Investigating the impact of service leaders’ competencies, organisational service orientation, network capabilities, and perceived service quality on Umrah travel agencies’ performance

Purpose: This study aims to fill several gaps in the literature. First, it examines the Umrah industry from the supply side, investigating the pivotal factors for travel agencies’ performance. Second, it empirically investigates service leaders’ competencies specific to the hospital and tourism industry. Third, it clarifies whether there is a direct impact of organisational service orientation on business performance. Fourth, it explores the influence of network capabilities in a service context, specifically in travel agencies, which has rarely been discussed. Design/methodology/approach: This is a mixed-method study with sequential explanatory research design. First, a quantitative approach was conducted with 150 authorised travel agencies in Indonesia, with two manager-level employees representing each agency. The data were analysed using descriptive statistics and structural equation modelling. A qualitative study was conducted to enrich the findings by interviewing the Director of Umrah and Hajj Development of the Ministry of Religious Affairs of the Republic of Indonesia and three other respondents. Findings: Service leaders’ competencies and resource capacity significantly influence organisational service orientation, leading to enhanced perceived service quality and performance. In addition, resource capacity influences network capabilities, improving performance. Originality/value: This study identifies factors affecting the performance of Umrah travel agencies in an intensely competitive environment, which has rarely been discussed. This sheds light on how travel agencies can survive and succeed in this competitive industry. Moreover, this study provides evidence regarding the role of network capabilities in the tourism industry and the impact of organisational service orientation, both directly and indirectly, on performance.