Investigating the Determinants of Innovation According to Radical and Incremental Attributes

Abstract

In today's competitive environment, firms cannot remain competitive without the implementation of proper innovations. There has been a dramatic proliferation of research concerned with firms' innovation, but few study has been done on determinants of innovation, particularly in hotel industry. Therefore, the aim of this study is to explore the main determinants of innovation applied in the hotel industry and investigate the influence of different hotels and market characteristics on radical and incremental innovations. A questionnaire was developed to investigate the abovementioned relationships. A total of 239 Taiwanese hotel employees participated in this study. Data were analyzed through probit model. The results indicated that radical and incremental innovations seem to be interrelated. In addition, the main determinants of innovation are the internal resources and market behaviours in the hotel trade that include management style, market strategy, hotel size and location.