The Relationship between Market Orientation, Innovation and Business Performance of Hotel and Restaurant Businesses in Ho Chi Minh City: The Moderating Role of Business Environment

Abstract

The study was conducted to examine the relationship between market orientation, innovation, and business performance through the role of regulation of business environment. By the quantitative research method combined with the qualitative research method, structural equation modelling (SEM) is performed with a sample size of 503 observations, the participants are the leaders of the hotel, restaurant in Ho Chi Minh City. The results show that there is a positive relationship between market orientation, innovation, and business performance of hotel – restaurant businesses. The business environment plays a role in regulating market orientation, innovation, and business outcomes. Through the regulatory role, the business environment factor plays a role in increasing the business performance of hotel – restaurant businesses. The results have brought practical significance to hotel – restaurant businesses. Managers needs to focus on market orientation, and innovation to improve business results. In addition, before the fluctuations of the business environment, restaurant – hotel businesses need to take advantage and grasp to adjust the appropriate market orientation and innovation strategies to contribute to improving business results. Finally, some limitations are also mentioned in this study.