Absorptive Capacity and Supply Chain Integration and Their Impact on Hotel Service Performance

Abstract

This paper aims to examine how absorptive capacity affects supply chain integration (SCI) and service performance. The association between SCI and service performance was also studied. Data were collected from four-star and five-star hotels in Egypt. A total of 114 responses were obtained. The PLS-SEM technique and SmartPLS 4.0 software were employed for analysis. The study revealed that absorptive capacity has an impact on SCI and service performance. There is also a positive relationship between SCI and service performance. Specifically, a positive influence of internal integration and customer integration on service performance was found. However, supplier integration shows no significant relationship with service performance. This suggests that enhancing awareness of customer needs and internal coordination improves service performance. From a practical viewpoint, managers must promote a learning culture, foster innovation, and encourage internal and external collaboration. These factors were identified as key components that can improve service performance and lead to the development of competitive advantage, as shown in this paper. In addition, supply chain vitality was found to enhance quality and service, particularly when there is coordination between departments and consideration of customer needs. This study is among the earliest to examine how absorptive capacity affects both supply chain integration and service performance in the hotel industry. The research contributes at a theoretical level by shedding light on the role of absorptive capacity in the development of competitive advantage.