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Purpose This study aims to examine the interplay among three key drivers of service innovation success in the hospitality industry. Specifically, how internal marketing practices in hotels influence frontline employee involvement, training and empowerment for the new service provision (frontline employee ITE) and new service advantage. The study also analyzes how success factors affect new service internal and external performance. Design/methodology/approach Using data collected from managers of 256 hotels located in Spain, the model is tested through structural equation modeling data analysis. Findings Internal marketing practices have a positive and direct effect on frontline employee ITE, which, in turn, strengthens new service advantage. Frontline employee ITE also has a positive effect on the employees’ satisfaction and motivation (new service employee outcomes). New service employee outcomes and new service advantage reinforce the new service customer outcomes in terms of customer’s loyalty, improved hotel image and perceived leadership. Both new service employee and customer outcomes benefit new service market outcomes. Research limitations/implications The findings are obtained from a cross-sectional study. Hotel managers must pay particular attention to internal marketing practices, as they foster key drivers of new service success that ultimately improve new service internal and external performance. Originality/value This study extends the literature on service innovation success providing for the first time a study of the interrelationships among organizational and project-level new service success factors in the hospitality context.

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