Digital Leadership and Sustainable Competitive Advantage: Leveraging Green Absorptive Capability and Eco-Innovation in Tourism and Hospitality Businesses

Abstract

This study explores the influence of digital leadership (DL) on sustainable competitive advantage (SCA) in tourism and hospitality businesses, focusing on green absorptive capability (GAC) and eco-innovation (EI) as mediators. This study focused on middle-line management in travel agencies and hotels in Saudi Arabia. A total of 323 valid responses were collected and analyzed using WarpPLS 7.0, a PLS-SEM analysis tool. DL positively affected SCA, GAC, and EI. In addition, SCA was positively impacted by GAC and EI. Furthermore, this study found that GAC and EI significantly mediated the DL→SCA relationship. This study enhances the Dynamic Capabilities Theory, offering valuable insights for tourism and hospitality managers to utilize digital strategies and environmental initiatives for eco-conscious market competitiveness.