Effect of Sustainable Leadership Practices on Sustainable Organizational Performance in the Hospitality Sector. Does Organizational Culture Matter?

Abstract

This research examines the role of organizational culture (OC) in the relationship between sustainable leadership practices (SLPs) and sustainable organizational performance (SOP) at five-star hotels in three Arab countries: Egypt, Jordan, and Saudi Arabia. A total of 434 workers who work in five-star hotels in the three Arab countries were given a questionnaire. 49 questions were used to measure three variables. First, SPL's dimensions are represented by foundation practices (FPs), higher-level practices (HLPs), and key performance drivers (KPDs). Second, organizational culture and third, sustainable organizational performance dimensions represented by economic sustainability performance (SECP), social sustainability performance (SSP), and environmental sustainability performance (SENP). The obtained data were analyzed by PLS-SEM. The results show that FPs, HLPs, and KPDs have a significant influence on both SECP, SSP, and SENP, and OC on one side, and OC also has a significant influence on SECP, SSP, and SENP on the other side. The results also confirm the role of OC as a mediating variable in the relationship between the dimensions of SLPs and the dimensions of SOP. This study provides valuable insights and a roadmap for hotel practitioners seeking to navigate the complex landscape of SLPs and OC toward their effect on sustaining organizational performance. The findings are also discussed in the light of the previous studies and provide recommendations for other researchers, guidance for luxury hotels striving to strike a balance between SECP, SSP, and SENP.