PurposeThis study examines the relationship between absorptive capacity, team culture, competitive intelligence awareness and entrepreneurial behavior with strategic flexibility and sustainable competitive advantage and further investigates the moderating influence of innovativeness on the relationship between strategic flexibility and sustainable competitive advantage in the hotel industry.Design/methodology/approachThe current study applied a quantitative research method to collect data from five-star and luxury hotel management staff in Malaysia, using questionnaire surveys. A total of 550 questionnaires were distributed, and the researcher received 457 valid questionnaires. The hypotheses were tested using the SEM (structural equation modeling) analytical technique.FindingsThe salient findings of this research are (1) absorptive capacity, team culture and competitive intelligence awareness have a significant impact on strategic flexibility and sustainable competitive advantage, (2) entrepreneurial behavior has an insignificant effect on strategic flexibility and sustainable competitive advantage, (3) strategic flexibility has a significant impact on sustainable competitive advantage, (4) innovativeness actively moderates on the relationship between strategic flexibility and sustainable competitive advantage.Research limitations/implicationsThe study described here introduces a sustainable competitive advantage as a new and dynamic approach to explore how its outcomes or performance can be enhanced in the hotel industry. The outcomes of sustainable competitive advantage can help the long-term survival of hotels.Originality/valueThe present study suggests and explains the role of sustainable competitive advantage in the hotel industry and offers new insights into the competitive hotel industry's gaps and weaknesses.

No abstract