Leveraging business intelligence for competitive advantage: The mediating role of innovation in the Thai hotel industry

This study investigates how business intelligence capabilities (BIC) influence competitive performance (COP) in the Thai hotel industry, with a particular focus on the mediating role of innovation capability (INC). Drawing on the Resource-Based View and Dynamic Capabilities Theory, the study develops a structural model proposing that BIC improves COP both directly and indirectly through INC. Using stratified random sampling based on classifications from the Tourism Grading Council of Thailand, data were collected from 180 hotel managers through a structured questionnaire. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test the proposed relationships. The results show that BIC does not directly affect COP, but has a strong and significant indirect effect through INC, indicating that innovation capability fully mediates this relationship. These findings highlight the importance of strengthening innovation to convert business intelligence insights into a competitive advantage. The study adds to the literature on business intelligence and innovation management by providing empirical evidence from the hospitality sector in an emerging market. It also stresses the strategic need to align business intelligence systems with innovation activities to achieve sustainable performance. The study offers originality by demonstrating that innovation capability fully mediates the link between business intelligence capabilities and competitive performance in the underexplored context of Thai hotels.