Addressing IT Productivity Paradox in Hotel Industry; Evidence from India

Abstract

This study attempts to explore the moderating role of Information Technology (IT) capability on the association between the investment on the information technology and the performance outcome of the hotels. An online survey has been utilized to identify the effect of three indicators of IT capability, according to the resource based theory, on the relationship between IT investment and performance in the hotel industry of India. Findings confirmed the phenomenon of “IT productivity paradox” in the hospitality industry of India. Results of hierarchical regression analysis showed that IT capability functions as a moderator which boosts the impacts of investing on information technology in hotel’s outcome. A number of precious implications presented in the study, which will assist the tourism industry in relation with the hotels and accommodation sector.