Navigating green innovation via absorptive capacity and the path to sustainable performance in hotels

PurposeThe study scrutinizes the direct and indirect association between absorptive capacity as the independent variable and green innovation adoption and sustainable performance as the dependent variables. Similarly, the study assessed the mediating role of green innovation adoption between absorptive capacity and sustainable performance. The research also evaluates green organizational culture and environmental regulation as moderators.Design/methodology/approachThe current study applied partial least squares structural equation modeling (PLS-SEM) and administered a questionnaire to general managers and department directors in 4- and 5-star hotels. Quantitative research was employed as the chosen method.FindingsThe PLS-SEM analysis revealed that absorptive capacity has a positive impact on the adoption of green innovation. Furthermore, each sub-dimension of sustainable performance acts as a partial mediator in this relationship. Also, our study showed that environmental regulations and green organizational culture moderate the link between absorptive capacity and the adoption of green innovation.Research limitations/implicationsThe research primarily emphasizes that Oman's hotel business may limit its applicability to other nations with distinct cultures, economies, legal frameworks for the environment and cultural norms.Originality/valueTo build an integrative and a comprehensive framework, the present work combines resource-based view (RBV) theory, dynamic capabilities (DC) theory and triple bottom line (TBL) theory. This method aims to improve understanding by combining several points of view on resource management, skills, and environmental sustainability.