Innovation strategies and performance: are they truly linked?

Abstract

Purpose – The purpose of this paper is to test the linkage between innovation strategies (process innovation and service innovation) and organizational performance in the context of Malaysia hotel industry. Design/methodology/approach – A total of 475 sets of questionnaires administrated through mail to all three star and above rating hotel managers in Malaysia, and only 24 percent of it, which is 114 were usable. Regression was utilized to test the link of innovation strategies and performance. Findings – The results showed that hotels in Malaysia used process innovation and service innovation as their functional-level strategy. Specifically, both process innovation and service innovation strategies positively linked with performance. But, the paired sample t-test result indicated that process innovation has slightly greater effect on performance than service innovation. In addition, this study found that hotel size significantly affected the performance. Research limitations/implications – This study is one of the limited number of studies which has empirically addressed the effect of innovation strategies on performance in hotel industry. Additional researches are needed to address effect of potential mediators or even moderators in innovation strategies and performance linkage. Practical implications – This study found that implementation of process innovation and service innovation as their functional strategy could assist to attain better performance in Malaysia hotel industry. Entirely the findings provided new insight to the hotel management in understanding the role of innovation strategies in generating enhanced performance. Originality/value – Process innovation and service innovation in the service industry have received very limited empirical attention in current innovation literature. This study extended the body of knowledge in innovation literature, particularly in hospitality sector in Malaysia.

How do Knowledge Management Practices Affect Sustainable Balanced Performance? Mediating Role of Innovation Practices

“…IP as an appropriate enabler of SBP can directly affect the internal processes and customer perspective. Results obtained from this hypothesis support the findings of [104][105][106]. Regarding the mediating role of innovation practices, it can be pointed out that innovation practices are always supported through knowledge management practices.…”

Innovation capabilities and performance: are they truly linked in SMEs?

“…Olsson, Wadell et al (2010) concluded that the capability of innovation is the most important for enterprises since it allows them to reply effectively and efficiently to both the needs of the market and the fluctuations of the business environment. Therefore, the capability that the enterprises have to generate and manage innovation activities is acknowledged in the current literature not only as one of the best business strategies but also the main core to obtain better results (Hilman & Kaliappen, 2015). Thus, innovation can be considered as a fundamental capability for every organisation, especially SMEs, which require an efficient and effective use of their existing resources as well as the different abilities of all their staff to add more value to their products (Yang et al, 2006;Saenz et al, 2009).…”

“…Thus, innovation can be considered as a fundamental capability for every organisation, especially SMEs, which require an efficient and effective use of their existing resources as well as the different abilities of all their staff to add more value to their products (Yang et al, 2006;Saenz et al, 2009). Hence, in this view, innovation is considered in the current literature as the capability that is most commonly used by enterprises to obtain more and better competitive advantages, a higher business performance (Hilman & Kaliappen, 2015;Badawy, 2009), maximize the productivity of their resources (Nandakumar et al, 2011), and utilise more efficiently the resources employed in the innovation of their products, processes, management systems and new ways of commercialisation (Wang & Ahmed, 2004;Forsman, 2009).…”

Establishing a highly competitive university: a strategic management perspective

“…Also, Allen and Helms (2002) reported that organisational strategy has a positive effect on the performance of an organisation. Additionally, recent literature indicates a positive relationship between strategy and performance (Ajagbe et al, 2016;Hilman and Mohamed, 2011;Hilman and Kaliappen, 2015;Ndubisi et al, 2015;Saffarzadeh and Jandaghi, 2013;Sohail and Ghamdi, 2012).…”