Determinants of Digital Transformation in the Hospitality Industry: Technological, Organizational, and Environmental Drivers

The current study aims to investigate the factors that affect a hotels' decision to adopt digital technologies. Our theoretical grounding builds on the Technology-Organization-Environment (TOE) research framework. Our research model was validated through a survey of 502 hoteliers and managers using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) statistical method. The results indicated that micro, small and medium-sized enterprise (MSME) hotels affected by the COVID-19 outbreak are more likely to adopt digital technologies. The intention to adopt digital technology is positively and significantly influenced by the digital maturity of organizations, financial resource availability and government regulations. The current study investigates rather less explored factors, such as the organizational digital maturity, which consists of a multi-dimensional latent variable. Our findings may be employed to guide the formulation of digital strategies by hospitality industry organizations.