Does Innovation Type Influence Firm Performance? A Dilemma of Star-Rated Hotels in Ghana

Abstract

Innovation, which leads to process changes and product development, tends to increase the sustenance of companies and helps firms to expand faster and more effectively, eventually more profitably than non-innovators. Innovation is commonly seen as a key source of sustainable competitive advantage in a changing environment. However, the success of the hospitality industry relies a lot on how well they gear their innovations towards preserving the natural and cultural attractions that make tourist/customers to visit their destinations. This study, therefore, is empirically designed to explore how innovation types, which include process, product, marketing, and organizational innovation, impact performance of hotel firms in Ghana. With top-level managers being our target respondents, 680 star rated hotels were purposely sampled from the hospitality industry, among which 550 hotel firms provided valid and accurate responses. Data obtained from the survey through the administration of a well-structured questionnaire was analyzed through SPSS statistical package. Through the estimation of series of regression models using the Hierarchical regression method of analysis, we witnessed that process, product, marketing, and organizational innovation employed as innovation types have palpable and statistically significant liaison with performance of hotel firms in Ghana. We, therefore, conclude that, for hotels to achieve high firm performance, personnel within the firm should be encouraged and empowered to develop innovative mentalities and abilities. In addition, hotel firms and the industry at large should be abreast of current trends of sustainability and endeavor to gear their innovation operations towards a more sustainability-oriented firm since incorporating sustainable innovative strategies into firms’ operations will not only create a good image and reduce cost but would also safeguard the natural attractions that guests patronize.

The impact of strategic competitive innovation on the financial performance of SMEs during COVID-19 pandemic period

“…Innovative culture is decisive for innovative conversion, as it substantially effects the growth of firms (Afriyie et al , 2019; Aksoy, 2017; Hoang Nam, 2014). Researchers have been attempting to link innovation and positive improvements in performance; however, many authors have not been able to clearly confirm and validate that this correlation is widespread and guaranteed (Hu et al , 2020; Bloch and Metcalfe, 2018; Dubey et al , 2013). To establish a clear link between innovation and performance, a company’s innovativeness in processes, products, marketing and organizational structure needs to be a collection of improvements so that the entire organization achieves total innovative performance (Tuan, 2016).…”

The Effect of On-the-Job Training and Education Level of Employees on Innovation in Emerging Markets

“…Atalay et al [3] investigate the Turkish automotive supplier industry and report that product and process innovation has significant impact on firm performance. Hu et al [33] analyze the effect of different types of innovation on the performance of firms in hotel industry in Ghana and find that process, product, marketing, and organizational innovation all have positive influence on firm performance. Kurt and Kurt [34] show that innovation improves labor productivity for firms in Brazil, Russia, India, and China (BRICs).…”

The Green Image in the Spanish Hotel Sector: Analysis of Its Consequences from a Relational Perspective

“…Within the highly competitive hotel sector that offers homogeneous products and services, hotel managers must identify the needs of their customers and offer them services/products that stand out from the competition [9]. In this context, Chen [16] proposed a new concept called green satisfaction and defined it as "the pleasant level of consumption concerning meeting the environmental desires of consumers, their sustainable expectations and green needs".…”

“…In this context, hotel consumers show a positive attitude towards green hotel practices, which motivates hotels to continue working to improve their environmental impact performance [5][6][7]. Hospitality companies and the industry, in general, should 2 of 17 be aware of current sustainability trends and strive to orient their innovation operations towards more sustainability-oriented companies, as this will not only create a good image and reduce cost but also safeguard the natural attraction for the frequent guests [8,9].…”