Investigating the Effect of Social Capital and Market Performance of Hotels on the Economic Dynamics of Metropolitan Areas: A Case Study of the Market Performance of Tehran Hotels

Improving urban economy mainly depends on the improved performance of active organizations and institutes in cities. Improving performance is a continuous challenge for businesses. In the meantime, a strategic look at the problem of performance has always focused on both the external and internal factors, but the previous studies have mainly considered the tangible inherent elements while evidence suggests a more sustainable advantage is rooted in the intangible elements of the organization. Accordingly, the current study, highlighting the internal intangible elements and assets such as organizational capabilities, intellectual and social capital, and attention to environmental uncertainty as an external factor has sought to strategically interpret the market performance of businesses. To this end, with a focus on tourism, three-, four-, and five-star hotels in Tehran have been investigated through survey method with a questionnaire. Accordingly, after collecting 89 questionnaires from 48 hotels, the least squares model was used through smart PLS software to analyze the data. The results showed that organizational capabilities have a significant effect on market performance and intellectual and social capital affect organizational capabilities as well. The results also confirmed the role of environmental uncertainty moderation.