The Catalytic Role of Work Engagement and Craftsmanship Spirit in Driving Sustainable Innovation Performance: Evidence from China’s Hospitality Industry

Background and Aims: The hospitality industry in China is navigating an era of unprecedented competition, necessitating a strategic transition toward sustainable innovation. This research aims to: (1) evaluate the impact of work engagement and craftsmanship spirit on sustainable innovation performance; and (2) analyze the underlying mechanisms through the mediating role of emotional labor and the moderating effects of digitalization and leadership support. Methodology: Utilizing a quantitative longitudinal tracking design, data were collected from 425 frontline hotel employees across major economic hubs in China. The study employed Structural Equation Modeling (SEM) to test the hypothesized relationships, ensuring rigorous validation of the measurement and structural models. Results: The empirical findings demonstrate that both work engagement (β = 0.43, p < 0.001) and craftsmanship spirit (β = 0.52, p < 0.001) are significant antecedents of sustainable innovation performance. Notably, craftsmanship spirit emerged as the dominant driver. Furthermore, emotional labor (deep acting) was confirmed as a significant partial mediator, while digitalization and leadership support were found to significantly amplify the positive effects of emotional labor on innovation outcomes. Conclusion: The study confirms that sustainable innovation is a systemic outcome of individual dedication, facilitated by deep emotional regulation and reinforced by organizational support. For hotel managers, fostering a craftsmanship culture and providing digital-social scaffolds are imperative for maintaining long-term competitiveness.