This study explores the combined effects of adopting sustainable practices on small tourism companies’ performance. The existing literature provides insufficient data on sustainable behaviour because most studies on environmental practices focus on larger companies in the tourism sector, and a gap exists in social practices. This study is based on a survey of 374 restaurant managers. It uses structural equation modelling to study direct links between three dimensions – quality, environmental practices and social practices – and financial performance and market success factors. Significant differences with earlier studies are found. This study suggests that proactive sustainable practices can benefit small service companies by improving competitiveness even in difficult times. Practical implications are discussed in relation to sustainable practices.

Purpose: The purpose of this study is to explore the impact of the decision to adopt environmental practices in small service companies given that most of the studies on environmental practices focus on the industrial sector and on larger companies.Design/methodology/approach: This work is based on 448 personal surveys involving the managers of small travel agencies, using structural equation modeling to study the links between the dimensions studied.Findings: The results of this paper suggest that being proactive on environmental issues can bring small service companies a great number of benefits that improve their competitiveness and firm performance.Originality/value: To the best of the authors' knowledge, this is the first study to explore the impact of the adoption of environmental practices on a single service industry. It therefore provides useful empirical evidence for managerial practice in the industry concerned.