Analysis of the Effect of Intellectual Capital, Organizational Culture,

and Information and Communication Technology on the Performance

of Hospitality Companies Mediated by Dynamic Capability

Re-engineering Innovation

(Empirical Study of Star Hotels in South Kalimantan and East Kalimantan)

SETIO UTOMO1, SUGENG WAHYUDI2, NGATNO3, BULAN PRABAWANI4

1Faculty of Social and Political Sciences, Lambung Mangkurat University, Banjarmasin, INDONESIA

2Faculty of Economics and Business, Diponegoro University, Semarang, INDONESIA

3,4Faculty of Social and Political Sciences, Diponegoro University, Semarang, INDONESIA

Abstract: - The design of this research uses a quantitative approach. The data collection technique in this study

uses a questionnaire of 127 people, while the sampling technique used in this study is saturated sampling.

Saturated sampling is if all population members are used as samples, in which the sampling criteria are

saturated. This study is the entire population of General Managers (GM) / owners of five-star hotels (a person

mandated by the GM/hotel owners) in the Provinces of South Kalimantan and East Kalimantan. The analytical

technique used in this research is Structural Equation Model (SEM) using SmartPLS software. The study

results indicate that Intellectual Capital has no significant effect on the Performance of Hospitality Companies.

Organizational Culture has a significant effect on the Performance of Hospitality Companies. Information and

Communication Technology has no significant effect on the Performance of Hospitality Companies.

Intellectual Capital has no significant effect on the dynamic ability of innovation re-engineering. Organizational

culture has a significant effect on the dynamic ability of innovation re-engineering. Information and

Communication Technology has no significant effect on the dynamic ability of innovation re-engineering. The

dynamic ability of innovation re-engineering significantly affects the Performance of Hospitality Companies.

Key-Words: - Intellectual Capital, Organizational Culture, Information and Communication Technology,

Dynamic Ability Re-engineering Innovation, Hospitality Company Performance.

Received: November 24, 2022. Revised: March 21, 2023. Accepted: April 11, 2023. Published: April 24, 2023.

1 Introduction

The globalization of the economy has opened

opportunities for foreign entrepreneurs to compete

in attracting local consumers. The causes of

globalization impacted the service industry, such as

the telecommunications, banking, transportation,

and hospitality industries are developing

dynamically and rapidly, [1]. Along with

globalization, the development of the business

world in the service sector is developing rapidly,

especially in the hotel industry. A hotel is one of the

business fields included in the Hospitality Service

Industry category, which is a business field that

aims to provide lodging or room facilities, food and

beverage services, as well as a place to organize a

specific event for the community. It requires local

entrepreneurs as hosts to recognize consumer

behavior which then adapts the company's

capabilities to their needs.

The island of Kalimantan, known as Borneo, is

one of the world's lungs with various natural

biological and cultural resources. This diversity can

attract domestic and foreign tourists to the island of

Kalimantan or Borneo, especially South Kalimantan

and East Kalimantan. Kalimantan Island has many

natural resources to attract investors and expatriates

to come to Kalimantan Island, especially South

Kalimantan, which is known for its coal mines and

horticultural crops (palm), and East Kalimantan

with its oil.

As a province that will support the new capital,

these two provinces must be able to positively

contribute to business development, such as

hospitality services. Hotel business players must be

ready to serve the arrival of domestic and foreign

tourists who want to invest and become expatriates

in South Kalimantan and East Kalimantan. The

results of a survey by the Central Statistics Agency

of the Provinces of South Kalimantan and East

Kalimantan on hospitality service

companies/businesses from 2014 to 2020 provide

information that the growth of star and non-star

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hotels is constantly increasing. However, in terms of

the number of star hotels, it is far behind. The trend

for star hotels in South Kalimantan from 2014 to

2020 continues to increase yearly. However, non-

star hotels experience an up-and-down trend every

year, while in East Kalimantan, from 2014 to 2020,

both star and non-star hotels trend every year

continues to increase.

South Kalimantan and East Kalimantan in 2020

have increased and decreased from the percentage of

occupancy provided by star hotels. Hotel business

actors in providing good service and making it easy

for foreign and local tourists who visit to stay at

their place can take advantage of current

information technology advances such as

collaboration with OTAs. This collaboration is

another innovation with different values from

similar competitors in the industry hospital.

Advances in proliferating information and

communication technology require hoteliers to

connect with the latest technological innovations to

remain competitive in a dynamic industry. The

phenomenon of problems and challenges faced

because of the increasing complexity and dynamics

of the business environment has forced hoteliers in

South Kalimantan and East Kalimantan to be

observant in developing the performance of the

hotel companies they manage. Efforts to survive and

win increasingly competitive competition require

hoteliers to formulate business strategies for a

competitive advantage.

Organizational performance, in this case, can be

measured by the performance of human resources

and finance. Also, it can be seen from various

aspects such as job satisfaction, employee loyalty,

commitment, quality, and productivity in the

financial sector. How organizations obtain optimal

business performance in implementing a quality

strategy differs. Hospitality organizations take

different approaches to implementing service

quality strategies, so these differences give rise to a

style of implementation, [2], [3].

The performance of hotel companies based on

data from the Central Statistics Agency in 2020

showed that the performance of hotel companies in

South Kalimantan and East Kalimantan could have

been better in terms of occupancy rates and length

of stay. In 2020, the occupancy rate of star hotel

rooms in South Kalimantan was 38.54% and in East

Kalimantan was 40.60%. When compared to 2019,

this value decreased by 12.18% whereas in 2019 the

occupancy rate of star hotel rooms reached 50.72%

in South Kalimantan, while in East Kalimantan in

2019 the occupancy rate of star hotel rooms reached

57.70%. decreased by 17.10%. This was due to the

outbreak of the Covid-19 pandemic, all hotel classes

experienced a decrease in room occupancy rates.

The number of foreign and domestic tourists

who came and stayed at hotels in South Kalimantan

during 2020 amounted to 976,277 people. The

highest number of domestic guests was 974,153

people, meanwhile, foreign guests only 2,124

people. When compared to 2019 the number of

guests who came and stayed was 2,026,699 people

with a total of 2,016,778 domestic guests and 9,921

foreign guests. Meanwhile, the number of foreign

and domestic tourists or guests who came and

stayed at hotels in East Kalimantan in 2020 was

2,030,346 people. The number of domestic guests

was the largest with a total of 2,014,607 people,

meanwhile, foreign guests only 15,639 people.

When compared to 2019 the number of guests who

came and stayed was as many as 6,948,118 people

with some domestic guests as many as 6,875,817

people and foreign guests as many as 72,301 people

due to the Covid-19 virus pandemic in almost all

parts of Indonesia. Therefore, the performance of

hotel companies in South Kalimantan and East

Kalimantan must be further improved by making

various strategic and innovative breakthroughs

because it will have an impact on the continuity of

the company.

Hotel companies, to be able to compete with

other hotels, must of course be able to compete

competitively. The competitive environment

requires hoteliers to innovate so that organizations

become increasingly aware that their physical and

financial assets are not capable of generating a

sustainable competitive advantage, by

understanding the allowable assets that enable value

to be created for their products and services. So that

the hotel's business performance will improve by

making improvements or changes to Intellectual

Capital, Organizational Culture, and Information

and Communication Technology. Intellectual capital

as a collection of interacting intangible resources

generate added value, [4].

The results of previous studies showed that

intellectual capital had no significant effect on hotel

performance. In the academic field, there is

certainly an interest in how intellectual capital

influences organizational performance.

Conceptually, intellectual capital looks clear and

logical to have an impact on hotel performance, but

practically, the existence of this relationship cannot

be fully confirmed in the world of economy and

industry, [5], [6].

A good Intellectual capital must be balanced

with a strong organizational culture to be able to

have a major influence on business performance.

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Organizational culture has a strong influence in the

way employees behave, work, and communicate

with colleagues and how to provide a view of the

future by developing insights based on norms,

values, and beliefs. Culture is so complex that it is

difficult to read from outside the organization. A

very strong organizational culture will certainly

make employees work to achieve company goals.

The performance of the hotel company will

certainly be improved by paying attention to the

organizational culture that exists in the company,

[7].

Organizational culture can also be very strong

and has the potential to make every employee aware

of the goals of the company and work towards

achieving them. Companies that are successful in

winning the competition certainly have a strong

culture, especially if the culture is strong.

Organizational culture is the main resource in an

organization that must maintain a competitive

advantage, [8].

However, to improve hotel performance, apart

from the intellectual abilities of employees and a

conducive organizational culture, it is also necessary

to use information and communication technology.

Technological advances in hospitality have

developed over the past few years. The development

of information and communication technology has

changed business for the better, between practices

and strategies as well as industry structures [9].

Several existing hotels have utilized information and

communication technology to automate their

business processes. Business processes are driven

by information and communication technology to

make industry changes gradually to produce a new

paradigm. This can change the existing industrial

structure, to develop various opportunities and

threats that may occur. Information and

communication technology not only empowers

customers to identify, customize, and buy

hospitality products but also supports the

globalization of the industry by providing suppliers

with effective tools to develop, manage and

distribute product offerings worldwide. The purpose

of the use of information and communication

technology is to improve service quality and

contribute to customer satisfaction, to present

information that is more accurate, effective, and

relevant, [10], [11].

Innovations owned by the hospitality industry

can certainly be quickly imitated. Therefore, it is

necessary to encourage hoteliers to have the

dynamic ability to re-engineer innovation to survive

and develop continuously. The dynamic ability to

re-engineer needs to be adjusted with stakeholders

by utilizing resources and capabilities that are scarce

and difficult to imitate, [12]. Conceptually, the

impact of intellectual capital on firm performance is

clear and logical, but practically, this relationship

cannot be fully confirmed in every economy and

industry. In addition, research shows that investing

in intellectual capital does not always have adequate

capital, [5].

2 Literature Review

Re-engineering is a redesign of a process to

streamline processing time and is oriented towards

efficiency and cost. Manipulation repeat could give

changes dramatically such as cost reduction, cycle

time reduction, and significant quality improvement.

In general, many business processes are very

complicated and only a few people in the

organization understand and can carry out these

processes, [12]. Therefore, re-engineering is

important to simplify the process which will have

implications for saving time and money cost. This is

also why this re-engineering can improve the quality

of work because each staff can get things done in a

better way. In addition, re-engineering will make

companies more flexible to respond to unwanted

events in a rapidly changing business environment.

The success of a business process re-engineering

lies in how effectively something an organization

which is already re-engineered can process man,

data, and technology inside it in response to

demands and business challenges that change and

evolve from time-to- time, [13].

Innovation is creativity that is translated into

something that can be implemented and adds value

to the resources we have. So, to always be able to

innovate requires creative intelligence. Hospitality

performance must match the capabilities of its

resources and ability to innovate. The hospitality

industry is a sector driven by the ability to innovate

that service providers offer rather than pursuing it

themselves. Without innovation, the company will

not be able to survive long. This is due to the

changing needs, wants, and demands of customers.

Customers will not always consume the same

product. Customers will look for other products

from other companies that are felt to satisfy their

needs, [14].

Innovation capability is the ability to develop

products or services according to the demand

market by implementing appropriate and fast

processes in response to technological changes and

unexpected opportunities by competitors. Innovative

organizations must be able to increase innovation

capabilities both in terms of individuals and the

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organization itself. The ability to innovate is a

concept about the ability of a company to develop

new ideas into innovations. Innovation capability is

proposed as a high-level integration capability,

namely the ability to print and manage multiple

capabilities. Organizations that can integrate their

key capabilities and corporate resources to

successfully stimulate innovation, [15].

The dynamic ability of innovation re-

engineering is a variable that is built on several

concepts. These concepts include dynamic

capabilities, business process re-engineering, and

innovation capabilities. The dynamic capability of

re-engineering innovation is one of the efforts to

improve the company's ability to maintain a

competitive advantage to achieve good business

performance in the hospitality sector. Star hoteliers

need to make changes to attract and retain

customers, this is due to the existence of the

Provinces of South Kalimantan and East Kalimantan

as buffer zones for the new capital city of the

Republic of Indonesia. The company's performance

can be seen in the company's ability to return the

unique assets owned and controlled by the company.

Furthermore, the company must be able to maintain

a competitive advantage. A sustainable competitive

advantage exists only when the other party's efforts

fail to emulate that advantage, [16].

Dynamic capabilities are in the context of

creating capabilities without waiting for a crisis

from the external environment, whereas dynamic

capabilities are strategic organizational routines as

processes for integrating, re-configuring, acquiring,

and releasing resources, [17]. Furthermore, to

improve business processes where in general many

business processes are very complicated and only a

few people in the organization understand and can

carry out these processes. Therefore, re-engineering

is important to simplify the process which will have

implications for saving time and money cost. And

the key to success in re-engineering lies in the

knowledge and ability to implement it, not luck,

[13].

Information and communication technology

play an important role in business process re-

engineering. Many people think that business

process re-engineering supported by information

technology is the same as automation. This opinion

is of course wrong because the two fields have

different meanings from each other. Automation

only results in more efficient ways of doing the

wrong things. Companies that equate information

technology with automation cannot re-engineer their

business processes. Information technology is one

of the main components that must be considered by

modern companies who want to re-engineer their

business processes, [13]. Information technology

has seven dimensions; human resources and

training, security, reservations, revenue

management, marketing, guest services, as well as

strategic and operational management, [18].

Phrases like output, performance, efficiency,

and effectiveness are often associated with

productivity. Productivity itself is the ratio of output

to input. Some even look at performance by

emphasizing the value of efficiency, which is

defined as the ratio of output and input, while

efficient measurement replaces the determination of

the outcome, [36]. In addition to efficiency,

productivity is also associated with the quality of

output which is measured based on several

predetermined standards. Performance is the ability

to work, something related to the goals achieved and

the level of achievement possessed by the company

at a certain time, [19].

Company performance can be measured in an

organization, namely based on the performance of

human resources and financial performance, by

looking at aspects such as job satisfaction,

commitment, or loyalty of employees in the

company, product quality, productivity, and

financial strength. measured from the perceived

performance of an organization associated with its

competitors which includes several aspects, such as

quality, product or service, new product

development, customer satisfaction, product price,

increased sales, profitability, and so on. The

organizational performance here is measured by

looking at the marketing performance and the

performance of its human resources, [20].

3 Methodology

The method in this study uses a qualitative method.

Qualitative research is a method based on the

philosophy of positivism, which aims to examine

certain populations and samples that can be

classified, collect data using research instruments,

and are quantitative to test predetermined

hypotheses. This study seeks to provide solutions in

depth with deductive reasoning, namely by

analyzing based on general understanding of facts

and then the results provide specific solutions.

The type of data used in this research is primary

data which includes data related to the respondent's

statement on Intellectual Capital, Organizational

Culture, Information and Communication

Technology, Dynamic Ability of Re-engineering

Innovation, and Performance of hospitality

companies. This primary data was obtained or

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sourced from the respondents of the General

Manager (GM) / owner of a five-star hotel (a person

whom the GM/hotel owner mandated) by

distributing questionnaires directly. Secondary data

is obtained from literature, documentation, and

publications both internationally and nationally.

The sampling technique in this research is the

technique of non probability sampling. Non-

probability sampling is a sampling technique that

does not provide equal opportunities/opportunities

for each element or member of the population to be

selected as a sample, [21]. One type of sampling

technique from non-probability sampling is by using

a saturated sampling technique (census). Saturated

sampling is a sampling technique in which all

members of the population are used as samples. In

this study, the researchers used a sample of 127

General Managers (GM) / star hotel owners (a

person who was mandated by the GM/hotel owner)

in the Provinces of South Kalimantan and East

Kalimantan.

The method of data collection in this research is

using a questionnaire (questionnaire) given to the

General Manager (GM) / owner of a star hotel (a

person who is mandated by the GM/hotel owner) in

the provinces of South Kalimantan and East

Kalimantan. After the research data is collected, the

next step is to analyze the data.

Hypothesis test data analysis was performed

using Partial Least Square (PLS) software.

According to World, Partial Least Square (PLS) is a

powerful analytical method because it is not based

on many assumptions. Partial Least Square (PLS)

was used to analyze the data in this study with

SmartPLS version 3.0 software. The path analysis

model in this study uses the following structural

equation, [21]:

Z = b1X1+ b2X2+ b3X3 +E1

Y = b1X1+ b2X2+ b3X3 + Z + E1

Where:

= Regression coefficient of variables X, Y, and Z

= Intellectual Capital, Organizational Culture,

Information, and Communication Technology

= Dynamic Capability re-engineering Innovation

= Hospitality Company Performance

= error

A structural model (inner model) is a structural

model to predict causality between latent variables.

Through the bootstrapping process, t-statistic test

parameters were obtained to predict the existence of

a causal relationship. The structural model (inner

model) is evaluated by looking at the percentage of

variance explained by the R2 value for the

dependent variable using the Stone-Geisser Q-

square test and looking at the magnitude of the

structural path coefficient, [21].

a. R-square (R²)

Assessing the structural model can be started by

looking at the R-squares that exist in each

endogenous variable as a prediction of the

structural model. Changes in the R-square value

can later be used to explain the effect of certain

exogenous latent variables on endogenous

variables that have a substantive effect. R-

Squared values of 0.75, 0.50, and 0.25 can be

concluded that the model is strong, moderate,

and weak.

b. Q² Predictive Relevance

Q² Predictive Relevance can be used to interpret

the synthesis of cross-validation and fitting

functions by predicting from observed variables

and estimates of construct parameters. The

model is declared to have predictive relevance if

the value of Q2 > 0, while the model is declared

to have less predictive relevance if the value of

Q2 is < 0. The q² predictive relevance values of

0.02, 0.15, and 0.35 indicate that the model is

weak, moderate, and strong.

c. Bootstrapping (Hypothesis testing)

The bootstrapping procedure uses the entire

original sample for resampling. In the resampling

bootstrap method, the significance values used

(two-tailed) are t-value 1.65 with significance

level = 10%, 1.96 with significance level = 5%

and 2.58 with significance level = 1%)

4 Results

This study has a unit of analysis in South

Kalimantan and East Kalimantan Star Hotels. The

general description of the identity of research

respondents includes age, gender, education,

position, hotel location, number of employees, and

hotel class. The number of respondents in this study

was 127 hotels spread across South Kalimantan and

East Kalimantan. The following is a description of

the identity of the respondents in this study.

Testing of the outer model is carried out with

the results already fulfilling, then further testing of

the inner model is carried out. The inner model can

be evaluated by looking at the results of the r square

to see the dependent construct and the t statistic

value of the coefficient test results. If the value of q

square is higher, it means the better the proposed

research model. The value of path coefficients

shows the level of significance in hypothesis testing

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4.1 R-Square

Inner models describe the relationship between

latent variables based on substantive theory. The

structural model was evaluated using R-square for

the dependent construct. The value of R² can be

used to assess the effect of certain endogenous

variables and whether exogenous variables have a

substantive effect. Based on the data processing that

has been done using SmartPLS 3.0, the R-Square

value is obtained as follows.

Table 1. R Square

Variable

Square

R Square

Adjusted

Dynamic Capability

re-engineering

Innovation

0.619

0.609

Hospitality Company

Performance

0.825

0.820

Source: Processed primary data, (2022)

Based on the r-square value in Table 1

shows that Intellectual Capital, Organizational

Culture, and Information and Communication

Technology can explain the variability of the

construct. The dynamic ability of innovation re-

engineering is 60.9%, and the remaining 39.1%

is explained by other constructs outside those

studied in this research. Intellectual Capital,

Organizational Culture, Information and

Communication Technology, and the dynamic

ability of innovation re-engineering can explain

the variability of the Hospitality Company

Performance construct by 82%, and the

remaining 18% is explained by other constructs

outside those studied in this study.

4.2 Q-Square

The empirical model can be evaluated by looking at

Q square (Predictive Relevance). Q-square measures

how well the observed values generated by the

model and the parameter estimates are. A Q-square

value greater than 0 (zero) will indicate that the

model has a Predictive Relevance value, whereas if

the Q-square value is less than 0 (zero) it will

indicate that the model lacks Predictive Relevance.

However, if the calculation results show a Q-square

value of more than 0 (zero), then the model is

feasible to be said to have a relevant predictive

value. If the values obtained are 0.02 (small), 0.15

(medium) and 0.35 (large). The results of the

calculation of Q square (Q2) can be seen in table

5.27 below:

Table 2. Q Square

Variable

SSO

SSE

Q²

Organizational

culture

1016,00

Information and

communication

technology

1421,00

Dynamic

Capability re-

engineering

Innovation

889,000

562,561

0,367

Hospitality

Company

Performance

889,000

460,094

0,482

Intellectual

Capital

1651,00

Source: Processed primary data, (2022)

Based on table 2, it is known that the value of Q

square (Q2) for the variable dynamic ability of

innovation re-engineering is 0.367, and the hotel

company performance variable is 0.482. By looking

at these values, it can be concluded that this study

has a good observation value because the value of

the Q square is> 0 (zero).

4.3 Hypothesis Testing

Hypothesis testing is done by looking at the results

of the inner model consisting of the output r square,

path coefficient, and t statistics. To see whether the

hypothesis can be accepted or rejected, it will be

seen from the significant value between the

constructs, t-statistics, and p-values. The hypothesis

testing of this research was carried out with the help

of SmartPLS 3.0 software. These values can be seen

from the bootstrapping results. The rule of thumb

used in this study is t-statistic > 1.96 with a

significance level of the p-value of 0.05 and a

positive beta coefficient. The structural model of

this research can be seen in the following figure:

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Fig. 1: PLS Bootstrapping Results

Source: Processed primary data, (2022)

To be able to see the significant value in the

above model on structural model testing, it can

certainly be seen in the statistical t value between

variables or can be seen in the part coefficient table

below:

Table 3. Path Coefficients

Hypothesi

Valu

t Statistics

(|O/STDEV|

)

Informatio

X1 -> Y

0.679

0.498

Rejected

X2 -> Y

9,214

0.000

Received

X3 -> Y

1.126

0.261

Rejected

X1 -> Z

1.334

0.183

Rejected

X2 -> Z

7,944

0.000

Received

X3 -> Z

0.151

0.880

Rejected

Z-> Y

6,932

0.000

Received

Source: Processed primary data, (2022)

Based on the test results of each hypothesis

proposed in this study by looking at the results of t-

statistics and path coefficients in Table 3, it can be

explained as follows:

1. The results of the analysis on the smart pls test

showed that the t-statistic value was 0.679 <

1.96. This shows that Intellectuals have no

significant effect on Hotel Company

Performance at a significance level of 5%

because the t statistic value is lower than the t

table. This means that the first hypothesis is

rejected.

2. The results of the analysis on the smartpls test

found that the t-statistic value was 9.214 > 1.96.

This shows that Organizational Culture

significantly affects Hospitality Company

Performance at a significance level of 5%

because the t statistic value is greater than the t

table. This means that the second hypothesis is

accepted as true.

3. The results of the analysis on the smartpls test

found that the t-statistic value was 1.126 < 1.96.

This shows that Information and Communication

Technology has no significant effect on the

Performance of Hospitality Companies at a

significance level of 5% because the t statistic

value is lower than the t table. This means that

the third hypothesis is rejected.

4. The results of the analysis on the smartpls test

found that the t-statistic value was 1.334 < 1.96.

This shows that Intellectual Capital has no

significant effect on the dynamic ability of

innovation re-engineering at a significance level

of 5% because the t statistic value is lower than

the t table. This means that the fourth hypothesis

is rejected.

5. The results of the analysis on the smartpls test

found that the t-statistic value was 7.944 > 1.96.

This shows that Organizational Culture

significantly affects the dynamic ability of

innovation re-engineering at a significance level

of 5% because the t statistic is greater than the t

table. This means that the fifth hypothesis is

accepted as true.

6. The results of the analysis on the smartpls test

found that the t-statistic value was 0.151 < 1.96.

This shows that Information and Communication

Technology has no significant effect on the

dynamic ability of innovation re-engineering at a

significance level of 5% because the t statistic

value is lower than the t table. This means that

the sixth hypothesis is rejected

7. The results of the analysis on the smartpls test

found that the t-statistic value was 5.928 > 1.96.

This shows that the dynamic ability of

innovation re-engineering has a significant effect

on the Performance of Hospitality Companies at

a significance level of 5% because the t statistic

value is greater than the t table. This means that

the seventh hypothesis is accepted as true

4.3 Indirect Testing (Mediation)

Indirect testing aims to prove whether the dynamic

ability of innovation re-engineering mediates

between Intellectual Capital, Organizational

Culture, and Information and Communication

Technology on the Performance of Hospitality

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Setio Utomo, Sugeng Wahyudi,

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Companies. The relationship between these

variables can be seen in the empirical model in table

4 below:

Table 4. Indirect Effect

Hypothesis

Value

t Statistics

(|O/STDEV|)

Information

X1 -> Z -> Y

2,143

0.033

Received

X2 -> Z -> Y

4,218

0.000

Received

X3 -> Z -> Y

0.341

0.733

Rejected

Source: Processed primary data, (2022)

Based on the test results in table 4, it can be

explained as follows:

1. The calculation results can be seen that the t-

statistic value is 2.143 > 1.96, meaning that the

mediation results are said to be significant.

These results can be concluded that the model

of the dynamic ability of innovation re-

engineering as a mediation of the influence of

Intellectual Capital on the Performance of

Hospitality Companies can be accepted as true.

2. The calculation results can be seen that the t-

statistic value is 4.218 > 1.96, meaning that the

mediation result is said to be significant. These

results can be concluded that the dynamic

ability of innovation re-engineering to mediate

the influence of Organizational Culture on the

Performance of Hospitality Companies can be

accepted as true.

3. The calculation results can be seen that the t-

statistic value is 0.341 > 1.96, meaning that the

mediation results are said to be insignificant.

These results can be concluded that the

dynamic ability of innovation re-engineering to

mediate the influence of Information and

Communication Technology on the

Performance of Hospitality Companies can be

rejected.

5 Conclusion

Based on the results of the research that has been

done, the conclusions obtained to answer the

problem formulation and hypotheses in this study

are first, Intellectual Capital has no significant effect

on Hotel Company Performance. Second,

Organizational Culture significantly affects the

Performance of Hospitality Companies. Third,

Information and Communication Technology has no

significant effect on the Performance of Hospitality

Companies. Fourth, Intellectual Capital has no

significant effect on the dynamic ability of

innovation re-engineering. Fifth, Organizational

Culture has a significant effect on the dynamic

ability of innovation re-engineering. Sixth,

Information and Communication Technology has no

significant effect on the dynamic ability of

innovation re-engineering. Seventh, the dynamic

ability of innovation re-engineering has a significant

effect on the Performance of Hospitality

Companies.

Suggestions in this study are as follows; First,

hotel owners can give their employees the freedom

to be professional to customers and give them the

freedom to innovate at work. Second, the owner of a

hotel company creates the right set of values in

directing the way employees act and interact and

provides education regarding the work they do.

Third, the owner of the hotel company should make

more use of ICT to make the work of employees

easier. Fourth, the owner of the hotel company

waives the cost of online hotel bookings and

provides tourist access to hotel customers. Fifth, the

owner of a hotel company must have a high

commitment so that it can convince and be trusted

by customers.

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E-ISSN: 2224-2899

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Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

The authors equally contributed in the present

research, at all stages from the formulation of the

problem to the final findings and solution.

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

No funding was received for conducting this study.

Conflict of Interest

The authors have no conflict of interest to declare.

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(Attribution 4.0 International, CC BY 4.0)

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Creative Commons Attribution License 4.0

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DOI: 10.37394/23207.2023.20.83

Setio Utomo, Sugeng Wahyudi,

Ngatno, Bulan Prabawani

E-ISSN: 2224-2899

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