. Reduction in the purchase of non-renewable materials and chemicals [21, 29].

Monitoring and Reporting:

Environmental Performance Monitoring: Efforts to keep management levers under control, collect data and indicators to support effective environmental management [21, 29, 36].

Environmental Reporting: Measures such as identifying environmental costs in cost accounting and reporting on voluntary initiatives and regulatory approaches [42].

3.2.2 Internal determinants and capacities

These organizational elements are crucial for SMEs to adopt and maintain environmental sustainability practices:

Leadership and Management Strategy:

Senior Management/Entrepreneur Commitment: A strategic commitment by senior management to environmental issues is a key determinant of competitive success and the implementation of the Environmental Management System (EMS) [28, 29, 43].

Responsible Leadership: This has been shown to positively affect environmental performance and organizational green culture [23, 31].

Financial Resources and Costs (Barriers):

Implementation Costs: Costs are a significant obstacle for SMEs, including investment in environmentally friendly products and machinery, as well as the costs of inspection and eco-certification [21, 41].

Resource Constraints: SMEs face greater difficulties in adopting green innovations due to financial limitations and resource scarcity [20, 28].

Company Size: The minimum size requirement is a factor in applying for certifications such as ISO 14001 due to administrative and operational costs [35].

Human Capital and Culture:

Employee Awareness and Training: Employee awareness, knowledge, and training are vital to the implementation of environmental management practices (EMPs) [20, 22, 23, 28, 33, 41].

Employee Eco-Friendly Behavior: Eco-friendly employee behavior amplifies the influence of green culture on environmental outcomes [23, 43].

Green Human Capital (GHC): This relates to employees with high environmental competence and motivation to support sustainability [20, 43].

Green Organizational Culture: Acts as a mediator between responsible leadership and environmental performance [22, 23, 46].

Capabilities and Innovation:

Technological Support/Innovation: The need to adopt innovations to successfully implement new GPAs [25, 34, 37, 41].

Green Absorptive Capacity (GAC): An important factor that involves observing the legislative environment, consumer behavior, and competitors' actions with regard to sustainability [20, 26].

Green Dynamic Capabilities (GDC): Essential for adaptive Circular Economy (CE) strategies and have the greatest effect on CE practices [20].

Entrepreneurial Competence and Open Innovation: These have a positive impact on sustainable competitive advantage [27].

3.2.3 External factors (Pressures and influences)

Hotel SMEs are subject to external influences, which are key variables in their environmental commitment:

Regulatory Influences and Laws (Institutional Environment):

Government Regulations and Laws: The existence of laws, regulations, and regulatory frameworks drives the implementation of green practices [28, 41, 42, 44].

Environmental Regulation and Reporting: These factors positively mediate the effect of environmental management practices on corporate sustainability [42].

Market and Stakeholder Pressures:

Customer Influence/Demand: Customer pressure significantly encourages green innovation and sustainability. Customers are increasingly willing to pay a premium for eco-friendly accommodations [28, 44].

Competitor Pressure: Competitive pressure promotes green innovation and sustainability [28].

Stakeholders (General): These include governments, owners, investors, and customers. They consider non-financial indicators such as energy/water use and waste generation to be important [38, 40].

Environmental sustainability in hotel SMEs depends on specific operational actions (energy and water consumption, waste management), internal drivers (leadership, innovation capabilities, resources), and external pressures (regulation and market demand).

The literature review systematizes a set of critical variables that shape environmental sustainability in hotel SMEs, integrating operational, organizational, and contextual dimensions. This categorization provides a conceptual framework for understanding the interaction between environmental practices, internal capabilities, and external pressures, offering a basis for the development of explanatory and comparative models in heterogeneous environments. The identification of indicators such as energy efficiency, water management, and waste minimization, together with factors such as responsible leadership and dynamic green capabilities, reinforces the need for comprehensive approaches that transcend mere technological adoption.

Likewise, the findings show that sustainability in this sector does not depend solely on the availability of resources, but on the articulation between organizational culture, innovation, and environmental governance. This framework opens opportunities for future research aimed at evaluating the effectiveness of public policies, the role of the circular economy, and the influence of stakeholders in the transition to resilient models. In this regard, we propose moving toward empirical studies that validate these relationships and explore mechanisms of interorganizational collaboration as catalysts for sustainability in the hotel industry.