Abstract

Purpose: This study investigates the effects of recovery strategies and entrepreneurial orientation on business performance, with network relations acting as both a mediator and moderator, in the context of small- and medium-sized enterprise (SME) hotels in Jakarta. The research is motivated by the urgent need to understand how internal resilience and external relational capital interact to sustain business continuity in the disrupted hospitality supply chain during post-crisis recovery. Research design, data, and methodology: A cross-sectional design was employed, using survey data collected from 235 owners and managers of 1-star, 2-star, and unrated hotels operating within local distribution networks. The data were analyzed using partial least squares structural equation modeling to assess both measurement and structural models. Results: Recovery strategies enhance business performance, while entrepreneurial orientation alone does not exert a direct effect unless strengthened by network relations. Moreover, network relations mediate and moderate the relationship between internal strategies and performance, highlighting their pivotal role in the distribution ecosystem. Conclusions: Business recovery in the hospitality sector is not solely driven by internal capabilities but requires external connectivity through collaborative supply chains. Integrating strategic agility with relational resources is essential for ensuring SME hotel resilience and long-term performance sustainability.