Stakeholder Salience and adoption of environmental strategy in the hotel industry in Indonesia
Maruf

School of Management, Andalas University, Padang, West Sumatra

Abstract

Environmental strategies as organization actions to minimize negative effects of business activities toward natural environment have been discussed as one of important factors for business sustainability. It is also mentioned as social responsibility of the firm and important factor in managing relationship with stakeholders. However, to what extent environmental strategy has been adapted in relation to business sustainability, social responsibility and stakeholders management in hotel industry in Indonesia is still open for further investigation. Based on stakeholders salience theory, this study aims at measuring the predicted relationships in the stakeholder management model between stakeholders salience, strategic response and adoption of an environmental strategy. Quantitative data collected from seventy one hotel managers all across Indonesia with self-administered questionnaire. The relationship model were analysed with partial least square. The results show that among three stakeholders salience attributes, stakeholder power and legitimacy does not influence stakeholder salience. Only stakeholder urgency that positively influence stakeholder salience. Stakeholder salience positively influence strategic response. Furthermore, stakeholder salience is positively related to hotels strategic response and then influence environmental issue integration and environmental strategy responsiveness. These results imply that this model can be used to explain relationship between stakeholder salience with adoption of environmental strategy. study the finding suggests that the connection between stakeholders attributes, stakeholder salience, strategic response and adoption of environmental strategy is low to medium strong. This means, when hotels have a minimum environmental performance it might be to fulfill government regulations. While if hotels have highly integrated and proactive adoption of environmental strategy this might be come from company own awareness about the important of being environmental friendly

Keywords: Stakeholder Salience, Environmental strategy, Hotel, Indonesia

Topic: Green Business