Innovation in Crisis. The role of leadership and dynamic capabilities for a more innovative hospitality industry

Abstract

This paper investigates the relationship between leadership and dynamic capabilities as drivers of innovation in the hospitality industry. Utilizing data from hospitality executives, we examine how different leadership styles impact the formation of dynamic capabilities and service innovations during unprecedented crises. This research expands extant literature by showcasing how different leadership styles impact different dynamic capabilities and in turn, innovation. We identify that innovative hospitality firms differ from non-innovative firms in their level of dynamic capability development and regarding the extent to which different leadership styles impact dynamic capabilities. The findings suggest practical implications for hospitality businesses and provide insights that can benefit policymakers in their design of a more resilient industry. • Leadership styles impact dynamic capabilities in hospitality firms amid crises. • Leadership styles impact dynamic capabilities and innovation outcomes differently. • Innovative firms excel in dynamic capability development. • Insights for resilient firms and human resource management emerge from findings.