The COVID-19 pandemic significantly disrupted the hospitality and tourism sector, leading to travel restrictions, job losses, and the need for business practice reorientation. This research aims to identify best business practices that can lead to a sustainable competitive advantage in such uncertain environments. The study focuses on the role of organizational values, participative leadership, market orientation, and innovative intensity. The main objective is to determine how these factors contribute to a sustainable competitive advantage in the context of COVID-19-induced market uncertainty. Secondary objectives include examining the mediating roles of market orientation and innovative intensity, the moderating role of market uncertainty on the relationship between organizational values and participative leadership, and comparing the findings across Spanish and South Korean companies. The study seeks to provide a solid research base for future pandemic preparedness and the sustained success of hospitality and tourism companies.

The theoretical framework draws on existing literature examining sustainable competitive advantage in the dynamic hospitality and tourism industry. It explores the concepts of organizational values, emphasizing their role in fostering employee commitment and loyalty, as well as their influence on leadership styles. Participative leadership is defined and its importance in promoting employee involvement, innovation, and adaptability is discussed. The literature review also examines market orientation, highlighting its importance in understanding and responding to customer needs and competitor actions, and innovative intensity, emphasizing its role in adapting to market needs and achieving sustainable competitive advantage. The interconnectedness of these concepts and their influence on achieving a sustainable competitive advantage are explored, leading to the formulation of several hypotheses.

The study employs a mixed-methods approach, utilizing both quantitative and qualitative techniques. The quantitative analysis uses Partial Least Squares Structural Equation Modeling (PLS-SEM) with the Smart-PLS tool to test the hypothesized relationships between variables. The qualitative analysis employs Fuzzy-Set Qualitative Comparative Analysis (fsQCA) to explore the complex interplay of factors contributing to sustainable competitive advantage. Data were collected through surveys administered to hospitality and tourism companies in Spain and South Korea. The samples were chosen to allow comparison across countries with different tourism sector development levels and cultural characteristics. Non-probabilistic convenience sampling was employed to ensure representation across different geographical areas and company sizes within each country. Data was screened and cleaned according to established criteria. Sample sizes of 118 Spanish and 100 South Korean companies were deemed adequate and appropriate for the analysis. Prior to PLS-SEM and fsQCA, the measurement model was assessed for validity and reliability using various metrics (e.g., loadings, AVE, Cronbach's alpha, HTMT). Following this the structural model was analyzed to assess the fit, direct, and indirect effects of each variable. The fsQCA analysis employed a calibrated dataset and examined necessary and sufficient conditions leading to sustainable competitive advantage. Both PLS-SEM and fsQCA provided insights that contribute to a more comprehensive understanding of the phenomenon studied.

The PLS-SEM results reveal a significant positive relationship between organizational values and participative leadership in both samples, confirming H1. In the Korean sample, organizational innovative intensity (OI) significantly and positively influences sustainable competitive advantage (SCA), while in the Spanish sample both OI and market orientation (MO) significantly and positively influence SCA. The mediating role of MO and OI in the relationship between participative leadership and SCA was supported in both samples, with the strength of the indirect effect varying between samples. Market uncertainty (UNC) did not significantly moderate the relationship between organizational values and participative leadership in either sample. The fsQCA analysis identifies organizational values (OV) and market orientation (MO) as necessary conditions for SCA in both samples. Participatory leadership (PL) is also identified as a necessary condition for SCA in the Spanish sample. The fsQCA also revealed different combinations of factors leading to SCA in each sample, illustrating the complexity of the relationships and the context-specific nature of the findings. The analysis indicates that in the Korean sample, there are 8 paths to SCA, while in the Spanish sample there are 5. The Korean sample's higher number of paths to SCA could be explained by the more dynamic and technologically focused nature of Korean companies.

The findings demonstrate the crucial role of organizational values and participative leadership in achieving a sustainable competitive advantage for hospitality and tourism companies. The significance of OI and MO reinforces the importance of adapting to changing market demands and employing innovative strategies. While participative leadership does not directly contribute to SCA, its indirect influence through MO and OI is significant. The absence of a moderating effect of UNC suggests that the relationship between values and leadership remains consistent even in the face of external pressures. This is important for hospitality businesses where the market is extremely reactive to both economic and exogenous shocks. The fsQCA results highlight the complexity of achieving SCA and the different pathways to success depending on context, underlining the importance of considering multiple perspectives and factors when developing strategic management approaches. The different approaches used in the analysis support each other and add nuance to the quantitative results.

This study's main contribution lies in its demonstration of the importance of organizational values and participative leadership as foundations for sustainable competitive advantage in the hospitality and tourism sectors, even during periods of significant market uncertainty. The mixed-methods approach offers a richer understanding of the complex interrelationships between factors influencing SCA. Future research could explore the long-term impact of these findings, examine the role of other mediating and moderating variables, and investigate cross-cultural variations in detail. Longitudinal studies could also help provide a more holistic understanding of the influence of market uncertainty on the management of tourism organizations.

The non-probabilistic sampling method may limit the generalizability of the findings to the broader hospitality and tourism sectors. The study's focus on the impact of COVID-19-induced uncertainty could limit its applicability to different types of economic or exogenous shocks. The relatively small sample size used, although deemed appropriate based on power analysis, may also affect the statistical power of the analysis in the detection of significant differences. Further research across a wider range of countries and sectors is required to enhance the robustness of these findings.