Adapting to the new era: paradoxical leadership to manage the paradox of service innovation in the tourism and hospitality industry

Purpose This study aims to explain the paradoxical nature of service innovation behavior (SIB) in the tourism and hospitality industry by examining how paradoxical leadership behavior (PLB), growth mindset (GMS) and personal innovativeness (PINN) influence innovation outcomes. Design/methodology/approach Using structural equation modeling, the study analyzes two-wave, six-week time-lagged survey data from 341 frontline employees (FLEs) in Pakistan’s tourism and hospitality industry. Findings The results show that PLB significantly enhances SIB by fostering GMS, which mediates the relationship between leadership behavior and innovation. Additionally, PINN moderates the effect of GMS on SIB, amplifying innovation for employees with higher PINN levels. These findings contribute to paradox theory by demonstrating how PLB reconciles the tension between stability and adaptability, fostering a mutually reinforcing environment for innovation. Practical implications The study suggests that managers in tourism and hospitality settings should create leadership environments that balance creativity with service standards while encouraging employees’ individual innovativeness. Specifically, PLB can drive innovation by fostering GMS among employees while recognizing that PINN can amplify the effect of GMS on SIB. Originality/value This research introduces an improved framework for understanding how leadership can guide employees to thrive within the paradoxical demands of modern service innovation. It expands paradox theory by empirically demonstrating how leadership can manage conflicting demands to enhance service innovation in the tourism and hospitality industry.