*4.2. Measurement Model Assessment*

In order to assess the measurement model of all reflective first-order constructs, the reliability and convergent validity of the constructs were verified. For this purpose, we estimated the factor loadings, Cronbach's Alpha, composite reliability, the Dijkstra-Henseler rho ratio, and the average variance extracted (AVE) [68,76,77]. The results are shown in Table 5. For this purpose, we have followed the recommendations established by Valls Martínez et al. [78]. Following the popular rule of thumb [79], the individual reliability of the items was assessed through the standardized factor loadings. All factor loadings except two were found to be above the recommended factor loading of 0.707 [80]. Regarding the two values below the recommended factor, their values are higher than 0.63. Therefore, the reliability of the single items is considered to be adequate [81].

The constructs reliability was evaluated by calculating Cronbach's alpha coefficients and composite reliability through Dijkstra–Henseler's and Jöreskog's indices. As described in Table 5, Cronbach's alpha and CR values ranged between 0.741 and 0.895. Hence, all the values satisfied the minimum criterion value established on 0.70 [52]. Thus, the scale can be considered reliable. In addition, in order to test the convergent validity of the scales, the average variance extracted (AVE) was examined. The results show that the AVE coefficient for the constructs is greater than 0.5, supporting the convergent validity of the reflective scales [82].


**Table 5.** Descriptive statistics, reliability and validity of measures.

Significance and standard deviations (SD) performed by 10,000 repetition Bootstrapping procedure. QB 2: crossvalidated redundancies index performed by a nine-step distance-blindfolding procedure.α: Chronbach's alpha; ρA: Dijkstra–Henseler's composite reliability; ρC: Jöreskog's composite reliability; AVE: Average Variance Extracted; \*\*\*: All loadings are significant at the 0.001 level.

Moreover, the predictive relevance of endogenous constructs was evaluated through the Q<sup>2</sup> statistical test (a cross-validated redundancy index), using the blindfolding technique [83]. Table 5 shows that all values are greater than zero, which confirms the strong explanatory qualities of the model proposed [84].

With the aim of ensuring discriminant validity, according to the Fornell-Larcker criterion [79], the correlations between each pair of constructs were checked to ensure they did not exceed the square root of the AVE of each construct. Similarly, the level of the heterotrait-monotrait (HTMT) between each two constructs was tested. The results in Table 6 show how the values vary between 0.040 and 0.573. Hence, the values do not exceed the maximum allowable value of 0.85 [85]. Therefore, the results offer evidence of discriminant validity.

**Table 6.** Discriminant validity.


Sq AVE: square root of AVE, HTMT ratio over the diagonal (italics) and construct correlations below the diagonal.

Deeming that the measurement of future economic expectations is limited by the heterogeneity and subjectivity of each hotel manager's assessment, this could generate an unobserved heterogeneity problem in our model. To rule out the existence of such a problem, we have run the FIMIX procedure in PLS [86]. For this purpose, 5000 iterations and 10 replicates have been set up. Considering an effect size of 0.15, a statistical power of 80% and the sampling length, three segments have been set up. After running FIMIX-PLS with SmartPLS, the results cannot determine the appropriate number of segments. Based on this, we can conclude the non-existence of an unobserved heterogeneity problem [87].

#### *4.3. Structural Model Assessment*

We started the structural model assessment by ensuring that multicollinearity is not an issue in this model. With this aim, the variance inflation factor (VIF) was analyzed. Table 7 shows that VIF ranged from 1.001 to 1.038. These results do not exceed the cutoff established in 3.0 [82]. Consequently, it can be affirmed that multicollinearity is not a problem in this model, and this enables us to proceed further.



R2 adjusted [99% CI in brackets]: performance: 0.245 [0.160; 0.411]; CSR: 0.088 [0.044; 0.207]. Blindfolding Q2 index as shown in Table 5; standardized path values reported; f2: size effect index; 95CI: 95% Bias Corrected Confidence Interval; VIF: Inner model Variance Inflation Factors; VAF: Variance Accounted Formula x 100 represents the proportion mediated. Significance, t-Student, and 95% bias-corrected CIs were performed by 10,000 repetition bootstrapping procedure; \*: *p* < 0.05; \*\*: *p* < 0.01; \*\*\*: *p* < 0.001.

To evaluate the structural paths by estimating the significance and the size of path coefficients (β), a bootstrap (10,000 resamples) that produces standard errors and t-statistics to assess the statistical significance of the path coefficients was developed [82].

The results are shown in Table 7 and Figure 2. Our results suggest that the direct impact of ICT adoption on performance is not significant (β = 0.034). Hence, H1 is rejected. Additionally, an indirect effect through CSR is found in this relationship (β = 0.097 \*). Next, the variance that accounted for (VAF) [82] was evaluated. VAF determines the size of the indirect effect in relation to the total effect. In this sense, the indirect effect of ICT adoption on performance is about 74%. Therefore, the results suggest that CSR fully mediate this relationship, and H4 is supported. Furthermore, the impact of ICT adoption on CSR is positive and significant (β = 0.200 \*), verifying H2. In relation to the effect of future expectations on CSR, the path value (β = 0.227 \*\*) shows a positive and significant influence. Hence, H5 is supported. Finally, with regard to the effect of CSR on performance, the results give a positive and significant effect (β = 0.487 \*\*\*), supporting H3.

Regarding the effect of future expectations on performance through CSR, our results show an indirect positive and significant effect (β = 0.110 \*).

The hypotheses testing continues with the analysis of two metrics: the coefficient of determination (R2) and the effect size (f2). The R2 indicates how much variance in the dependent variables is explained by the independent variables [88]. The results by R2 of the endogenous variables indicate that the model has an explanatory power, especially in the case of performance [89]. For its part, the f2 shows the capacity of exogenous variables in predicting R2 in endogenous variables. Following Cohen [47], we have the effect sizes (f2) to evaluate the contribution of each exogenous construct to the R2 values of an endogenous latent variable. The findings showed that CSR causes a significant impact on performance. Taken as a whole, the findings demonstrate that the model established in this research has the appropriate structural properties and adequate explanatory power.

**Figure 2.** Results. Standardized Paths reported (R2-adjusted in brackets). \*\*\*: *p* < 0.001; \*\*: *p* < 0.01; \*: *p* < 0.05; n s: Not significant. Source: authors.

#### **5. Discussion and Conclusions**

Over the last few years there has been a strong interest in performance analysis in hotels. Numerous studies have attempted to analyze the impact of ICT adoption and CSR on these hotel companies. However, the mediating role of CSR in the relationship between ICT adoption and performance has been insufficiently examined in the hotel sector so far. Moreover, the recent economic recession caused by COVID-19 has highlighted the importance of considering future expectations in business development. Therefore, this study adds further evidence to these studies, highlighting the importance of CSR practices in hotels, as their effect on ICT adoption will affect SMEs performance. Similarly, this study represents a relevant contribution to the previous studies of [16,17] by incorporating future expectations about the business cycle into the environmental decision-making of hotels.

First, in line with some of the literature [9,22], our results show that there is no significant influence of ICT adoption on SMEs performance because the installation of ICT is not directly aimed at improving productivity, since these innovative systems are intended to improve customer service and increase the number of services offered [12]. In addition, investments in technologies stimulate the company to improve product quality, which will increase production costs and consequently decrease SMEs performance [12]. However, a positive and significant influence on CSR has been found. This finding was certainly expected based on previous research [90,91]. ICT adoption facilitates the implementation of CSR practices and their diffusion more effectively. Hence, this increases the CSR practices of hotel SMEs. Then, through ICT adoption, this will enable hotel SMEs to meet the needs of their stakeholders and improve their brand image through their strategies for protecting and improving the environment. This will be possible using the best available practices and technological innovation to minimize the negative effects of their activities on the environment.

An additional significant attribute of the relationship assembled in this model is that CSR produces a deep impact on hospitality SMEs' performance. The findings are in line with those of previous research that argue that CSR increases the performance of hotel companies [92,93]. Furthermore, resource-based theory suggests the implementation of CSR practices will give them competitive advantages, which will improve their performance [61,94]. However, at present, the mediating effect of CSR on the relationship between ICT adoption and hotel performance has not been analyzed in sufficient details. Therefore, our empirical results provide new evidence in the hotel sector that although ICT adoption does not have a direct effect on SMEs performance, CSR acts as a full mediator in this relationship.

Finally, a noteworthy result concerns the effect of connecting future expectations and CSR. However, despite its importance, the effects of Future Expectations on the macroeconomic business environment have hardly been studied in the literature, and even less so in the hotel sector. Therefore, our results contribute to the literature by showing that poor future expectations lead to a strong contraction of CSR investments.

This research offers different theoretical contributions as well as some implications. From a theoretic perspective, this study has contributed to shed light on the lack of evidence for the effects of ICT adoption and CSR practices on the performance of hotel SMEs hotel companies. Furthermore, this research establishes, for SMEs in the hospitality industry, the indirect effect of ICT adoption on performance through the mediating relationship of CSR. Moreover, our findings provide some insights into how future expectations influence CSR.

This research has relevant implications for managers and policymakers who encourage hospitality companies not to reduce or even increase CSR practices, despite the present difficulties that the sector is facing due to the effects of COVID-19 in recent years, and more currently to other aspects that are damaging the economy of European countries such as the Russia-Ukraine conflict and the economic-financial crisis.

These results have practical implications for managers and owners of hotel SMEs by considering ICT adoption as a source of competitive advantage that will facilitate the implementation of CSR practices in hotels, which will improve SMEs performance. Furthermore, our results show that for CSR implementation in hotels to be efficient, it must be done considering the expectations of the macroeconomic environment. Consequently, this research suggests to hotel managers the possibility of allocating part of their available resources to invest in ICT. This will benefit both their company and society. This paradigm shift should serve to encourage hotel managers to develop strategies related to ICT adoption that enable them to incorporate environmental and social standards as essential instruments of their business strategy. Thus, our results offer a new vision that can be seen as an opportunity for hotels to initiate a process of strategic change by considering future expectations and orienting their technological activities to increase its CSR activities. This strategic reorientation will undoubtedly enable hotel SMEs to improve their ability to adapt to the rapidly changing environment in which they operate. Furthermore, this new approach will allow hotel SMEs to increase their firm's performance.

Furthermore, the findings provide policymakers with evidence that CSR practices not only contribute to the improvement of society through sustainable development, but also that they are capable of generating value for the hospitality industry. Therefore, it is crucial that governments develop policies aimed at encouraging sustainable management by companies through the implementation of CSR practices, which in turn will contribute to increasing the performance of these companies and hence to the generation of employment and wealth for society. Thus, governments should offer incentives or subsidies and encourage an increase in the social commitment of companies in the sector through a series of legislative changes that encourage CSR practices [95]. This would provide a reduction in two of the major barriers to CSR: the lack of resources and public support [96], as well as alleviating the negative effects of the poor economic outlook. This research has a number of limitations which could reveal new lines of research. Firstly, the generalizability of these results includes a focus on a country, a company size (SMEs) and an industry (hospitality). Consequently, these results cannot be applied to other regions and sectors [97]. It would be of interest for future studies to address these questions in other geographical areas and in other sectors so that it would be possible to compare them with the results obtained [61]. Furthermore, this study is limited by the application of cross-sectional data. Therefore, it would be advisable to carry out a longitudinal study to analyze the effects of time on the developed model [98]. Concerning time, since the data were collected in 2018, this poses a limitation in our research. It could be very useful to repeat the research with post-pandemic data. In this way, it would be possible to check how the situation has changed as a consequence not only of the effects of the pandemic of COVID-19 but also of the effects of the Russia-Ukraine conflict and the economic-financial crisis [99]. Finally, it would also be

worthwhile to use data from quantitative sources rather than a single source to assess the opinions of SME hotel managers [100,101].

In general, this study found that negative future expectations will lead to a strong contraction of CSR investment. The adoption of ICT has no direct impact on corporate performance in SMEs, but CSR plays a full intermediary role in this relationship. That is, CSR improves the performance of the hotel SMEs business, which not only supports the assumptions of previous studies but also points out a new direction for the next development of the hotel industry. This paper promotes the implementation and more effective dissemination of corporate social responsibility practices, encourages enterprises to attach importance to social responsibility, and thus increases social welfare.

**Author Contributions:** Conceptualization, J.M.S.-J., A.L.-G., D.R.-P. and F.G.-L.; methodology, J.M.S.- J., D.R.-P. and M.d.C.V.M.; software, J.M.S.-J., D.R.-P. and A.L.-G.; validation, J.M.S.-J., D.R.-P. and A.L.-G.; formal analysis, M.d.C.V.M. and J.M.S.-J.; investigation, D.R.-P., M.d.C.V.M. and J.M.S.-J.; resources, D.R.-P. and F.G.-L.; data curation, J.M.S.-J., D.R.-P. and A.L.-G.; writing—original draft preparation, J.M.S.-J., A.L.-G. and D.R.-P.; writing—review and editing, M.d.C.V.M. and F.G.-L.; visualization, A.L.-G. and F.G.-L.; supervision, J.M.S.-J. and D.R.-P.; project administration, J.M.S.-J., F.G.-L. and. A.L.-G.; funding acquisition, D.R.-P. and M.d.C.V.M. All authors have read and agreed to the published version of the manuscript.

**Funding:** Data collection was financially supported by the Foundation for the Strategic Analysis and Development of SMEs (FAEDPYME) and the Firm Feasibility Chair of the University of Malaga.

**Institutional Review Board Statement:** Not applicable.

**Informed Consent Statement:** Not applicable.

**Data Availability Statement:** Not applicable.

**Conflicts of Interest:** The authors declare no conflict of interest.
