IDEAS home Printed from https://ideas.repec.org/a/gam/jtourh/v6y2025i3p156-d1724939.html
   My bibliography  Save this article

Harnessing Green Dynamic Capabilities for Sustainable Tourism Performance: The Mediating Role of Green Service Innovation in Bali’s Tour and Travel SMEs

Author

Listed:
  • Elizabeth Elizabeth

    (Doctor of Research in Management, Management Department, Bina Nusantara University, Jakarta 11480, Indonesia)

  • Harjanto Prabowo

    (Doctor of Research in Management, Management Department, Bina Nusantara University, Jakarta 11480, Indonesia)

  • Agustinus Bandur

    (Doctor of Research in Management, Management Department, Bina Nusantara University, Jakarta 11480, Indonesia)

  • Rini Setiowati

    (Doctor of Research in Management, Management Department, Bina Nusantara University, Jakarta 11480, Indonesia)

Abstract

In response to increasing global sustainability demands, this study examines how green dynamic capabilities influence business performance in Bali Island’s tour and travel SMEs, with green service innovation as a mediating mechanism. Drawing on the resource-based view (RBV) and dynamic capability theory, the research adopts a quantitative approach using survey data from 387 SMEs and employs structural equation modeling (SEM) to analyze the relationships among green dynamic capabilities, green service innovation, and business performance. Findings reveal that green dynamic capabilities significantly enhance both green service innovation and business performance. Notably, green service innovation partially mediates this relationship, underscoring its pivotal role in transforming internal sustainability-oriented capabilities into tangible performance outcomes. The key contribution of this study lies in extending RBV by integrating green service innovation as a strategic conduit that links eco-centric capabilities to competitive advantage in a tourism SME context—a perspective that remains underexplored in emerging economies. Practically, the study provides actionable insights for SME owners and policymakers to prioritize innovation in service design and delivery as a pathway to sustainable tourism performance.

Suggested Citation

  • Elizabeth Elizabeth & Harjanto Prabowo & Agustinus Bandur & Rini Setiowati, 2025. "Harnessing Green Dynamic Capabilities for Sustainable Tourism Performance: The Mediating Role of Green Service Innovation in Bali’s Tour and Travel SMEs," Tourism and Hospitality, MDPI, vol. 6(3), pages 1-20, August.
    • Handle: RePEc:gam:jtourh:v:6:y:2025:i:3:p:156-:d:1724939
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2673-5768/6/3/156/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2673-5768/6/3/156/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jtourh:v:6:y:2025:i:3:p:156-:d:1724939. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.