Hospitality innovation strategies: Robustness analysis of paths to firm performance

Abstract

Empirical knowledge on the relationship between innovation and firm performance in the hospitality industry is important for theoretical progress and for decision making. Martin-Rios and Ciobanu’s (2019) recent contribution identifies eight different innovation strategies being significantly associated with firm performance including the ambitious strategy of simultaneously innovating products, processes, organizations, and marketing. By replicating the analysis and testing the robustness of the results with a specification curve analysis using the same dataset, we find only three strategies to be robustly associated with firm performance. All three include process innovation as a necessary component: i) a pure backstage-oriented strategy of process and organizational innovation that can be ii) extended with product innovation and iii) a frontstage-oriented strategy, where marketing innovations complement new products and processes. This substantiates the relevance of the process-based view of innovation in services and call for efforts in theorizing about how different configurations of innovation strategies can represent paths to firm performance.