Digital Transformation and Environmental Sustainability in the Hospitality Industry: A Three-wave time-lagged examination

Despite the ongoing discussions of strategies to attain the United Nations’ Sustainable Development Goals, discourse on the role of digital transformation in bolstering environmental sustainability remains sparse. This study delves into the role of digital transformation in enhancing the environmental sustainability of hotels and scrutinizes the role of sustainable business model innovation in mediating the relationship between digital transformation and environmental sustainability. Data were gathered from managers of star-rated hotels using a survey questionnaire in three waves. The data was analyzed through the application of structural equation modeling. The findings of the study reveal a positive relationship between digital transformation and environmental sustainability and that this relationship is mediated by sustainable business model innovation and moderated by the hotel star category. The study highlights the strategic significance of digital transformation and sustainable business model innovation in achieving environmental sustainability. The study also provides implications for managers, scholars and policymakers.