Abstract
Literature is replete with studies indicating how innovation influences service quality and business performance. In addition to highlighting the research trends in the service sector under investigation, this paper explores the impact factor of innovation on service quality leading to business performance. The cross-sectional survey was the research approach used, while confirmatory factor analysis and structural equation modeling (CB-SEM) was used to analyze the data. In order to study the mediation effect of innovation on service quality and business performance among restaurants bootstrap was used to conduct mediation analysis. The study highlighted that innovation fully mediates service quality and business performance among restaurants in Ghana. Moreover, a business model that highlighted the effectiveness of innovation to service quality leading to business performance among restaurants in Ghana is being advocated. This study will encourage restaurant owners to use innovation in their daily routine to improve service to improve their company’s success.
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