Adaptive pathways to excellence: the interplay of agility, absorptive capacity and innovation in achieving competitive advantage in hospitality

Purpose Despite growing recognition that agility is essential for innovation and performance in volatile markets, little is known about how knowledge-based capabilities jointly shape its entrepreneurial and adaptive dimensions in hospitality. Integrating the dynamic capabilities theory and the knowledge-based view, this study proposes and tests a model examining how knowledge management capability and cross-functional coopetition influence entrepreneurial and adaptive agility, and how these dimensions, in turn, drive organizational innovation, competitive advantage, and business performance. Design/methodology/approach Relationships were quantitatively tested based on a cross-sectional design. Mediation, moderation and direct effects were assessed in SmartPLS 4 through Structural Equation Modeling. The structured, self-administered questionnaire provided data on a purposive sample of 340 managers working in five-star hotels in the key Egyptian tourist locations in the country. Findings Organizational innovation turned out to be a strong predictor of the competitive advantage and business performance, which validated its central position in value creation. The impact of agility extends to the performance results in the form of organizational innovation but the absorptive capacity raises the intensity of the agility-innovation relationship. Originality/value This study provides hospitality organizations with a clearer roadmap to develop agility, generate innovation and maintain strategic competitiveness in dynamic markets by combining knowledge structures, internal cooperation, and absorptive capacity into one structure.