AI and online booking platforms: Dynamic capabilities in South African hotel SMEs

Abstract

This study examined the role of online booking platforms and artificial intelligence in relation to dynamic capabilities and competitive advantage among South African hotel SMEs. The study addressed a practical and theoretical problem: although smaller hotels increasingly rely on digital tools, it remains unclear how these tools relate to capability development and competitive outcomes in an emerging-market context. A quantitative, cross-sectional design was used. Data were collected from 239 South African hotel SMEs and analysed in SPSS using regression analysis. The results showed that online booking platform utilisation and artificial intelligence utilisation did not significantly predict data-driven capability development, and data-driven capability development did not significantly predict sensing, seizing or reconfiguring capabilities. By contrast, the dynamic capability dimensions were all positively associated with competitive position, with seizing emerging as the strongest predictor. An additional finding was that stronger OBP utilisation was positively associated with higher AI utilisation. The study contributes to Dynamic Capabilities Theory by showing that, in this context, capability rather than technology was the main driver of competitive outcomes. Practically, the findings suggest that hotel SMEs should treat online booking platforms and artificial intelligence as tools that require strong managerial routines and decision processes, rather than as standalone solutions.