Integrating Public Policy and Strategic Management for Competitive Advantage: Advancing SDG 12 (Responsible Consumption and Production) through Low-Carbon Innovation in the Hotel Industry

Abstract

As Thailand strives to achieve its Net Zero and Sustainable Development Goals SDGs the hospitality sector faces increasing pressure to transition toward green operations However the structural relationship between external institutional drivers and internal business value remains under explored through the lens of managerial perception This study aims to examine the impact of institutional drivers specifically Public Policy Support PPS and Environmental Governance EG on sustainable management practices including Low Carbon Travel Management LCB and Green Hotel Innovation GH and their subsequent effect on Competitive Advantage CA and Business Value Added VA A quantitative approach was employed utilizing data collected from 914 hotel managers across Thailands primary tourism clusters Bangkok Phuket and Chonburi Preliminary data analysis including descriptive statistics and Pearson correlations was conducted using Jamovi 2644 The structural model was tested using Partial Least Squares Structural Equation Modeling via SmartPLS 4 The findings reveal that the model accounts for 711 of the variance in both Competitive Advantage and Business Value Added Public Policy Support emerged as the strongest driver of Low Carbon Travel Management β 0609 whereas Environmental Governance was the primary predictor of Green Hotel Innovation β 0601 Both sustainable management practices significantly enhanced business performance p 001 with Green Hotel Innovation having the most pronounced impact on added business value β 0519 The study concludes that a synergistic institutional environment is vital for fostering a sustainable hospitality ecosystem Managers should prioritize green innovations to drive economic value while policymakers must enhance direct fiscal support to catalyze low carbon transitions.