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Impact of quality and environmental investment on business competitiveness and profitability: The case of travel agencies

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Abstract

Few studies have examined the combined effect of implementing quality and environmental management within the service sector. This void is more evident if we focus on segments in which small businesses predominate and even more so if we look for highly competitive sectors that are very variable and that have high business mortality. After analysing 198 surveys of Spanish travel agency managers using structural equations, it can be concluded that practices of quality management have a significant direct impact on business competitiveness but not on this business's financial results, at least directly. However, there is a significant relationship between environmental management practices and economic benefits. This article suggests that commitment to quality and the environment can allow small businesses in the service sector to have a competitive advantage that will separate surviving and ceased operations, particularly in sectors that are rapidly evolving and highly competitive.

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  • Llorenç Bagur & Jordi Perramon & Oriol Amat, 2013. "Impact of quality and environmental investment on business competitiveness and profitability: The case of travel agencies," Economics Working Papers 1376, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:1376
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    1. Eva Carmona-Moreno & José Céspedes-Lorente & Jerónimo De Burgos-Jiménez, 2004. "Environmental strategies in spanish hotels: contextual factors and performance," The Service Industries Journal, Taylor & Francis Journals, vol. 24(3), pages 101-130, May.
    2. Wiengarten, Frank & Pagell, Mark, 2012. "The importance of quality management for the success of environmental management initiatives," International Journal of Production Economics, Elsevier, vol. 140(1), pages 407-415.
    3. Álvarez Gil, M. J. & Burgos Jiménez, J. & Céspedes Lorente, J. J., 2001. "An analysis of environmental management, organizational context and performance of Spanish hotels," Omega, Elsevier, vol. 29(6), pages 457-471, December.
    4. Terlaak, Ann & King, Andrew A., 2006. "The effect of certification with the ISO 9000 Quality Management Standard: A signaling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 579-602, August.
    5. Sadikoglu, Esin & Zehir, Cemal, 2010. "Investigating the effects of innovation and employee performance on the relationship between total quality management practices and firm performance: An empirical study of Turkish firms," International Journal of Production Economics, Elsevier, vol. 127(1), pages 13-26, September.
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    Keywords

    Quality management; Environmental management; Firm performance and Travel agencies.;

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