Transformative Social Innovation: A Propositional Framework for Tourism-Dependent Communities

Abstract

Existing hospitality and tourism research has focused on internal stakeholders (e.g., employees) when addressing the social pillar of environmental, social, and governance (ESG) framework, but external stakeholder perspectives remain underexplored. This conceptual paper fills that gap in the literature by developing a propositional framework on strategies to foster hospitality and tourism firms’ social innovation with their key external stakeholder, local communities. Specifically, the propositional framework identifies transformational community engagement as the most effective strategy for achieving transformative social innovation, mediated by three social capital dimensions: social relations, embedded resources, and collective actions. The paper also presents real-world examples from all-inclusive resorts in Small Island Developing States to support its framework. Ultimately, this research advances understanding of ESG’s social pillar and offers guidance for future studies and policy development in tourism-dependent communities.