Organizational and External E-Readiness, AI Adoption in Hospitality Industry: Empirical Study

This study investigates the interplay among perceived organizational e-readiness, perceived external e-readiness, AI Adoption, and non-financial performance in the hospitality industry. Employing the E-Commerce Adoption Model, Organizational Readiness for Change (ORC) Framework, and Comprehensive Theory of Use and Adoption of Technology (CTUAT), the research examines AI adoption as a mediating mechanism. Data from 476 mid- and senior-level hospitality professionals in Malaysia were analyzed using Structural Equation Modeling (SEM), revealing strong predictive power and robust effect sizes. Results confirm that external e-readiness exerts a stronger influence on AI adoption than organizational e-readiness. AI Adoption significantly enhances non-financial performance metrics, including market share, customer care services, and effectiveness. By bridging readiness factors with performance outcomes through AI Adoption, the study provides novel insights into the nuanced dynamics of AI adoption in developing economies. These findings have broad implications for advancing the theoretical discourse and guiding strategic AI integration globally.