Shifts in knowledge sharing and creativity for business tourism

Chapter 1: Challenges in Enhancing Job Satisfaction for Optimal Hospitality Performance: A Case Study of Chain Hotels in GeorgiaChapter 2: Eco-Innovation and Hospitality and Tourism Busi

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Shifts in Knowledge

Sharing and Creativity for Business Tourism

Muhammad Waseem Bari

Government College University, Faisalabad, Pakistan Mohammad Soliman

Research and Consultation Department, University of Technology and Applied Sciences, Salalah, Oman

Emilia Alaverdov

Georgian Technical University, Georgia

A volume in the Advances in Hospitality, Tourism, and the Services Industry (AHTSI) Book Series

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Published in the United States of America byWeb site: http://www.igi-global.com

Copyright © 2024 by IGI Global All rights reserved No part of this publication may be reproduced, stored or distributed in any form or by any means, electronic or mechanical, including photocopying, without written permission from the publisher.Product or company names used in this set are for identification purposes only Inclusion of the names of the products or companies does not indicate a claim of ownership by IGI Global of the trademark or registered trademark.

Library of Congress Cataloging-in-Publication Data

British Cataloguing in Publication Data

A Cataloguing in Publication record for this book is available from the British Library.

All work contributed to this book is new, previously-unpublished material The views expressed in this book are those of the authors, but not necessarily of the publisher.

For electronic access to this publication, please contact: eresources@igi-global.com CIP PENDING

Shifts in Knowledge Sharing and Creativity for Business Tourism Muhammad Waseem Bari, Mohammad Soliman, Emilia Alaverdov 2024 Business Science Reference

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Advances in Hospitality, Tourism, and the Services Industry (AHTSI) Book Series

Globally, the hospitality, travel, tourism, and services industries generate a significant percentage of revenue and represent a large portion of the business world Even in tough economic times, these in-dustries thrive as individuals continue to spend on leisure and recreation activities as well as services.

The Advances in Hospitality, Tourism, and the Services Industry (AHTSI) book series offers

diverse publications relating to the management, promotion, and profitability of the leisure, recreation, and services industries Highlighting current research pertaining to various topics within the realm of hospitality, travel, tourism, and services management, the titles found within the AHTSI book series are pertinent to the research and professional needs of managers, business practitioners, researchers, and upper-level students studying in the field.

• Destination Marketing and Management • Tourism and the Environment

• Cruise Marketing and Sales • Service Design

• International Tourism

• Food and Beverage Management • Customer Service Issues • Service Management • Casino Management

• Health and Wellness Tourism Coverage

IGI Global is currently accepting manuscripts for publication within this series To submit a pro-posal for a volume in this series, please contact our Acquisition Editors at Acquisitions@igi-global.com or visit: http://www.igi-global.com/publish/.

The Advances in Hospitality, Tourism, and the Services Industry (AHTSI) Book Series (ISSN 2475-6547) is published by IGI Global, 701 E Chocolate Avenue, Hershey, PA 17033-1240, USA, www.igi-global.com This series is composed of titles available for purchase in-dividually; each title is edited to be contextually exclusive from any other title within the series For pricing and ordering information please visit http://www.igi-global.com/book-series/advances-hospitality-tourism-services-industry/121014 Postmaster: Send all address changes to above address Copyright © 2024 IGI Global All rights, including translation in other languages reserved by the publisher No part of this series may be reproduced or used in any form or by any means – graphics, electronic, or mechanical, including photocopying, recording, taping, or information and retrieval systems – without written permission from the publisher, except for non commercial, educational use, including classroom teaching purposes The views expressed in this series are those of the authors, but not necessarily of IGI Global.

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Titles in this Series

For a list of additional titles in this series, please visit:

Service Innovations in Tourism Metaverse, Immersive Technologies, and Digital Twin

Surabhi Singh (G.L Bajaj Institute of Management and Research, India)

Utilizing Smart Technology and AI in Hybrid Tourism and Hospitality

Sanjeev Kumar (Lovely Professional University, India) Mohammad Badruddoza Talukder (Daffodil Institute of IT, Bangladesh) and Ana Pego (Nova University of Lisbon, Portugal)

Innovative Technologies for Increasing Service Productivity

Sridhar Manohar (Chitkara Business School, Chitkara University, India) Amit Mittal (Chitkara Business School, Chitkara University, India) Sekar Raju (Ivy College of Business, Iowa State University, USA) and Arjun J Nair (Chitkara University, India)

Supporting Environmental Stability Through Ecotourism

Muhammad Abrar (Lyallpur Business School, Government College University, Faisalabad, Pakistan) Muham-mad Asim Nawaz (Lyallpur Business School, Government College University, Faisalabad, Pakistan) Faiqa Kiran (Lyallpur Business School, Government College University, Faisalabad, Pakistan) and Fahad Asmi (School of Business, Charles Sturt University, Bathurst, Australia)

Career Pathways and Professional Identities for Front-Line Workers in the Service Industries

Mark Peter Vitale (University of Phoenix, USA)

Experiences, Advantages, and Economic Dimensions of Pilgrimage Routes

Vítor João Pereira Domingues Martinho (Agricultural School, CERNAS-IPV Research Centre, Polytechnic In-stitute of Viseu, Portugal) João Augusto Guerra da Rocha Nunes (School of Education, Polytechnic InIn-stitute of Viseu, Portugal) Maria Lúcia de Jesus Pato (Agricultural School, CERNAS-IPV Research Centre, Polytechnic Institute of Viseu, Portugal) and Liliana Andrade de Matos Castilho (School of Education, Polytechnic Institute of Viseu, Portugal)

701 East Chocolate Avenue, Hershey, PA 17033, USA Tel: 717-533-8845 x100 • Fax: 717-533-8661 E-Mail: cust@igi-global.com • www.igi-global.com

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Tinatin Zhorzholiani, David Agmashenebeli National Defense Academy of Georgia, GeorgiaEka Chokheli, Ivane Javakhishvili Tbilisi State University, Georgia

Petre Adamadze, Ivane Javakhishvili Tbilisi State University, Georgia

Chapter 2

Eco-InnovationandHospitalityandTourismBusinessResilience:TheMediatingRoleofGreen DynamicCapabilities 17

Bassam Samir Al-Romeedy, Faculty of Tourism and Hotels, EgyptHazem Ahmed Khairy, Faculty of Tourism and Hotels, Egypt

Chapter 3

EconomicAspectsofRegionalTourismDevelopment:OntheExampleofMountainousRegions ofGeorgia 37

Lela Bakhtadze, Tbilisi State University, Georgia

Manana Aladashvili, Iakob Gogebashvili Telavi State University, GeorgiaTeimuraz Sartania, Tbilisi State University, Georgia

Natela Tushishvili, David Aghmashenebeli University of Georgia, Georgia

Chapter 4

EffectivenessofTerritorialMarketingforthePolishTourismBrand 54

Magdalena Tomala, Kielce University of Technology, PolandJoanna Radowicz, Kielce University of Thechnology, Poland

Chapter 5

TheirIntentionstoIndulgeinCo-CreationActivities 71

Ishani Sharma, Chitkara Business School, Chitkara University, Punjab, IndiaArun Aggarwal, Chitkara Business School, Chitkara University, Punjab, India

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Chapter 6

IndustrialTourismandLiteraryTourism:NicheMarketingPerspectiveandRegionalDevelopment 88

Bruno Barbosa Sousa, Polytechnic Institute of Cávado and Ave (IPCA), Portugal & CiTUR, Portugal &UNIAG, Portugal

Luzia Amorim, Polytechnic Institute of Cávado and Ave (IPCA) Portugal & University of Aveiro, Portugal

André Catarino, 2c2t - Center of Textile Science and Technology, University of Minho, Portugal

João Rolha, Polytechnic Institute of Beja, Portugal

Victor Figueira, Polytechnic Institute of Beja, Portugal & CiTUR, Portugal

S.C Vetrivel, Kongu Engineering College, IndiaK.C Sowmiya, Sri Vasavi College, India

V Sabareeshwari, Amrita School of Agricultural Sciences, India

Chapter 9

Development 145

Maha K Al Balushi, Marketing Department, College of Economics and Political Science, Sultan Qaboos University, Oman

Mohammad Soliman, Research and Consultation Department, University of Technology and Applied Sciences, Salalah, Oman

Rowan E Kennedy, Marketing Department, College of Economics and Political Science, Sultan Qaboos University, Oman

Anam H Palla, Marketing Department, College of Economics and Political Science, Sultan Qaboos University, Oman

Chapter 10

TechnologicalRevolutionandTransformationoftheTourismSector 163

Afnen Gam Najlaoui, Institut des Hautes Études Commerciales de Carthage, TunisiaNedra Bahri Ammari, Institut des Hautes Études Commerciales de Carthage, Tunisia

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Giga Abuseridze, Caucasus University, Georgia

Olena Agapova, Hon Prof M.S Bokarius Forensic Science Institute, UkraineMariana Petrova, St Cyril and St Methodius University of Veliko Tarnovo, Bulgaria

Compilation of References 281About the Contributors 327Index 333

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Tinatin Zhorzholiani, David Agmashenebeli National Defense Academy of Georgia, GeorgiaEka Chokheli, Ivane Javakhishvili Tbilisi State University, Georgia

Petre Adamadze, Ivane Javakhishvili Tbilisi State University, Georgia

Bassam Samir Al-Romeedy, Faculty of Tourism and Hotels, EgyptHazem Ahmed Khairy, Faculty of Tourism and Hotels, Egypt

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Chapter 3

EconomicAspectsofRegionalTourismDevelopment:OntheExampleofMountainousRegions ofGeorgia 37

Lela Bakhtadze, Tbilisi State University, Georgia

Manana Aladashvili, Iakob Gogebashvili Telavi State University, GeorgiaTeimuraz Sartania, Tbilisi State University, Georgia

Natela Tushishvili, David Aghmashenebeli University of Georgia, Georgia

Magdalena Tomala, Kielce University of Technology, PolandJoanna Radowicz, Kielce University of Thechnology, Poland

Ishani Sharma, Chitkara Business School, Chitkara University, Punjab, IndiaArun Aggarwal, Chitkara Business School, Chitkara University, Punjab, India

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Chapter 6

IndustrialTourismandLiteraryTourism:NicheMarketingPerspectiveandRegionalDevelopment 88

Bruno Barbosa Sousa, Polytechnic Institute of Cávado and Ave (IPCA), Portugal & CiTUR, Portugal &UNIAG, Portugal

Luzia Amorim, Polytechnic Institute of Cávado and Ave (IPCA) Portugal & University of Aveiro, Portugal

André Catarino, 2c2t - Center of Textile Science and Technology, University of Minho, Portugal

João Rolha, Polytechnic Institute of Beja, Portugal

Victor Figueira, Polytechnic Institute of Beja, Portugal & CiTUR, Portugal

S.C Vetrivel, Kongu Engineering College, IndiaK.C Sowmiya, Sri Vasavi College, India

V Sabareeshwari, Amrita School of Agricultural Sciences, India

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Maha K Al Balushi, Marketing Department, College of Economics and Political Science, Sultan Qaboos University, Oman

Mohammad Soliman, Research and Consultation Department, University of Technology and Applied Sciences, Salalah, Oman

Rowan E Kennedy, Marketing Department, College of Economics and Political Science, Sultan Qaboos University, Oman

Anam H Palla, Marketing Department, College of Economics and Political Science, Sultan Qaboos University, Oman

Afnen Gam Najlaoui, Institut des Hautes Études Commerciales de Carthage, TunisiaNedra Bahri Ammari, Institut des Hautes Études Commerciales de Carthage, Tunisia

In the age of digital transformation, the tourism sector is actively embracing a technological revolution that is reshaping the traveler’s journey. The rise of smart technologies, collectively

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Bassam Samir Al-Romeedy, Faculty of Tourism and Hotels, Egypt

The chapter aims to explore the relationships among transformational, empowering, transactional

Rusudani Kvaratskhelia, Alte University, Georgia

The positive impact of tourism on the country’s economy and the well-being of the population is

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Giga Abuseridze, Caucasus University, Georgia

Olena Agapova, Hon Prof M.S Bokarius Forensic Science Institute, UkraineMariana Petrova, St Cyril and St Methodius University of Veliko Tarnovo, Bulgaria

Thefollowingchapterfocusesontheevolvinglandscapeofglobalbusinesstourisminlightofemerging trends and challenges. With a particular emphasis on the role of the WTO, this study delves into the factors influencing the resilience and sustainability of the business tourism sector. Through an

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Chapter 1: Challenges in Enhancing Job Satisfaction for Optimal Hospitality Performance: A Case Study of Chain Hotels in Georgia

Chapter 2: Eco-Innovation and Hospitality and Tourism Business Resilience: The Mediating Role of Green Dynamic Capabilities

Authored by Bassam Al-Romeedy and Hazem Khairy, this chapter investigates the impact of

Chapter 3: Economic Aspects of Regional Tourism Development (on the Example of Mountainous Regions of Georgia)

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Chapter 5: Exploring the Relationship Between Tourist Experiences at Creative Tourist Destinations and Their Intentions to Indulge in Co-creation Activities

Chapter 6: Industrial Tourism and Literary Tourism: Niche Marketing Perspective and Regional Development

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Chapter 9: Shifts in Tourism Knowledge: HEI Contributions to Destination Branding and Economic Development

Chapter 10: Technological Revolution and Transformation of the Tourism Sector

Chapter 11: The Evolution of Knowledge Sharing in Post-Pandemic Business Tourism

Chapter 12: The Relationships Between Leadership Styles, Entrepreneurial Orientation, and Knowledge Sharing in Tourism and Hospitality Industry

AuthoredbyBassamAl-Romeedy,thischapterexplorestheintricaterelationshipsamongtransforma-tional, empowering, and transactional leadership styles, entrepreneurial orientation, and knowledge sharing.DrawingondatacollectedfromemployeesatEgyptAir,thestudyemploysPartialLeastSquares StructuralEquationModeling(PLS-SEM)toanalyzethepositiveassociationsandthemediatingrole

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ofentrepreneurialorientationintherelationshipbetweenleadershipstylesandknowledgesharing.The chapterprovidespracticalrecommendationsformanagersinthetourismandhospitalityindustryto enhanceentrepreneurialorientationandknowledgesharingthroughvariousleadershipstyles.

Chapter 13: The Role of Agritourism and Eco-Agritourism in Social Welfare Development

Chapter 14: The Role of Natural and Cultural Heritage in the Development of Tourism (Case of Georgia)

Chapter 15: WTO and the Future of Global Business Tourism Trends and Challenges

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Muhammad Waseem Bari

Government College University, Faisalabad, Pakistan

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This study delves into the complexities of bolstering job satisfaction to achieve superior performance in the hospitality sector, with a focus on chain hotels in Georgia Acknowledging job satisfaction’s critical role in determining the quality of service and overall customer satisfaction, this case study examines the unique challenges presented by the operational dynamics, cultural context, and workforce diversity within Georgian chain hotels Employing a mixed-methods approach, the study combines quantitative data gathered from surveys of employees across several leading chain hotels in Georgia with qualita-tive insights from in-depth interviews with hotel managers and staff Surveys were administered to 217 staff members working in international chain hotels Statistical analysis was conducted using the SPSS software package Variables were described using frequency, percentage, arithmetic mean, and standard deviation statistics, while T-tests were performed.

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Challenges of Job Satisfaction for Optimal Hospitality Performance

As one of the main goals in everyday hotel practice, profitability is often identified as organizational success However, a goal set as universally and ideally as that represents only a generalization of other important organizational factors, which cause the realization of that goal (which would be impossible in their absence) One of those significant influencing factors is employee satisfaction Authors Heskett et al (1994) proposed their service profit chain, which explains that profit and growth are stimulated primarily by customer loyalty as a result of customer satisfaction Furthermore, satisfaction is influenced by the value of services, which is created by satisfied, loyal, and productive employees.

The Georgian hotel industry continues to face challenges from the past COVID-19 pandemic Hotels, particularly those operating smaller establishments, often prioritize cost-cutting measures, targeting areas like employee development, bonuses, and salaries This approach contrasts with contemporary organizational strategies that emphasize human capital management over traditional cost-centric models (Bakker & Schaufeli, 2008) Additionally, the industry grapples with high turnover rates, exacerbated by seasonal employment patterns, presenting significant hurdles for hotel management Effective strategies to mitigate these challenges include fostering a strong organizational culture and employing motivational techniques that enhance employee satisfaction and loyalty, demonstrating the critical role of managerial support in cultivating positive employee relationships (Kang et al., 2014).

In the competitive landscape of the global hospitality industry, job satisfaction emerges as a pivotal factor influencing employee performance, customer satisfaction, and, ultimately, organizational success The dynamic and demanding nature of hospitality work, characterized by customer-centric operations and a diverse workforce, places unique pressures on employees, underscoring the importance of under-standing and enhancing job satisfaction within this sector This is particularly true for chain hotels, where brand standards and operational consistency add another layer of complexity to employee experiences.

The Republic of Georgia, with its rich cultural heritage and burgeoning tourism sector, presents a unique context for exploring these dynamics The hospitality industry in Georgia has seen remarkable growth over the past decade, driven in part by the development and expansion of international chain hotels (Zhorzholiani, 2023) This growth not only contributes significantly to the national economy but also sets the stage for examining how global hospitality practices intersect with local cultural and economic conditions to impact job satisfaction.

The hotel industry’s unique challenges, marked by its labor-intensive nature, constant interpersonal interactions, and reliance on teamwork, underscore the critical role of employee satisfaction in hotel management This factor distinguishes the hotel sector from other industries in terms of management priorities Extensive research and practical observations underline the crucial link between employee satisfaction and job performance, highlighting its significance as a fundamental concept in organizational psychology Despite abundant research on motivational factors influencing employee satisfaction, there’s a gap in studies exploring various positive employee behaviors.

The literature suggests a direct correlation between employee and guest satisfaction, with specific studies delving into how employee attitudes influence guest experiences The concept of providing value through genuine guest relations and the overarching theme of hospitality as a foundation for positive guest interactions are emphasized This study aims to explore positive behaviors within organizations through three primary relationships: coworker interactions, guest relations, and employee-management dynamics, offering a comprehensive view of fostering a positive organizational culture This study aims to explore

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the connection between three types of satisfaction—job satisfaction, satisfaction with management, and satisfaction with coworker relations—and their impact on employee hospitality.

Despite the recognized importance of job satisfaction in the hospitality industry, research focusing on chain hotels in emerging tourism markets like Georgia remains sparse This study aims to fill this gap by exploring the challenges and strategies for enhancing job satisfaction among employees of chain hotels in Georgia By focusing on this specific context, the research seeks to provide insights that can inform both local industry practices and contribute to the broader academic discourse on hospitality management.

The objectives of this study are twofold: first, to identify the key factors influencing job satisfaction among employees in Georgian chain hotels; and second, to analyze the implications of these factors for managerial practices aimed at optimizing hospitality performance through enhanced job satisfaction Through this research, we endeavor to offer actionable recommendations for hotel managers and poli-cymakers, contributing to the sustainable development of Georgia’s hospitality sector and enhancing its competitiveness on the global stage.

LITERATURE REVIEW

Job satisfaction encompasses various definitions focusing on the emotional and attitudinal responses employees have toward their jobs It is seen as a positive emotional state or pleasure derived from one’s job, aligning with or facilitating one’s job values (Locke, 1969) Robbins and Coulter (1996) view it as the overall attitude employees hold toward their work, while Spector (1997) describes it as how individuals feel about their jobs and their various facets Essentially, job satisfaction reflects the positive emotional response and general attitude an individual has towards their job experiences.

In contemporary hotel operations, the significance of intangible assets, particularly the skills and expertise of employees, is paramount Research focusing on both customer and employee satisfaction highlights a crucial link between employee well-being and an organization’s financial health Studies by scholars such as Chi and Gursoy (2009) and Koys (2003) demonstrate that employee satisfaction positively influences financial outcomes, primarily through the mediating effect of customer satisfaction This body of work suggests that employee contentment plays a central role in enhancing guest experiences, thereby indirectly boosting profitability Furthermore, research by Yang (2010) identifies key factors affecting job satisfaction in the hospitality sector, including role clarity, the impact of workload, and the degree of autonomy Slatten & Mehmetoglu (2011) further elaborate on how autonomy and strategic focus contribute to employee engagement, underlining the interconnectedness of employee and customer loyalty and their combined effect on organizational success.

The evaluation of job satisfaction has been explored through various methods, with the Minnesota Satisfaction Questionnaire (MSQ) and the Job Descriptive Index (JDI) standing out for their comprehensive approach The MSQ delves into intrinsic, extrinsic, and general satisfaction, offering detailed insights despite its lengthy format that might test participant patience On the other hand, the JDI, developed by Smith, Kendall, and Hulin (1969) and later updated by Balzer et al (1997), assesses job facets including pay, promotion, coworkers, supervision, and the work itself, proving effective in numerous studies for its holistic assessment of job satisfaction aspects (Cheung et al 2014; Lam et al 2001; and Kong et al 2015).

Recent research has increasingly focused on the mediating role of job satisfaction between various workplace factors and outcomes (Ferreira et al., 2017) For instance, job satisfaction has been shown to mediate the impact of task characteristics on employees’ intentions to leave and the influence of

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cre-Challenges of Job Satisfaction for Optimal Hospitality Performance

ativity on turnover intentions (Tongchaiprasit and Ariyabuddhiphong, 2016) It also plays a crucial role in how internal branding affects employees’ delivery of brand-promised services (Cheung et al., 2014; Guchait et al., 2016) Moreover, job satisfaction mediates the relationship between behavioral integrity and error recovery performance and is influenced by supportive organizational politics and a positive work environment, further leading to life and career satisfaction (Yavas et al., 2013).

Empowerment in organizational psychology is recognized as a pivotal motivational strategy that fosters trust within organizations, particularly between managers and employees The essence of em-powerment, achieved through task delegation, lies in cultivating a positive organizational atmosphere This approach enables employees to feel a sense of ownership and responsibility toward their roles, enhancing job significance (Salazar & Pfaffenberg, 2006) Furthermore, the inverse relationship be-tween worker control and the need for trust underscores the importance of a trusting employee-manager dynamic Organizational culture and leadership are also identified as key factors influencing employee empowerment, thereby affecting performance and organizational culture (Zhorzholiani, 2022) Despite the recognized influence of management on employee motivation and satisfaction, the nuances of ef-fective management behavior, characterized by honesty, competitiveness, organization, and timeliness, remain underexplored Ideally, managers’ transfer of knowledge and experience should uplift employee satisfaction and daily performance Yet, discrepancies often arise, disrupting the trust chain between employees and managers, and ultimately affecting the quality of hospitality delivered.

Strategic planning for new services or entire hotel offerings must begin with introducing the or-ganizational culture to employees Once they fully embrace the service purpose and oror-ganizational ideals, they’re more likely to share their enthusiasm with guests However, if employees initially reject the organizational culture, their service delivery and sales efforts may not succeed Teng and Chang (2013) describe employee hospitality as the guest’s perception of hospitality traits during interactions, distinguishing between task performance and the emotional impact of hospitality performance Lee & Way (2010) emphasize that a satisfying work environment correlates with service quality and employee retention Understanding role expectations contributes to job satisfaction (Bowen & Schneider, 1985), and positive workplace relations enhance guest service (Arnett et al., 2002) Recognizing “moments of truth” in guest interactions, as illustrated by the Scandinavian Airline System’s approach in the 1980s, is vital for service quality Employee pride and the atmosphere created by the interplay of ambiance and employee demeanor are essential for a memorable hotel experience This discussion leads to three hypotheses about the positive relationships between management and coworker satisfaction with job satisfaction, and job satisfaction’s impact on employee hospitality.

Exploring Organizational Culture and Management in Georgia’s Hotel Industry

According to data from the National Tourism Administration of Georgia, there are 50 chain-type hotel management and management companies operating in Georgia, collectively managing 13 international and local groups Of these, 27 represent international hotel chain brands, while 23 are local.

The Ajara Group is a leading Georgian company in hospitality, lifestyle, and agriculture It has

gained global recognition for developing lifestyle brands and establishing trends in the management and creation of hospitality and business projects, setting new standards in the country’s hospitality industry In 2010, Ajara Group introduced the Holiday Inn franchise to the local market, expanding the international brand’s design and conceptual boundaries In 2012, it launched Georgia’s first lifestyle brand, Rooms

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Hotels, transforming an abandoned Soviet sanatorium in Kazbegi into an innovative hotel, quickly gain-ing global acclaim for its location, architecture, and design.

The Biltmore Hotel is the outstanding brand of the international chain hotel company Millennium,

offering the highest quality of service, products, and infrastructure The hotel’s organizational culture is based on mutual trust among employees and effective communication systems Great importance is placed on aligning core values and the mission with the organizational culture There is a manual estab-lished by the head office outlining ethical rules, adapted to the Georgian reality, with a main emphasis on openness, trust, respect, professional growth, teamwork, and overall effectiveness.

The Golden Tulip Design Hotel brand is a member of the multi-brand Louvre Hotels family, which

owns more than 1,600 hotels in 54 countries in the hospitality industry The brand has been operating in the Georgian market for 1 year and quickly managed to position itself in its segment The hotel facade is based on the concept of mood lighting, allowing guests to choose the color of the room lighting ac-cording to their desired mood That is why the hotel facade is colorful and diverse every evening.

“Gudauri Lodge” (Amber Group) - In 2019, Georgia Capital announced its entry into the Georgian

tourism market with a new brand, Amber Group, which would unite six hotels comprising 600 rooms, with a total investment of $65 million over three years The opening of the hotels was primarily planned for 2020-2021: Amber Akhasheni, Amber Telavi, Gudauri Lodge, Amber Shovi, and Amber Mestia The Ramada Encore Hotel was under the management of the same group The organization’s ambitious plans were soon confronted by significant risks posed by the coronavirus pandemic, necessitating the suspension of these projects At this stage, Amber Group continues to manage Gudauri Lodge among its hotel chains.

INN Group - The Georgian hotel chain brand, Inn Group, consists of 7 hotels, most of which

oper-ate in various regions of Georgia Three of them are locoper-ated in Tbilisi, with one being a boutique hotel, while others are situated in Bakuriani, Gudauri, Kutaisi, Gori, and Akhaltsikhe The demand for hotels and the rapid pace of development, along with the reliability of people, is sometimes attributed to the Georgian brand It’s worth noting that in the last year and a half, the network has expanded its portfolio by adding 3 new facilities.

The KA Group manages 8 hotels across 5 regions, including both internationally branded and local

hotels These include Best Western Kutaisi, Holiday Inn Telavi, Comoros, Raymond Palace, Failshale, Link Hotel, Astoria, and Fine Astoria Integrating an international brand into the hotel network manage-ment is crucial for the company, as it enables service and operational standards to align with those of the international brands, especially for the local hotels.

While the EBITDA percentage for local hotels initially exceeded 40%, increased competition in the market has caused this figure to decline to 20-25%, largely due to reduced prices This trend is particu-larly evident in Tbilisi and Batumi.

Le Meridean & Sheraton - Le Meridien Batumi and Sheraton Batumi are brand hotels within the

international Marriott chain An international brand brings its own culture and values, which, while standardized, are adapted to the local environment The primary focus is on ensuring employee comfort The main challenge in this process is effectively communicating these values to middle managers and then disseminating them throughout the organization.

Tbilisi Marriott & Courtyard Marriott, & Moxy are part of the international Marriott chain, each

with its own service offerings and product specificity However, what unites these hotels is their shared approach towards people Marriott’s culture and philosophy place a strong emphasis on its employees, irrespective of their position within the organization Career development opportunities, employee

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sup-Challenges of Job Satisfaction for Optimal Hospitality Performance

port, and fostering a respectful and friendly environment are all integral components that bind these three hotels together.

Pullman Hotels and Resorts, a French multinational high-class hotel brand owned by Accor, the

world leader in the hotel industry, boasts a portfolio of 110 hotels and resorts across 33 countries spanning Europe, Africa, the Middle East, Asia, Australia, and Latin America The opening of Pullman Tbilisi Axis Tower in the summer of 2022 further expanded the offerings for business travelers.

City Hotels is a hotel chain that currently operates two four-star hotels in Tbilisi: “City Avenue”

and “Tbilisi Chambers, Trademark Collection by Wyndham” According to the company’s general di-rector, both hotels are based on a concept that combines high quality and hospitality standards While City Avenue is a boutique hotel, “Tbilisi Chambers, Trademark Collection by Wyndham” operates as a franchise in the Georgian market.

Holiday Inn Express Tbilisi, a member of the International Hotel Group (IHG) network, brings a

fresh offering to the Georgian market with its focus on simplicity The hotel places significant empha-sis on eco-friendliness and social responsibility programs, collaborating with local entities to promote Georgian products.

Silk Hospitality Group manages hotels located in Tbilisi, Batumi, and Tsinandali, boasting a team of

seasoned professionals in hospitality, marketing, finance, human resources, and information technology The company’s portfolio includes the following hotels: Radisson Collection Tsinandli Manor, Radisson Blu Iveria, Radisson Blu Batumi, and Park Hotel Tsinandli Manor.

Hotels Management Company (HMC) operates Paragraph Resort & Spa Shekvetili, the first hotel

in Georgia under the Marriott brand “Autograph Collection.” The management company, in partnership with Georgian Radius, oversees the hotel chain, which will soon expand to include Parakh Tbilisi and other projects across Georgia affiliated with the Marriott brand.

HMC’s corporate culture embodies an entrepreneurial spirit grounded in professionalism They ap-proach each investment property with a sense of ownership, emphasizing fiscal responsibility, exceptional customer service, and robust business practices to achieve consistent results.

Hilton Batumi embodies the legacy of the Hilton brand, which has been a pioneer in the hospitality

industry since its establishment in 1919 With over a century of experience, Hilton has earned a reputa-tion for global success and a commitment to innovareputa-tion, often leading the way in hotel services.

The lifecycle of a hotel encompasses both pre-opening and direct operational phases The pre-opening period is notably challenging, as the facility undergoes extensive preparations In addition to the robust branding of chain hotels, head offices, and regional councils play a critical role in defining strategic di-rections These strategies are subsequently implemented in new facilities The brand and the experience of the hotel chain lay a solid foundation, providing access to guidelines that simplify the standardization process, essentially eliminating the need to “reinvent the wheel” (Zhorzholiani, 2023)

The brand’s appeal also lies in the fact that procedures, policies, and people engagement programs are developed at the head office The local HR team is tasked with adapting these to fit local realities, a process where significant challenges often arise.

Cross-cultural and national differences highlight that operational guidelines and standards, despite being crucial, must be flexible enough to accommodate varying mentalities The initial challenges typi-cally emerge during their implementation, such as in the employee evaluation system.

Developing organizational competencies represents a formidable task It involves people manage-ment, fostering a corporate culture, and assembling a team under a common ethos However, the primary challenge lies in reducing or eliminating subjectivity While strategies might appear effective on paper,

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their formal application during the implementation process often reveals limitations This necessitates the HR team’s search for systems that are viable within the local market context.

It’s important to underscore that these systems were designed by professionals and represent signifi-cant achievements, enabling brands to thrive globally for decades However, applying these systems at the individual facility level can present issues, particularly if the role of local HR is not fully leveraged Moreover, while brand activities are designed to be engaging and dynamic, the inability to effectively define and communicate one’s role, beyond merely coordinating processes, may pose risks to the optimal use of local resources and successful integration.

Brands and international networks offer valuable experience and growth opportunities An established corporate culture facilitates expatriate networking, improving managerial approaches, and fostering a caring attitude towards employees As a manager, this orientation towards employee care becomes not just a policy but a perceived necessity.

The brand instills confidence in employees, suggesting a vast support network It provides compre-hensive process guidelines, offering answers to queries for those keen on delving deeper This access to extensive information and knowledge is crucial However, the primary challenge for managers is to tailor these systems to the local context effectively.

Revisiting the evaluation system and the issue of subjectivity, it’s apparent that personal biases can influence assessments even at the top management level, potentially leading to misuse in various mana-gerial ranks Furthermore, Generation Z and ongoing industry developments often clash with traditional evaluation systems, rendering them merely formalistic, even within prominent brands.

Employee satisfaction surveys serve as another tool for integrating international systems and enhanc-ing organizational culture Although these surveys are somewhat adapted to Georgian realities, they sometimes reveal a disconnect, suggesting modifications could enhance effectiveness and relevance.

Local management or hotel managers bear the full weight of strategic decisions, offering a unique blend of professional challenge and autonomy However, this can be counterbalanced by limitations imposed by local ownership and budget constraints.

The role of HR is pivotal, especially in orienting expatriate general managers and management teams to local cultures, mentalities, and needs While HR may establish policies and standard operating proce-dures, the essence lies in their implementation—communicating and invigorating them with real-world relevance, necessitating continuous updates.

Under local management, there’s greater flexibility to adjust processes to meet social and domestic needs, including refining employee satisfaction surveys to better reflect staff sentiments.

A significant challenge for branded hotels is the career progression system Ascending to high mana-gerial positions can take decades, a period during which personal priorities, such as family and personal life, become increasingly important This is particularly true for Generation Z, who prioritize work-life balance To address this, some hotels have developed realistic short-term success plans, clearly outlin-ing achievable positions within a three-year timeframe, thus contributoutlin-ing to the entity’s success While some employees might leverage these opportunities for personal advancement, hotels must consider what today’s workforce seeks from their organizations.

Planning corporate events that reflect the values of the organizational culture, especially when the team includes expatriates, and people of different nationalities, religions, and social classes, is a chal-lenging task Achieving equal involvement is difficult, and language barriers exacerbate the problem For instance, how should a hotel handle Easter gift sets for employees when those gifts are being received by representatives of other cultures and religions? In one hotel’s experience, such an initiative made all

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employees feel part of a community However, it’s important to note that what works for one facility may not necessarily be effective for another team or culture.

An annual corporate event has become an established tradition in the hotel industry, planned in a way that ensures the equal participation of all individuals, regardless of cultural, linguistic, or other barriers The key is to ensure that everyone feels they are part of a unified group.

The coronavirus pandemic has fundamentally altered the industry Many employees left the sector for different opportunities, including online ones However, the hospitality business has rebounded more quickly than anticipated Although guests returned to hotels with a greater desire to travel, it soon became apparent that there were not enough staff to maintain service standards, placing the main burden on daily workers This disparity in standards between hotels led to a decline in quality The pandemic highlighted the resilience of the younger generation and the viability of earning remotely The shift away from overtime and long shifts has been significant, with many hotels struggling to adapt to this new reality They now face the challenge of becoming more flexible and appealing to the new generation.

Decision-makers in the hotel industry must develop new strategies that cater to the demands of the younger generation While some expectations may seem high, there is much to learn from them.

Hotel owners invest significant resources into their businesses, but often hesitate to become involved in day-to-day operations, preferring to leave process optimization to consulting groups The hospitality industry has evolved into a distinct field that requires a deep emotional investment from its personnel Success depends on a genuine passion for guest service, without which long-term success is unattain-able Hotels need to evolve to become attractive both as businesses and as employers Local owners and managers have the opportunity to access and adapt international standards to the local context, making the system more accessible through consulting teams with extensive experience.

Georgia has seen successful examples in the hotel industry, including the creation of chain brands and hotels that appeal equally to employees and guests (Zhorzholiani, 2023) Sharing professionalism and experience is crucial for highlighting the industry’s unique aspects This approach can lead to fur-ther local successes and even international recognition, provided fur-there is a commitment to continuous improvement.

Despite technological advances and digitalization in global business, the human element remains indispensable in the hotel industry This sector is fundamentally based on the human-to-human (H2H) experience The ability of hotel brands to convert guests into repeat, loyal visitors relies solely on the attitudes of their employees, the organizational culture, and a shared goal that unites people in pursuit of success.

For this paper, the questionnaires were distributed to employees across several leading chain hotels in Georgia Surveys were administered to 217 staff members working in international chain hotels across the regions of Adjara, Kakheti, Imereti, Kvemo Kartli, and Shida Kartli The research questionnaire was structured into three parts The initial section gathered socio-demographic information such as age, gender, job title, and qualifications The subsequent sections focused on assessing employees’ percep-tions related to service quality and hospitality, including their satisfaction with management, training programs, coworker relations, and overall job satisfaction, using a five-point Likert scale for responses.

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This study utilized four metrics from Janssen (2008) to assess aspects of employee hospitality, with an illustrative item being the generation of innovative solutions for challenging problems The aspect of coworker relationship satisfaction draws partially on insights from Spector (1997), asking participants to reflect on their alignment with specific traits, like enjoying collaboration with colleagues The evaluation of satisfaction with management’s relations incorporates adaptations from research by Schmidt (2007), Liu et al (2008), and Spector (1985) to better suit this investigation’s context Job satisfaction measure-ments were inspired by earlier studies focusing on hotel staff contentment (Kim & Jogaratnam, 2010; Salzar & Hubbard, 2000; Lyons, 1971), with one representative question assessing overall job fulfillment.

To analyze the structure and relationships within the model, we utilized exploratory factor analysis This approach highlighted four primary latent variables, detailed in Table 1, shedding light on the un-derlying dimensions of our study.

The analysis revealed significant factors influencing various aspects of hospitality and management relations ‘Guest Understanding’ emerged as a critical factor with a high percentage of variance explained and a strong reliability score, indicating its pivotal role Similarly, factors related to ‘Management Rela-tions’ and ‘Team Dynamics’ demonstrated substantial contributions to overall satisfaction, with notable variance percentages and reliability indices This factor analysis outlines results related to job satisfaction (JS), satisfaction with management relations (SMR), satisfaction with coworker relations (SCR), and employee hospitality (EH), underscoring the multifaceted nature of job satisfaction and organizational culture within the context examined It presents the scores for various aspects like satisfaction with sal-ary, job, teamwork, management competencies, and more, alongside Cronbach’s Alpha values for reli-ability (0.61 to 0.96) and the percentage of variance explained by each factor (8.2% to 38.45%) These findings indicate a significant contribution of employee hospitality to overall variance, suggesting its crucial role in job satisfaction The analysis effectively demonstrates the diverse elements influencing job satisfaction and the importance of management and coworker relations in the organizational context.

Table 1 Initial factor analysis exploration

Source: Compiled by the authors

(N=217, The analysis utilized the Maximum Likelihood extraction method alongside the Promax with Kaiser Normalization rotation method, achieving convergence within five iterations).

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The data’s suitability for analysis was assessed using the Kaiser-Meyer-Olkin Measure of Sampling Adequacy, yielding a high KMO value of 0.79 This suggests a robust association among variables for factor analysis Acceptability was set for factor loadings above 0.5 Bartlett’s Test of Sphericity further confirmed significant correlations within the data (χ2 = 2431.62, df = 123, p < 0.000), underscoring the data’s appropriateness for detailed factor analysis.

The objective is to verify the positive connections among the identified factors (latent variables) as depicted in Figure 1 Following the conduct of Confirmatory Factor Analysis (CFA), it is advisable to eliminate any variables that do not significantly contribute to the factor, subsequently recalculating a fresh, non-nested model as suggested by Ullman (2006), according to Figure 1 This process ensures the refinement and accuracy of the model’s representation of underlying constructs.

To accurately assess the representation of latent variables, Confirmatory Factor Analysis was con-ducted, as detailed in Table 2 This method utilized SPSS software employing the maximum likelihood estimation technique to evaluate the model’s measurement variables The analysis involved scrutinizing both exogenous and endogenous variables through various metrics An initial step in validating the mea-surement model involved analyzing the model’s fit and the constructs’ validity, as outlined in Table 2.

The recommended values for various model fit indicators used in Confirmatory Factor Analysis (CFA), as per different authors’ guidelines are:

• Cmin/df (Chi-square/degrees of freedom): Recommended to be between 1 and 3 according to Byrne (1994).

• CFI (Comparative Fit Index): Should be greater than 0.93, as recommended by Byrne (1994) • GFI (Goodness of Fit Index) is recommended to be over 0.90, according to Byrne (1994).

• RMSEA (Root Mean Square Error of Approximation): Should be less than 0.080, following Hair et al (2010).

• PCLOSE: Values greater than 0.050 are recommended, as per Hair et al (2010).

• RMR (Root Mean Square Residual) is recommended to be less than 0.10, according to Hair et al

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These benchmarks are crucial for assessing the adequacy and reliability of CFA models in research The fit indices presented in Table 2 indicate that the measurement model achieves a satisfactory level of fit, warranting further analysis Before delving into the overall model fit, preliminary assessments are conducted as detailed in Table 3, which include evaluating composite reliability (CR), average variance extracted (AVE), maximum shared variance (MSV), average shared variance (ASV), and the correlations represented along the diagonal line These preparatory steps are crucial for ensuring the robustness of the subsequent analysis Table 3 provides an overview of key statistical evaluations to gauge the con-structs’ reliability within the framework and the correlations among them This compilation is essential for verifying the constructs’ internal consistency and their interconnectedness, crucial for the study’s integrity and interpretative depth.

The results indicate measures of reliability and correlation for different constructs within the study Composite Reliability (CR) values range from 0.63 to 0.92, suggesting varying degrees of internal con-sistency among the constructs Average Variance Extracted (AVE) figures, which assess the amount of variance captured by a construct from its indicators, show a minimum of 0.32 to a maximum of 0.8, indicating satisfactory to high levels of construct validity Maximum Shared Variance (MSV) and Aver-age Shared Variance (ASV) values are relatively low, suggesting distinctiveness between the constructs Correlations (SCR, EH, SMR, JS) highlight the interrelationships, with values indicating both moderate and strong associations among the constructs of Satisfaction with Coworker Relations (SCR), Employee Hospitality (EH), Satisfaction with Management Relations (SMR), and Job Satisfaction (JS).

Table 2 Model fit indicators- CFA

Source: Compiled by the authors

Table 3 Metrics for assessing consistency and relationships

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The findings indicate that the latent variables’ average variance extracted surpasses the squared cor-relations among them, showcasing discriminant validity Moreover, composite reliability for all variables exceeds the 0.70 benchmark, affirming their reliability and consistency While all constructs demonstrated AVE values greater than 0.5 (Hair et al., 2010), aligning with criteria for convergent validity, job satis-faction was an exception Nonetheless, its minimal correlation with other model factors and composite reliability above 0.7 justify proceeding with structural equation modeling.

Structural equation modeling was utilized to examine the structural links among variables Subsequent analysis focused on assessing causal relationships by specifying direct paths among constructs, further refining the understanding of how these relationships influence each other within the model framework.

Table 4 presents the normalized coefficients derived from the structural equation modeling analysis These coefficients quantify the strength and direction of the relationships among the constructs within the model, providing valuable insights into the causal dynamics under investigation

In the model, if a factor’s loading does not meet the criteria of an absolute t-value greater than ±1.96 with a significance level (p-value) greater than 0.05, it is considered for removal from the analysis This is based on statistical standards for determining the significance and reliability of each factor within the model.

The results demonstrate that all constructs, including satisfaction with coworker relations, employee hospitality, satisfaction with management relations, and job satisfaction, exhibit strong reliability and validity Composite Reliability (CR) scores range from 0.63 to 0.92, indicating robust internal consistency across constructs Average Variance Extracted (AVE) values confirm the constructs’ validity, with most exceeding the 0.5 thresholds recommended for convergent validity, showcasing each construct’s capabil-ity to capture significant variance from its indicators These findings underscore the distinctiveness and interconnectedness of the constructs within the model, supporting the structural equation modeling’s subsequent examination of causal relationships among the variables.

The study tested four hypotheses to explore both direct and indirect effects among variables It found strong evidence supporting a direct link between management relations satisfaction and job satisfaction, with substantial statistical backing Similarly, positive correlations were confirmed between coworker relations satisfaction and job satisfaction, alongside a significant relationship between job satisfaction and employee hospitality These results, validated through robust statistical analysis, affirm the hypothesized

Table 4 Structural equation modeling

Standardized estimatesPS.E.C.S.E. t-value

SMR ⟶ JS ***0.0420.3818.916

SCR ⟶ JS 0.0020.0440.0554.897

JS ⟶ EH ***0.0730.0736.275Source: Compiled by the authors

***Note that a p-value of less than 0.001 is considered highly significant.

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relationships, showcasing the interconnectedness of these factors in influencing overall job satisfaction and hospitality outcomes.

The study incorporated a mediation test to delineate the sequence of cause-and-effect relationships, employing three distinct analyses: direct effects without a mediator, direct effects with a mediator, and indirect effects This approach to testing the mediation effect of job satisfaction was guided by the causal steps strategy outlined by Baron and Kenny (1986), offering a structured framework to evaluate how job satisfaction functions as a mediator in the relationship between various workplace factors and outcomes.

The mediation test for the first relationship, encompassing satisfaction with management relations, job satisfaction, and job hospitality, revealed a significant mediating role of job satisfaction Specifically, job satisfaction significantly mediates the relationship between satisfaction with management relations and employee hospitality, with a β coefficient of 0.519 and a p-value less than 0.05 This underscores the critical function of job satisfaction in bridging management practices and the level of hospitality provided by employees.

The analysis of the second relationship, which explores the dynamics between satisfaction with coworker relations, job satisfaction, and job hospitality, also revealed a significant mediating effect of job satisfaction With a β coefficient of 0.474 and a p-value less than 0.01, job satisfaction significantly influences the connection between coworker relations and the hospitality employees exhibit, highlight-ing its pivotal role in facilitathighlight-ing positive interactions and outcomes within the workplace environment The analysis of the mediation test for the first relationship, between satisfaction with management relations and employee hospitality with job satisfaction as a mediator, showed significant mediation, indicating job satisfaction plays a key role in linking management relations to employee hospitality Similarly, the second relationship, between satisfaction with coworker relations and employee hospital-ity, also demonstrated significant mediation by job satisfaction, reinforcing its central role in mediating workplace relationships and their impact on hospitality These findings highlight the importance of job satisfaction in the dynamics between various satisfaction dimensions and employee hospitality.

The study’s results affirm the reliability and validity of all examined constructs, such as satisfaction with coworker and management relations, job satisfaction, and employee hospitality, supported by strong Composite Reliability (CR) scores and Average Variance Extracted (AVE) values Four hypotheses tested revealed significant direct and mediated relationships between these constructs, particularly highlighting job satisfaction’s role as a mediator This comprehensive analysis not only underscores the constructs’ distinctiveness and interconnectedness but also their collective impact on job satisfaction and hospitality outcomes within the workplace.

The study, focusing on enhancing job satisfaction for optimal hospitality performance in Georgian chain hotels, concludes that job satisfaction plays a pivotal role in improving hospitality outcomes By exam-ining the relationships between employee satisfaction with management and coworkers and overall job satisfaction, the research highlights the critical impact of a supportive work environment on employee hospitality The study underscores the necessity of strategic managerial practices tailored to the unique socio-cultural context of Georgia to foster job satisfaction, ultimately enhancing the competitiveness and service quality of Georgian chain hotels in the global market.

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The study’s key findings reveal the significant impact of various factors on job satisfaction within the Georgian chain hotel sector It underscores the importance of satisfaction with management and co-worker relations, highlighting how these elements, along with employee hospitality, contribute to overall job contentment The research validates the crucial role of job satisfaction as a mediator in enhancing hospitality performance, offering actionable insights for improving workplace dynamics and service quality Through robust statistical analysis, the study affirms the interconnectedness of these factors, suggesting tailored strategies for hotel managers to foster a positive organizational culture and enhance competitive advantage.

The theoretical implications of this study extend our understanding of job satisfaction within the hospitality sector, particularly in the context of Georgian chain hotels By examining the mediating role of job satisfaction between management and coworker relations and employee hospitality, the research provides empirical support for existing theories on workplace satisfaction and performance It highlights the intricate dynamics of employee interactions and their impact on service delivery, suggesting that enhancing job satisfaction can significantly improve organizational outcomes This study contributes to a deeper theoretical comprehension of the factors influencing job satisfaction and sets a foundation for future research in hospitality management.

The conclusion synthesizes the study’s findings, emphasizing the strong reliability and validity of the constructs examined, including satisfaction with coworker relations, employee hospitality, satisfac-tion with management relasatisfac-tions, and job satisfacsatisfac-tion It highlights the significant direct and mediated relationships between these constructs, particularly noting job satisfaction’s role as a mediator The study also provides practical recommendations for hotel managers and underscores the importance of further research to explore additional factors influencing job satisfaction and hospitality outcomes in the Georgian context.

The study acknowledges certain limitations, including its geographic and sectoral focus, which may affect the generalizability of its findings Future research is encouraged to explore job satisfaction and hospitality performance across different cultural contexts and hospitality segments Additionally, ex-amining the impact of emerging technological advancements and global economic trends on employee satisfaction and service quality could provide valuable insights Expanding the scope of research to include these aspects will enhance our understanding of the hospitality industry’s dynamics and inform more effective management strategies.

This study offers valuable insights into the dynamics of job satisfaction within the Georgian hospitality sector, underscoring the pivotal role of employee relations and hospitality in enhancing organizational performance It bridges theoretical frameworks with practical applications, providing a comprehensive understanding of the factors influencing job satisfaction Future research directions are proposed to further enrich this field of study, highlighting the continuous evolution of hospitality management practices This research contributes significantly to both academic literature and industry practices, encouraging a deeper exploration of job satisfaction strategies in the hospitality industry.

The study concludes that enhancing job satisfaction in Georgian chain hotels significantly impacts hospitality performance Examining the interplay between management and coworker relations, job satisfaction, and employee hospitality, demonstrates the crucial role of job satisfaction as a mediator The research validates the importance of a supportive organizational culture and effective management practices in fostering employee satisfaction Recommendations include adopting holistic strategies that consider the unique socio-cultural and economic context of Georgia, aiming to boost the hospitality sector’s competitiveness and service quality globally.

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The study investigates the influence of eco-innovation on business resilience in the hotel and tourism industry, focusing on green dynamic capabilities as a mediator 323 responses were collected from top and middle-level management at five-star hotels and category-A travel agencies in Egypt Using the WarpPLS software 7.0, the PLS-SEM technique was used to evaluate the hypothesized model of the study Findings revealed that eco-innovation positively affects business resilience and green dynamic capabilities In addition, green dynamic capabilities positively affect business resilience Moreover, green dynamic capabilities mediate the relationship between eco-innovation and business resilience The study enhances and broadens the comprehension of dynamic capabilities theory in the context of tourism and hospitality businesses The study also helps tourism and hospitality businesses by emphasizing the im-portance of integrating green dynamic capabilities into tourism and hospitality businesses’ operations, thereby enhancing their competitive edge and long-term resilience.

The convergence of sustainability, innovation, and resilience has become a focal point in today’s business world, including the hospitality and tourism sector (Colmekcioglu et al., 2022) With increasing global awareness of environmental sustainability concerns, companies are actively adopting eco-innovation

Bassam Samir Al-Romeedy

Faculty of Tourism and Hotels, Egypt

Hazem Ahmed Khairy

Faculty of Tourism and Hotels, Egypt

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Eco-Innovation and Hospitality and Tourism Business Resilience

strategies to address the impacts of climate change and enhance their ability to handle unexpected dis-ruptions (Allal-Chérif et al., 2023; Fontoura & Coelho, 2022) Eco-innovation plays a crucial role in the tourism and hospitality industry by enabling businesses to reduce their environmental impact, gain a competitive advantage, foster collaboration, and make positive contributions to the environment and society (Kuo et al., 2022; Colmekcioglu et al., 2022).

Eco-innovation covers a wide range of practices and initiatives aimed at reducing environmental impacts These encompass the use of renewable energy sources, the implementation of waste reduction and recycling programs, the promotion of sustainable transportation alternatives, and the integration of eco-friendly design and construction principles into infrastructure projects These eco-innovations not only contribute to environmental sustainability but also present opportunities for economic benefits and an improved overall guest experience (He et al., 2018; Bugdol et al., 2023).

The integration of eco-innovation is vital for strengthening the resilience of businesses (Le et al., 2023) It enables organizations to adapt to changing environmental regulations, reduce costs, enhance their reputation, and foster collaboration with stakeholders (Larbi-Siaw et al., 2022) By incorporat-ing eco-innovative practices, businesses can position themselves as resilient and sustainable entities, capable of navigating disruptions and capitalizing on opportunities in a dynamic business environment (Spencer, 2023).

The concept of green dynamic capabilities serves as a link between eco-innovation and business re-silience Green dynamic capabilities refer to an organization’s ability to effectively manage and leverage eco-innovation initiatives to enhance resilience (Janahi et al., 2021) These capabilities encompass various aspects, such as strategic decision-making, resource allocation, knowledge management, learning, and collaboration, both internally and externally (Essid & Berland, 2018) The integration of eco-innovation is essential for nurturing and strengthening green dynamic capabilities (Huang & Xiao, 2023) It enables organizations to develop sustainable products and processes, acquire valuable knowledge, foster col-laborations, and promote a culture of sustainability (Yu et al., 2022) By incorporating eco-innovative practices, businesses can enhance their ability to effectively tackle environmental challenges, seize green business opportunities, and achieve sustainable long-term performance outcomes (Shahzad et al., 2021).

The tourism and hospitality sector is a crucial contributor to Egypt’s economy, generating foreign exchange earnings, employment, and government revenue It showcases Egypt’s cultural heritage through iconic landmarks and provides diverse job opportunities The sector also attracts foreign investments, promoting infrastructure development and contributing to overall economic growth (Al-Romeedy, 2019) The Egyptian tourism and hospitality sector involve various key players, including government entities such as the Ministry of Tourism and Antiquities, major international hotel chains like Marriott, Hilton, and Accor, travel agencies, tour operators, cruise operators, and airlines like Egyptair (Al-Romeedy, 2024) The tourism and hospitality sector in Egypt faces challenges related to the environmental impact of tourism, balancing growth with preservation, sustainable infrastructure development, community engagement, climate change, and promoting sustainable practices These challenges require addressing waste generation, water consumption, and energy use, managing over-tourism’s impact on cultural sites, and developing strategies to enhance resilience and adapt to climate change Encouraging responsible tourism behavior and eco-friendly initiatives is crucial for sustainable growth (Ragab & Meis, 2016; Gaafar et al., 2022; El Atiek, & Goutte, 2023).

Factors such as cost considerations, consumer demand, reputation and branding, supplier engage-ment, and education and awareness influence the adoption of eco-friendly practices and products in the tourism and hospitality sector The cost of eco-friendly alternatives can influence business decisions,

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but the potential for long-term cost savings can serve as an incentive Businesses are driven to adopt eco-friendly options due to consumer preferences for sustainability, which can help attract more cus-tomers Enhancing reputation and brand image is another motivating factor for embracing eco-friendly practices Collaboration with suppliers and providing education to industry professionals are important for promoting the availability and accessibility of eco-friendly products Increasing awareness about the environmental benefits and cost savings associated with eco-friendly practices encourages businesses to integrate sustainability into their operations (Gaafar, 2020; Al-Romeedy, 2024).

Egypt has been actively promoting sustainable practices in its tourism and hospitality sector The coun-try has introduced the Green Star Hotel Certification program to encourage hotels to adopt eco-friendly practices, focusing on energy and water conservation, waste management, and community engagement Many hotels have taken steps to reduce energy consumption and carbon emissions by implementing energy-saving measures such as using energy-efficient lighting and appliances, installing solar panels for water heating, and employing smart energy management systems Water-saving initiatives, including the use of low-flow fixtures, water recycling systems, and guest education programs, are also implemented to address Egypt’s water scarcity issues In addition, waste management strategies like recycling programs and the reduction of single-use plastics have been embraced by hotels and resorts, with collaborations established with local recycling facilities to ensure proper waste management and minimize environ-mental impact Furthermore, sustainable tourism in Egypt emphasizes the preservation of cultural and historical sites, with tourism operators actively involving local communities to ensure their participation and benefit from tourism activities This approach aims to preserve cultural heritage while promoting economic and social development in the region (Gaafar, 2020; Al-Romeedy, 2023; Khairy et al., 2023).

There is a notable research gap in the tourism and hospitality industry regarding the impact of eco-innovation on business resilience, specifically concerning the mediating influence of green dynamic capabilities While the role of green dynamic capabilities as a mediator is addressed in this study, there remains a lack of comprehensive understanding of how these mechanisms operate within the tourism and hospitality sector Additionally, no previous research has specifically examined the mediating ef-fects of green dynamic capabilities in the relationship between eco-innovation and business resilience Therefore, the objective of this study is to investigate the connection between eco-innovation and the resilience of hospitality and tourism businesses, with a specific focus on the mediating role of green dynamic capabilities The study aims to enhance our understanding of how eco-innovation initiatives can strengthen the resilience of businesses in the face of environmental challenges and how green dynamic capabilities contribute to this relationship By exploring these dynamics, the study aims to provide valu-able insights and practical implications for hospitality and tourism businesses navigating the complex environment of sustainability and resilience in the industry The findings of this study have practical implications for hospitality and tourism businesses, policymakers, and industry stakeholders They offer valuable insights for strategic decision-making, resource allocation, and the development of policies and initiatives that promote eco-innovation and resilience in the industry Ultimately, the study contributes to the existing knowledge base on sustainable practices in the hospitality and tourism sector, highlighting the importance of embracing eco-innovation and cultivating green dynamic capabilities to effectively navigate the changing and environmentally conscious business environment.

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LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENTDynamic Capabilities Theory

Dynamic Capabilities Theory emphasizes the strategic management of resources and competencies (Mohamud & Sarpong, 2016) In the context of this study, eco-innovation refers to the utilization of resources and competencies to create environmentally friendly products, processes, or services (Kuo et al., 2022) Green dynamic capabilities, derived from this theory, refer to the effective management and leverage of these eco-innovative resources (Pichlak, 2021) Dynamic Capabilities Theory highlights an organization’s capacity to adapt to changing environments (Helfat et al., 2009) Eco-innovation contributes to the development of green dynamic capabilities, enabling organizations to adjust their strategies, processes, and structures to incorporate environmentally friendly practices This adaptability enhances the organization’s resilience to environmental changes and market dynamics (Al-Shami & Rashid, 2022; Linnenluecke et al., 2012) As well, Dynamic Capabilities Theory focuses on the learn-ing processes within organizations (Easterby‐Smith & Prieto, 2008) In the context of eco-innovation and green dynamic capabilities, organizations engage in learning processes to generate new knowledge about environmentally sustainable practices (Gavronski et al., 2012) This knowledge creation supports the development of capabilities to further innovate and adapt to emerging environmental challenges (Al-Omoush et al., 2022).

The Effect of Eco-Innovation on Business Resilience

Eco-innovation encompasses the development and implementation of new products, processes, technolo-gies, or business models that aim to reduce environmental impacts and promote sustainability (Dogaru, 2020) It brings several advantages to businesses, including cost reduction, improved operational efficiency, compliance with regulations, differentiation in the market, and the establishment of a positive brand image (Hojnik & Ruzzier, 2016; García-Granero et al., 2020) Eco-innovation often involves strategies to optimize resource utilization, minimize waste generation, and mitigate environmental footprints By embracing eco-friendly practices and technologies, businesses can enhance their resource efficiency, leading to cost savings and increased profitability (Sumrin et al., 2021; Hojnik & Ruzzier, 2016) Eco-innovation has the potential to confer a competitive edge on businesses in the market (Kuo et al., 2022) By creating distinctive and environmentally friendly products, services, or processes, businesses can set themselves apart from competitors and appeal to environmentally conscious customers (Martínez García de Leaniz et al., 2018) This can contribute to market positioning, customer loyalty, and long-term profitability (Alsmadi, 2007) The capacity to consistently innovate in an environmentally sustainable manner can establish a sustainable competitive advantage, enhancing a business’s resilience against market fluctuations and shifts in consumer preferences (de Oliveira Teixeira & Werther Jr, 2013) So, the following hypothesis is developed:

H1: Eco-innovation has a positive effect on business resilience.

The Effect of Eco-Innovation on Green Dynamic Capabilities

Green dynamic capabilities represent a firm’s ability to perceive, seize, and adapt resources and activi-ties to effectively tackle environmental concerns and harness sustainable opportuniactivi-ties (Yousaf, 2021;

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Singh et al., 2022) These capabilities empower businesses to cultivate a culture of innovation and sus-tainability, thereby driving eco-innovation (Xiaoyi et al., 2023) They encompass the aptitude to sense environmental changes, identify prospects for sustainable innovation, and mobilize resources to develop and implement eco-friendly practices, technologies, and business models By leveraging their green dynamic capabilities, businesses can proactively participate in eco-innovation to address environmental challenges and capitalize on emerging sustainable market trends (Makhloufi et al., 2022; Wang et al., 2020) Green dynamic capabilities underscore the significance of organizational learning and adapt-ability in response to environmental changes (Kuo et al., 2017) Businesses endowed with robust green dynamic capabilities engage in constant monitoring and analysis of environmental trends, regulations, and stakeholder expectations This information enables them to identify opportunities for eco-innovation and make strategic decisions to align their operations with sustainability objectives (Inigo et al., 2017; Kuo & Smith, 2018) Through an ongoing process of learning, businesses can enhance their eco-innovation endeavors, refine their practices, and adapt to shifts in the business environment (Munodawafa & Johl, 2022; Keshminder & del Río, 2019) Hence, the following hypothesis is suggested:

H2: Eco-innovation has a positive effect on green dynamic capabilities.

The Effect of Green Dynamic Capabilities on Business Resilience

Green dynamic capabilities foster a strategic approach that recognizes sustainability as a fundamental element of business strategy (Hajiheydari et al., 2023) Through the integration of sustainability objec-tives into strategic planning, businesses can ensure that eco-innovation and environmental considerations are ingrained in decision-making processes (Xavier et al., 2020) This long-term perspective empowers businesses to anticipate and navigate potential future challenges, align with evolving market demands, and sustain a competitive advantage (Ruff, 2006) By embracing sustainability as a strategic imperative, businesses can enhance their overall resilience and adaptability in the face of environmental uncertainties (Fiksel & Fiksel, 2015) Green dynamic capabilities play a role in bolstering supply chain resilience by promoting sustainable and resilient practices across the supply chain Businesses that possess robust green dynamic capabilities collaborate with suppliers to ensure responsible sourcing, diminish environmental impacts, and enhance supply chain transparency (Rauer & Kaufmann, 2015; Hong et al., 2018) Through the cultivation of strong relationships and involving suppliers in sustainability initiatives, businesses can mitigate risks associated with disruptions such as resource scarcity, natural disasters, or regulatory changes (Hilend et al., 2023) This collaborative approach strengthens the resilience of the entire supply chain and enables businesses to maintain continuity in the face of environmental challenges (Pettit et al., 2019) Therefore, the following hypothesis is proposed:

H3: Green dynamic capabilities have a positive effect on business resilience.

The Mediating Role of Green Dynamic Capabilities in the Link Between Eco-Innovation and Business Resilience

Incorporating sustainable practices often necessitates businesses to adapt their processes, technologies, and strategies through eco-innovation Eco-innovation allows businesses to cultivate new capabilities and knowledge, equipping them to more effectively address environmental challenges and adapt to market fluctuations These adaptations play a pivotal role in the development of green dynamic capabilities (Ch’ng et al., 2021; Salim et al., 2019) By fostering adaptability and agility, green dynamic capabilities