Smart Insights, Enhanced Performance: Leveraging Business Intelligence and Dynamic Capabilities in the Tourism and Hospitality Industry

Led by: Kayhan Tajeddini

The rapid evolution of artificial intelligence (AI) and business intelligence (BI) is compelling companies in the tourism and hospitality sector to redefine their capabilities. This shift is driven by the growing need to effectively deploy these technologies to boost performance – an aspect that has received limited attention in existing academic literature on the tourism and hospitality sector. Drawing on the concept of “dynamic capabilities,” this study examines the interplay between resource orchestration capabilities (ROCs), digital marketing capabilities (DMCs), AI capabilities, and firm performance. A particular focus is placed on the mediating role of business intelligence adoption, as well as the moderating effect of technology orientation (TO). Based on data from 297 tourism and hospitality firms across four major Japanese cities, the findings indicate that the adoption of business intelligence mediates the relationships between ROCs, DMCs, AI capabilities, and firm performance. Contrary to expectations, technology orientation does not exert a moderating influence on the relationship between DMCs and the adoption of business intelligence – a result that may be attributable to firm-specific factors, which warrant further investigation in other contexts. The study makes a theoretical contribution by proposing an integrative model that conceptualizes ROCs, DMCs, and AI capabilities as distinct yet interconnected dynamic capabilities that influence the performance of firms in the tourism and hospitality industry. For practitioners, these findings suggest that managers in this sector should refine their strategies to better leverage these capabilities – particularly within the context of digital transformation.