The Value-Based and Business Innovation Approach towards Sustainable Business Practices of Hotel Enterprises in the Philippines

Abstract

This study aims to investigate the possibilities for transformation in the business practices of Philippine hotel firms via the integration of a value-based and model innovation approach leading to their sustainability. Considering the worldwide need for sustainable development, the hotel sector is essential to reducing its negative effects on the environment, promoting social responsibility, and maintaining its financial stability. It examined the viability and efficacy of implementing a thorough sustainability framework that considers the particular socioeconomic and environmental circumstances of the Philippines. This research is built on multiple regression with moderation analysis that will determine the level of effect between variables. A Likert scale type of questionnaire will be used to conduct the instrument and gather data from respondents from hotel enterprises. The intended model will be established through multiple regression with moderation analysis. A thorough understanding of the current sustainability situation in the Philippine hotel industry, insights into effective approaches to value-based and business model innovation, a roadmap for implementing sustainable business practices, and the role that firm profile plays as a mediator in the important relationships this study develops are just a few of the expected outcomes of this research. To determine if hotel firms in the Philippines are leaders in sustainable business practices, this research aims to support their long-term resilience and success by promoting a culture of innovation and responsibility. At least 410 respondents representing at least 100 hotel firms were surveyed in this study. Data was gathered using survey instrument from Hotel firms from 1 star to 5 stars. The value-based business model has been found to have an excellent extent in terms of value creation, value proposition, and value capture.  Business model innovation measured through creation, extension, revision, and termination is perceived to have acceptable levels within the hotel industry.  Sustainable business practices are found to be well implemented among these hotel firms measured through their economic growth, social responsiveness, and environmental orientation. The antecedents of value-based business models are found to have a positive significant effect on sustainable business practices.  In business model innovation, only the strategies of revision and extension may positively affect the sustainability of hotel firms.  Through moderation analysis, it was found that the effect of value-based business models on sustainable business practices is dependent on the star rating or firm size of the hotel.   The effect of business model innovation on sustainability of hotel firms was found to be different only on the extent between 1 star and 3 star, and 1 star and 5 stars. The proposed output is Framework on Sustainable Business Practices of Hotel Firms from Value Based and Business Model Innovation.