Abstract
ABSTRACT This study investigates various dimensions, including service quality, absorptive capacity, innovation performance, and intellectual capital (specifically organisational capital, social capital, and human capital), within the context of the airline industry. A survey questionnaire was administered to airline employees during the COVID-19 pandemic. The findings indicate that service quality has the potential to generate favourable innovation outcomes, such as increased absorptive capacity, thereby further enhancing employee innovation performance. Service quality is also found to have a simultaneous positive impact on human capital, leading to increased innovation performance and absorptive capacity. Therefore, organisations should prioritise the development of absorptive capacity to enhance both human capital and the accumulation of intellectual capital. Furthermore, both organisational capital and human capital play a vital role in these intricate strategy decision procedures. These factors play a crucial role in strengthening the connections between service quality and innovation performance.
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