“WHERE ETHICS MEETS GREEN INTELLIGENCE”: EMPLOYEE ENGAGEMENT MEDIATING ETHICAL LEADERSHIP AND AI ADOPTION FOR SUSTAINABLE HOTEL PERFORMANCE

Abstract

This study examines the relationships among ethical leadership, artificial intelligence (AI) adoption, employee engagement, and sustainable hotel performance, with a particular emphasis on employee engagement's mediating role. Drawing on social learning theory and social exchange theory, the study investigates how ethical leadership and AI adoption contribute to employee engagement and sustainable performance in the hospitality industry. The study employed a quantitative, cross-sectional design and analysed data using Partial Least Squares Structural Equation Modelling (PLS-SEM) in SmartPLS 4. The measurement model was assessed for internal consistency reliability, convergent validity, and discriminant validity, while the structural model was evaluated through path analysis and bootstrapping. The results indicate that ethical leadership positively and significantly influences employee engagement and sustainable hotel performance. Similarly, AI adoption has significant positive relationships with employee engagement and sustainable hotel performance. Employee engagement also positively influences sustainable hotel performance and mediates the relationship between ethical leadership and AI adoption and sustainable hotel performance. These findings highlight the importance of integrating responsible leadership, intelligent technologies, and employee involvement to enhance sustainability in the hospitality industry. The study contributes to hospitality management literature by integrating leadership, technological, and employee-related perspectives within a unified framework. Practically, the findings emphasise the need for hotel managers to promote ethical leadership, implement AI responsibly, and strengthen employee engagement to support economic viability, environmental responsibility, and long-term organisational sustainability.