Abstract
The purpose of the study is to contribute to the existing literature by reviewing empirical studies conducted in the restaurant industry on innovation to develop a dynamic capabilities-based research model for independent restaurants which can be tested by future scholars in the restaurants industry. The review covered innovation models that have been used and tested in restaurants; types of innovation; dynamic capabilities as an antecedent for innovation; the mediating role of human capital between dynamic capabilities and innovation; and the relationship between innovation and performance. The results of the study revealed that innovation activities described in the literature can be categorised into the dynamic capabilities components of sensing, learning, integrating, and co-ordinating capabilities thus supporting the proposed dynamic capabilities research model. The model, therefore, provides a comprehensive framework for investigating innovation activities in independent restaurants.
Highlights
The restaurant sector is important in the economic development and employability in many countries (Hallak, Assaker, O’Connor, & Lee, 2018, Otengei, Bakunda, Ngoma, Ntayi & Munene, 2017)
The study findings demonstrated that innovation alone cannot lead to better restaurant performance and competitiveness
The input elements identified by the Michelin-Starred Chefs map onto the four dynamic capability component factors as shown in Figure 2(b), clearly demonstrating that the input elements are activities/capabilities that can be captured by the dynamics capabilities framework
Summary
The restaurant sector is important in the economic development and employability in many countries (Hallak, Assaker, O’Connor, & Lee, 2018, Otengei, Bakunda, Ngoma, Ntayi & Munene, 2017). In Australia, for example, the industry generated A$ 23.5 billion in 2016 and was the second-largest employer in the tourism sector (Assaf, Deery & Jago, 2011). In the United States of America, the industry employed 14.4 million persons in 2016 (American Restaurant Association, 2016), generated US$ 78.3 billion, and was the largest employing sector. The industry is faced with difficulties in maintaining long-term sustainability and many close within the first five years of operation (Otengei et al, 2017; Lee, Hallack & Sardeshmukh, 2016). Consumers make decisions on the choice of restaurants to dine based on previous customer reviews and ratings on the restaurants' websites and online platforms (Singal, 2015)
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