a b s t r a c t .

The purpose of this paper is to explore how sustainable human resource management (HRM) practices impactthe innovation-customer satisfaction relationship in Swedish hotels. Responding hotels were profiled into fourgroups based on their involvement in two sustainable HR practices. Thefindings indicate the relationship be-tween innovation and customer satisfaction is dependent on sustainable HR practices in the organization.Although innovation and sustainable HR practices impact customer satisfaction positively, their interactionsuggests that the one can substitute the other to achieve superior customer satisfaction. The study concludes thatsustainable HR practices enhance a hotel’s capability to innovate and to have satisfied customers. The re-lationship between sustainable HR practices and innovation is discussed