Internationalization, Dynamic Capabilities, and Innovation: Unveiling the Impact on Hotel Chain Performance

ABSTRACT The indirect effect of dynamic capabilities on performance has recently emerged as a topic of significant interest and debate in management research. In turbulent environments such as the international hotel industry, where companies constantly innovate to improve their performance, it is important to consider the effect of these dynamic capabilities. Therefore, the aim of this paper is to fill the gap by analyzing the role of dynamic capabilities (influenced by the degree of hotel chain internationalization) in innovation, and their subsequent impact on hotel chain performance. The study employs a combination of primary and secondary sources, comprising 107 surveys from Spanish hotel chains, to analyze the data using partial least squares structural equation modeling (PLS‐SEM). The findings indicate that only hotel chains that are committed to internationalization and possess the capacity to develop dynamic capabilities can leverage innovation to achieve enhanced performance. Thus, hotel chains must prioritize dynamic capabilities to navigate market changes such as technological advancements or sustainability trends, which are vital for maintaining competitiveness in the global market.