RJOAS April 2025
by Pujiyati Holil, Setiawan Putu Yudi, Wardana I Made, Aksari Ni Made Asti (Faculty of Economics and Business, University of Udayana, Bali, Indonesia)
Sustainability performance refers to a company's long–term performance encompassing economic, social, and environmental aspects. This research aims to examine the role of the internal business perspective and tourist perspective as mediators of the effects of the learning and growth perspective and internal business perspective on the sustainability performance of Villa Uma Sapna Bali. This study utilizes a sample of 53 employees from Villa Uma Sapna Bali. The sampling method is non-probability sampling, specifically a saturated or census sampling technique. Data collection was carried out through interviews guided by a questionnaire. The analysis techniques used include descriptive analysis and inferential statistical analysis with SEM-PLS. The results of this study indicate that the learning and growth perspective can directly enhance the internal business perspective, tourist perspective, and sustainability performance. The effect of the learning and growth perspective becomes more significant as it also contributes to the improvement of both the internal business perspective and the tourist perspective. By enhancing the internal business and tourist perspectives, the learning and growth perspective consequently improves the sustainability performance of Villa Uma Sapna Bali. All research indicators were rated positively and highly, which suggests that the performance of Villa Uma Sapna has not yet reached its full potential. Therefore, these indicators still hold the potential for further improvement to achieve sustainable management performance and increase the occupancy rate of Villa Uma Sapna Bali.
Sustainability has become a concern for all nations. All member countries of the United Nations (UN) adopted the sustainable development goals (SDGs) in 2015 to end poverty, protect the earth and ensure prosperity by 2030. In the era of sustainable development, all companies are required by their stakeholders to increase their vigilance in carrying out their corporate responsibilities, including addressing global warming and human rights issues (Tjahjadi et al., 2021). Climate change and environmental pollution are topics of discussion in society. The world faces major environmental, social, and humanitarian challenges, triggering the need for adequate responses from various organizations (Xiao et al., 2024). Business sustainability performance (BSP) shows the integration of environmental protection, profitability, and social responsibility into business activities while considering stakeholder considerations (Engida et al., 2018). The literature shows that BSP is increasingly interested in transparency and business efforts to reduce their operations' environmental problems and negative social impacts (Pranugrahaning et al., 2021). As a result, consumers and governments are raising serious concerns and demanding that companies adopt alternative attitudes towards business sustainability. Business sustainability encompasses three dimensions: environmental, social, and financial (Kim & Koo, 2022; Li et al., 2020). It has become imperative for organizations to focus on overall business sustainability, not just financial performance.
Digital technology has fundamentally changed the way businesses operate. New developments have made companies evolve faster than ever before. With the increasing digitalization and complexity of corporate approaches, organizations find it difficult to sustain themselves in today's environment. Preparing for long-term sustainability requires a deep innovation paradigm. In this regard, companies must build measurable skills, capabilities, and processes to improve the company's sustainable performance. Companies integrate, build, and reconfigure internal and external resources through the dynamic capabilities theory to achieve sustainable performance (Chen et al., 2024). Al-Shaer and Hussainey (2022) argue that what companies say will help identify sustainable performance. They argue that to understand and assess sustainability performance better, it is important to know the sustainability practices that companies are actively involved in and how these practices are communicated through sustainability reporting.
There is a need to design a sustainability-balanced scorecard (SBSC) suitable for the hospitality industry and explore the causality among its perspectives (Fatima & Elbanna, 2020). Therefore, this study develops an SBSC scale based on the triple bottom line (TBL) approach of economic, social, and environmental performance to enable hotels to assess their overall organizational performance. In addition, an exploratory cause-and-effect analysis investigates the underlying relationships between the traditional non-financial balanced scorecard (BSC) perspectives of learning and growth, internal business, and customers and the outcomes of TBL from these perspectives. The challenge of TBL is to sustainably balance the economic environment, society, and natural ecosystems together (Elkington, 1997). TBL is an interconnected system with economic production processes (EPP), which serve societal processes (SP) and suppress ecosystem processes (ESP) (Cato, 2012). From a sustainability perspective, in addition to seeking profit, stakeholders and their interests are also considered important (McWilliams et al., 2016), resulting in several steps of corporate social responsibility in organizations (Paz et al., 2021). Sustainability has attracted global interest and attention due to its meaningful suggestions and solutions, especially regarding the environment and changing climate conditions (Khan et al., 2021). Economic sustainability focuses on achieving profit (Schulz & Flanigan, 2016); social sustainability aims for the advancement of humanity and society (Kiel et al., 2020); and environmental sustainability seeks to conserve natural resources (Bai et al., 2020). All three interact and enter to avoid conflict; a progressive relationship is expected in TBL. To achieve sustainability, all three dimensions are very important (Evans et al., 2017) and must be included in the organization's strategy (Schulz & Flanigan, 2016).
Referring to secondary sources related to the mandate of hotel involvement in corporate social responsibility (CSR) (Ministry of Corporate Affairs, G.o.I., 2013; Ministry of Indian Tourism, G.o.I, 2020a, 2020b), it is emphasized to be an accommodating CSR and hence develop a fully integrated SBSC scale; that is, combining CSR dimensions in four traditional perspectives (i.e. learning and growth, internal business, customer, and financial) and the form of two additional sustainability perspectives, society, and environment (Hansen & Schaltegger, 2016). Thus, the TBL approach allows for a stand-alone sustainability perspective that lags behind the financial perspective. In this regard, the hospitality industry can not only ensure that they meet the strategic objectives of the industry, i.e., satisfying important and neglected stakeholders (i.e., society and environment) but also work by government regulations regarding sustainable energy use. Therefore, an organization must properly manage various indicators to improve its performance (Hansen & Schaltegger, 2016).
The BSC developed by Kaplan and Norton (1992) has proven to be one of the most influential tools in strategic management. Hansen and Schaltegger, 2018), and assume that when a company focuses on measurable hard and soft elements such as employee knowledge and customer relationships, it will gain a competitive advantage. Jassem et al., 2021 pointed out four objects considered by the conventional BSC - financial, customer, internal procedures, and learning and growth - which ignore the inclusion of sustainability issues so that they need to be adjusted to changes in the business environment.
The analysis of the existing literature confirms the absence of a rigorous management framework for measuring sustainable performance. It suggests the BSC as a primary tool for summarizing sustainable performance elements into a business's strategic framework. Furthermore, the application of performance measures reflects contradictory economic, environmental, and social results. This study has designed a model to determine how the application of the BSC will affect sustainable performance in the hospitality industry context.
While implementing a BSC can yield positive financial outcomes for hotels (Denton & White, 2000), the traditional BSC ignores significant stakeholders such as society and the environment, leaving a research gap. Hansen and Schaltegger (2016) proposed various sustainability BSC architectures that incorporate these neglected stakeholders differently. Furthermore, since the nature of these scorecards varies across business units and depends on the prevailing industry operational strategy (Figge et al., 2002; Jackson & Qu, 2008), there is a particular need to design a SBSC that is appropriate for the hospitality industry and explore causality among its perspectives (Fatima & Elbanna, 2020). Therefore, this study develops an SBSC scale based on the three-pronged approach of economic, social, and environmental performance to enable hotels to assess their overall organizational performance. In addition, an exploratory causal analysis was conducted to investigate the underlying relationships between the traditional non-financial BSC perspectives of learning and growth, internal business, and customers and the outcomes of the three main bases of these perspectives (Fatima & Elbanna, 2023).
Declining occupancy rates can have mixed effects on hotel sustainability performance. On the one hand, lower occupancy rates can reduce energy and waste, give hotels more flexibility to implement sustainability solutions and reduce potential employment-related social impacts. However, decreasing occupancy rates can make it difficult for hotels to invest in sustainable practices and reduce resource efficiency if facilities operate at low capacity. Overall, while decreasing occupancy rates may provide some opportunities for sustainability management, the long-term impacts depend more on how hotels manage resources, invest in sustainability, and design efficient operations. Declining occupancy rates tend to lead to lower energy efficiency. Even with fewer guests, all hotel facilities operate highly, requiring a lot of energy and unoptimally utilized resources (Chou & Kuo, 2014). Declining occupancy rates can affect social sustainability by reducing hotel employment opportunities and the revenue available to invest in social programs that support the well-being of surrounding communities (Baum & Ineson, 2015). Low occupancy rates lead to reduced revenues, which limit a hotel's ability to invest in sustainable practices such as renewable energy or more efficient waste management. In other words, decreasing occupancy rates can slow the adoption of green technologies (Bohdanowicz, 2005).
Decreased occupancy rates can reduce a hotel's ability to invest in more efficient resource management practices. However, higher operational efficiencies can also be achieved if the hotel can manage energy and waste consumption more wisely despite fewer guests (Gössling & Peeters, 2015). When occupancy rates are low, hotels may focus more on promoting sustainability than actual sustainable practices, a form of greenwashing. This suggests that decreasing occupancy rates can lead to sustainability marketing not followed by real actions that impact long-term sustainability (Lyon & Montgomery, 2015). The research will be conducted at Villa Uma Sapna Bali, located on Jalan Drupadi Seminyak. The reason is that Villa Uma Sapna Bali has been operating for 23 years since February 2002 and has been able to survive until now, meaning that there is a good implementation of sustainable management even though there is a decrease in the occupancy rate in 2023 by 6.72%, from 83.50% in 2022 to 76.78% in 2023 and in 2024 the occupancy rate decreased again by 3.41%, this data was obtained from the actual occupancy rate and forecast in December (Table 1). The detailed comparison of the occupancy rate in 2023 and 2024 (Figure 1) shows that further anticipation is needed to deal with the business phenomenon, so there is no further decline. As a researcher, I am interested in exploring sustainability performance management at Villa Uma Sapna Bali more deeply.
Referring to the business phenomenon that occurred at Villa Uma Sapna Bali's existing theories, this study will use four variables: sustainability performance as the dependent variable, learning and growth perspective and internal business perspective as independent variables, and tourist perspective as a mediating variable.
This research is associative research using a quantitative approach. This study aims to explain the relationship between the variables studied. The variables studied in this study are Sustainability Performance (Y) as the dependent variable, Tourist Perspective (Z) as the mediating variable, Learn and Growth Perspective (X1), and Internal Business Perspective (X2) as independent variables. This research was conducted at Villa Uma Sapna Seminyak Bali. This research will last 3 (three) months, from November 2024 to January 2025. The population in this study are all permanent and contract employees at Villa Uma Sapna Bali. This study uses nonprobability sampling with a saturated or census sampling technique. So, the sample in the study was 53 employees at Villa Uma Sapna Bali. The data collection techniques used were interviews and questionnaires. The Research Instrument Validity Test results showed that all research variable instruments were suitable for use as measuring tools for these variables. The reliability test results for each variable are at a point above 0.60, as shown in Cronbach's Alpha results, so it can be said that all instruments met the reliability requirements. The data analysis technique used in this study is Structural Equation Modeling Second Order or a structural equation model based on variance or component-based SEM called Partial Least Square (PLS).
Based on the results of the output analysis, it has met convergent validity because the loading factor is above 0.70, so it can be said that all research variable indicators are valid. The learning and growth perspective variable (X1) indicator X1.6 has the highest outer loadings value compared to other indicators, namely 0.977, so it can be explained that this indicator can reflect the learning and growth perspective variable (X1). The internal business perspective variable (X2) indicator X2.4 has the highest outer loadings value compared to other indicators, namely 0.940, so it can be explained that this indicator can reflect the internal business perspective variable (X2). From the mediation variable (Z), indicator Z6 on the tourist perspective has the highest outer loadings value compared to other indicators, namely 0.959, so it can be explained that this indicator can reflect the tourist perspective variable (Z). From the sustainability performance variable (Y), indicator Y1 has the highest outer loadings value compared to other indicators, namely 0.894, so it can be explained that this indicator can reflect the sustainability performance variable (Y). Based on the Cross Loading Test Results, it can be seen that the correlation of the learning and growth perspective variable (X1) with its indicators is higher than the correlation of the internal business perspective (X2), tourist perspective (Z), and sustainability performance (Y). The internal business perspective variable (X2) with its indicators is higher than the learning and growth perspective (X1), tourist perspective (Z), and sustainability performance (Y). Then, the correlation of the tourist perspective variable (Z) with its indicators is higher than the correlation of the learning and growth perspective indicators (X1), internal business perspective (X2), and sustainability performance (Y). Furthermore, the correlation of sustainability performance (Y) with its indicators is higher than the correlation of the internal business perspective indicators (X2), tourist perspective (Z), and learning and growth perspective (X1). It can be explained that all indicators in each variable are valid.
Table 2 shows that the AVE values of the learning and growth perspective, internal business perspective, tourist perspective, and sustainability performance variables have AVE values of each variable greater than 0.50, so the model can be said to be good.
The composite reliability and Cronbach's alpha output results for the variables learning and growth perspective, internal business perspective, tourist perspective, and sustainability performance are all above 0.60. So, it can be concluded that the variables are reliable.
Based on the R-square value of the internal business perspective variable of 0.519, it means that 51.9 percent of the variability of the internal business perspective construct can be explained by the learning and growth perspective variable, while other variables outside the model explain the remaining 48.1 percent of the destination image variable. Based on Table 5.11, the R-square value of the tourist perspective variable is 0.600, meaning that 60 percent of the variability of the tourist perspective construct can be explained by the learning and growth perspective and internal business perspective variables, while other variables outside the model explain the remaining 40 percent of the destination image variable. Likewise, the sustainability performance variable has an R-square value of 0.774. This means that 77.4 percent of the variability of the sustainability performance construct can be explained by the learning and growth perspective, internal business perspective, and tourist perspective variables, while other variables outside the model explain the remaining 22.6 percent of the sustainability performance variable. The result of the Q2 calculation is 0.957, so the conclusion is that sustainability performance at Villa Uma Sapna Bali in this study has a relevant predictive value of 95.7% because it can explain the information in this study and is classified as very strong.
Hypothesis testing on the influence of learning and growth perspective on internal business perspective shows that learning and growth perspective positively and significantly influences internal business perspective at Villa Uma Sapna Bali with a coefficient of 0.720 and P-values 0.000 <0.05. This means that the better the learning and growth perspective at Villa Uma Sapna Bali, the internal business perspective at Villa Uma Sapna Bali will also increase. Based on this, the hypothesis of the influence of learning and growth perspective on the internal business perspective at Villa Uma Sapna Bali is accepted.
The learning and growth perspective traditionally includes intangible long-term organizational performance drivers: human resources, systems, and procedures. Since the hospitality industry is service-oriented and labor-intensive, with employees being the core of service delivery (Phillips & Louvieris, 2005), the industry needs to ensure that employee satisfaction and job performance exceed expectations (Serra–Contallops et al., 2018). Organizations can ensure more efficiency in their operations by developing employee capabilities and making them more competent (Moraga et al., 2020). Therefore, when employees are given opportunities to grow through training and development, they contribute to improving organizational performance (Guest, 2017). Sahiti et al. (2016) explained that the balanced scorecard (BSC) is an efficient management and performance assessment and an integrated approach for organizations and has improved organizational performance, innovation, business operations, and profits. In addition, along with technical developments in the process, organizations can improve their internal processes by building and maintaining relationships with external bodies and stakeholders (Slapnicar & Buhovac, 2014). Therefore, organizational growth gives birth to innovation, which is identified as having the strongest interaction power in the BSC perspective network (Tsai et al., 2020). Learning and growth positively and significantly influence the internal business perspective (Fatima & Elbanna, 2023).
Hypothesis testing on the influence of learning and growth perspective on tourist perspective shows that learning and growth perspective positively and significantly influences tourist perspective at Villa Uma Sapna Bali with a coefficient of 0.391, with P-values 0.000 <0.05. This means that the better the learning and growth perspective at Villa Uma Sapna Bali, the better the tourist perspective at Villa Uma Sapna Bali will be. Based on this, the hypothesis of the influence of learning and growth perspective on tourist perspective at Villa Uma Sapna Bali is accepted.
The learning and growth perspective traditionally includes intangible long-term organizational performance drivers: human resources, systems, and procedures. Because the hospitality industry is service-oriented and labor-intensive, with employees being the core of service delivery (Phillips & Louvieris, 2005), this industry needs to ensure that employee satisfaction and work performance exceed expectations (Serra-Contallops et al., 2018). Organizations can ensure more efficiency in their operations by developing employee capabilities and making them more competent (Moraga et al., 2020). Therefore, when employees are given opportunities to grow through training and development, they contribute to improving organizational performance (Guest, 2017). In addition, along with technical developments in the process, organizations can improve their internal processes by building and maintaining relationships with external bodies and stakeholders (Slapnicar & Buhovac, 2014). Therefore, organizational growth breeds innovation, which is identified as having the strongest interaction force in the BSC perspective network (Tsai et al., 2020). Kia and Kia (2016) found that BSC has transformed banks' business strategy into operations and success and has helped them improve banking operations, attract new customers, expand their banking business in new segments, and reduce costs associated with their various operations. Putri et al. (2021) found that BSC has been adopted to evaluate bank performance and to achieve its goals. It has greatly helped banks improve their operations, customer relationships, growth, business processes, and sustainability. In addition, organizations consistently maintain relationships with their stakeholders to maintain their image in CSR engagement (de Villiers et al., 2016). At the forefront of CSR, customer evaluation of service quality is based on the environmentally friendly behavior of hotel employees (Bastiˇc & Gojˇciˇc, 2012). Therefore, the learning and growth perspective is the foundation of the sustainability balanced scorecard (SBSC), where organizations emphasize building sustainable capabilities by investing in their employees and the systems and procedures accompanying them (Kaplan & Norton, 1996). Learning and growth positively and significantly influence customer perspective (Fatima & Elbanna, 2023). Syahrudin, 2019 showed results that a good percentage of employee training would increase employee knowledge and insight into service, which will result in better and more effective drug preparation service times and will also avoid medication errors and potential errors because employees are already quite capable, careful, and skilled in providing pharmaceutical services to patients, and also supported by high employee morale will add positive value to employee performance. The performance measurement of the Pharmacy Installation of the Manado Adventist Hospital was measured using the BSC method based on the customer perspective and the growth and learning perspective. Based on the results of the study, the performance of the Pharmacy Installation of the Manado Adventist Hospital was reviewed from a customer perspective; namely, 83.45% of patients stated that they were satisfied with the performance of the Pharmacy Installation of the Manado Adventist Hospital (Agow et al., 2021).
Hypothesis testing on the influence of learning and growth perspective on sustainability performance shows that learning and growth perspective positively and significantly influences sustainability performance at Villa Uma Sapna Bali with a coefficient of 0.312, with Pvalues 0.028 <0.05. This means that the better the learning and growth perspective at Villa Uma Sapna Bali, the more sustainability performance at Villa Uma Sapna Bali will increase. Based on this, the hypothesis of the influence of learning and growth perspective on sustainability performance at Villa Uma Sapna Bali is accepted.
The learning and growth perspective traditionally includes intangible long-term drivers of organizational performance: human resources, systems, and procedures. Because the hospitality industry is service-oriented and labor-intensive, with employees being a core part of service delivery (Phillips & Louvieris, 2005), this industry needs to ensure that employee satisfaction and work performance exceed expectations (Serra-Contallops et al., 2018). Organizations can ensure more efficiency in their operations by developing employee capabilities and making them more competent (Moraga et al., 2020). Therefore, when employees are given opportunities to grow through training and development, they contribute to improving organizational performance (Guest, 2017). Furthermore, along with technical developments in the process, organizations can improve their internal processes by building and maintaining relationships with external bodies and stakeholders (Slapnicar & Buhovac, 2014). Therefore, organizational growth breeds innovation, which is identified as having the strongest interaction force in the BSC perspective network (Tsai et al., 2020). In addition, organizations consistently maintain relationships with their stakeholders to maintain their image in CSR engagement (de Villiers et al., 2016). At the forefront of CSR, tourists' evaluation of service quality is based on the environmentally friendly behavior of hotel employees (Bastiˇc & Gojˇciˇc, 2012). Therefore, the learning and growth perspective is the foundation of SBSC, where organizations emphasize building sustainable capabilities by investing in their employees and the systems and procedures accompanying them (Kaplan & Norton, 1996). Learning and growth enhance sustainability performance (Fatima & Elbanna, 2023). The learning and growth perspective significantly affects company performance using the BSC approach (Soeseny et al., 2021). BSC has improved performance and profitability for businesses that have adopted this model (Sahiti, 2016). The learning and growth perspective is the variable with the largest coefficient of determination, so the learning and growth perspective is the largest variable that can affect company performance (Kamal & Tresani, 2019). The increase in company performance is supported by the increase in the number of employees, in this case referring to the learning and growth perspective so that profits also increase (Essau et al., 2021). Ahmed Fathi (2019) found that the green learning and growth perspective optimizes sustainability performance where companies care about employees and maintain their health and training well to increase employee productivity. Hypothesis testing on the influence of internal business perspective on tourist perspective shows that internal business perspective positively and significantly influences tourist perspective at Villa Uma Sapna Bali with a coefficient of 0.444, with Pvalues 0.002 <0.05. This means that the better the internal business perspective at Villa Uma Sapna Bali, the better the tourist perspective at Villa Uma Sapna Bali will be. Based on this, the hypothesis of the influence of the internal business perspective on the tourist perspective at Villa Uma Sapna Bali is accepted.
This perspective focuses on the core business processes, allowing service organizations to ensure frontline employees adhere to streamlined processes to increase productivity (Park & Gagnon, 2006). In addition, tourism research shows that employees must be flexible when responding to customer needs (Aureli & Del Baldo, 2019). This is also evident in the hospitality industry, where employees are in direct contact with customers and must operate in a flexible environment to meet changing customer needs (Nazarian et al., 2017). Efficient resource utilization by organizations reduces their negative impact on the environment while lowering costs and gaining higher financial returns (Price & Sun, 2017). Therefore, developing innovative work processes that are efficient and flexible can improve the profitability and CSR performance of organizations when they find ways to work sustainably and ethically (Cho & Lee, 2017). Putri et al. (2021) found that BSC has been adopted to evaluate bank performance and achieve its goals. It greatly helps banks improve their operations, customer relationships, growth, business processes, and sustainability. Fatima and Elbanna, 2020 stated that the internal business perspective influences the customer perspective in the hospitality and tourism industry. Internal business perspective positively and significantly influences customer perspective (Fatima & Elbanna, 2023). Sofia and Stefani, 2015 revealed that the internal business perspective (IBP) positively and significantly influences the customer perspective. This means that the better the performance in the internal business process perspective, the better the impact on the customer perspective. (Frinka et al., 2016) The assessment results of the four perspectives using the BSC method will impact each other.
The internal business perspective's performance will affect the customer perspective's performance. Each company has a unique value-creation process for its customers that provides good financial results (Kurniasari, 2017). In the internal business process perspective, the company measures all activities carried out by the company, both managers and employees, to create a product that can satisfy customers and shareholders (Salman & Farid, 2016, p. 69). Evan et al., 2021 found the performance produced by PT. Hasjrat Abadi Diponegoro Palu Branch is good because the company can acquire and retain new customers. PT. Hasjrat Abadi Diponegoro Palu Branch can also reduce the percentage of complaints received yearly.
Hypothesis testing on the influence of the internal business perspective on sustainability performance shows that the internal business perspective has a positive and significant effect on sustainability performance at Villa Uma Sapna Bali with a coefficient of 0.288, with Pvalues 0.001 <0.05. This means that the better the internal business perspective at Villa Uma Sapna Bali, the sustainability performance at Villa Uma Sapna Bali will increase. Based on this, the hypothesis of the influence of the internal business perspective on sustainability performance at Villa Uma Sapna Bali is accepted.
This perspective focuses on the main processes of the core business, which allows service organizations to ensure frontline employee compliance with simplified processes to increase productivity levels (Park & Gagnon, 2006). In addition, tourism research shows that employees must be flexible when responding to tourist needs (Aureli & Del Baldo, 2019). This is also evident in the hospitality industry, where employees are in direct contact with travelers and must operate in a flexible environment to meet the changing needs of travelers (Nazarian et al., 2017). Efficient resource utilization by organizations reduces their negative impact on the environment while lowering costs and achieving higher financial returns (Price & Sun, 2017). Therefore, developing innovative, efficient, and flexible work processes can improve an organization's profitability and CSR performance as it finds ways to operate sustainably and ethically (Cho & Lee, 2017).
As formulated by Kaplan and Norton (1996), the four traditional BSC perspectives are hierarchically linked, ultimately leading to the fulfillment of the organization's strategic objectives, the triple bottom line (TBL). However, the BSC perspectives are not always related simply linearly. They also create a network-like relationship, where perspectives placed at a lower hierarchical level can impact all other perspectives at a higher level than that perspective, indicating the potential for a partially mediated model (Bryant et al., 2004). Therefore, based on the discussion, a mediation hypothesis is formulated: the internal business perspective. In the service industry, this perspective involves providing effective and efficient services that can be made possible through innovation (McPhail et al., 2008).
Furthermore, employee capability development, in addition to increasing service delivery and efficiency, can motivate employees to demonstrate pro-social and environmental behaviors that align with the organization's CSR objectives (Rupp et al., 2013; Cerita & Neves, 2015). After improving work processes, organizations can increase their productivity levels and reduce production costs, which results in market share growth and increased profits (Lucianetti et al., 2019; Tsai et al., 2020). This impact is also seen in the environmental performance of organizations when using resource-efficient work processes and reducing usage. However, building such processes and infrastructure requires long-term training and continuous employee development (Slapnicar & Buhovac, 2014; Tsai et al., 2020). Abdelrazek (2019) found that internal business processes can improve sustainability performance. Fatima and Elbanna, 2020 stated that an internal business perspective improves sustainability performance in the hospitality and tourism industry. Internal business perspective positively and significantly affects sustainability performance (Fatima & Elbanna, 2023). Internal business processes on company performance partially have a significant relationship (Prianka, 2022). Hypothesis testing on the influence of tourist perspective on sustainability performance shows that tourist perspective has a positive and significant effect on sustainability performance at Villa Uma Sapna Bali with a coefficient of 0.375, with Pvalues 0.005 <0.05. This means that the better the tourist perspective at Villa Uma Sapna Bali, the more sustainability performance at Villa Uma Sapna Bali will increase. Based on this, the hypothesis of the influence of tourist perspective on sustainability performance at Villa Uma Sapna Bali is accepted. Customers play a very important role in service organizations, influencing service performance through their direct participation in providing service experiences (J ̈aa s̈ kela ï nen et al., 2014). Therefore, the measurement of tourist performance (in the hospitality industry) must go beyond satisfaction. Therefore, organizations can assess various indicators from the customer perspective related to the service received, customer relationships, and other factors (Kaplan & Norton, 1996). CSR has gained immense popularity among customers as they care about sustainable products and services (Chernev & Blair, 2015; Cordeiro & Tewari, 2015). In addition to being environmentally friendly, customer perception is influenced by how ethical an organization is towards society in its production or service delivery (Chernev & Blair, 2015). Therefore, by satisfying customers, organizations can improve their financial performance (Francioli & Cinquini, 2014) and achieve environmental and societal-oriented goals.
From a customer perspective, customer satisfaction is primarily driven by employee satisfaction in the service industry, as employees are at the forefront of service delivery (Slapnicar & Buhovac, 2014). In the case of the hospitality industry, the need to manage tourist quality is particularly evident, given the direct interaction with tourists. Furthermore, customers are socially conscious and actively evaluate an organization's CSR activities and strategies when purchasing (Choi, 2017). So, when organizations invest in employee advancement through training and incentive plans, they demonstrate themselves as ethical organizations to customers and employees (Zerbini, 2017).
A better working environment results in employees in the service industry providing improved service quality to their customers; customer management can also be improved by developing more efficient operations that unlock the organization's potential to reach a diverse customer base (Moraga et al., 2020). Therefore, when customers are at the heart of a service organization, meeting customer expectations and satisfying their service and CSR needs can improve financial and CSR performance (Quintana-García et al., 2018). Abdelrazek (2019) stated that customer perspective can improve sustainability performance. Fatima and Elbanna, 2020 stated that customer perspective influences sustainability performance in the hospitality and tourism industry. Customer perspective positively and significantly influences sustainability performance (Fatima & Elbanna, 2023). BSC has improved performance and profitability for businesses that have adopted this model (Sahiti, 2016). Saputri et al., 2021 stated that customer perspective does not have a significant effect on the performance of PT. Indo Veeer Utama. Increased customer acquisition is because most customers are dominated by new customers, which means that the company has succeeded in attracting customers amidst the competition, accompanied by increasing employee productivity every year (Essau et al., 2021). A study by Eneizan et al. (2016) concluded that an environmentally focused customer strategy consisting of environmentally friendly products, prices, distribution, promotions, people, and physical environments drives businesses toward positive financial and non-financial outcomes. However, the study further highlights that this era of environmentally friendly customer performance has not been empirically tested. Hypothesis testing on the role of internal business perspective mediating the influence of learning and growth perspective on tourist perspective shows that internal business perspective mediates the influence of learning and growth perspective on tourist perspective at Villa Uma Sapna Bali with a coefficient of 0.320, with Pvalues 0.006 <0.05. This means that the internal business perspective partially mediates the influence of the learning and growth perspective on the tourist perspective at Villa Uma Sapna Bali, which means that the learning and growth perspective directly increases the tourist perspective, the influence of learning and growth perspective on tourist perspective will be greater if learning and growth perspective can also increase internal business perspective. If the learning and growth perspective can increase the internal business perspective, it will automatically increase the tourist perspective. So, the hypothesis of the role of internal business perspective in mediating the influence of learning and growth perspective on tourist perspective at Villa Uma Sapna Bali is accepted.
In the service industry, the internal business perspective involves delivering effective and efficient services that can be made possible through innovation (McPhail et al., 2008). After improving the work process, organizations can increase their productivity levels and reduce production costs, which results in market share growth and increased profits (Lucianetti et al., 2019; Tsai et al., 2020). Fatima and Elbanna, 2020 found that the internal business perspective mediates the effect of the learning and growth perspective on the customer perspective in the hospitality and tourism industry. The internal business perspective mediates the relationship between the learning and growth perspective on the customer perspective (Fatima & Elbana, 2023). Putri et al. (2021) found that BSC has been adopted to evaluate bank performance and achieve its goals. It greatly helps banks improve their operations, customer relationships, growth, business processes, and sustainability. This is also evident in the hospitality industry, where employees are in direct contact with customers and must operate in a flexible environment to meet changing customer needs (Nazarian et al., 2017). Efficient resource utilization by organizations reduces their negative impact on the environment while lowering costs and achieving higher financial returns (Price & Sun, 2017). Therefore, developing innovative, efficient, and flexible work processes can improve an organization's profitability and CSR performance as it finds ways to work sustainably and ethically (Cho & Lee, 2017). (Frinka et al., 2016) The results of assessing the four perspectives using the BSC method will impact each other. The results of assessing the four perspectives using the BSC method will impact each other. The internal business perspective's performance will affect the customer perspective's performance. Each company has a unique set of value-creation processes for its customers and provides good financial results (Kurniasari, 2017). Hypothesis testing on the role of internal business perspective mediating the influence of learning and growth perspective on sustainability performance shows that internal business perspective mediates the influence of learning and growth perspective on sustainability performance at Villa Uma Sapna Bali with a coefficient of 0.208, with Pvalues 0.002 <0.05. This means that the tourist perspective partially mediates the influence of the learning and growth perspective on sustainability performance at Villa Uma Sapna Bali, which means that the learning and growth perspective directly increases sustainability performance, the influence of the learning and growth perspective on sustainability performance will be greater if learning and growth perspective can also increase tourist perspective. If the learning and growth perspective can increase tourist perspective, sustainability performance will automatically increase. So, the hypothesis of the role of the internal business perspective mediating the influence of learning and growth perspective on sustainability performance at Villa Uma Sapna Bali is accepted.
The internal business perspective mediates the relationship between the learning and growth perspective with environmental, financial, and social perspectives (Fatima & Elbana, 2023). In the service industry, the internal business perspective involves effective and efficient service delivery processes that innovation can enable (McPhail et al., 2008). Furthermore, employee capability development and improving service delivery levels and efficiency can motivate employees to demonstrate pro-social and environmental behaviors that align with the organization's CSR goals (Rupp et al., 2013; Cerita & Neves, 2015). After improving work processes, organizations can increase their productivity levels and reduce production costs, which results in market share growth and increased profits (Lucianetti et al., 2019; Tsai et al., 2020). Fatima and Elbanna, 2020 found that the internal business perspective mediates the effect of learning and growth perspective on sustainability performance in the hospitality and tourism industry.
Organizations can ensure more efficiency in their operations by developing employee capabilities and making them more competent (Moraga et al., 2020). Therefore, when employees are allowed to grow through training and development, they contribute to improving organizational performance (Guest, 2017). Ryan et al. (2016) stated that all performance perspectives had improved innovation, communication, efficient use of resources, and achievement of business goals and sustainable operations. Putri et al. (2021) found that BSC has been adopted to evaluate bank performance and to achieve its goals. It has greatly helped banks improve their operations, customer relationships, growth, business processes, and sustainability. Efficient resource utilization by organizations reduces their negative impact on the environment while lowering costs and gaining higher financial returns (Price & Sun, 2017). Therefore, developing efficient and flexible innovative work processes can improve the organization's profits and CSR performance when they find ways to work sustainably and ethically (Cho & Lee, 2017). Hypothesis testing on the role of tourist perspective mediating the influence of learning and growth perspective on sustainability performance shows that tourist perspective mediates the influence of learning and growth perspective on sustainability performance at Villa Uma Sapna Bali with a coefficient of 0.147, with Pvalues 0.036 <0.05. This means that the tourist perspective partially mediates the influence of the learning and growth perspective on sustainability performance at Villa Uma Sapna Bali, which means that the learning and growth perspective directly increases sustainability performance; the influence of the learning and growth perspective on sustainability performance will be greater if learning and growth perspective can also increase tourist perspective. If learning and growth perspective can increase tourist perspective, perspective will automatically increase sustainability performance. Based on this, the hypothesis of the role of the tourist perspective mediating the influence of learning and growth perspective on sustainability performance at Villa Uma Sapna Bali is accepted. Customer satisfaction is mainly driven by employee satisfaction in the service industry because employees are at the forefront of service delivery (Slapnicar & Buhovac, 2014). In the case of the hospitality industry, the need to manage customer quality is very apparent, given the direct interaction with customers.
Furthermore, customers are socially conscious and actively evaluate an organization's CSR activities and strategies when purchasing (Choi, 2017). So, when organizations invest in employee advancement through training and incentive plans, they demonstrate themselves as ethical organizations to customers and employees (Zerbini, 2017). Syahrudin, 2019 showed results that a good percentage of employee training would increase employee knowledge and insight into service, which will result in better and more effective drug preparation service times and will also avoid medication errors and potential errors because employees are already quite capable, thorough, and skilled in providing pharmaceutical services to patients, and also supported by high employee morale will add positive value to employee performance.
A better working environment results in employees in the service industry providing improved service quality to their customers, thereby improving company performance (Moraga et al., 2020). Customer management can also be improved by developing more efficient operations that unlock the organization's potential to reach a diverse customer base (Moraga et al., 2020). Therefore, when customers are at the heart of a service organization, meeting customer expectations and satisfying their service and CSR needs can improve financial and CSR performance (Quintana-García et al., 2018). Fatima and Elbanna, 2020 found that customer perspective mediates the effect of learning and growth perspective on sustainability performance in the hospitality and tourism industry. Customer perspective mediates the relationship between learning and growth perspective and customer perspective (Fatima & Elbana, 2023). In addition to being environmentally friendly, customer perceptions are influenced by how ethical an organization is towards society in the production or delivery of services (Chernev & Blair, 2015). Therefore, by satisfying customers, organizations can improve their financial performance (Francioli & Cinquini, 2014) and achieve goals oriented toward the environment and society. (Frinka et al., 2016) The assessment results of the four perspectives using the BSC method will impact each other. When customers are the core of a service organization, meeting customer expectations and satisfying their services and CSR needs can improve financial and CSR performance (Quintana-García et al., 2018). Abdelrazek (2019) stated that customer perspective can improve sustainability performance. Hypothesis testing on the role of tourist perspective mediating the influence of internal business perspective on sustainability performance shows that tourist perspective mediates the influence of internal business perspective on sustainability performance at Villa Uma Sapna Bali with a coefficient of 0.166, with Pvalues 0.024 <0.05. This means that the tourist perspective partially mediates the influence of the internal business perspective on sustainability performance at Villa Uma Sapna Bali, which means that the better the tourist perspective at Villa Uma Sapna Bali, the greater the influence of the internal business perspective on sustainability performance at Villa Uma Sapna Bali. Internal business perspective directly increases sustainability performance; the influence of internal business perspective on sustainability performance will be greater if the internal business perspective can also increase tourist perspective. If an internal business perspective can increase tourist perspective, it will automatically increase sustainability performance. Based on this, the hypothesis of the role of the tourist perspective in mediating the influence of the internal business perspective on sustainability performance at Villa Uma Sapna Bali is accepted.
In the service industry, this perspective involves effective and efficient service delivery processes that can be made possible through innovation (McPhail et al., 2008). Furthermore, employee capability development and improving service delivery levels and efficiency can motivate employees to demonstrate pro-social and environmental behaviors aligned with the organization's CSR goals (Rupp et al., 2013; Cerita & Neves, 2015). After improving work processes, organizations can increase their productivity levels and reduce production costs, which impact market share growth and increase profits (Lucianetti et al., 2019; Tsai et al., 2020). Fatima and Elbanna, 2020 found that customer perspective mediated the effect of internal business perspective on sustainability performance in the hospitality and tourism industry. The internal business perspective did not mediate the relationship between the learning and growth perspective and the customer perspective (Fatima & Elbanna, 2023). Sofia and Stefani, 2015 revealed that the internal business perspective (IBP) positively and significantly affected the customer perspective. This means that the performance of the company is getting better. (Frinka et al., 2016) The assessment results of the four perspectives using the BSC method will impact each other. The internal business perspective's performance will affect the customer perspective's performance. Each company has a unique set of value-creation processes for its customers and provides good financial results (Kurniasari, 2017). In addition to being environmentally friendly, customer perceptions are influenced by how ethical an organization is towards society in production or service delivery (Chernev & Blair, 2015). Therefore, by satisfying customers, organizations can improve their financial performance (Francioli & Cinquini, 2014) and achieve goals oriented toward the environment and society. In the case of the hospitality industry, the need to manage tourist quality is very visible, given the direct interaction with tourists. Furthermore, customers have social awareness and actively evaluate the organization's CSR activities and strategies when purchasing (Choi, 2017).
The practical implications of this research suggest that Villa Uma Sapna Bali should focus on enhancing learning and growth initiatives to improve internal operations, customer satisfaction, and sustainability. The hotel can positively impact business performance and guest experiences by prioritizing employee training and organizational development. Additionally, managers should recognize the interdependence of internal business and tourist perspectives, as they jointly influence sustainability efforts. Theoretical implications highlight the contribution to the Balanced Scorecard framework, emphasizing the mediating roles of internal business and tourist perspectives in driving sustainability performance. Further research could explore additional variables or expand to different locations to offer broader insights.
Based on the research results obtained, several conclusions can be drawn. Learning and growth perspective has a significant positive effect on internal business perspective at Villa Uma Sapna Bali Learning, and growth perspective has a significant positive effect on tourist perspective at Villa Uma Sapna Bali Learning, and growth perspective has a significant positive effect on sustainability performance at Villa Uma Sapna Bali. The internal business perspective significantly positively affects the tourist perspective at Villa Uma Sapna Bali. Internal business perspective has a significant positive effect on sustainability performance at Villa Uma Sapna Bali. The tourist perspective significantly positively affects sustainability performance at Villa Uma Sapna Bali. The internal business perspective partially mediates the effect of the learning and growth perspective on the tourist perspective at Villa Uma Sapna Bali. Internal business perspective partially mediates the effect of learning and growth perspective on sustainability performance at Villa Uma Sapna Bali. The tourist perspective partially mediates the effect of the learning and growth perspective on sustainability performance at Villa Uma Sapna Bali. The tourist perspective partially mediates the effect of the internal business perspective on sustainability performance at Villa Uma Sapna Bali.
Villa Uma Sapna Bali is expected to improve sustainability performance by considering the learning and growth perspective and internal business perspective because it has been proven influential in this study. For further research, it is expected to be able to add variables or indicators that can affect sustainability performance and be able to expand the scope of research that is not only limited to Villa Uma Sapna Bali or can also change the research location that is not only focused on a research location, to provide a more comprehensive view and can be implemented in general.
Original paper, i.e. Figures, Tables, References, and Authors' Contacts available at http://rjoas.com/issue-2025-04/article_01.pdf