This study investigates the impact of entrepreneurial self-efficacy (ESFE) on innovative behaviour (INNB) within the hotel industry, with a particular focus on the roles of self-leadership (SEFLP) and entrepreneurial passion (ENP). Based on social cognitive theory, this study developed a theoretical framework to investigate the moderating and mediating mechanisms influencing INNB. Despite its critical role in providing a competitive advantage, research studies exploring these mechanisms remains scarce. Methodologically, the study employs structural equation modelling using SMARTPLS to analyse data from 460 hotel industry employees in Malaysia. Findings reveal that ESFE directly promotes INNB and ENP. Further, ENP serves as a mediator in the relationship between ESFE and INNB, while SEFLP acts as a moderator. These results enrich our understanding of how ESFE, SEFLP, and ENP interact to foster INNB, offering significant theoretical and practical insights. For the hotel industry in developing contexts, particularly Malaysia, this study highlights the importance of nurturing these traits to enhance INNB. Future research directions are also proposed, emphasising the need to explore these dynamics further. This study contributes uniquely by mapping the dual paths of mediation and moderation through which entrepreneurial traits influence innovation in the hotel sector, a domain where such mechanisms have been understudied.
kassrawy et al. (2026) studied this question.