Driving Sustainability Performance in Hotels Through Green Digital Leadership and Circular Economy: The Moderating Role of Hotel Green Efficacy

Abstract

This study examines the role of green digital transformational leadership (GDTL) in enhancing sustainability performance in the hotel industry through the mediating mechanism of circular economy (CE) practices and the moderating effects of otel green efficacy (HGE). Grounded in the dynamic capabilities theory, natural resource-based view (NRBV) theory, and social exchange theory, a novel conceptual model that bridges digital innovation, ecological stewardship, and organizational psychology was proposed. The study adopted a quantitative approach and used a self-administered questionnaire survey to collect data from 402 employees across green-certified hotels in Sharm El-Sheikh, Egypt. Participants were recruited using a stratified sampling method to ensure sectoral representation. Data analysis techniques included performing partial least squares structural equation modeling (PLS-SEM) using Smart PLS 3.0. Key findings reveal that GDTL directly influences the three key aspects of sustainability performance in hotels, including environmental, economic, and social aspects. Likewise, CE practices significantly mediate the linkage between GDTL and hotel sustainability performance. Notably, HGE strengthens the GDTL-CE relationship, underscoring the critical role of employee empowerment in translating leadership vision into regenerative practices. These results add to the growing literature on sustainable leadership by revealing how digital tools like AI, blockchain, and closed-loop systems can synergize to support economic growth and conserve natural resources.