This study examines how immigrant entrepreneurs in tourism use digital innovations to overcome structural barriers while integrating environmental, socio-cultural, and economic sustainability principles. Existing research treats social, institutional, and market embeddedness as static constraints that immigrant entrepreneurs must navigate. This study draws on mixed embeddedness theory and employs Total Interpretive Structural Modelling-Polarity (TISM-P) to identify seventeen factors and relationships that determine successful digital transformation pathways. The hierarchical model reveals collaborative networks and continuous skills training as independent drivers, while adoption challenges emerge as negative drivers. The study outlines four critical pathways through which immigrant entrepreneurs progress from basic digital knowledge to sustainable, culturally informed business transformation. Critically, the hierarchical relationships suggest that resource scarcity may encourage necessity-driven innovation and adaptive capability development. The study advances theoretical understanding by extending the entrepreneurial ecosystem framework to incorporate technology-facilitated sustainability practices and cultural exchange as a distinctive competitive advantage. Practical implications include recommendations for tourism-specific digital competencies targeting seasonality management and experience co-creation, and culturally diverse metrics for assessing immigrant entrepreneurial contributions to sustainable destination development.