Bridging old and new: how AI literacy and frugal innovation enable family-owned boutique hotels to transform Industry 4.0 into innovation performance

Purpose How can family-owned boutique hotels (F-OBHs) preserve their uniqueness and embrace cutting-edge technology? This study aims to examine a research gap, how Industry 4.0 (I-4.0) capabilities drive sustainable innovation performance (SIP) through frugal innovation. It is also investigated how AI problem-solving and digital literacy influence these conscious enterprises without losing their authentic character. Design/methodology/approach Primary data were collected from 243 descendant entrepreneurs handling their F-OBHs. This data was analysed by using 2nd generation software, Smart-PLS and applied the PLS-SEM technique. Findings This study found that I-4.0 capabilities, AI problem-solving and AI literacy significantly boost SIP in F-OBHs. Frugal innovation strengthens I-4.0 capabilities with SIP. AI problem-solving abilities of F-OBHs maximize their I-4.0 capabilities and achieve excellent frugal innovation. Moreover, high AI literacy of entrepreneurs increases frugal innovation activities and achieves SIP. Originality/value This study unlocks how F-OBHs can compete against giants in their industry by using smart tech and slowly replacing established traditions cost-effectively. The findings show how F-OBHs can turn their everyday challenges into breakthrough opportunities in an increasingly digital marketplace.

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Publication Details

Journal
Journal of Hospitality and Tourism Technology
Published
2026-07-02
DOI
https://doi.org/10.1108/jhtt-06-2025-0461
Primary Topic
Family Business Performance and Succession
Type
article
Field-Weighted Citation Impact
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article

Bridging old and new: how AI literacy and frugal innovation enable family-owned boutique hotels to transform Industry 4.0 into innovation performance

Tahira Iram, Hina Iftikhar, Norizah Mustamil, Zeshan Ahmad et al.
Journal of Hospitality and Tourism Technology
Family Business Performance and Succession
article

Bridging old and new: how AI literacy and frugal innovation enable family-owned boutique hotels to transform Industry 4.0 into innovation performance

Tahira Iram, Hina Iftikhar, Norizah Mustamil, Zeshan Ahmad, Belal Mahmoud AlWadi
article en

Abstract

Purpose How can family-owned boutique hotels (F-OBHs) preserve their uniqueness and embrace cutting-edge technology? This study aims to examine a research gap, how Industry 4.0 (I-4.0) capabilities drive sustainable innovation performance (SIP) through frugal innovation. It is also investigated how AI problem-solving and digital literacy influence these conscious enterprises without losing their authentic character. Design/methodology/approach Primary data were collected from 243 descendant entrepreneurs handling their F-OBHs. This data was analysed by using 2nd generation software, Smart-PLS and applied the PLS-SEM technique. Findings This study found that I-4.0 capabilities, AI problem-solving and AI literacy significantly boost SIP in F-OBHs. Frugal innovation strengthens I-4.0 capabilities with SIP. AI problem-solving abilities of F-OBHs maximize their I-4.0 capabilities and achieve excellent frugal innovation. Moreover, high AI literacy of entrepreneurs increases frugal innovation activities and achieves SIP. Originality/value This study unlocks how F-OBHs can compete against giants in their industry by using smart tech and slowly replacing established traditions cost-effectively. The findings show how F-OBHs can turn their everyday challenges into breakthrough opportunities in an increasingly digital marketplace.

Journal of Hospitality and Tourism Technology
Al-Zaytoonah University of Jordan (JO), Duy Tan University (VN), University of Malaya (MY), EM Strasbourg Business School (FR), Universiti Teknologi MARA System (MY), Université de Strasbourg (FR)
Quality Education
Openalex Percentile: Top 4%
Family Business Performance and Succession
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