The research contributes enrichment to the theory of digital supply chain and practical contribution to enlighten top management in information technology investment. Lastly, supply chain flexibility impacts increasing financial flexibility (β = 0.192). External cross-functional integration increases supply chain flexibility (β = 0.316) and financial performance (β = 0.441). Key user capability has an impact on supply chain flexibility (β = 0.370) while internal cross-functional integration influences increasing supply chain flexibility (β = 0.373) and financial performance (β = 0.421). Data analysis using Partial least squares (PLS) on 89 hotel organizations with a one-star category or more shows that key user capability significantly affects internal cross-functional integration (β = 0.728) and external cross-functional integration (β = 0.127). Key user capabilities are needed to maintain a digital supply chain in information technology systems to integrate internally and externally. The team assigned to run the integration system in its function is designated as the key user who can implement and maintain an ongoing basis. Organizations, through information technology, can integrate internal and external cross-functional. Organizational competitiveness is enhanced by implementing supply chain integration. The use of energy efficiency and the existence of good waste management as indicators of green hotel operation has an impact on green employee behavior of 0.346. The Internet of things (IoT) has no significant impact on green employee behavior directly but through green hotel operation. green purchasing has a significant impact on green hotel operation, with the T-statistic value of 0.545, and green employee behavior, with the T-statistic value of 0.346. The results show that the Internet of Things (IoT) has a significant impact on green hotel operation, with the T-statistic value of 0.378. SEM-PLS (Structural Equation Modelling Partial Least Square) was used to analyze the data. Eighty-two (82) questionnaires were distributed, but only 62 questionnaires were valid, with a response rate of 75.60 %. The purpose of this study is to examine whether the Internet of Things, strategic green purchasing and green operation have impacted green employee behavior in star-hotels in East Java. Hotel industries react to it by implementing the concept of green hotels. The government also has responded to the commotion by requiring companies to produce friendly and safe products or services to their customers. Many people are aware of taking care of the global environment, so they demand environmentally friendly business activities. GSCM in implementing Eco green, green procurement and product life cycle have a significant impact on improving hotel performance. Supply chain integration, which consists of internal integration and external integration, impacts hotel performance by reducing hotel waste and Efficient use of resources. External integration with Sharing knowledge with partners and Collaborating in solving problems can improve GSCM significantly. The results show that all six hypotheses are supported, internal integration with Use technology to significantly determine plans and coordination capable of external integration and GSCM. Structural Equation Modelling (SEM) is used to analyze with the help of Java Web Start software. But 66 questionnaires were returned, and only 62 questionnaires were valid for data analysis. Questionnaires were distributed to 72 hotel employees from 62 hotels of three-star hotels and above, who understand GSCM and hotel performance in East Java. It is quantitative research with judgmental sampling. This research is to examine the impact of internal and external integration on GSCM and hotel performance. Internal and external integration in hotel industries is essential to improve Green Supply Chain Management (GSCM) to maintain hotel performance and sustainability.
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