Digitalization and Hospitality Employee Turnover Intentions: A Sequential Structural Model of Technostress and Psychological Contract Breach
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Abstract
Purpose – Driven by competitive pressures, the global hospitality industry is undergoing an aggressive digital transformation. While management frequently praises this digital pivot for optimizing organizational performance, the human capital driving frontline service delivery remains under considerable psychological strain. Grounded in the complementary Job Demands-Resources (JD-R) and Conservation of Resources (COR) theories, this study investigates the psychological mechanisms linking digitalization to workforce withdrawal in high-touch hospitality environments. Specifically, the study develops and tests a sequential structural framework explaining how digital job demands and AI disruption threats influence turnover intentions through Technostress, psychological contract breach, surface acting, and job burnout.
Methodology – A quantitative cross-sectional survey was conducted among 385 full-time frontline hospitality employees working in international chain hotels and premium fine-dining establishments across major tourism destinations in Indonesia. Respondents were selected using purposive sampling and reported regular exposure to advanced digital systems and automated workflows. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).
Findings – The results support all ten hypothesized direct relationships. Digital Job Demands significantly increase Technostress, whereas AI Disruption Threat significantly increases Psychological Contract Breach and Surface Acting. Technostress further contributes to Psychological Contract Breach and Job Burnout. In turn, Psychological Contract Breach and Surface Acting significantly intensify Job Burnout, while Psychological Contract Breach, Surface Acting, and Job Burnout positively influence Turnover Intentions. The findings identify Psychological Contract Breach as a critical relational mechanism and Job Burnout as a key explanatory factor linking technology-related pressures to employee withdrawal intentions.
Originality/value – This study extends existing Technostress and turnover literature by integrating cognitive (Psychological Contract Breach) and emotional (Surface Acting) mechanisms within a unified sequential structural framework. By combining JD-R and COR perspectives, the study provides a more comprehensive explanation of how digital transformation influences employee retention and offers practical insights for hospitality organizations seeking to balance technological innovation with workforce sustainability.
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References
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