The role of hotel capability on its holistic innovation and business performance

Name: Kwanchanok Chumnumporn

keyword: Internal capability

; External capability

; Knowledge management capability

; Innovation

; Hotel performance

Abstract: This research applies a higher-order structural model to examine the innovation practices and the impact of innovation in Thai hotel industry. The objective of this research is to examine the impact of internal capability, external capability, and knowledge management capability on innovation. These capabilities are included resources or activities on the process to achieve the higher level of innovation. The data collection is based on a survey of hotels in Thailand. The target respondents are the hotels which have a high standard (3-5 stars). The valid sample of 139 is applied to data analysis using partial least squares path modeling (PLS-SEM). The results present that internal capability, external capability, and knowledge management capability has a positive effect on innovation. The results also provide the positive effect of innovation on hotel performance. In addition, knowledge management capability is found to have a large effect on hotel performance. However, this research is regarded the clear explanation on a various feature of performance such as financial performance, service performance, customer retention, and competitive performance. Further investigation should examine the impact of innovation on difference feature of performance which advances for the hotel to reach the business objective. The develope of innovation helps the hotel to improve its performance based on internal and external resources or activities (e.g. human capital, organizational innovativeness, information and knowledge sharing, and organizational collaboration). However, absorptive capacity such as knowledge management (e.g. knowledge acquisition, knowledge transformation, and knowledge exploitation) is played important role in the innovation process and performance improvement. Hence, hotel entrepreneurs should pay attention to internal capability, external capability, and knowledge management capability to increase the level of innovation and achieve a competitive advantage. Furthermore, the research explores the empirical factors which effect to innovation in service industry using PLS-SEM, the powerful data analysis method for a small sample. The finding of this research on the combination of internal capability, external capability, and knowledge management capability advance the theories of innovation and performance in tourism section. Moreover, the results present significant implications for hotel entrepreneurs to develop a successful and sustainable business.

Thammasat University. Thammasat University Library

Address: BANGKOK

Email: preserv@tu.ac.th

Name: Chawalit Jeenanunta

Role: advisor

Created: 2017

Modified: 2021-05-24

Issued: 2021-05-24

DOI: 10.14457/TU.the.2017.232

eng

DegreeName: Master of Science

Level: Master's Degree

Descipline: Engineering and Technology

Grantor: Thammasat University

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