Service innovation in the hotel industry: the dynamic capabilities view

Abstract

Consistent with the dynamic capabilities view tenets, this paper aims to conceptualize a theoretical framework of service innovation in the hotel industry. This study uses a qualitative method with a content analysis approach. The data were collected using a snowball sampling method and semi-structured interviews with 14 experts in Tehran's hotel industry. The findings demonstrate that the most significant factors are using the new technology, keeping up with it, training human labor, being up-to-date and adopting new infrastructures. Results also reveal that improper management and lack of knowledge are the most critical factors behind service innovation failure in the hotel industry. Regarding the infrastructures needed to develop service innovation in the hotel industry, the results show that adopting the newest technology in diverse aspects, human infrastructure, the capital and appropriate space and place are the key factors. This paper contributes to the literature by linking the service innovation perspective to the dynamic capabilities view. It explains how hotels can enhance service innovation to gain a competitive advantage. Therefore, both academicians and hoteliers can develop action plans by selecting and managing the service innovation process.