Abstract

PurposeThe purpose of this paper is to explore the nature and implications of knowledge advanced through service employees’ innovative behaviour and leading to initiating innovation within the hotel service subsector.Design/methodology/approachA case study research method was applied to achieve the research objectives, which investigated two hotel properties resembling two personal–interactive service systems. In total, 52 semi-structured interviews were conducted along with other qualitative research methods, including the direct observation of employees, review of management archives/literature and the assessment of “micro cases”.FindingsThe research outcome highlights the role of knowledge as supplementary to the interlinked process of idea generation and development. A novel classification of two types of knowledge is revealed as pre-encounter and encounter-dependent knowledge, implicating four patterns of service employees’ innovative behaviour.Practical implicationsThis paper recommends practical measures to nurture service employees’ innovative behaviour, leading to innovation.Originality/valueThis study contributes to service innovation research by providing an in-depth assessment at the micro level, overlooked to date, of the nature of knowledge and the service employees’ role in initiating innovation within the hotel service subsector.

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