PEER REVIEW PAPER: INNOVATION IN CRISIS. THE ROLE OF LEADERSHIP AND DYNAMIC CAPABILITIES FOR A MORE INNOVATIVE HOSPITALITY INDUSTRY.

This study explores the relationship between leadership styles, dynamic capabilities (DC), and innovation in the hospitality industry, particularly during crises such as the COVID-19 pandemic. A theoretical framework is established to link participative, empowered, and transformational leadership with DC and innovation outcomes. Using Partial Least Squares Structural Equation Modeling (PLS-SEM) on data from Austrian hotels, the research highlights how leadership influences sensing, seizing, and transforming capabilities to drive both incremental and radical innovation. The study provides valuable insights into crisis-driven organizational adaptation and offers practical implications for hospitality managers. However, limitations such as a single- country sample and lack of detailed practical applications are acknowledged. The findings emphasize the critical role of leadership in fostering innovation during turbulent times, though further exploration of specific leadership styles, cross-cultural perspectives, and barriers to innovation is recommended. Future research should address causal relationships through longitudinal studies and expand generalizability across industries and regions.