Lodging Service Performance and its Influencing Aspects: An Example from National Capital City

Abstract

Service performance is the important part of the lodging industry, which relies significantly on the transformation of business strategies. The objective of this study is to examine the relationship between entrepreneurial orientation, digital competence and adaptability, market orientation, and service performance within the lodging case. The study was conducted in the National Capital City (IKN), involving a sample of 153 small and medium-sized enterprise (SME) owners in the lodging industry.

Data collection was carried out through a direct door-to-door survey, and the results were analysed using Ordinary Least Squares (OLS) regression. The authors found that entrepreneurial orientation positively influences digital competence and adaptability, as well as service performance. However, digital competence and adaptability have a negative impact on service performance. Entrepreneurial orientation can positively moderate the relationship between digital competence and adaptability, as well as service performance. Other empirical findings indicate that digital competence and adaptability, when moderated by market orientation, negatively affect service performance. The research design linking the impact of market orientation to lodging service performance has not been extensively explored. Given that digital competence and adaptability are shown to diminish service performance both directly and indirectly through market orientation, it is essential to emphasize these factors in the highly competitive lodging industry. Management in SMEs should leverage entrepreneurial orientation as a crucial differentiator to enhance success and improve service performance.