How do Artificial Intelligence (AI) and Big Data Analytics (BDA) drive eco-innovation in the tourism industry?

Grounded in the Natural Resource-Based View (NRBV), this study examines the influence of Artificial Intelligence (AI) and Big Data Analytics (BDA) on eco-innovation in tourism SMEs to address a critical gap in the sustainability literature. The analysis tests a sequential mediation model using Partial Least Squares Structural Equation Modeling (PLS-SEM) and survey data from 220 Spanish tourism firms. To ensure econometric robustness, the findings are validated through a Gaussian copula and two-stage least squares (2SLS) instrumental variable analysis. The results show that AI and BDA do not directly drive eco-innovation. Rather, their impact is channelled entirely through adoption of green digital technologies, which in turn stimulates process innovation. Thus, digital investment alone is insufficient; to leverage AI and BDA for sustainability, tourism SMEs must adopt an intensive approach that combines technological investments with subsequent process improvements. The study also highlights that successful eco-innovation depends on revising organisational routines to transform digital investment into innovative and sustainable outcomes.