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Role of network capability, structural flexibility and management commitment in defining strategic performance in hospitality industry

A. Majid,Muhammad Yasir,Zahid Yousaf,Hassan Qudrat-Ullah

Published 2019 in International Journal of Contemporary Hospitality Management

ABSTRACT

Purpose This study aims to present an empirical model related to strategic performance (SP) of the hospitality industry. It focuses on the role of network capability (NC) in defining SP through the mediating role of structural flexibility (SF). Furthermore, the interaction effect of NC and top management commitment to strategic performance (MCSP) on SP is also tested. Design/methodology/approach A sample of 279 managerial-level employees of four-star and five-star hotels has been used to confirm the proposed hypotheses by using the technique of structural equation modeling. Findings The results reveal that NC positively affects SP. Moreover, the mediating role of SF in defining the nexus of NC and SP has also been confirmed. Results of moderation analysis reveal that MCSP strengthens the relationship between NC and SP. Research limitations/implications This study used a cross-sectional design for data collection, which prevents strong causal inferences. The authors recommend scholars to explicitly test for causal effect. This study used a cross-sectional design for data collection, which prevents strong causal inferences. The authors recommend scholars to explicitly test for causal effect among all these variables by using a longitudinal study in the future. Practical implications In developing countries, it has been observed that the hospitality industry pays less attention to its strategic targets. Operating in a network or adapting flexible structures is also not on their priority list. This study presents a pragmatic approach based on strong theoretical grounds to attain the goals of SP in the hospitality industry through NC and SF. Therefore, this study suggests that organization operating in the tourism and hospitality industry should pay greater attention toward synergies and business networks to achieve SP. Originality/value This research enriches the prevailing knowledge by testing a mediating role of SF between NC-SP link and, therefore, makes an important addition to the existing knowledge on tourism and hospitality industry by concentrating on the relationship between NC, SF, MCSP and SP.

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