Driving team performance through digital capabilities in the hospitality industry: a transactive memory system perspective

Purpose Drawing on transactive memory system (TMS) theory, this study examines the impact of digital capabilities on team performance through the sequential mediation of transactive memory systems and team ambidexterity within the hotel industry of Pakistan. Design/methodology/approach Data from 103 teams, comprising 309 employees from 4- and 5-star hotels, were utilized to test the proposed hypotheses using partial least squares structural equation modeling (PLS-SEM). Findings The findings indicate that digital capabilities, through the sequential mediation of the TMS and team ambidexterity, have a significant and positive impact on team performance. Practical implications Digital capabilities are not merely operational enablers but also catalysts for team cognition and adaptive learning. Hospitality policymakers may invest in knowledge-sharing platforms, AI-enabled communication tools and collaborative workspaces to build employees' digital proficiency. Such measures can enhance the cognitive and behavioral processes that ultimately lead to superior team performance. Originality/value There is limited research on the role of digital capabilities in enhancing team performance in hospitality. This study adds valuable insights to hospitality literature by examining the sequential impact of cognitive and behavioral mechanisms in translating the effect of digital capabilities on team performance.