1. Introduction
Sustainable performance has emerged as a significant challenge for service-oriented enterprises, particularly in the hospitality sector, which is resource-intensive and highly visible to the public. Sustainable performance in hospitality transcends immediate financial outcomes to encompass environmental stewardship, social responsibility, and long-term viability [
1]. Hotels and other hospitality operations consume substantial amounts of water and energy, generate significant amounts of waste, and rely on interpersonal relationships. This renders sustainability both a corporate imperative and a reputational concern. As sustainability concerns escalate, hospitality enterprises are expected to deliver quality service, generate profit, and uphold environmental responsibility simultaneously [
2].
To address these limits, firms across sectors are investing significantly in digital transformation to enhance operational efficiency, transparency, and decision-making. Digital technology enables hospitality enterprises to monitor resource utilisation, enhance operational efficiency, and deliver quality service [
3]. Nevertheless, the mere use of digital technologies does not guarantee an immediate enhancement in performance. The primary issue is determining how businesses utilise, disseminate, and implement digitally generated information to achieve tangible sustainability outcomes [
4,
5]. This issue is particularly pertinent to the hospitality sector, as the outcomes of sustainability depend more on employee collaboration than on automated systems alone.
Integrating knowledge management with digital transformation directly advances sustainability [
6,
7]. Digital systems generate extensive data on energy use, waste, supply chains, and customer behaviour. Yet, researchers do not yet fully understand how organisations convert this data into sustainable performance. Most research focuses on technology adoption or operational efficiency. These studies do not explain how knowledge-based mechanisms from digital transformation drive sustainability, especially in service industries [
8,
9]. This gap remains in both theory and empirical research.
This study asserts that digital knowledge integration alone is insufficient for promoting sustainable organisational performance. Instead, its effective translation into shared understanding and collective action, guided by the Knowledge-Based View and Dynamic Capabilities Theory, is essential [
10]. Digital knowledge integration refers to systematically applying and integrating insights from digital technologies across sectors within a company [
11]. Sustainability is achieved when this knowledge is disseminated and utilised through green knowledge sharing, which entails the exchange of environmentally relevant information, practices, and experiences among organisational members [
12]. By positioning green knowledge sharing as a mediating mechanism, this study goes beyond technology-focused explanations and highlights how the application of integrated knowledge enables sustainability-driven digital transformation.
The effectiveness of these knowledge-based processes is also influenced by leadership. Digital leadership is crucial for ensuring that digital initiatives align with sustainability objectives. This is due to the provision of strategic direction, resource allocation, and the establishment of a culture that encourages innovation and fact-based decision-making [
13]. Even though prior studies such as [
14,
15], have acknowledged the importance of leadership in digital transformation there remains a dearth of empirical knowledge about how digital leadership affects the sustainability outcomes of digital knowledge integration, particularly in its interactions with knowledge-sharing processes. This study investigates the role of digital leadership as a moderating boundary condition that either amplifies or constrains the sustainability effects of digital knowledge integration.
The Jordanian hotel industry presents a notably relevant and inadequately explored context for to understand these connections. The hospitality sector in Jordan faces several sustainability challenges [
16]. For instance, there is persistent water scarcity, rising energy costs, and increasing demand from both the government and the public to implement sustainable practices. The industry needs to simultaneously facilitate tourism and economic development nationwide. Despite these challenges, a few empirical research for instance [
17,
18] address digital transformation for sustainability in the Jordanian hospitality sector. Most existing studies such as [
19,
20] focus on advanced economies or manufacturing, leaving gaps in knowledge about how digital information, leadership, and sustainability interact in service-oriented, resource-limited settings. Examining this context allows us to test and expand theories rather than just replicate them, and to ascertain how they apply to urgent, complex sustainability challenges.
Therefore, this study addresses a specific research gap by examining how digital knowledge integration affects sustainable performance in Jordan’s hospitality sector. It considers green knowledge sharing as a mediator between digital knowledge integration and sustainable organizational performance, and considers digital leadership as a factor that shapes this relationship. This approach distinctly enhances the Knowledge-Based View by characterising green knowledge sharing as a mechanism for transforming knowledge into environmentally beneficial outcomes, while also refining Dynamic Capabilities Theory by demonstrating that the efficacy of digital knowledge integration for sustainability depends on leadership.
The research attempts to answer the following questions:
How does digital knowledge integration affect sustainable performance and green knowledge sharing?
What impact does green knowledge sharing have on sustainable performance?
How does green knowledge sharing shape the effect of digital knowledge integration on sustainable performance?
What is the moderating effect of digital leadership in these relationships?
This model presents a novel environment, along with a process-oriented, conditional framework, for elucidating how digital transformation produces sustainable outcomes in hospitality organisations.
This study contributes to the literature by assessing the necessity of theory-driven, context-sensitive research on sustainability and digitalisation, focusing on sustainable performance in the hospitality industry in the Middle East. This study focuses on Jordan, addressing a specific geographical and sectoral gap while assessing the proposed theoretical frameworks in a context marked by pressing sustainability demands and institutional constraints, thereby improving the model’s explanatory power and external relevance. The study explains the mechanisms and boundary conditions that enable sustainability-oriented digital transformation. The subsequent section elucidates the study’s hypothesis and conceptual framework.
The findings are relevant to broader sustainability aims, especially SDG 9 (Industry, Innovation, and Infrastructure) and SDG 12 (Responsible Consumption and Production). They show how digital knowledge practices help hospitality enterprises in developing nations generate innovative concepts and use resources more sustainably. The next section elaborates on the study’s concepts and recommendations.
5. Discussion
The findings strongly support the proposed hypothesis, revealing that digital capabilities enhance organisational performance over time through both direct impacts and underlying knowledge-based mechanisms, specifically through the integration and exchange of organisational knowledge. This finding supports earlier research suggesting that digital transformation creates sustainability value only when included in organisational knowledge processes, rather than viewed as a simple technological investment [
6,
8,
90]. The findings, therefore, clarify the specific knowledge-based conditions—such as effective knowledge integration and exchange—that enable the transformation of digital projects into sustainable outcomes.
Digital knowledge integration improves sustainable performance, as studies in manufacturing and service industries show that integrated digital systems boost resource efficiency, environmental management, and process transparency [
7]. These results add to past work by showing that digital knowledge, especially in hospitality, supports sustainability, where collaboration and staff actions matter more than automation. This clarifies how digital knowledge integration advances sustainability in service sectors, which prior research has rarely addressed [
48].
The findings show that adding digital knowledge to daily operations makes sustainability a core business practice, not just a goal. When managers and employees use data from tools such as energy management systems, inventory controls, or demand forecasting, they embed sustainability into everyday choices. This extends earlier research [
5] by showing that digital systems directly shape daily practices focused on sustainability.
The significant link between digital knowledge integration and green knowledge sharing indicates that digital platforms turn sustainability goals into actionable, shareable data for collaborative use [
4,
9]. These findings highlight digital knowledge integration as a key enabler in hospitality organisations, where sustainability depends on coordination and frontline engagement.
This study highlights the social and knowledge-oriented dimensions of sustainability in service organisations, in contrast to research in industrial or technology-centric contexts that frequently attribute sustainability advancements to process automation or system optimisation [
91]. By conceptualising green knowledge sharing as a mechanism for transforming digital knowledge into collective action, the findings clarify how digital transformation promotes sustainability in human-centred service environments.
These factors impact sustainability beyond mere organisational functionality. Effectively disseminating digital and environmental knowledge fosters responsible consumption patterns, reduces waste, and enhances the utilisation of scarce resources such as water and power. The results directly support SDG 9 by demonstrating how digital infrastructures facilitate sustainability-oriented innovation, and SDG 12 by illustrating how knowledge-driven practices promote responsible and efficient resource utilisation. Significantly, hospitality organisations operate at the intersection of enterprises, clientele, and local communities. This indicates that sustainable practices can spread beyond individual enterprises, leading to greater acceptance of sustainability standards within the tourism sector [
24].
The findings shift the focus from digital technologies alone to the role of digitally integrated knowledge in driving sustainability through organisational knowledge processes. This study details how digital knowledge integration, eco-friendly information sharing, and sustainable performance are linked in the hospitality industry.
The dissemination of green knowledge is a primary driver of sustainable organisational performance. Integrating sustainability into daily business operations rather than treating it as a strategic objective is fundamental. This research shows that sustainability outcomes depend on how effectively organisations share, interpret, and act on environmental knowledge—not simply on possessing environmental awareness. These findings reinforce prior evidence that the flow of information and knowledge is a critical source of competitive advantage, enabling better organisational coordination and adaptive solutions [
9,
21].
Empirical studies in manufacturing, logistics, and energy-intensive industries show that green knowledge sharing boosts both environmental and economic performance by driving process innovation and efficiency [
92,
93]. This study sharpens this understanding by demonstrating that these benefits are equally significant in service-oriented, human-centred sectors like hospitality, where sustainability depends more on coordinated employee behaviour than automation. Unlike prior research, which focuses on technological or structural solutions, these findings reveal the unique importance of shared understanding and collective sense-making for sustainability in service organisations.
Green knowledge sharing enables sustainability operationally significant when shared across all organisational levels. Collaborative analysis of sustainability data produces adaptable, innovative solutions compared to top-down or isolated approaches. This confirms that collective knowledge processes improve sustainability initiatives by widening perspectives [
8,
40]. This study shows green knowledge sharing not only assists but also directly enhances performance, especially in environments with frequent human interaction.
Unlike in technology-driven industries, where systems drive sustainability, the hotel industry relies on social processes. Frontline workers embed sustainability in daily practices, such as saving energy, reducing waste, and using resources responsibly. Green knowledge sharing helps workers align with the organisation’s goals, reinforcing routines that support long-term success. This finding adds to the literature by showing sustainable outcomes come from group behavioural alignment, not just technology.
This relationship influences broader sustainability objectives that extend beyond the organisation’s limits. Specifically, disseminating ecological information effectively results in enhanced resource utilisation, less waste, and environmentally beneficial services [
94]. This is particularly crucial in areas with constrained resources. Furthermore, these systems directly facilitate SDG 12 by fostering behaviours that reduce waste and inefficiency, and SDG 9 by stimulating innovation through shared information and continuous development. In the hospitality sector, where consumers and local communities can readily observe ecologically sustainable practices, disseminating ecological knowledge may influence behaviour and establish benchmarks for the entire industry. As a result, this can significantly influence sustainability beyond merely the business level.
This study demonstrates that green knowledge sharing is a central mechanism for achieving sustainable organisational performance. By shifting the focus from leadership or technology-driven approaches to communal knowledge processes, it identifies collective commitment and coordination as primary drivers of sustainability—especially in service sectors. The findings clarify that embedding green knowledge sharing into routine business processes is essential to achieving significant, scalable sustainability outcomes.
The finding of a partial mediation effect strongly supports integrating the Knowledge-Based View, which treats knowledge as a key resource, with Dynamic Capabilities Theory, which considers an organisation’s ability to adapt, to explain sustainability-focused digital transformation. This study shows that integrating digital knowledge—the firm’s ability to acquire, process, and use knowledge from digital sources—significantly influences long-term success. This effect is greater when the organisation actively shares, understands, and uses digitally generated knowledge in its routine operations. In response to recent calls, this study views digital transformation (the adoption of digital technologies) and knowledge management (systematic organisational knowledge handling) as interconnected, highlighting their combined impact on sustainable outcomes [
6,
8].
The findings reinforce the view that knowledge is a strategic asset, valuable not in possession but in use [
21]. Digital knowledge integration means organising and making sustainability information accessible, while ‘green knowledge sharing’ is the exchange and transformation of this information into actionable, performance-improving insights. Prior studies show that companies often struggle to convert digital investments into sustainable outcomes due to fragmented information or its confinement to technical departments [
91,
95,
96,
97]. This study builds on past research by showing that digital knowledge delivers immediate benefits, though broader, lasting sustainability depends on social transmission and collaboration.
Partial mediation, as contrasted to total mediation, represents significant progress in the existing body of research. Whereas prior studies focused either on the direct impacts of digitalisation or on the autonomous role of knowledge sharing, this nuance builds on their insights. It asserts that sustainability-oriented digital transformation is neither simply technology-driven nor exclusively dependent on social knowledge processes; instead, it emerges from their interaction. Both paths, therefore, coexist and collaborate to influence sustainability performance. Through these findings, the functioning of Knowledge-Based View mechanisms within a dynamic capability framework becomes clear, particularly in response to criticisms that these views are frequently utilised in isolation [
98,
99,
100].
The results further support Dynamic Capabilities Theory, suggesting that turning digital information into sustainable outcomes requires ongoing changes in organisational practices rather than a one-time technology implementation [
28]. Green knowledge sharing, as a micro-level process, enables organisations to regularly adapt digital knowledge to new sustainability challenges, especially in service contexts where coordinated human behaviour shapes outcomes. Unlike research in manufacturing or automated settings that focused on system optimisation, this study highlights how hospitality businesses achieve sustainability through daily interactions and customary practices.
The identified mechanisms have broader implications for sustainability beyond just organisational achievement. Integrating digital knowledge with green knowledge-sharing yields tangible sustainability outcomes that advance SDG 9 and SDG 12. Enhanced resource utilisation, reduced waste, and encouragement of environmentally responsible conduct drive these outcomes. As these practices become more prevalent—especially in hospitality environments—they influence customer reactions and help disseminate sustainability concepts across the industry, affecting more than individual enterprises.
Rather than seeing digital systems as standalone tools, businesses that turn data into collaborative dialogue, operational changes, and joint problem-solving are more likely to achieve sustainability. These daily practices foster ongoing use and understanding of digital knowledge, maintaining its capacity to boost performance. The partial mediation finding adds a process-based explanation of how digital transformation promotes sustainability, showing that combining digital and green knowledge works together—not separately—to enhance sustainable performance.
The significant moderating effect of digital leadership on the relationship between digital knowledge integration and sustainable organisational performance validates the fundamental principles of Dynamic Capabilities Theory. This study shows that digital knowledge, while advantageous, yields more substantial sustainability results when effectively overseen by leadership that can integrate digital initiatives with strategic objectives. Prior empirical studies across diverse sectors, such as manufacturing, public administration, and high-technology industries, have consistently shown that leadership is crucial for coordinating resources, fostering learning, and enhancing adaptive capabilities [
28,
30,
101]. This study’s findings enhance the existing literature by demonstrating that leadership-driven arrangements are equally essential in service-oriented sectors, such as hospitality, where sustainability outcomes depend on individuals’ interpretation and application of digital knowledge rather than merely on automation.
Digital leaders influences sustainability outcomes by advocating the use of digital knowledge, normalising data-driven decision-making, and directing the organisation’s attention to sustainability-relevant insights. This finding adds to existing literature by showing that digital leadership not only promotes technology adoption but also significantly enhances the sustainability value of integrated digital knowledge through strategic counsel and capability enhancement. Routine managerial practices, such as supporting data-driven initiatives, allocating time and resources for analysis, and acknowledging efforts that enhance the environment or society, integrate sustainability into ordinary decision-making. These practices foster an environment in which digital knowledge is consistently applied to address sustainability-related challenges, thereby enhancing organisational flexibility.
The non-significant moderating effect of digital leadership on the relationship between green knowledge sharing and sustainable performance constitutes a notable theoretical advancement. This study challenges the dominant belief in leadership literature that leadership invariably improves all knowledge-performance connections. Previous studies have shown the importance of leadership in establishing and legitimising knowledge-sharing activities [
102,
103,
104]. Nevertheless, this study’s findings suggest that once green knowledge sharing is integrated into organisational routines, its impact on performance may become less dependent on leadership engagement.
This finding corresponds with studies on emergent strategy and distributed agency, which assert that organisational outcomes often stem from cumulative, bottom-up actions rather than continuous top-down control [
105,
106]. In this context, green knowledge sharing may function as a self-sustaining mechanism, with common standards, peer learning, and standardised procedures guiding behaviour regardless of leadership intensity. Comparable findings have been reported in studies in knowledge-intensive and service contexts, suggesting that leadership plays a more significant role in promoting knowledge generation and integration than in shaping the outcomes of existing knowledge [
8,
9].
This finding is noteworthy for asserting that digital leadership has a selective, rather than universal, impact on sustainability processes. Leadership is crucial for transforming digital knowledge into strategic capabilities [
107], but its role appears to wane as green knowledge becomes widely shared and integrated into standard practices. This finding advances existing research by defining a boundary condition for leadership-oriented sustainability models and highlighting the importance of process design, employee empowerment, and resource availability in sustaining performance enhancements.
These findings affect sustainability more broadly than merely at the organisational level. Leadership facilitates the integration of digital knowledge, fostering innovative ideas that optimise resource utilisation, enhance process transparency, and conserve energy. This contributes to achieving SDG 9. Simultaneously, integrating green knowledge sharing into the workplace routine advances SDG 12 by establishing environmentally sustainable practices as the norm among employees and shaping service behaviours that influence consumers and local communities. In the hospitality sector, where sustainability policies are well-defined, these strategies can influence not just individual enterprises but also reshape customer expectations, prompting the entire industry to adopt responsible practices.
The results reveal a clear difference in managerial emphasis on daily operations. Leaders should remain engaged in digital knowledge integration by spearheading analysis, prioritising sustainability-focused digital projects, and ensuring that decisions are grounded in empirical evidence. Conversely, when green knowledge sharing is established, leaders may enhance effectiveness by minimising operational obstacles, promoting staff autonomy, and ensuring access to necessary tools, rather than exerting direct control. This equitable strategy facilitates sustained performance enhancement while allowing knowledge-based processes to develop organically.
This finding elucidates the significance of digital leadership for sustainability, including its timing and application. Digital leadership significantly influences the enhancement and proliferation of digital skills; however, its impact diminishes once sustainability-oriented knowledge processes are institutionalised. By clarifying these specific functions, the study advances existing knowledge and directly addresses the need for more nuanced, contextually informed analyses of leadership effects in sustainability research.
6. Theoretical Implications
This study advances theory by clarifying how the Knowledge-Based View and Dynamic Capabilities Theory work together in digital transformation for sustainability. Findings show these frameworks operate in tandem and sequentially to clarify sustainability objectives, not as stand-alone or interchangeable approaches.
The results clarify the conceptual distinction and interplay between the Knowledge-Based View and Dynamic Capabilities Theory. While the Knowledge-Based View highlights the strategic significance of organisational knowledge, the findings stress that solely possessing digital knowledge does not ensure sustainable performance [
108,
109,
110]. The dissemination and utilisation of green knowledge highlight the value and application of digital knowledge, reinforcing the importance of social and organisational processes for achieving sustainable outcomes.
The identified partial mediation effect makes a significant theoretical contribution by showing that digital knowledge integration has both direct and indirect effects on sustainable performance. This dual-pathway outcome enhances existing theoretical frameworks by demonstrating that digital knowledge serves as both a significant resource (Knowledge-Based View) and a catalyst for dynamic capability development. This study empirically illustrates the connection between digital knowledge integration and green knowledge sharing in the development of a layered capacity structure, rather than a linear or isolated causal chain.
This research clarifies how digital leadership shapes dynamic capabilities for sustainability. Digital leadership significantly moderates the link between digital knowledge integration and sustainability outcomes, highlighting its role in identifying opportunities, organizing resources, and enabling change. This shows dynamic capabilities depend on managerial action, not just available resources.
A key theoretical advance is that digital leadership does not significantly moderate the link between green knowledge sharing and sustainable performance. This challenges the view that leadership always enhances the links between capability and performance. When green knowledge sharing becomes routine, the impact on performance relies less on leadership, revealing boundaries in Dynamic Capabilities Theory and underscoring the shift to collective practice.
By identifying this distinction, the study improves a more dynamic and temporally nuanced understanding of capabilities development. It suggests that leadership is essential during the initiation and integration of new digital knowledge resources, but becomes less critical once knowledge-sharing systems settle into a self-sustaining state. This insight enriches both the Knowledge-Based View and Dynamic Capabilities Theory by demonstrating that the role of managerial action varies across different stages of capability development rather than remaining steady.
Finally, validating this integrated theoretical framework in the Jordanian hotel industry strengthens the contextual significance of both theories. The findings demonstrate that the synergistic explanatory power of the Knowledge-Based View and Dynamic Capabilities Theory transcends technologically advanced or developed economies, maintaining relevance in service-oriented and emerging market contexts characterised by resource constraints and substantial human interaction. The research bolsters the relevance and modern applicability of these theories for understanding sustainability-focused digital transformation across diverse organisational settings by demonstrating how digital knowledge resources are transformed into sustainability outcomes through dynamic, knowledge-driven processes.
7. Practical Implications
This study gives managers and policymakers practical insights. It supports those improving sustainability in hospitality through digital transformation and knowledge-driven practices. Results show that integrating digital knowledge into daily operations yields greater sustainability benefits than treating it as a stand-alone technology project.
In practice, organisations can benefit from integrated digital platforms that consolidate data from guest services, operations, and energy management systems. These allow managers to access real-time sustainability insights organisation-wide and facilitate operational improvements. For instance, integrating smart meter data with property management systems optimises energy use during low occupancy, conserving resources and minimising waste. Such measures embed sustainability goals into daily decisions, ensuring long-term adherence.
The effectiveness of these systems improves when individuals from multiple departments actively share their environmental knowledge. Management can provide organised yet adaptable methods for staff to disseminate environmental knowledge. These may encompass cross-departmental sustainability teams, concise operational briefings on environmental performance, and internal digital forums for staff to discuss successes and failures. Consistently addressing sustainability metrics such as energy use, water usage, or waste reduction at departmental meetings helps normalise talks on sustainability and motivate collaboration in seeking solutions.
The findings highlight the importance of digital leadership in boosting the sustainability of digital knowledge integration. Organisations can invest in leadership development programs. These programs build skills in digital literacy, data-driven decision-making, and sustainability-focused change management. Managers can practice these skills by using digital dashboards or endorsing pilot projects that test data-driven sustainability solutions. They can also commend teams that clearly improve social or environmental performance. These actions foster a culture where digital evidence guides sustainability.
The findings suggest that when green knowledge-sharing practices are in place, direct leadership intervention becomes less important for sustainability outcomes. In these situations, organisations can support frontline staff by offering user-friendly digital tools, clear guidelines, and enough autonomy to act on sustainability initiatives within their roles. Removing procedural barriers and encouraging staff to implement sustainable practices turn shared knowledge into concrete benefits, such as waste reduction and optimal resource utilisation.
The findings show public authorities and tourism regulators can help spread digital sustainability practices in hospitality. They may develop strategies to promote eco-friendly digital technology in the sector. They can also set universal digital standards and support information exchange between hospitality organisations. Adding digital capability and sustainability criteria to hotel classifications may motivate firms. This aligns digital transformation with national sustainability goals.
In summary, these practical implications underscore the importance of acting now: managers and policymakers should prioritise deploying integrated digital platforms, establish proactive knowledge-sharing practices, and actively implement leadership strategies that empower employees at every level. Commitment to these specific approaches will drive tangible sustainability outcomes through digital and knowledge-based competencies.