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SMEs’ Innovativeness and Technology Adoption as Downsizing Strategies during COVID-19: The Moderating Role of Financial Sustainability in the Tourism Industry Using Structural Equation Modelling

Author

Listed:
  • Fanar Shwedeh

    (School of Business Management, City University Ajman, Ajman P.O. Box 18484, United Arab Emirates)

  • Ahmad Aburayya

    (Business Administration College, MBA Department, City University Ajman, Ajman P.O. Box 18484, United Arab Emirates)

  • Raghad Alfaisal

    (Faculty of Art, Computing and Creative Industries, Universiti Pendidikan Sultan Idris, Tanjong Malim 35900, Malaysia)

  • Ayotunde Adetola Adelaja

    (Faculty of Social Science and Management, Mewar International University, Km21, Kuchikau I, Abuja-Keffi Rd, New Karu 961101, Nasarawa State, Nigeria)

  • Gbemisola Ogbolu

    (International Business School, Teesside University, Middlesbrough TS1 3BX, UK)

  • Abid Aldhuhoori

    (Faculty of Business and Management, The British University in Dubai, Dubai P.O. Box 345015, United Arab Emirates)

  • Said Salloum

    (School of Science, Engineering, and Environment, University of Salford, Salford M5 4WT, UK)

Abstract

This study aims to identify why firms, specifically SMEs in the hospitality and tourism industry, downsized during the recent global economic distress caused by COVID-19. This study applied a quantitative methodology by distributing online questionnaires to SME owners and managers who operate in the tourism industry of the UAE. We analysed the collected data using structural equation modelling. A total of 320 questionnaires were analysed using the PLS-SEM analytic tool. Our findings revealed that the investigated constructs, namely financial sustainability, SMEs’ innovativeness, and technology adoption predict the implementation of downsizing strategies during economic distress. However, financial sustainability failed to expedite SMEs’ innovativeness and technology adoption during this period. Therefore, the findings of this study show the impacts of financial strength, technology adoption, and innovativeness on implementing downsizing strategies, and provide suggested recommendations in light of the observed results.

Suggested Citation

  • Fanar Shwedeh & Ahmad Aburayya & Raghad Alfaisal & Ayotunde Adetola Adelaja & Gbemisola Ogbolu & Abid Aldhuhoori & Said Salloum, 2022. "SMEs’ Innovativeness and Technology Adoption as Downsizing Strategies during COVID-19: The Moderating Role of Financial Sustainability in the Tourism Industry Using Structural Equation Modelling," Sustainability, MDPI, vol. 14(23), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:23:p:16044-:d:990105
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    References listed on IDEAS

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