Structural Capital and Firm Performance: Synergistic Effects of Realized and Potential Absorptive Capacities in Tourism Businesses

Abstract

In a competitive and dynamic environment, business performance is a latent concern for managers, requiring firms to implement a set of strategies such as structural capital (SC), potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP) to enhance their performance. Furthermore, our review of the literature found insufficient empirical research to support the theoretical connections between the variables in question. In this sense, the purpose of the present study is to cover this gap and to analyse the effect of SC on business performance. In addition, the mediating effect of RACAP was studied. Finally, the moderating effect of PACAP on the relationship between RACAP and business performance was analysed. Following the non-probabilistic convenience sampling method, a sample of 238 firms in the tourism sector in Peru’s World Heritage Cities was recruited. This study employs partial least squares structural equation modelling (PLS-SEM) for the statistical analysis of mediation and moderation. The results indicate that SC positively affects business performance and RACAP improves it. Likewise, PACAPs positively moderate the effect of RACAP on firm performance (FP). These results contribute to the theoretical understanding of the determinants of FP. Furthermore, it is helpful in practical managerial decision-making in the tourism sector in developing countries.