ORCID

0009-0006-2197-7832

Keywords

Hospitality Finance, IT Investment, Innovation Diffusion Theory, Agency Theory, Firm Performance, Risk-adjusted Returns, Econometric Modeling

Abstract

Digital investments have become integral to the strategies of hospitality firms, enabling data-driven decision-making, operational efficiency, and financial growth. This dissertation examines the impact of digital investments, specifically IT investment (CAPEX), research and development (R&D) intensity, and digital marketing intensity, on operational and financial performance within hospitality firms, guided by Innovation Diffusion Theory and Agency Theory. A comprehensive empirical analysis utilized financial data from publicly traded U.S. hospitality firms (2013–2023). Advanced econometric methods, including ARIMA, GARCH, and structured panel regressions, were rigorously assessed to evaluate performance dynamics. Findings reveal IT investments significantly enhance operational efficiency, profitability, and liquidity, despite causing short-term volatility in risk-adjusted returns due to elevated capital expenditures. R&D intensity significantly improved market valuation, highlighting the importance of sustained innovation despite initial uncertainty. Digital marketing intensity substantially boosted liquidity and EBIT-to-assets, yet introduced short-term financial volatility, underscoring the need for strategic oversight and careful expenditure management. Firm size emerged as a critical moderator, with larger firms deriving greater benefits from digital investments due to resource advantages and established infrastructure. Theoretically, this research extends Innovation Diffusion Theory by empirically clarifying the temporal progression from initial uncertainty to long-term competitive advantage. It expands Agency Theory by demonstrating how transparent managerial incentives and monitoring reduce agency costs, enhancing shareholder value. Practically, the findings offer hospitality managers actionable insights, advocating incremental digital investments, disciplined oversight, transparent stakeholder communication, and strategic management of expectations to optimize long-term firm value. Despite acknowledged limitations in measurement and generalizability, this dissertation establishes a robust empirical foundation that guides future scholarship and managerial practice in digital transformation within hospitality contexts.

Completion Date

2025

Semester

Summer

Committee Chair

Kizildag, Murat

Degree

Doctor of Philosophy (Ph.D.)

College

Rosen College of Hospitality Management

Department

Hospitality Services

Format

PDF

Identifier

DP0029539

Language

English

Document Type

Thesis

Campus Location

Rosen College of Hospitality Management

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