Model of Improving Tourism Industry Performance through Innovation Capability
Abstract
The capability of innovation is an important factor for the economic performance of tourism companies, (Martínez-Román et al. 2015). This study aims to examine the influence of innovation capabilities on product innovation and process innovation and then these results influence marketing performance. The design of the research is explanatory research with a quantitative approach. The population of this research is 168 starred hotels in southern Sumatra, the data used are primary data. Processing data used a structural equation model. The conclusion of this study shows that the capability of innovation influences product innovation and process innovation, which in turn influences marketing performance.
References
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[29] Lawson, B., and Samson, D. 2001. Developing Innovation Capability in Organisations: A Dynamic Capabilities Approach. International Journal of Innovation Management, 5(3): 377–400. DOI:https://doi.org/10.1142/S1363919601000427
[30] Li, X., and Mitchell, R. K. 2009. The Pace and Stability of Small Enterprise Innovation in Highly Dynamic Economies: A China-Based Template. Journal of Small Business Management, 47(3): 370–397. DOI:https://doi.org/10.1111/j.1540-627X.2009.00275.x
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[32] Mavondo, F. T., Chimhanzi, J., and Stewart, J. 2005. Learning Orientation and Market Orientation: Relationship with Innovation, Human Resource Practices and Performance. European Journal of Marketing, 39(11/12): 1235–1263. DOI:https://doi.org/10.1108/03090560510623244
[33] Mitussis, D. 2010. SME Innovation in Zhejiang, China: Potential Constraints to Development of Widespread Innovation. Journal of Knowledge-Based Innovation in China, 2(1): 89–105. DOI:https://doi.org/10.1108/17561411011032007
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[36] O’Sullivan, D., Abela, A. V., and Hutchinson, M. 2009. Marketing Performance Measurement and Firm Performance: Evidence from the European High‐Technology Sector. European Journal of Marketing, 43(5/6): 843–862. DOI:https://doi.org/10.1108/03090560910947070
[37] Rosenbusch, N., Brinckmann, J., and Bausch, A. 2011. Is Innovation Always Beneficial? A Meta-Analysis of the Relationship between Innovation and Performance in SMEs. Journal of Business Venturing, 26(4): 441–457. DOI:https://doi.org/10.1016/j.jbusvent.2009.12.002
[38] Salavou, H., Baltas, G., and Lioukas, S. 2004. Organisational Innovation in SMEs: The Importance of Strategic Orientation and Competitive Structure. European Journal of Marketing, 38(9/10): 1091–1112. DOI:https://doi.org/10.1108/03090560410548889
[39] Sarabia, M., and Obeso, M. 2012. Knowledge Gained from Action and Reaction Learning in Small and Medium‐Sized Enterprises: Two Sides of the Same Coin. Bulletin of the American Society for Information Science and Technology, 38(2): 58–63. DOI:https://doi.org/10.1002/bult.2012.1720380213
[40] Saunila, M. 2014. Innovation Capability for SME Success: Perspectives of Financial and Operational Performance. Journal of Advances in Management Research, 11(2): 163–175. DOI:https://doi.org/10.1108/JAMR-11-2013-0063
[41] Saunila, M., and Ukko, J. 2013. Facilitating Innovation Capability through Performance Measurement: A Study of Finnish SMEs. Management Research Review, 36(10): 991–1010. DOI:https://doi.org/10.1108/MRR-11-2011-0252
[42] Savitz, L. A., Kaluzny, A. D., and Kelly, D. L. 2000. A Life Cycle Model of Continuous Clinical Process Innovation. Journal of Healthcare Management, 45(5): 307–316. DOI:https://doi.org/10.1097/00115514-200009000-00007
[43] Slater, S. F., and Narver, J. C. 1995. Market Orientation and the Learning Organization. Journal of Marketing, 59(3): 63–74. DOI:https://doi.org/10.1177/002224299505900306
[44] Soca, D. 2011. Relationship Marketing – The Key of the Success in Business. Romanian Economic and Business Review, 6(1): 177–183.
[45] Sulistyo, H., and Siyamtinah, S. 2016. Innovation Capability of SMEs through Entrepreneurship, Marketing Capability, Relational Capital and Empowerment. Asia Pacific Management Review, 21(4): 196–203. DOI:https://doi.org/10.1016/j.apmrv.2016.02.002
[46] Taherparvar, N., Esmaeilpour, R., and Dostar, M. 2014. Customer Knowledge Management, Innovation Capability and Business Performance: A Case Study of the Banking Industry. Journal of Knowledge Management, 18(3): 591–610. DOI:https://doi.org/10.1108/JKM-11-2013-0446
[47] Tidd, J., and Bessant, J. R. 2018. Managing Innovation: Integrating Technological, Market and Organizational Change (6th ed.). New York: Wiley.
[48] Veugelers, R. 2008. The Role of SMEs in Innovation in the EU: A Case for Policy Intervention? Review of Business and Economics, 53(3): 239–262.
[2] Albaladejo, M., and Romijn, H. 2000. Determinants of Innovation Capability in Small UK Firms: An Empirical Analysis (Eindhoven Center for Innovation Studies No. 200013).
[3] Alexander, H. B. 2015. “Booming” Hotel di Indonesia Terjadi Kurun 2015-2018. Kompas.Com. https://properti.kompas.com/read/2015/02/08/200000921/.Booming.Hotel.di.Indonesia.Terjadi.Kurun.2015-2018
[4] Ar, I. M., and Baki, B. 2011. Antecedents and Performance Impacts of Product versus Process Innovation: Empirical Evidence from SMEs Located in Turkish Science and Technology Parks. European Journal of Innovation Management, 14(2): 172–206. DOI:https://doi.org/10.1108/14601061111124885
[5] Baldwin, J. R., Hanel, P., and Sabourin, D. 2000. Determinants of Innovative Activity in Canadian Manufacturing Firms: The Role of Intellectual Property Rights (Statistics Canada Working Paper No. 122).
[6] Campo, S., M. Díaz, A., and J. Yagüe, M. 2014. Hotel Innovation and Performance in Times of Crisis. International Journal of Contemporary Hospitality Management, 26(8): 1292–1311. DOI:https://doi.org/10.1108/IJCHM-08-2013-0373
[7] Cassel, C., Hackl, P., and Westlund, A. H. 1999. Robustness of Partial Least-Squares Method for Estimating Latent Variable Quality Structures. Journal of Applied Statistics, 26(4): 435–446. DOI:https://doi.org/10.1080/02664769922322
[8] Chang, Y., Hughes, M., and Hotho, S. 2011. Internal and External Antecedents of SMEs’ Innovation Ambidexterity Outcomes. Management Decision, 49(10): 1658–1676. DOI:https://doi.org/10.1108/00251741111183816
[9] Clark, B. H., and Ambler, T. 2001. Marketing Performance Measurement: Evolution of Research and Practice. International Journal of Business Performance Management, 3(2/3/4): 231. DOI:https://doi.org/10.1504/IJBPM.2001.000101
[10] Damanpour, F., and Evan, W. M. 1984. Organizational Innovation and Performance: The Problem of “Organizational Lag.” Administrative Science Quarterly, 29(3): 392–409.
[11] Damanpour, F., and Gopalakrishnan, S. 2001. The Dynamics of the Adoption of Product and Process Innovations in Organizations. Journal of Management Studies, 38(1): 45–65. DOI:https://doi.org/10.1111/1467-6486.00227
[12] Damanpour, F., Szabat, K. A., and Evan, W. M. 1989. The Relationship between Types of Innovation and Organizational Performance. Journal of Management Studies, 26(6): 587–602. DOI:https://doi.org/10.1111/j.1467-6486.1989.tb00746.x
[13] Darroch, J. 2005. Knowledge Management, Innovation and Firm Performance. Journal of Knowledge Management, 9(3): 101–115. DOI:https://doi.org/10.1108/13673270510602809
[14] Dodgson, M. 2009. Asia’s National Innovation Systems: Institutional Adaptability and Rigidity in the Face of Global Innovation Challenges. Asia Pacific Journal of Management, 26(3): 589–609. DOI:https://doi.org/10.1007/s10490-008-9105-4
[15] Fernández‐Mesa, A., Alegre‐Vidal, J., Chiva‐Gómez, R., and Gutiérrez‐Gracia, A. 2013. Design Management Capability and Product Innovation in SMEs. Management Decision, 51(3): 547–565. DOI:https://doi.org/10.1108/00251741311309652
[16] Gheorghe, P., and Alexandru, S. C. 2010. Innovation Performance Factor of Economic Entities. Annals of University of Craiova - Economic Sciences Series, 3(38): 1–12.
[17] Gunday, G., Ulusoy, G., Kilic, K., and Alpkan, L. 2011. Effects of Innovation Types on Firm Performance. International Journal of Production Economics, 133(2): 662–676. DOI:https://doi.org/10.1016/j.ijpe.2011.05.014
[18] Hair Jr., J. F., Black, W. C., Babin, B. J., and Anderson, R. E. 2010. Multivariate Data Analysis (7th ed.). New Jersey: Prentice Hall.
[19] Hall, C. M. 2009. Innovation and Tourism Policy in Australia and New Zealand: Never the Twain Shall Meet? Journal of Policy Research in Tourism, Leisure and Events, 1(1): 2–18. DOI:https://doi.org/10.1080/19407960802703466
[20] Hall, M. C., and Williams, A. 2008. Tourism and Innovation (1st ed.). London: Routledge. DOI:https://doi.org/10.4324/9780203938430
[21] Hansen, E., Korhonen, S., Rametsteiner, E., and Shook, S. 2006. Current State-of-Knowledge: Innovation Research in the Global Forest Sector. Journal of Forest Products Business Research, 3: 1–27.
[22] Henseler, J., Ringle, C. M., and Sinkovics, R. R. 2009. The Use of Partial Least Squares Path Modeling in International Marketing. (R. R. Sinkovics & P. N. Ghauri, Eds.) (New Challe, Vol. 20). Bingley: Emerald Group Publishing. DOI:https://doi.org/10.1108/S1474-7979(2009)0000020014
[23] Hjalager, A.-M. 2010. A Review of Innovation Research in Tourism. Tourism Management, 31(1): 1–12. DOI:https://doi.org/10.1016/j.tourman.2009.08.012
[24] Hurley, R. F., and Hult, G. T. M. 1998. Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination. Journal of Marketing, 62(3): 42–54. DOI:https://doi.org/10.1177/002224299806200303
[25] Im, S., and Workman, J. P. 2004. Market Orientation, Creativity, and New Product Performance in High-Technology Firms. Journal of Marketing, 68(2): 114–132. DOI:https://doi.org/10.1509/jmkg.68.2.114.27788
[26] Kaplan, C. D., Broekaert, E., and Morival, M. 2001. Improving Social Psychiatric Treatment in Residential Programmes for Emerging Dependence Groups in Europe: Cross‐Border Networking, Methodological Innovations and Substantive Discoveries. International Journal of Social Welfare, 10(2): 127–133. DOI:https://doi.org/10.1111/1468-2397.00162
[27] Khandekar, A., and Sharma, A. 2005. Managing Human Resource Capabilities for Sustainable Competitive Advantage: An Empirical Analysis from Indian Global Organisations. Education + Training, 47(8/9): 628–639. DOI:https://doi.org/10.1108/00400910510633161
[28] Kim, S. K., Lee, B. G., Park, B. S., and Oh, K. S. 2011. The Effect of R&D, Technology Commercialization Capabilities and Innovation Performance. Technological and Economic Development of Economy, 17(4): 563–578. DOI:https://doi.org/10.3846/20294913.2011.603481
[29] Lawson, B., and Samson, D. 2001. Developing Innovation Capability in Organisations: A Dynamic Capabilities Approach. International Journal of Innovation Management, 5(3): 377–400. DOI:https://doi.org/10.1142/S1363919601000427
[30] Li, X., and Mitchell, R. K. 2009. The Pace and Stability of Small Enterprise Innovation in Highly Dynamic Economies: A China-Based Template. Journal of Small Business Management, 47(3): 370–397. DOI:https://doi.org/10.1111/j.1540-627X.2009.00275.x
[31] Martínez-Román, J. A., Tamayo, J. A., Gamero, J., and Romero, J. E. 2015. Innovativeness and Business Performances in Tourism SMEs. Annals of Tourism Research, 54: 118–135. DOI:https://doi.org/10.1016/j.annals.2015.07.004
[32] Mavondo, F. T., Chimhanzi, J., and Stewart, J. 2005. Learning Orientation and Market Orientation: Relationship with Innovation, Human Resource Practices and Performance. European Journal of Marketing, 39(11/12): 1235–1263. DOI:https://doi.org/10.1108/03090560510623244
[33] Mitussis, D. 2010. SME Innovation in Zhejiang, China: Potential Constraints to Development of Widespread Innovation. Journal of Knowledge-Based Innovation in China, 2(1): 89–105. DOI:https://doi.org/10.1108/17561411011032007
[34] Nambisan, S. 2003. Information Systems as a Reference Discipline for New Product Development. MIS Quarterly, 27(1): 1–18.
[35] Narver, J. C., and Slater, S. F. 1990. The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54(4): 20–35. DOI:https://doi.org/10.1177/002224299005400403
[36] O’Sullivan, D., Abela, A. V., and Hutchinson, M. 2009. Marketing Performance Measurement and Firm Performance: Evidence from the European High‐Technology Sector. European Journal of Marketing, 43(5/6): 843–862. DOI:https://doi.org/10.1108/03090560910947070
[37] Rosenbusch, N., Brinckmann, J., and Bausch, A. 2011. Is Innovation Always Beneficial? A Meta-Analysis of the Relationship between Innovation and Performance in SMEs. Journal of Business Venturing, 26(4): 441–457. DOI:https://doi.org/10.1016/j.jbusvent.2009.12.002
[38] Salavou, H., Baltas, G., and Lioukas, S. 2004. Organisational Innovation in SMEs: The Importance of Strategic Orientation and Competitive Structure. European Journal of Marketing, 38(9/10): 1091–1112. DOI:https://doi.org/10.1108/03090560410548889
[39] Sarabia, M., and Obeso, M. 2012. Knowledge Gained from Action and Reaction Learning in Small and Medium‐Sized Enterprises: Two Sides of the Same Coin. Bulletin of the American Society for Information Science and Technology, 38(2): 58–63. DOI:https://doi.org/10.1002/bult.2012.1720380213
[40] Saunila, M. 2014. Innovation Capability for SME Success: Perspectives of Financial and Operational Performance. Journal of Advances in Management Research, 11(2): 163–175. DOI:https://doi.org/10.1108/JAMR-11-2013-0063
[41] Saunila, M., and Ukko, J. 2013. Facilitating Innovation Capability through Performance Measurement: A Study of Finnish SMEs. Management Research Review, 36(10): 991–1010. DOI:https://doi.org/10.1108/MRR-11-2011-0252
[42] Savitz, L. A., Kaluzny, A. D., and Kelly, D. L. 2000. A Life Cycle Model of Continuous Clinical Process Innovation. Journal of Healthcare Management, 45(5): 307–316. DOI:https://doi.org/10.1097/00115514-200009000-00007
[43] Slater, S. F., and Narver, J. C. 1995. Market Orientation and the Learning Organization. Journal of Marketing, 59(3): 63–74. DOI:https://doi.org/10.1177/002224299505900306
[44] Soca, D. 2011. Relationship Marketing – The Key of the Success in Business. Romanian Economic and Business Review, 6(1): 177–183.
[45] Sulistyo, H., and Siyamtinah, S. 2016. Innovation Capability of SMEs through Entrepreneurship, Marketing Capability, Relational Capital and Empowerment. Asia Pacific Management Review, 21(4): 196–203. DOI:https://doi.org/10.1016/j.apmrv.2016.02.002
[46] Taherparvar, N., Esmaeilpour, R., and Dostar, M. 2014. Customer Knowledge Management, Innovation Capability and Business Performance: A Case Study of the Banking Industry. Journal of Knowledge Management, 18(3): 591–610. DOI:https://doi.org/10.1108/JKM-11-2013-0446
[47] Tidd, J., and Bessant, J. R. 2018. Managing Innovation: Integrating Technological, Market and Organizational Change (6th ed.). New York: Wiley.
[48] Veugelers, R. 2008. The Role of SMEs in Innovation in the EU: A Case for Policy Intervention? Review of Business and Economics, 53(3): 239–262.
Published
2019-10-03
How to Cite
SARI, Yunita et al.
Model of Improving Tourism Industry Performance through Innovation Capability.
Journal of Environmental Management and Tourism, [S.l.], v. 10, n. 4, p. 853-864, oct. 2019.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/3893>. Date accessed: 16 nov. 2024.
doi: https://doi.org/10.14505//jemt.10.4(36).16.
Section
Article
Copyright© 2024 The Author(s). Published by ASERS Publishing 2024. This is an open access article distributed under the terms of CC-BY 4.0 license.