Innovation, digitalization, and sustainability as drivers of performance in tourism MSMEs: A multigroup evidence from the Pacific Alliance

PURPOSE: Based on the resource and capability (RBV), the natural resource-based view (NRBV), and institutional theory, this study analyzes the relationship between innovation and performance and the mediating effects of sustainability and digitalization in tourism micro, small, and medium-sized enterprises (MSMEs) in Pacific Alliance (PA) (Chile, Colombia, Mexico, and Perú). METHODOLOGY: This study applies a quantitative approach using survey data from 1,388 tourism MSME entrepreneurs in the Pacific Alliance. Structural equation modeling and multigroup analysis were used to examine key relationships and differences between groups (PA countries). FINDINGS: The findings confirm the positive and significant relationship between innovation and performance and the mediating effect of sustainability and digitalization in Pacific Alliance tourist MSMEs. Through MICOM and multigroup analyses, significant differences were identified among Chile, Mexico, and Colombia, with the first two countries demonstrating greater competitiveness in tourism development. IMPLICATIONS: The findings offer relevant implications for business management and public policymaking, promoting innovation strategies mediated by digitalization and sustainability. In a competitive tourism environment, digitalization and sustainability are key factors that drive innovation in MSMEs. These strategies strengthen their capacity for adaptation, differentiation, and sustainable growth. ORIGINALITY AND VALUE: Unlike most research focused on developed countries, this study contextualizes the phenomenon within tourism MSMEs in emerging economies such as those in the Pacific Alliance, highlighting the influence of the institutional environment on business adaptation. This research contributes to the existing literature by providing the first empirical evidence in the context of the Pacific Alliance on the mediating role of sustainability and digitalization in improving performance through MSME innovation.