Unlocking Sustainable Tourism Performance

Sustainable tourism requires joint efforts from all stakeholders. This study examines how intellectual capital (IC) enhances tourism performance and sustainability in AJK, Pakistan, using resource-based and dynamic capability theories. It proposes a mediated moderation model, testing the role of open innovation (OI) as a mediator and artificial intelligence capability (AIC) as a moderator. Using purposive sampling, 300 questionnaires were distributed, and 220 valid responses were analyzed through SMART-PLS 4.0. Results show IC significantly improves tourism performance, while OI mediates this effect. AIC further strengthens the OI and tourism industry performance link, indicating that AI tools boost innovation outcomes and support sustainability. The study offers insights for tourism SMEs in developing economies and highlights the need to explore AI's role in innovation under dynamic market conditions.