Service Innovation Capability and Service Performance: Evidence from Hotel Businesses in Thailand

Abstract

Currently, the development of the country in the context of Thailand 4.0 focuses on creating value-based economy which is driven by creation of innovation, technology and creativity. Therefore, it is challenging for service business sectors to succeed. The aim of this research is to examine the effects of service innovation capability on service performance of hotel businesses in Thailand. Using the lens of dynamic capability and organizational learning theory, the study model was empirically tested using questionnaire survey of 105 hotel businesses in Thailand. The results from multiple regression analysis indicated that only the dimension of proactive service improvement continuity of the service innovation capability had effect on service performance. The two dimensions of customer involvement willingness and knowledge transfer culture had effects on service advantage, service satisfaction achievement, and service value creation whereas the dimension of network collaboration competency had no effect on service performance. In addition, this research revealed some useful theoretical and managerial suggestions and contributions to academics and executive of service business sectors.