Elucidating the effect of information technology capabilities on organizational performance in UAE: a three-wave moderated-mediation model

Abstract

This paper aims to investigate information technology capabilities (ITC)’s influence on organizational performance (OP) within the hospitality industry. Specifically, it analyzes the indirect effects of sustainability practices (SP) and service quality (SQ) on the relationship between ITC and OP. The moderating effect of top management support (TMS) is also examined. Using a three-wave time-lagged design, 507 UAE hotels' managers took part in the study. Hierarchical regression bootstrapping approach was used to examine the hypothesis. This study suggests that ITC are positively related to OP. Furthermore, the study found that SP and SQ mediate the ITC-OP relationship. TMS moderates the positive relationship between ITC and OP and also moderates the relationship between SQ and OP. Additionally, TMS moderates the indirect effect of SQ on the association between ITC and OP, such that the mediating effect is stronger when TMS is at a high level. The study shall assist the practitioners of the hospitality firms to focus their attention on ITC to improve SQ and hence achieve optimal performance. The novelty of this research lies in the presentation of an integrated framework based on a resource-based view to solve the contemporary challenges facing hospitality firms operating in emerging markets in integrating ITC and SP for better organizational results.

Keywords: Information technology capabilities, Organizational performance, Resource-based view, Service quality, Sustainability practices, Top management support