SMEs’ Innovativeness and Technology Adoption as Downsizing Strategies during COVID-19: The Moderating Role of Financial Sustainability in the Tourism Industry Using Structural Equation Modelling

This study aims to identify why firms, specifically SMEs in the hospitality and tourism industry, downsized during the recent global economic distress caused by COVID-19. This study applied a quantitative methodology by distributing online questionnaires to SME owners and managers who operate in the...

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Bibliographic Details
Published in:Sustainability 2022-12, Vol.14 (23), p.16044
Main Authors: Shwedeh, Fanar, Aburayya, Ahmad, Alfaisal, Raghad, Adelaja, Ayotunde Adetola, Ogbolu, Gbemisola, Aldhuhoori, Abid, Salloum, Said
Format: Article
Language:English
Subjects:
Business
Coronaviruses
COVID-19
Downsizing
Downsizing (Management)
Employees
Modelling
Multivariate statistical analysis
Questionnaires
Sales promotions
Small and medium sized companies
Small business
Structural equation modeling
Sustainability
Sustainable development
Technology
Technology adoption
Tourism
Travel industry
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Summary:This study aims to identify why firms, specifically SMEs in the hospitality and tourism industry, downsized during the recent global economic distress caused by COVID-19. This study applied a quantitative methodology by distributing online questionnaires to SME owners and managers who operate in the tourism industry of the UAE. We analysed the collected data using structural equation modelling. A total of 320 questionnaires were analysed using the PLS-SEM analytic tool. Our findings revealed that the investigated constructs, namely financial sustainability, SMEs’ innovativeness, and technology adoption predict the implementation of downsizing strategies during economic distress. However, financial sustainability failed to expedite SMEs’ innovativeness and technology adoption during this period. Therefore, the findings of this study show the impacts of financial strength, technology adoption, and innovativeness on implementing downsizing strategies, and provide suggested recommendations in light of the observed results.
ISSN:2071-1050
2071-1050
DOI:10.3390/su142316044