Abstract

Abstract Increasing globalization and great rivalry among national and international destinations imply that radical innovation has become a critical factor for the competitiveness of firms in the tourism industry. Radical innovation relies on knowledge shared through interorganizational relationships that connect firms within and between destinations. This paper analyzes the mediating role of explorative knowledge in the association between interorganizational relationships and radical innovation of firms located in tourism destinations. The empirical analysis uses original data collected from a sample of 215 firms located in World Heritage Cities in Spain. The results reveal that firms that take advantage of the variety of interorganizational relationships to achieve knowledge exploration develop more radical innovations. It is recommended that clustered firms build their network with a great diversity of relationships to obtain knowledge exploration since this is critical for developing radical innovation. Moreover, tourism destination institutions should foster variety in their relationships in social networks to contribute to tourism destination sustainability.

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