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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. Llorenç Bagur-Femenías & Jordi Perramon & Marc Oliveras-Villanueva, 2019. "Effects of Service Quality Policies in the Tourism Sector Performance: An Empirical Analysis of Spanish Hotels and Restaurants," Sustainability, MDPI, vol. 11(3), pages 1-13, February.
    2. Eneko Ibarnia & Lluís Garay & Antonio Guevara, 2020. "Corporate Social Responsibility (CSR) in the Travel Supply Chain: A Literature Review," Sustainability, MDPI, vol. 12(23), pages 1-21, December.
    3. Željko Stević & Ilija Tanackov & Adis Puška & Goran Jovanov & Jovica Vasiljević & Darko Lojaničić, 2021. "Development of Modified SERVQUAL–MCDM Model for Quality Determination in Reverse Logistics," Sustainability, MDPI, vol. 13(10), pages 1-17, May.
    4. Francesca Bartolacci & Andrea Caputo & Michela Soverchia, 2020. "Sustainability and financial performance of small and medium sized enterprises: A bibliometric and systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1297-1309, March.
    5. Juan José Tarí & José F. Molina‐Azorín & María D. López‐Gamero & Jorge Pereira‐Moliner, 2021. "The association between environmental sustainable development and internalization of a quality standard," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2587-2599, July.

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    Keywords

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