This pioneering study presents a comprehensive examination of the intricate interrelationships between digital transformation, sustainable supply chain strategy (SSCS), share value relational capital (SVRC), frugal innovation (FI), ambidexterity (AMB), and sustainable competitive advantage (SCA) within contemporary tourism organizations. Employing a structural equation modeling approach, the research investigates the causal relationships among these constructs across Indonesia’s primary tourism destinations. The study reveals distinct strategic pathways through which organizations can enhance their sustainable competitive positioning, with share value relational capital emerging as a critical mediating mechanism. The findings underscore the importance of digital transformation and sustainable supply chain strategies in cultivating strong stakeholder relationships, which in turn facilitate the development of frugal innovation capabilities and ambidextrous practices, ultimately contributing to sustainable competitive advantage. The research offers valuable theoretical and managerial implications, extending the application of the resource-based view and the technology-organization-environment framework to the tourism industry. However, the study’s limitations, such as its focus on the Indonesian context and the cross-sectional nature of the data, present opportunities for future research to further expand and refine the understanding of these complex phenomena. By addressing these limitations and exploring new research directions, scholars can continue to advance knowledge of these critical issues and provide valuable insights for tourism organizations seeking to enhance their competitive position in an increasingly dynamic and challenging market environment.

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