The Mediated Role of Absorptive Capacity in the Relationship between Technology, Learning, Entrepreneurial Orientation and Performance of Hotel Industry in Bali, Indonesia

Abstract

The purpose of this study is to determine the extent of technology orientation, learning orientation, and entrepreneurial orientation toward firm performance, with absorptive capacity as the mediating role, in hotel industry at Badung Regency, Bali, Indonesia. This study employs quantitative approach and use structural equation models. A survey was conducted to 340 respondents with manager position as the minimum requirement in various two-star hotel, three-star hotel and four-star hotel in Kabupaten Badung, Bali. The results indicate that technology orientation, learning orientation and entrepreneurial orientation has positive and significant influence on firm performance in the hotel industry in Badung. However, technology orientation and learning orientation shows its significant influence only when it is directly correlated on firm performance without being mediated by absorptive capacity. On the contrary, entrepreneurial orientation implies more significant influence on firm performance when mediated by absorptive capacity. This result shows that the hotel industry can optimally improve its performance by increasing the entrepreneurial orientation through absorptive capacity. While technology orientation and learning orientation can also improve firm performance without mediated by absorptive capacity. Furthermore, refer to absorptive capacity as the mediator role, entrepreneurial orientation found out to be the most influenced factor towards firm performance, followed by technology orientation, and learning orientation as the least factor. Research also indicate that most hotels do not fully comply policies to always adopt new technology, and hotel managers who do not always continue to learn about product research and development. This study limitations are the respondents who are gathered only from two to four- star hotel and concentrate only in one regency. Implication for this study provide recommendations that company will be able to enhance its performance through improvement of technology orientation, learning orientation, entrepreneurial orientation, and absorptive capacity by leveraging the role from all stakeholders.