Navigating hospitality environmental dynamism: How green knowledge and green absorptive capacity drive innovation and competitive advantage?

Abstract

This mixed-methods study looks into how managers understand the concept of sustainability in the case of five-star hotels in Egypt. It does so by combining the results of quantitative surveys conducted among 378 managers with qualitative interviews of 19 participants. The approach is based on the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT), where the researchers investigate the relationship between green knowledge management and absorptive capacity in the promotion of green innovation and sustainable competitive advantage. This is a gap in the literature for the context of emerging economies. By using PLS-SEM, the researchers find that good management of green knowledge leads to an organization having a greater potential to absorb and apply environmental knowledge. Consequently, the organization gets the benefit of innovation and increased competitiveness. The green absorptive capacity and the organizational learning act as mediators for the relationships discussed, while environmental dynamism acts as a reinforcement factor, enabling hotels to cope with and innovate in changing markets. The following qualitative insights support these mechanisms, giving weight to the need for the strategic embedding of green knowledge and a culture of continual learning. This study is in line with Sustainable Development Goal (SDG) 12 and presents a new integrated capability-building framework for the hospitality industry that helps in the implementation of sustainable practices and eco-driven competitiveness.