From Smart Tools to Superior Satisfaction: Examining the Role of Digital Innovation Variety in Enhancing Service Delivery Outcomes in Hotels
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Abstract
The increasing integration of digital technologies into hotel operations has transformed service delivery processes and reshaped customer expectations, making digital innovation a critical determinant of competitiveness in the hospitality industry. This study examined the effect of digital innovation variety on service delivery outcomes, customer satisfaction, and customer loyalty among hotel customers and employees. Guided by the Resource-Based View (RBV), Service-Dominant Logic (SDL), and the Technology Acceptance Model (TAM), the study adopted a quantitative cross-sectional survey design involving 500 respondents, comprising hotel guests (64%), managers (18%), and front-office employees (18%) from three-, four-, and five-star hotels. Data were analyzed using descriptive statistics, reliability and validity assessments, correlation analysis, and Structural Equation Modeling (SEM). The results revealed high levels of digital innovation variety (M = 4.12), service efficiency (M = 4.05), service quality (M = 4.10), customer experience (M = 4.18), customer satisfaction (M = 4.22), and customer loyalty (M = 4.15). Reliability and validity measures confirmed the robustness of the measurement model, with Cronbach’s alpha values ranging from 0.86 to 0.91 and AVE values between 0.66 and 0.74. Correlation analysis showed strong positive relationships among all constructs, with customer experience exhibiting the strongest association with customer satisfaction (r = 0.85). Structural model results indicated that digital innovation variety significantly influences service efficiency (β = 0.72, t = 14.21, p < 0.001), service quality (β = 0.75, t = 15.03, p < 0.001), and customer experience (β = 0.78, t = 16.12, p < 0.001). Additionally, service efficiency (β = 0.41), service quality (β = 0.46), and customer experience (β = 0.52) significantly predicted customer satisfaction, while customer satisfaction exerted a strong positive effect on customer loyalty (β = 0.87, t = 18.45, p < 0.001). Mediation analysis further revealed that service delivery outcomes partially mediate the relationship between digital innovation variety and customer satisfaction (indirect effect = 0.68), while customer satisfaction fully mediates the relationship between digital innovation variety and customer loyalty (indirect effect = 0.76). The SEM model demonstrated excellent fit (CFI = 0.94, TLI = 0.93, RMSEA = 0.045, SRMR = 0.041). The study concludes that a diverse and integrated digital innovation portfolio enhances service performance, strengthens customer satisfaction, and promotes long-term loyalty, thereby providing hotels with a sustainable competitive advantage in an increasingly digital hospitality environment.
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