Unleashing hospitality industry's performance: the influence of generative AI in driving explorative and exploitative innovations amid environmental dynamics

Purpose This study explores the impact of Generative Artificial Intelligence (GAI) on the future performance of hospitality organizations. The research tries to determine the key factors that impact the successful integration of GAI and assess its impact on strategic innovation approaches, with a specific focus on the importance of context factors in enabling the alignment between GAI integration and organizational performance. Design/methodology/approach The conceptual framework, developed by a thorough review of existing literature and theoretical frameworks, was tested using PLS-SEM analysis based on data gathered from 394 hospitality businesses. Findings The findings indicate that GAI adoption significantly improves exploratory (ExrtI) and exploitative innovations (ExitI), particularly when taking into account the moderating role of environmental dynamism. The study demonstrates the ability of GAI to considerably improve overall performance in the hospitality industry. Originality/value This research provides new insights by examining the impact of GAI adoption on ExrtI and ExitI in the hospitality industry, a field where there has been limited research. In addition, it uniquely examines the moderating role of environmental dynamism on the relationship between GAI adoption and organizational performance, thereby offering new perspectives on strategic innovation.