How soft TQM practices and IT adoption improve business performance in hotel service: Empirical evidence from developing countries

The objective of the article is to examine the impact of soft total quality management (TQM) practices on enhancing workforce quality and business performance in hotels in Vietnam. Additionally, it explores the moderating role of information technology (IT) adoption in these relationships. Quantitative approach was applied to formulate the analytical framework. To test the established hypotheses, structural equation modelling was utilized to analyze data were collected from 122 hotels in Vietnam through a questionnaire survey conducted during 2021–2022. The findings indicate that soft TQM practices, including quality leadership and workforce management, lead to higher workforce quality, which in turn enhance business performance. Furthermore, the adoption of IT strengthens these relationships. However, there was insufficient statistical evidence to confirm the impact of customer orientation on workforce quality and the moderating effect of IT adoption on this relationship. Analytical results suggest hotel business managers to implement TQM practices focusing on quality leadership, customer orientation, and workforce management, which lead to a higher level of workforce quality and business performance improvement. The significant contribution of TQM practices to business performance is also enhanced by implementing IT application. This study supports the resource-based view (RBV) and contingency theories by emphasizing the critical role of employees in achieving superior business performance. Evidently, workforce quality is influenced not only by TQM practices but also by conditional factors, such as the extent to which organizations adopt IT to facilitate communication among employees and with customers. Additionally, the research provides valuable insights for hotel managers in developing countries on how the effective application of TQM can enhance business performance.