Riding the green wave: open innovation, ambidexterity and hotel green performance

Purpose This study examines how green dynamic capabilities, green open innovation and hotel green ambidexterity can be strategically integrated to foster sustainability in hotels, addressing important gaps in the green management and hospitality literature. Specifically, the study aims to empirically validate the sequential mediating roles of green open innovation and hotel green ambidexterity in the relationship between green dynamic capabilities and hotel green performance. Design/methodology/approach Using 264 valid responses collected from three-, four- and five-star hotels across four major cities in Pakistan, the study adopts a quantitative research design. The proposed conceptual model is tested using partial least squares structural equation modeling (PLS-SEM) to examine direct, indirect and sequential mediation effects. Findings The results indicate that green dynamic capabilities positively influence green open innovation, which in turn enhances hotel green ambidexterity. Hotel green ambidexterity is found to significantly improve hotel green performance. Importantly, the findings demonstrate that green dynamic capabilities influence hotel green performance primarily through a sequential mediation pathway, rather than through isolated mediating paths. This highlights the critical role of green open innovation in enabling ambidextrous green practices that translate capabilities into performance outcomes. Practical implications The study offers actionable guidance for hotel managers, emphasizing the need to complement internal green capabilities with open innovation practices and ambidextrous green strategies. For policymakers, the findings suggest that sustainability initiatives in the hospitality sector should promote collaborative green innovation and organizational ambidexterity, rather than focusing solely on internal capability development in isolation. Originality/value This study provides novel empirical evidence on the sequential integration of green dynamic capabilities, green open innovation and hotel green ambidexterity in driving hotel green performance. By advancing a process-based explanation of sustainability in service organizations, the study extends dynamic capabilities, open innovation and ambidexterity theories in a hospitality setting.

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Publication Details

Journal
Management Decision
Published
2026-03-14
DOI
https://doi.org/10.1108/md-06-2025-1640
Primary Topic
Environmental Sustainability in Business
Type
article
Field-Weighted Citation Impact
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article

Riding the green wave: open innovation, ambidexterity and hotel green performance

Noor Ul Hadi
Management Decision
Environmental Sustainability in Business
article

Riding the green wave: open innovation, ambidexterity and hotel green performance

Noor Ul Hadi
article en

Abstract

Purpose This study examines how green dynamic capabilities, green open innovation and hotel green ambidexterity can be strategically integrated to foster sustainability in hotels, addressing important gaps in the green management and hospitality literature. Specifically, the study aims to empirically validate the sequential mediating roles of green open innovation and hotel green ambidexterity in the relationship between green dynamic capabilities and hotel green performance. Design/methodology/approach Using 264 valid responses collected from three-, four- and five-star hotels across four major cities in Pakistan, the study adopts a quantitative research design. The proposed conceptual model is tested using partial least squares structural equation modeling (PLS-SEM) to examine direct, indirect and sequential mediation effects. Findings The results indicate that green dynamic capabilities positively influence green open innovation, which in turn enhances hotel green ambidexterity. Hotel green ambidexterity is found to significantly improve hotel green performance. Importantly, the findings demonstrate that green dynamic capabilities influence hotel green performance primarily through a sequential mediation pathway, rather than through isolated mediating paths. This highlights the critical role of green open innovation in enabling ambidextrous green practices that translate capabilities into performance outcomes. Practical implications The study offers actionable guidance for hotel managers, emphasizing the need to complement internal green capabilities with open innovation practices and ambidextrous green strategies. For policymakers, the findings suggest that sustainability initiatives in the hospitality sector should promote collaborative green innovation and organizational ambidexterity, rather than focusing solely on internal capability development in isolation. Originality/value This study provides novel empirical evidence on the sequential integration of green dynamic capabilities, green open innovation and hotel green ambidexterity in driving hotel green performance. By advancing a process-based explanation of sustainability in service organizations, the study extends dynamic capabilities, open innovation and ambidexterity theories in a hospitality setting.

Management Decision
Prince Mohammad bin Fahd University (SA)
Industry, innovation and infrastructure
Openalex Percentile: Top 19%
Environmental Sustainability in Business
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