Global environmental concerns necessitate a heightened focus on green practices by businesses to balance sustainability and profitability. Therefore, this study investigates the effects of green ambidexterity (GA), green organizational identity (GOI), and green internal marketing (GIM) on sustainable competitive advantage (SCA) in travel agencies and hotels. The PLS-SEM approach was used to test the proposed model of the study. In total, 317 valid responses were gathered from full-time middle- and upper-management personnel of travel agencies category A and five-star hotels operating in Egypt. The findings revealed that GA positively impacts GOI, GIM, and SCA. Also, GOI and GIM positively impact SCA. In addition, GOI and GIM mediate the relationship between GA and SCA. The study advanced dynamic capability theory by emphasizing the importance of internal processes in harnessing sustainability-oriented dynamic capabilities. The study recognized the relationship between SCA, GOI, GIM, and GA and provided insightful implications on how businesses might develop and use their sustainability-related strengths.