Identifying Green Practice Measures Through Formative Construct

The eco-friendly policy is vital in today’s environment. For five-star hotel industry, the growing number of ASEAN Green Hotel Standard (AGHS) and Green Building Index (GBI) hotels show that the green movement has a pool of serious adopter. In the highly saturated marketplace like five-star hotel segment, green provides a new direction to the branding strategy. However, lack of studies conducted in this area suggests that there is no clear evidence of the need for green practice from the guest perspective. This study examines the formative construct for the green practice in the five-star hotel segment using structural equation modeling. Based on 421 valid responses, this study suggests that energy management, water management, and solid waste management is crucial measurements for the formative construct of the green practice. Future studies should take the final model and test it with various outcome measures.