Translating sustainability into competitive advantage: the case of Mexico’s hospitality industry

Abstract

PurposeThe purpose of this paper is to explore how business organizations design and implement sustainability practices to foster competitive advantage.Design/methodology/approachThis qualitative study is based on an exploratory multiple case study involving 11 Mexican hotels recognized as “champions” in sustainability. Data gathering took place via in-depth interviews with hotel managers.FindingsThe key internal resources and capabilities must be supported by integrated microfoundations. The interaction between attributes of key resources and microfoundations reveals four transversal dimensions, namely, leadership orientation, organizational culture, team-based organizational structures and human resources and control management systems to build a sustainability-based competitive advantage in the hospitality industry.Practical implicationsThe implementation of sustainability processes in the hospitality industry depends on the ability of leaders to craft systems, build commitment and align interests and goals consistent with sustainability. Business managers may find some guidance for implementing sustainability-related initiatives from the results of this paper.Originality/valueThis work presents both theoretical and practical contributions, integrating and operationalizing a set of key resources (using the VRIO framework) and microfoundations approach to create and maintain a sustainability-based competitive advantage, in contrast to existing studies where those resources and conditions are examined in a piecemeal fashion.