Abstract
The study investigates the influence of eco-innovation on business resilience in the hotel and tourism industry, focusing on green dynamic capabilities as a mediator. 323 responses were collected from top and middle-level management at five-star hotels and category-A travel agencies in Egypt. Using the WarpPLS software 7.0, the PLS-SEM technique was used to evaluate the hypothesized model of the study. Findings revealed that eco-innovation positively affects business resilience and green dynamic capabilities. In addition, green dynamic capabilities positively affect business resilience. Moreover, green dynamic capabilities mediate the relationship between eco-innovation and business resilience. The study enhances and broadens the comprehension of dynamic capabilities theory in the context of tourism and hospitality businesses. The study also helps tourism and hospitality businesses by emphasizing the importance of integrating green dynamic capabilities into tourism and hospitality businesses' operations, thereby enhancing their competitive edge and long-term resilience.
TopIntroduction
The convergence of sustainability, innovation, and resilience has become a focal point in today's business world, including the hospitality and tourism sector (Colmekcioglu et al., 2022). With increasing global awareness of environmental sustainability concerns, companies are actively adopting eco-innovation strategies to address the impacts of climate change and enhance their ability to handle unexpected disruptions (Allal-Chérif et al., 2023; Fontoura & Coelho, 2022). Eco-innovation plays a crucial role in the tourism and hospitality industry by enabling businesses to reduce their environmental impact, gain a competitive advantage, foster collaboration, and make positive contributions to the environment and society (Kuo et al., 2022; Colmekcioglu et al., 2022).
Eco-innovation covers a wide range of practices and initiatives aimed at reducing environmental impacts. These encompass the use of renewable energy sources, the implementation of waste reduction and recycling programs, the promotion of sustainable transportation alternatives, and the integration of eco-friendly design and construction principles into infrastructure projects. These eco-innovations not only contribute to environmental sustainability but also present opportunities for economic benefits and an improved overall guest experience (He et al., 2018; Bugdol et al., 2023).
The integration of eco-innovation is vital for strengthening the resilience of businesses (Le et al., 2023). It enables organizations to adapt to changing environmental regulations, reduce costs, enhance their reputation, and foster collaboration with stakeholders (Larbi-Siaw et al., 2022). By incorporating eco-innovative practices, businesses can position themselves as resilient and sustainable entities, capable of navigating disruptions and capitalizing on opportunities in a dynamic business environment (Spencer, 2023).
The concept of green dynamic capabilities serves as a link between eco-innovation and business resilience. Green dynamic capabilities refer to an organization's ability to effectively manage and leverage eco-innovation initiatives to enhance resilience (Janahi et al., 2021). These capabilities encompass various aspects, such as strategic decision-making, resource allocation, knowledge management, learning, and collaboration, both internally and externally (Essid & Berland, 2018). The integration of eco-innovation is essential for nurturing and strengthening green dynamic capabilities (Huang & Xiao, 2023). It enables organizations to develop sustainable products and processes, acquire valuable knowledge, foster collaborations, and promote a culture of sustainability (Yu et al., 2022). By incorporating eco-innovative practices, businesses can enhance their ability to effectively tackle environmental challenges, seize green business opportunities, and achieve sustainable long-term performance outcomes (Shahzad et al., 2021).
The tourism and hospitality sector is a crucial contributor to Egypt's economy, generating foreign exchange earnings, employment, and government revenue. It showcases Egypt's cultural heritage through iconic landmarks and provides diverse job opportunities. The sector also attracts foreign investments, promoting infrastructure development and contributing to overall economic growth (Al-Romeedy, 2019). The Egyptian tourism and hospitality sector involve various key players, including government entities such as the Ministry of Tourism and Antiquities, major international hotel chains like Marriott, Hilton, and Accor, travel agencies, tour operators, cruise operators, and airlines like Egyptair (Al-Romeedy, 2024). The tourism and hospitality sector in Egypt faces challenges related to the environmental impact of tourism, balancing growth with preservation, sustainable infrastructure development, community engagement, climate change, and promoting sustainable practices. These challenges require addressing waste generation, water consumption, and energy use, managing over-tourism's impact on cultural sites, and developing strategies to enhance resilience and adapt to climate change. Encouraging responsible tourism behavior and eco-friendly initiatives is crucial for sustainable growth (Ragab & Meis, 2016; Gaafar et al., 2022; El Atiek, & Goutte, 2023).
Key Terms in this Chapter
Sustainable Processes: Approaches and procedures that give priority to efficient use of resources, minimizing waste, and upholding environmental and social responsibility throughout the entire production or operational process.
Eco-Innovation: The creation and adoption of innovative products, processes, technologies, or business models with the goal of minimizing environmental footprints and advancing sustainability.
Green Dynamic Capabilities: The capability of an organization to efficiently oversee and harness eco-innovation endeavors in order to strengthen resilience.
Sustainable Long-Term Performance: Attaining ongoing success and favorable results by actively addressing environmental, social, and governance factors to benefit both the organization and society as a whole.
Responsible Tourism Behavior: A mindful and sustainable approach to travel that demonstrates respect for the environment, uplifts local communities, and safeguards cultural heritage.
Sustainable Products: Products that are consciously designed, manufactured, and utilized to mitigate their environmental footprint and uphold social responsibility.
Business Resilience: A company's capacity to effectively respond, recover, and flourish in the midst of disruptions and adversities.
Sustainability: This involves meeting current requirements while ensuring that future generations can meet their own needs without any compromise.