The influence of environmental dynamic capabilities on organizational and environmental performance of hotels: Evidence from Mexico

This article proposes a proactive environmental strategy (PES) and eco-innovation as environmental dynamic capabilities and analyzes the relationship between these capabilities as well as their influence on performance in 126 hotels in Oaxaca, Mexico. Based on survey data, path analysis was used for hypothesis testing. The results show a positive and significant link between a PES and both eco-innovation and performance (organizational and environmental); eco-innovation shows a positive and significant link to environmental performance as well as a negative and significant link to organizational performance. Our research provides a better understanding of the use of environmental dynamic capabilities in value creation but also notes limitations and challenges in their implementation in the hotel industry. •A proactive environmental strategy (PES) is an environmental dynamic capability.•A PES enhances both organizational and environmental performance.•A PES improves eco-innovation.•Eco-innovation improves environmental performance.•Eco-innovation does not necessarily improve organizational performance.