Management practices and firm performance: Mediating role of information technology, evidence from hotel industry, China

This study performs an empirical investigation that enlightens the mediating role of information technology (IT) among low transaction cost, tangible & intangible services, customer oriented approach and firm performance. The keystone of this study is how IT would influence firm performance discourses from a customer satisfaction perspective. This study used PLS-SEM technique to analyze survey data of 160 employees from hotel firms in Beijing, China. The direct and mediating relationship through IT among tangible & intangible services, customer oriented approach, and firm performance is significant. The direct relationship between low transaction cost and firm performance is also significant, however; the mediating role of IT among them is insignificant. Effective use of IT resources may create significant results.