The link between service quality, absorptive capacity, business strategy, and co-creation: a moderated mediation analysis function of intellectual capital

Purpose The aims of this study were to examine the relationships among service quality, absorptive capacity, and business strategies in value co-creation and to investigate how human, social, and organizational capital interactively influence these relationships to enhance the understanding of organizational value creation. Design/methodology/approach In the proposed research model, 375 valid responses from different regions in Taiwan were collected through face-to-face data collection, and structural equation modeling was conducted to confirm the hypothesis and theoretical framework. Findings The findings indicate that service quality positively influences business strategies through absorptive capacity, which, in turn, enhances value co-creation. The study also highlights human capital, social capital, and organization as moderators and subdimensions of intellectual capital in the value co-creation process. Research limitations/implications One of the main limitations of this study is that it focused on a specific time period and industry cross-section in the context of the postpandemic era. Practical implications The managerial suggestions can serve as a reference for hotel operators in their business strategy. Originality/value This study addresses this research gap by examining internal value co-creation in Taiwan's hotel industry and shows that business strategies mediate the link between absorptive capacity and value co-creation.