The role of digital innovation and its impact on competitiveness and performance: the case of business hotel in Indonesia

Abstract

This research examines the effect of digital innovation on the competitiveness and performance of hospitality businesses in Indonesia. This research was conducted with a quantitative research approach. Participants in this study are managers of hotel companies that implement online systems in Indonesia. The samples in this study were 218 respondents. Hypotheses are tested using the Structural Equation Modeling method and processed using Amos Software Version 23. The results show that there is a positive and significant effect between digital innovation on competitiveness, digital innovation and competitiveness also effect hotel business performance positively and significantly. We also found that competitiveness can mediate the effect of digital innovation on business performance. Therefore, we suggest improving business performance with enhancing competitiveness, to improve competitiveness can be done by increasing the implementation of digital innovation.