Evaluation of Mediating Role of Perceived Credibility and Usefulness of Information in SMES Performance through Service Quality in Hospitality sector

Abstract

Current digital marketing schema helped small businesses reach the wider audience in cost-effective manner and more effectively than traditional marketing during pandemic. Hospitality industry plays an important role in Pakistan’s GDP. Recent lockdowns, social distancing rules and reduced timings of the businesses have negatively affected the SMEs (restaurants) in hospitality industry. During such crisis social media marketing platforms and digital promotional activities boosted the performance of firms in this industry. Promotional messages through social media platforms played a beneficial role in the improving the performance of hospitality industry and in improving the customer relationships and productivity. Among many social media platforms, Instagram is one of the efficient most which is widely used by SMEs. The direct relationship of service quality and firm performance remained the core of research on firm performance however, there is still dearth of research to determine of such a relationship is affected by the promotional activities on social media. Therefore, current research study aims to uncover the under-researched area of how information provided by the social media platforms affect the relationship of service quality and firm performance in the context of hospitality industry of Pakistan. This research used regression data analysis to analyze the primary data generated using survey method. Results indicate a significantly positive impact of social media information on relationship of service quality and firm performance.