Abstract
The aim of this research is to explore the effect of dynamic capabilities on firm performance in Spanish hotels to further expand our current knowledge of management strategies in a turbulent environment. It also embraces novel aspects by linking uncertain changes with the current literature on the COVID-19 pandemic. This research also emphasizes the mediation effect of innovation capability as a key hotel strategy in today's world. The final sample is composed of 212 hotels in Spain. The results reveal a positive and significant relationship between dynamic capabilities and hotel performance, which is mediated by innovation capability (partial mediation effect). The practical implications of this research can help navigate the economic consequences of the COVID-19 pandemic.
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