How can broadband infrastructure affect tourism arrivals per tourism enterprise and what is the role of absorptive capacity in this relationship?

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Broadband infrastructure plays a crucial role in modern tourism. Digital connectivity enables tourism enterprises like hotels, restaurants, and attractions to reach customers through online platforms. But the relationship isn't straightforward - it depends on how well businesses can absorb and utilize these digital capabilities. This is where absorptive capacity becomes essential. Broadband infrastructure directly impacts tourism arrivals through several mechanisms. High-speed internet enables online booking systems, expands digital marketing reach, and facilitates social media engagement. Tourism enterprises with poor connectivity struggle to attract customers, while those with excellent broadband see significantly higher arrival rates. The correlation is clear: better connectivity leads to more tourism arrivals per enterprise. Absorptive capacity is an organization's ability to recognize, assimilate, and apply new knowledge. Like a sponge absorbing water, enterprises with high absorptive capacity can effectively utilize broadband infrastructure improvements. In contrast, those with low capacity, like a rock, cannot absorb these benefits. The concept involves four dimensions: acquiring external knowledge, assimilating it into existing processes, transforming it for organizational use, and exploiting it for competitive advantage. Absorptive capacity mediates the relationship between broadband infrastructure and tourism arrivals. The mediation model shows that broadband infrastructure first enhances absorptive capacity, which then leads to increased tourism performance. Enterprises with high absorptive capacity can better utilize broadband improvements, achieving superior results compared to those with low capacity. This interaction effect demonstrates that infrastructure alone is insufficient - organizational capabilities are equally important. The key insight is that broadband infrastructure alone is insufficient - absorptive capacity is crucial for maximizing benefits. Tourism enterprises should invest in both technology and staff training, build organizational capabilities, and measure their digital readiness. Governments should support both infrastructure development and capacity building programs. The integrated framework shows that success requires combining broadband infrastructure with strong absorptive capacity to achieve superior tourism performance. This dual approach ensures sustainable competitive advantage in the digital tourism economy.