Digital capabilities as a catalyst for team effectiveness: insights from hospitality

Purpose This study aims to examine the sequential mediating roles of transactive memory system (TMS) and team reflexivity in the relationship between digital capabilities and team performance, while also analyzing the moderating effect of team climate on the relationship between TMS and team reflexivity within Pakistan’s hotel industry. Design/methodology/approach Two-wave data collected from 309 employees (103 teams) working in four- and five-star hotels were used to test the proposed hypotheses using the partial least squares structural equation modeling technique. Findings The findings reveal that TMS and team reflexivity sequentially mediate the relationship between digital capabilities and team performance. Furthermore, team climate positively moderates the relationship between TMS and team reflexivity. Practical implications Team performance can be enhanced by promoting digital capabilities, TMS and team reflexivity. Furthermore, incorporating team climate as a boundary condition fosters the effectiveness of TMS and enhances teams’ learning and adaptive capabilities, which are increasingly vital in the hospitality industry. Originality/value Grounded in TMS theory, this study enriches the hospitality literature by explaining how contextual factors and team processes collectively influence team performance.