Role of Open Innovation Strategies in Creating and Enhancing Sustainable Performance in the Hospitality Sector in Pakistan. A Mediated, Moderated Model

The hospitality industry in Pakistan is under pressure to innovate and optimize resources in developing sustainable environmental performance (SP). As a result, this paper examines the antecedents of SP, namely, Open Innovation (OI), Organizational Dynamic Capabilities (DC), and Innovative Culture (IC). The main aim of this study is to analyse the direct effect of OI on DC, the effect of DC on SP, the mediating effect of DC on the relationship between OI and SP, and the moderating influence of IC on the effect of DC on SP. Quantitative research was conducted and data was obtained through a structured questionnaire developed for the study and distributed through Google Forms targeting the hospitality sector in Pakistan. Among the 450 distributed questionnaires, 375 questionnaires were accepted for analysis using the SmartPLS software. The study showed that OI had a direct positive effect on DC which also resulted in a positive effect on SP. Furthermore, it was found that DC acted as a mediator in the OI–SP relationship, while IC mediated the relationship between DC and SP. Therefore, the study is useful in helping hospitality managers understand how to implement OI to build DC, support IC and achieve sustainable SP and competitive advantage in a world where sustainability has become imperative.