a direct effect on firm performance and a tendency towardimproved competitiveness.Based on the findings listed above, the following hypoth-esis is proposed:H4.The adoption of green practices is positively related tofirm competitiveness.When operational performance is enhanced, the financialperformance of the company is also expected to increase (Enzand Siguaw1999) because the company may achieve savingsin consumption, reduce the cost of its operations and improveits overall operating conditions (Lee2009; Chan2009; Llachet al.2012). Therefore, the adoption of green practices allowsfirms to improve their financial performance through reduc-tions in daily operating costs and improvements in competi-tiveness. In other words, operational performance and com-petitiveness could have a mediating effect among these di-mensions and firm performance (see Pereira-Moliner et al.2012).The primary reason for this effect is that, to be economi-cally viable, such initiatives must not only decrease operatingcosts but also contribute to improving profits by creating valuefor customers from products and operations (Robinot andGiannelloni2010; Jani and Han2011).However, other studies in the industrial sector (see Hillary2004) explained that the high cost of adopting such practices,the failure to successfully integrate practices into thecompany’s culture and deficiencies in employee knowledgeof and attitudes toward these practices, together with uncer-tainty about market benefits, could make it difficult for smallcompanies to achieve better operational performance byadopting green practices and, therefore, improving firm per-formance (Llena2007; Dahlmann et al.2008).Although the findings are mixed, studies on tourism com-panies that show a significant positive relationship betweenthe adoption of green practices and firm performance mediat-ed by another construct could be prevalent (see Pereira-Moliner et al.2012). Thus, the following hypothesis is proposed:H5.The adoption of green practices, mediated by operationalperformance, is positively related to firm performance.Currently, companies face a range of complex situations,including stiff competition, a hostile economic environment,declining demand, financial downturns and changes in con-sumer behavior (Briggs et al.2007; Kincaid et al.2010;Alonso-Almeida and Bremser2013). Service organizationsconstantly strive to provide patrons with a quality offeringso as to build long-term relationships and increase firm prof-itability (Smith et al.2012). Several challenges create a needfor tourism companies to develop distinctive features to main-tain their position in the market. Green production could makerestaurants more competitive (Han et al.2011). These princi-pal reasons for this competitive differentiation could be thatthe restaurant has achieved a strong environmental reputation(Konar and Cohen2001; Jang et al.2011; Hoejmose et al.