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

Llorenç Bagur (), Jordi Perramon () and Oriol Amat ()

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

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.

Keywords: Quality management; Environmental management; Firm performance and Travel agencies. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-env and nep-tur
Date: 2013-07
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