How managerial ties affect hotels’ proactive environmental practices in China: The contingent role of institutional environments

Abstract Despite the increasing attention of environmental management in the hotel industry, few studies have examined how managerial ties impact hotels’ adoption of proactive environmental practices (PEPs) in China. Drawing on institutional theory, this study develops a model that investigates the differential effects of political ties and business ties on PEPs in the presence of important institutional factors. Using a primary survey and multiple secondary datasets on 190 Chinese hotels, we find that political ties inhibit a hotel’s adoption of PEPs whereas business ties facilitate PEPs. Moreover, advanced legal development and high levels of regional pollution reduce the impacts of both political ties and business ties on PEPs. We also test the relationship between PEPs and hotels’ financial performance. These findings provide novel insights into how managerial ties shape a hotel’s strategic behaviors for environmental protection under the influence of institutional environments in emerging economies.