The dynamics and behavioural contagion of eco-innovation in the hospitality sector of an emerging country
Abstract
Objective: There is a need to decouple economic growth from environmental degradation. This study investigates eco-innovation performance in an emerging economy. Integrating behavioural contagion theory with the dynamic capabilities framework, we model how firms’ ‘sensing, seizing, and transforming’ capabilities translate external pressures and internal culture into a sustainable competitive advantage.Methodology: This study uses partial least squares structural equation modeling (PLS-SEM) to analyse survey data from 395 managers of small and medium-sized enterprises (SMEs) in the Vietnamese hospitality sector.
Results: The findings reveal a robust causal pathway. A firm’s sensing capabilities – shaped by external pressures, a cooperative and innovative culture, and technology adoption – are significant predictors of its seizing capability, manifested as eco-innovation commitment. This commitment directly and positively drives transforming capability in the form of tangible eco-innovation performance. Our findings indicate a ‘green technology paradox’, where technology adoption enhances commitment but not performance, highlighting a critical implementation gap.
Limitations: This study was limited to small and medium-sized enterprises. Future research should validate the model in different institutional settings and incorporate objective indicators, such as R&D expenditures or patent data, to substantiate the findings.
Practical implications: This study offers managers an actionable framework for orchestrating internal and external drivers to enhance resource efficiency, ensure regulatory alignment, and achieve positive eco-innovation outcomes. While context-specific, it provides a useful blueprint for fostering sustainable competitive advantage in other emerging markets.
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