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.
Zaki et al. (Thu,) studied this question.