Added value of ecolabels for tourism SMEs in Europe : a case study of EU Ecolabel certified enterprises

Abstract

This thesis explores added value of the EU Ecolabel for tourism SMEs and the motivations behind their adoption of this certification. It also examines challenges and opportunities that come with certification and whether it leads to improvements in environmental performance and internationalization. The research uses Signalling Theory as its theoretical lens. It employs a qualitative research approach, using both literature review and semi-structured interviews for data collection. Three EU Ecolabel owned SMEs from Denmark and Austria were interviewed during the process. Thus, they offered grounded understanding of their lived experiences.

Findings show that EU ecolabel adoption decision mostly shaped by the enterprises’ internal values and long-term sustainability goal, rather than just marketing motivations. Despite the need for internal adjustments, ecolabel delivered clear benefits to them. For instance, cost saving and improved environmental performance. Moreover, EU Ecolabel also works as both external and internal stakeholder signal. It influences how SMEs’ daily operations, their employee engagement, but also how their sustainability values carried through the enterprise. Although EU Ecolabel did not lead to direct international expansion, it did help to interviewed enterprises raise visibility and build connection across borders. Overall, this thesis offers grounded view of how ecolabel function in practice. It suggests that the added value of the EU Ecolabel is context specific and influenced by organizational culture, stakeholder expectations and operational realities.