Enhancing Service Innovation Performance of Hotels: The Role of Organizational Learning Culture and Dynamic Capabilities

Authors

  • Bhawana Pande School of Management, Babu Banarasi Das University, Lucknow, Uttar Pradesh, India
  • Sushil Pande School of Management, Babu Banarasi Das University, Lucknow, Uttar Pradesh, India

DOI:

https://doi.org/10.12727/ajts.32.5

Keywords:

Organisational Learning Culture, Service Innovation Performance, Dynamic Capabilties, Tourism, Hotel Industry

Abstract

Organizations are beleaguered by stiff competition, a dynamic market environment, and rapid technological changes that threaten the survival of businesses rambling to gain a competitive advantage. Past studies bring forth the role of innovation in services, crucial in driving tremendous growth in terms of economic activity. But, what contributes to innovation in services remains a sparsely researched area. The present study proposes a research model to examine the impact of organizational learning culture on service innovation performance in hotels with dynamic capabilities as a mediating variable. Structural Equation Modeling (SEM) is used for assessing the relationship between variables and validates the research model. The unit of analysis comprised individual employees working in four-star and five-star rated hotels located in the tourist-bound cities of Lucknow, Agra, and Varanasi in Uttar Pradesh (India). Empirical evidences support the positive role of dynamic capabilities in the relationship between organizational learning culture and service innovation performance thereby asserting the importance of developing distinctive capabilities for enhancing service innovation performance in hotels.

References

Ahmed, P. K., Loh, A. Y., & Zairi, M. (1999). Cultures for continuous improvement and learning. Total Quality Management, 10(4-5), 426-434.

Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological bulletin, 103(3), 411.

Avlonitis, G. J., Papastathopoulou, P. G., & Gounaris, S. P. (2001). An empirically‐based typology of product innovativeness for new financial services: Success and failure scenarios. Journal of Product Innovation Management: An International Publication of The Product Development & Management Association, 18(5), 324-342.

Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the academy of marketing science, 16(1), 74-94.

Baker, W. E., & Sinkula, J. M. (2002). Market orientation, learning orientation and product innovation: delving into the organization's black box. Journal of market-focused management, 5(1), 5-23.

Barney, J. B. (1991), “Firm resources and sustained competitive advantage”, Journal of

Management, 17(1), pp. 99-121.

Bass, F.M. (1969), “A new product growth model for consumer durables”, Management Science,

Bourque, L. B., & Fielder, E. P. (1995). Overview of self-administered questionnaires. In How to conduct self-administered and mail surveys (pp. 1-22). Sage Publication Inc., London.

Brumagim, A. L. (1994), “A hierarchy of corporate resources”, Advances in Strategic

Management, 10A, pp. 81-112.

Bunderson, J. S., & Sutcliffe, K. M. (2003). Management team learning orientation and business unit performance. Journal of Applied Psychology, 88(3), 552.

Cambridge, MA: Perseus.

Camisón, C. (2000). Strategic attitudes and information technologies in the hospitality business: an empirical analysis. International Journal of Hospitality Management, 19(2), 125-143.

Cooper, R. G., & Edgett, S. J. (1999). Product development for the service sector.

Damanpour, F. (1992), “Organizational size and innovation”, Organization Studies, Vol. 13 No. 3, pp. 375-402.

Damanpour, F. (1996), “Organizational complexity and innovation: developing and testing

Danneels, E. (2002). The dynamics of product innovation and firm competences. Strategic management journal, 23(12), 1095-1121.

De Brentani, U. (2001). Innovative versus incremental new business services: Different keys for achieving success. Journal of Product Innovation Management: An International Publication of the Product Development & Management Association, 18(3), 169-187.

Dolfsma, W. (2004). The process of new service development—Issues of formalization and appropriability. International Journal of Innovation Management, 8, 319-337.

Edmondson, A. (1999). Psychological safety and learning behavior in work teams. Administrative science quarterly, 44(2), 350-383.

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they?. Strategic management journal, 21(10‐11), 1105-1121.

Ellinger, A. D., Ellinger, A. E., Yang, B., & Howton, S. W. (2002). The relationship between the learning organization concept and firms' financial performance: An empirical assessment. Human resource development quarterly, 13(1), 5-22.

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50.

Garvin, D. A. (1993). Building a learning organization. Harvard Business Review, 71 (4).

Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge management: An organizational capabilities perspective. Journal of management information systems, 18(1), 185-214.

Goldstein, S., Johnston, R., Duffy, J. A. M., & Rao, J. (2002). The service concept: The missing link in service design research? Journal of Management, 20, 121-134.

Gopalakrishnan, S. and Damanpour, F. (1997), “A review of innovation research in economics,

Grant, R. M. (1996), “Toward a knowledge-based theory of the firm”, Strategic Management Journal, 17(Winter), pp. 109-122.

Hair, J.F., Anderson, R.E., Tatham, R.L. and Black, W.C. (1998), Multivariate Data Analysis, Prentice-Hall International Inc., Upper Saddle River, NJ

Han, J. K., Kim, N., & Srivastava, R. K. (1998). Market orientation and organizational performance: is innovation a missing link?. Journal of marketing, 62(4), 30-45.

Hjalager, A. M. (2002). Repairing innovation defectiveness in tourism. Tourism management, 23(5), 465-474.

Hu, L. T., & Bentler, P. M. (1995). Evaluating model fit.

Huber, G. P. (1991). Organizational learning: The contributing processes and the literatures. Organization science, 2(1), 88-115.

Hung, R. Y. Y., Yang, B., Lien, B. Y. H., McLean, G. N., & Kuo, Y. M. (2010). Dynamic capability: Impact of process alignment and organizational learning culture on performance. Journal of world business, 45(3), 285-294.

Hurley, R. F., & Hult, G. T. M. (1998). Innovation, market orientation, and organizational learning: an integration and empirical examination. Journal of marketing, 62(3), 42-54.

Janssen, O. (2000). Job demands, perceptions of effort‐reward fairness and innovative work behaviour. Journal of Occupational and organizational psychology, 73(3), 287-302.

Leonard-Barton, D. (1992). Core capabilities and core rigidities: a paradox in managing new product development. Strategic Management Journal, 13, 111–125.

Marsick, V. J., & Watkins, K. E. (2003). Demonstrating the value of an organization's learning culture: the dimensions of the learning organization questionnaire. Advances in developing human resources, 5(2), 132-151.

Matear, S., Gray, B. J., & Garrett, T. (2004). Market orientation, brand investment, new service development, market position and performance for service organisations. International Journal of Service Industry Management.

multiple contingency models”, Management Science, Vol. 42 No. 5, pp. 693-716.

Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation. Oxford university press.

of Taiwan's high-tech firms. Journal of Business Research, 60(5), 549–555.

Ordanini, A., & Parasuraman, A. (2011). Service innovation viewed through a service-dominant logic lens: a conceptual framework and empirical analysis. Journal of Service Research, 14(1), 3-23.

O'Reilly III, C. A., Chatman, J., & Caldwell, D. F. (1991). People and organizational culture: A profile comparison approach to assessing person-organization fit. Academy of management journal, 34(3), 487-516.

Ottenbacher, M., Gnoth, J., & Jones, P., (2006). Identifying determinants of success in development of new high-contact services Insights from the hospitality industry. International Journal of Service Industry Management, 17, 344-363

Penrose, E. T. (1959), The Theory of the Growth of the Firm. Oxford: Oxford University Press.

Pikkemaat, B., & Peters, M. (2006). Towards the measurement of innovation—A pilot study in the small and medium sized hotel industry. Journal of Quality Assurance in Hospitality & Tourism, 6(3-4), 89-112.

Prahalad, C. and Hamel, G. (1990), “The core competence of the corporation”, Harvard Business Review, May/Jun, pp. 79-91.

Rebelo, T. M. M. D. S. D. (2006). Orientação cultural para a aprendizagem nas organizações: condicionantes e consequentes (Doctoral dissertation).

Rebelo, T. M., & Gomes, A. D. (2011). Conditioning factors of an organizational learning culture. Journal of Workplace Learning.

Rogers, E.M. and Shoemaker, F.F. (1971), Communication of Innovations, The Free Pres, New York, NY.

Sánchez, B. N., Budtz-Jørgensen, E., Ryan, L. M., & Hu, H. (2005). Structural equation models: a review with applications to environmental epidemiology. Journal of the American Statistical Association, 100(472), 1443-1455.

Santos-Vijande, M. L., & Álvarez-González, L. I. (2007). Innovativeness and organizational innovation in total quality oriented firms: The moderating role of market turbulence. Technovation, 27(9), 514-532.

Schumacher, R., & Lomax, R. (1996). A Beginners Guide to Structural Equation Modeling.

Scott, S. G., & Bruce, R. A. (1994). Determinants of innovative behavior: A path model of individual innovation in the workplace. Academy of management journal, 37(3), 580-607.

Scott, S. G., & Bruce, R. A. (1998). Following the leader in R&D: The joint effect of subordinate problem-solving style and leader-member relations on innovative behavior. IEEE Transactions on engineering management, 45(1), 3-10.

Teece, D.J., Pisano, G. and Shuen, A. (1990). Firm capabilities, resources and the concept of strategy. Economic Analysis and Policy Working Paper EAP 38, University of California.

Teece, D. and Pisano, G. (1994). The dynamic capabilities of firms: an introduction. Industrial and Corporate Change, 3, 537–556.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.

Teece, D.J. (2007), Explicating dynamic capabilities: the nature and micro-foundations of (sustainable) enterprise performance‖, Strategic Management Journal, Vol. 28 No. 13, pp. 1319-50.

Tran, T. (2008). A conceptual model of learning culture and innovation schema. Competitiveness Review: An International Business Journal.Vol. 15 No. 5, pp. 215-27.

Walsh, K., Enz, C. A., & Canina, L. (2008). The impact of strategic orientation on intellectual capital investments in customer service firms. Journal of Service Research, 10(4), 300-317.

Wilderom, C. P., Glunk, U., & Maslowski, R. (2000). Organizational culture as a predictor of organizational performance. In Handbook of organizational climate and culture (pp. 193-209). Sage

Wilkens, U., Menzel, D., & Pawlowsky, P. (2004). Inside the black-box: Analysing the generation of core competencies and dynamic capabilities by exploring collective minds. An organisational learning perspective. management revue, 8-26.

Wu, L. (2007). Entrepreneurial resources, dynamic capabilities and start-up performance

Yuan, F., & Woodman, R. W. (2010). Innovative behavior in the workplace: The role of performance and image outcome expectations. Academy of management journal, 53(2), 323-342.

Zollo, M., & Winter, S. G. (2002). Deliberate learning and the evolution of dynamic capabilities. Organization science, 13(3), 339-351.

Zott, C. (2003). Dynamic capabilities and the emergence of intra industry differential firm performance: insights from a simulation study. Strategic management journal, 24(2), 97-125.

Published

2024-07-10

How to Cite

Pande, B., & Pande, S. (2024). Enhancing Service Innovation Performance of Hotels: The Role of Organizational Learning Culture and Dynamic Capabilities. Atna Journal of Tourism Studies, 19(2). https://doi.org/10.12727/ajts.32.5