Strategic integration of CSR, innovation-performance models, and upper echelon theory for predicting green business performance in Indonesia’s hospitality industry

This study examines how Corporate Social Responsibility (CSR), green innovation, and executive attributes—grounded in Upper Echelon Theory (UET)—collectively drive green business performance in Indonesia’s hospitality sector during the post-pandemic recovery. Despite the growing emphasis on sustainable practices, prior research has often neglected the interactive roles of executive psychological traits and organisational strategies, particularly in emerging economies. To fill this void, an integrative multi-mediator model was developed and empirically tested using data from 200 managers and business owners in East Java, analysed with PLS-SEM. The findings reveal that CSR and green innovation have a positive effect on green business performance. Executive Social Orientation (ESO) and Pro-Environmental Behaviour (PEB) emerge as pivotal psychological drivers, with PEB identified as the most robust mediator translating executive orientation into improved business outcomes. However, the mediating role of green innovation is constrained by sector-specific challenges, underscoring the importance of behavioural and leadership mechanisms. Theoretically, this study extends UET to the domain of sustainability within service industries. At the same time, practically, it offers actionable guidance for industry leaders and policymakers—highlighting the need for leadership development and regulatory frameworks that incentivise green transformation. The research also suggests future avenues for cross-sectoral and longitudinal investigation.