Leadership Competencies in Fostering Green Innovation for Hospitality Small–Medium Enterprise Competitiveness

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Abstract Evolving regulations and market trends require hospitality small and medium-sized enterprises (SMEs) to embrace green innovation initiatives. However, current practices are often insufficient in demonstrating effectiveness, and these SMEs encounter significant barriers to moving forward. Regarding green transformation, leadership competencies are considered a new resource for building a green innovation model that improves the competitiveness of hospitality SMEs. This chapter aims to provide insight into the role of leadership competencies in driving green innovation and enhancing the competitiveness of SME accommodations. Data involved 200 management personnel of hospitality SMEs in Nha Trang, Vietnam. The AMOS software was utilized to test the accuracy of the measurement and hypothesized relationships. The findings underscore the importance of vision-sharing, knowledge-sharing, trust-building, and green transformation leadership competencies in fostering green innovation and creating competitiveness. Furthermore, this study demonstrated that green innovation behavior directly affects hospitality SMEs’ competitiveness and mediates the relationship between green transformation leadership and competitiveness. The results highlight the importance of leadership competencies in explaining green innovation behavior and enhancing competitiveness. Practical strategies are recommended for SME accommodations to implement and promote green practices within the organizations and to customers to bring significant advantages to the market.

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