Sustainable performance of Budget hotels in Pakistan: Nexus of Networking Capability, Marketing Innovation and Absorptive Capacity

Abstract

The idea behind this study was to explore a model empirically which explains the relationship between Networking Capability (NC) and Sustainable Performance (SP), with a focus on budget hotels of Hospitality industry of Pakistan. This study determined on comprehending the mechanisms at play, such as Marketing Innovation's (MI) mediating role and the contingent impacts impacted by businesses' Absorptive Capacity (AC). The data was collected from 178 budget hotels of Khyber Pukhtunkhwa. Survey method was used to collection of data in which structured questionnaires were adopted from the previous studies.
This study used statistical techniques like multiple regression analysis, including hierarchical, descriptive, and correlation analyses, to look at the relationships between the variables. The results indicate that, in low-cost hotels, networking capability (NC) had a positive effect on marketing innovation (MI) and sustainable performance (SP). The result also validated MI's mediation function in the relation between NC and SP. Moreover, it was found that the relationship between NC and MI was strengthening by the influence of absorptive capacity (AC). This study emphasises the significance of NC and its multiple dimensions, which provides valuable data for strategic planning and management. The roadmap and instructions that are presented can play a crucial role in accomplishing the goals of Sustainable Performance. The research makes a substantial contribution to the body of literature by illuminating the beneficial effects of NC on SP, especially in the hotel sector. The investigation of MI's mediating function in this relationship offers an important new perspective to the body of research on SP. Additionally, the addition of a moderated mediation model broadens the body of knowledge in this area.