An application of Structural Equation Modeling for Continuous Improvement

Abstract

More and more firms are adopting Web 2.0 technologies for different purposes. Despite some studies about the impact on different aspects of the organization of these technologies, few studies have empirically tested their effects. This study confirms that the there is a positive relationship between Web 2.0 adoption and Innovativeness and between Innovativeness and Business Performance. We can conclude that Innovativeness is a mediating variable between Web 2.0 and Firm Performance. The relationships were tested in a sample of 244 hospitality firms, using a structural modeling approach. The results are presented and discussed. In the last section of the article, the conclusions are discussed and finally, some future lines of research are suggested.