This research examines the proposition that enhancing sustainable innovation can be particularly effective when the focus is on strategy, machine learning, and digitalization. The study specifically targets the complex interactions among strategic alignment (SA), sustainability-oriented innovation (SOI), and digital transformation (DT) within small and medium-sized enterprises (SMEs) in Saudi Arabia, particularly within the service sector. A moderated mediation framework was constructed to analyze the influence of SA on SOI, the mediating role of DT, and the moderating effect of strategic orientation (SO). Data were collected through structured surveys from 339 SMEs using a quantitative research design and a cross-sectional methodology. The partial least squares structural equation modeling (PLS-SEM) technique was employed to validate the proposed framework and hypotheses. The results indicate that SA significantly boosts SOI, with DT acting as a strong mediator in this connection. Furthermore, SO moderates the relationships between SA and SOI, SA and DT, and DT and SOI, highlighting its essential role in shaping the dynamics of sustainable innovation. These findings emphasize the necessity of aligning strategic initiatives with digital advancements to foster innovation that achieves a balance among economic, social, and environmental objectives. This study contributes to existing literature by filling the research gap regarding SOI and DT in Saudi SMEs and offers practical insights for SMEs facing sustainability challenges. Future research should delve deeper into digital technology configurations, industry-specific contexts, and cross-national applications to improve the applicability of these findings.

The tourism and hospitality sector in Saudi Arabia is undergoing rapid sustainability transformation under the strategic direction of Vision 2030. This study examines the maturity of Sustainability Actions (SAs), their key drivers, and implementation barriers, comparing the perceptions of industry practitioners and academic experts. Using a qualitative abductive research design based on 20 in-depth semi-structured interviews with industry and academic experts in Saudi Arabia, followed by thematic analysis using a machine learning Qualcoder 3.7 software, the findings reveal both convergence and divergence between the two groups. While both recognize Vision 2030 as the primary catalyst and acknowledge financial costs and knowledge gaps as major barriers, industry experts emphasize operational efficiency and short-term performance outcomes, whereas academics advocate systemic transformation grounded in circular economy principles and long-term socio-ecological regeneration. The results demonstrate that sustainability adoption in Saudi Arabia is shaped not only by market demand but also by a strong government-led institutional framework that accelerates sectoral change. The findings are structured across environmental, social, and economic sustainability dimensions, offering differentiated implications for industry practitioners and academic stakeholders within emerging tourism economies. The study contributes to sustainability and tourism and hospitality literature by offering a comparative multi-perspective analysis and by conceptualizing sustainability transition as a hybrid model combining policy direction, market incentives, and knowledge collaboration. Managerially, the findings highlight the need for regulatory clarity, targeted financial mechanisms, capacity building, and stronger industry–academia integration to institutionalize sustainability practices in emerging tourism economies.

Since launching the Saudi Vision 2030, it has witnessed a reflective sustainability action (SA) transformation. However, robust theoretical models investigating the multifaceted catalysts and consequences of SA in this less-developed country are still lacking in investigation. This lag prompted us to advance and validate a composite framework integrating multiple theories (e.g., institutional theory, the resource-based view (RBV), stakeholder theory, dynamic capabilities theory, and contingency theory) elucidating how policy direction (PD), market incentives (MIs), and knowledge collaboration (KC) stimulate SA adoption encompassing its environmental practices (EPs), social practices (SPs), and circular economy practices (CEPs). The investigation also probes how SA thereafter drives sustainable performance outcomes. A machine-learning approach using the PLS-SEM facility was applied based on 400 questionnaires targeted at managerial positions working in the tourism and hospitality segment based in Saudi Arabia. The findings reveal that all the proposed relationships were supported, providing strong empirical support for the proposed sustainability framework in the Saudi tourism and hospitality context. Institutional pressure and the governance/regulatory environment also showed a significant impact on environmental practices, sustainable performance, and circular economy practices, whereas cost efficiency, competitive advantage, customer demand for sustainability, and knowledge collaboration also demonstrated a positive impact on sustainability actions and outcomes. Furthermore, robust analysis shows that larger firms respond more strongly to MI in terms of cost efficiency, competitive advantage, and customer demand, while CEP produces a modest improvement in hotels compared with restaurants. Our model develops a theoretical synthesis beyond fragmented views. It also provides tangible guidance for industry leaders and regulators in driving strategic alignment with the SDGs and in developing a resilient, situational model that promotes regenerative tourism in high-growth, vulnerable destinations.

The current paper concerns the interplay of the circular economy (CE) and global energy threats facing the hospitality industry. Despite the growing emphasis on CE implementation within sustainable hospitality, little empirical evidence explains how CE practices enhance hotels’ green energy resilience amid escalating global energy threats and resource uncertainty, particularly in emerging markets. Addressing this research gap, this paper investigates how the 6R CE model (Redesign, Reduce, Reuse, Recycle, Recover, and Rethink) strengthens green energy resilience in sustainable hotels while examining the moderating roles of policy clarity and regulations together with the influences of stakeholder collaboration and management commitment within the Saudi Arabian hospitality sector. The study adopted a four-wave temporally separated quantitative survey design, collecting data from 360 managers working in Saudi sustainable hotels across four time intervals. The proposed conceptual model was evaluated using partial least squares structural equation modeling (PLS-SEM), complemented by mediation and moderation analyses. The findings demonstrate that global energy threats strongly stimulate CE adoption (β = 0.848, p < 0.001), while CE practices substantially improve green energy resilience (β = 0.719, p < 0.001). The results further reveal a strong indirect effect through the Strength of CE Implementation (β = 0.813, p < 0.001), highlighting implementation maturity as a critical mechanism through which circular initiatives translate into resilience outcomes. The proposed model explained 55% of the variance in CE implementation and demonstrated substantial predictive capability for energy resilience. Policy clarity and regulations significantly strengthen the CE–resilience relationship, while stakeholder collaboration and management commitment further enhance these relationships. The results further identify the 6R circularity framework as an effective strategic pathway through which sustainable hotels can mitigate global energy threats while enhancing organizational resilience. This study contributes to the CE and sustainable hospitality literature by providing one of the first empirical models linking CE implementation with green energy resilience under conditions of global energy uncertainty, offering actionable implications for policymakers, hotel managers, and the implementation of Saudi Vision 2030.

The hospitality sector faces growing global pressure to integrate sustainable development (SD) into its operations, yet adoption often remains fragmented and uneven. Fayoum, Egypt—an ecologically and culturally unique oasis—presents a compelling context for examining how hotels balance economic viability, environmental stewardship, and social responsibility. This study explores the perspectives of hotel executives on sustainable practices in Fayoum hotels and their perceived influence on customer behavior. Adopting a pragmatic philosophical foundation and an abductive case study approach, the research draws on 14 semi-structured interviews with general managers, sustainability managers, and senior executives. Thematic analysis was employed to capture nuanced insights into the awareness, implementation, and challenges of SD measures. Findings reveal varying levels of understanding: while many executives equated sustainability with cost-saving environmental initiatives such as energy and water conservation, a smaller group embraced a broader, triple-bottom-line view that also incorporated social and economic dimensions. The study contributes theoretically by illustrating how the practical adoption of SD varies across stakeholders, suggesting a phased engagement model where environmental and economic benefits often precede social integration. Practically, it emphasizes the need for capacity building, improved communication of sustainability efforts, and stronger community partnerships.