A CASE STUDY OF RESTAURANT “X” IN TANGERANG AND

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THE IMPACT OF GREEN CONCEPT IMPLEMENTATION TOWARDS OPERATIONAL PERFORMANCE: A CASE STUDY OF RESTAURANT “X”

IN TANGERANG AND SOUTH TANGERANG

By

Rangga Basudewa 11403099

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION - HOTEL AND TOURISM MANAGEMENT concentration

FACULTY OF BUSINESS AND COMMUNICATION

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia

Revision after Thesis Defense on July 17^th, 2018 July 2018

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Rangga Basudewa

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Rangga Basudewa Student

______________

Date

Approved by:

Dr. Nila Krisnawati Hidayat, SE., MM.

Thesis Advisor

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Date

Dr. Nila Krisnawati Hidayat, SE., MM.

Dean

_______________

Date

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The Impact of Green Concept Implementation Towards Operational Performance:

A Case Study of Restaurant “X” in Tangerang and South Tangerang

Rangga Basudewa Page 3 of 86

ABSTRACT

THE IMPACT OF GREEN CONCEPT IMPLEMENTATION TOWARDS OPERATIONAL PERFORMANCE: A CASE STUDY OF RESTAURANT “X” IN

TANGERANG AND SOUTH TANGERANG

By

Rangga Basudewa

Dr. Nila Krisnawati Hidayat, SE., MM., Advisor

SWISS GERMAN UNIVERSITY

Despite the latest trend of green restaurants, many restaurants in Indonesia still have not implemented green concept due to many obstacles, such as high-cost, complicated systems, lack of awareness, lack of governmental support, etc. This research wants to look at the benefits of having green practices on the operational performance of a restaurant chain to see whether or not a restaurant should implement green concept. This study will bring the readers further to the literature review, which has been collected and reviewed and the primary research that was conducted through questionnaires and a brief interview. This research has successfully gathered 30 respondents of management level entry job of a restaurant chain. The analysis was done by using SEM PLS, using SmartPLS software. At the end of this research, it has been concluded that green practices boost operational performance significantly, as for the dimensions of green practices: green action and green food has only a slight difference in its impact on operational performance, with green food being the higher determinant.

Keywords: green action, green concept, green food, green practices, green restaurant, operational performance, restaurant performance

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Rangga Basudewa

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DEDICATION

Dedicated to the vast industry of hospitality.

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Rangga Basudewa

I thank my advisor during this final semester, Dr. Nila Krisnawati Hidayat, SE., MM.

Throughout this thesis process, her patient guidance, encouragement, and advice have made me able to finish this. I have been extremely lucky to have an advisor who has constantly checked on my work and always responded to my questions promptly. Her guidance contributed enormously to the success of this thesis.

I am most grateful to my friends who went through the same struggle as me, who kept me motivated and providing me with infinite amount of support, especially: Christ Vincentius Halim and Romario Garcia, who were always there to help me tackle problems in the completion of this thesis.

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TABLE OF CONTENTS

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

ACKNOWLEDGEMENTS ... 6

TABLE OF CONTENTS ... 7

LIST OF FIGURES ... 10

LIST OF TABLES ... 10

1. INTRODUCTION ... 11

1.1 Background ... 11

1.2 Research Problem ... 14

1.3 Research Questions ... 15

1.4 Research Objectives ... 15

1.5 Scope and Limitation ... 15

1.6 Significance of Study ... 16

2. LITERATURE REVIEW ... 17

2.1 Framework of Thinking ... 17

2.2 Green Business ... 18

2.3 Green Restaurant ... 18

2.3.1 Green action ... 19

2.3.2 Green foods ... 19

2.3.3 Green donation ... 19

2.4 Green Operational Performance ... 20

2.4.1 Positive feedback ... 20

2.4.2 Reducing, reusing, and recycling ... 20

2.4.3 Positive financial income ... 21

2.4.4 Attractiveness in market ... 21

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Rangga Basudewa

2.6 Fast Food Restaurant ... 21

2.7 Previous Studies ... 23

2.8 Study Differences and Similarities ... 27

2.9 Hypothesis ... 27

3. RESEARCH METHODOLOGY ... 28

3.1 Type of Study ... 28

3.2 Unit of Analysis / Unit of Observation ... 28

3.3 Sampling Design ... 30

3.3.1 Population & Sample Target ... 30

3.4 Location & Time Frame of Study ... 30

3.5 Data Sources & Collection ... 31

3.5.1 Type of Data ... 31

3.5.2 Data Collection Method ... 31

3.5.3 Questionnaire Structure ... 32

3.6 Research Model ... 33

3.7 Variable Operationalization ... 34

3.8 Data Processing Procedures ... 36

3.8.1 Data Preparation ... 36

3.8.2 Data Screening ... 36

3.8.3 Validity Test ... 36

3.8.4 Reliability Test ... 38

3.9 Data Analysis Technique ... 39

3.9.1 Fit Model ... 39

3.9.2 Coefficient of Determination ... 39

3.9.3 Outer Model Structural Path Significance ... 40

3.9.4 Hypothesis Testing using Inner Model and Path Coefficient ... 40

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4. RESULT ... 41

4.1 Brief Profile of Company ... 41

4.1.1 Stage of Green Concept Implementation ... 41

4.1.2 Obstacles of Implementing Green... 42

4.2 Brief Profile of Respondents ... 43

4.3 Descriptive Analysis ... 43

4.4 Inferential Statistics Analysis ... 44

4.4.1 Validity and Reliability ... 44

4.4.2 Fit Model ... 44

4.4.3 Coefficient of Determination ... 45

4.4.4 Outer Model Structural Path Significance ... 45

4.5 Hypothesis Testing and Analysis ... 47

4.6 Internal and External Analysis of Green Restaurant Management ... 52

5. CONCLUSION AND RECOMMENDATION ... 54

5.1 Conclusion ... 54

5.2 Managerial Implication ... 54

5.3 Recommendation for Further Research ... 55

GLOSSARY ... 56

REFERENCES ... 58

APPENDICES ... 63

Appendix 1 – Questionnaire in English ... 63

Appendix 2 – Questionnaire in Indonesian ... 67

Appendix 3 – Interview Questions ... 71

Appendix 4 – Interview Transcript ... 72

Appendix 5 – Raw Data ... 82

CURRICULUM VITAE ... 85