3.8 Article

Augmenting hotel performance in Malaysia through big data analytics capability and artificial intelligence capability

Journal

Publisher

EMERALD GROUP PUBLISHING LTD
DOI: 10.1108/JHTI-01-2023-0017

Keywords

Artificial intelligence capability; Big data analytics capability; Entrepreneurial orientation; Hotel industry performance; Environmental dynamism; Co-innovation

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This study examines the impact of big data analytics capability (BDAC) and artificial intelligence capability (AIC) on co-innovation and hotel performance, with entrepreneurial orientations (EO) and environmental dynamism as moderating factors. The findings suggest that EO has a positive effect on co-innovation, and BDAC and AIC mediate the relationship between EO and co-innovation. Environmental dynamism moderates the relationship between BDAC and co-innovation performance, but does not significantly impact AIC and co-innovation performance. The study emphasizes the importance of investing in entrepreneurial traits and adjusting capabilities for sustained business performance in the hospitality industry.
Purpose - At the forefront of current research is the investigation of how big data analytics capability (BDAC) and artificial intelligence capability (AIC) can enhance performance in concert. Therefore, current study intended to conduct more deep research into emerging phenomena and attempts to cover the gap by exploring how entrepreneurial orientations ( EO) emphasize the use of two emerging capabilities under the moderating role of environmental dynamism which in turn augment co-innovation and hotel performance. Design/methodology/approach - Data were collected from four-star and five-star hotels located in Kula Lumpur and Langkawi in Malaysia. A total of 260 responses were obtained from IT staff and senior managers with the assistance of a Manpower agency for data analysis. The hypotheses were examined by analyzing the data using PLS-SEM technique through Smart PLS 3 software. Findings - The result revealed that EO has a positive and significant effect on co-innovation (CIN). Additionally, the BDAC and AIC have been tested and proven to be potential mediators between EO and CIN. Also, environmental dynamism as moderator has positive and significant effect on BDAC and co-innovation performance, however, not significant impact on AIC and co-innovation performance. Lastly, findings displayed positive and significant moderated mediation impact of environmental dynamics on BDAC and CIN with hotel performance, but not significant influence on AIC and co-innovation with hotel performance. For theoretical corroboration of the research findings, the current study integrated EO, resource-based view theory and contingent dynamic capabilities (CDC), because neither single stance can explicate an extant research framework. Practical implications - This study anticipated the several implications for the entrepreneurs of hospitality industry. Managers are recommended to invest in the entrepreneurial traits of the employees/organizations and make strategic readjustment of their capabilities for sustained business performance. Originality/value - The study goes beyond the normal inquiry by investigating moderated mediation impact of environmental dynamism between two emerging capabilities, co-innovation and hotel performance relationships. Another novelty of this study is to culminate the exploitation and adoption of emerging IT-based capabilities in cross domains of management, entrepreneurship, information systems management within the hotel industry.

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