Internal and external integration in hotel industries is essential to improve Green Supply Chain Management (GSCM) to maintain hotel performance and sustainability. This research is to examine the impact of internal and external integration on GSCM and hotel performance. It is quantitative research with judgmental sampling. 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. But 66 questionnaires were returned, and only 62 questionnaires were valid for data analysis. Structural Equation Modelling (SEM) is used to analyze with the help of Java Web Start software. 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. External integration with Sharing knowledge with partners and Collaborating in solving problems can improve GSCM significantly. Supply chain integration, which consists of internal integration and external integration, impacts hotel performance by reducing hotel waste and Efficient use of resources. GSCM in implementing Eco green, green procurement and product life cycle have a significant impact on improving hotel performance.

Tourism has been represented among the most important economic sectors that influence the development of the majority of world societies. However, in the face of this more dynamic environment, hotels have to find the best ways to improve their performance. To that end, data for the study were collected from 300 representatives of three, four and five start hotels’ top management. The results reveal that, corporate social responsibility, hotel image, and error management culture can improve hotel performance. These results can help managers direct their attention toward understanding the importance of practicing corporate social responsibility for sustainable hotel performance and improving image of hotel.