The Relationship between Strategic Orientation, Service Innovation, and Performance in Hotels in Angola

Gerdina Handa Serafim,José Manuel Cristóvão Veríssimo

doi:10.3390/su13116256

Gerdina Handa Serafim, José Manuel Cristóvão Veríssimo

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https://doi.org/10.3390/su13116256

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Journal: Sustainability	Publication Date: Jun 1, 2021
Citations: 11	License type: CC BY 4.0

Affiliation: University of Lisbon

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This paper aims to investigate the impacts of customer orientation, competitor orientation, learning orientation, technology orientation, and entrepreneurial orientation on hotel innovation and performance. Data from 69 hotels in four Angolan provinces were analyzed using the partial least squares (PLS) approach and multi group analysis. The results show that learning and entrepreneurial orientations have a positive impact on hotel innovation. As anticipated, innovation has a positive impact on performance. According to the multigroup analysis, only the hotel category has a moderating effect on performance. Results suggest that hotels in developing countries could add value to both customers and shareholders by promoting new services and exploring new business opportunities. To the best of our knowledge, this is one of the few studies that has researched the impact of strategic orientation on hotel innovation and financial performance in developing countries.

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Competition and the explosion of globalised technological innovation and differentiation have come to be considered as requirements for any company [1]
This research follows the extant literature and considers that innovation in the service sector depends on customer orientation, competitor orientation, organisational learning orientation, entrepreneurship orientation, and technological orientation [3,4], where dependable competencies need to be developed to drive good organisational performance, be they financial or non-financial factors, which correspond to a strategic orientation [5,6,7,8,9,10,11]
This study is of an explanatory nature and it studies the impact of strategic orientations on hotel innovation

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Introduction

Competition and the explosion of globalised technological innovation and differentiation have come to be considered as requirements for any company [1]. The development of innovations requires a strategic posture, the support of the organisational structure and the existence of administrative processes that can adapt to uncertain environments [2]. This is even more demanding in developing countries due to the shortage of skilled resources. This research follows the extant literature and considers that innovation in the service sector depends on customer orientation, competitor orientation, organisational learning orientation, entrepreneurship orientation, and technological orientation [3,4], where dependable competencies need to be developed to drive good organisational performance, be they financial or non-financial factors, which correspond to a strategic orientation [5,6,7,8,9,10,11]. Customer orientation does not necessarily mean listening to customers, as customers can influence the imposition of strict limits on the strategies that companies may or may not follow [13,14], which, when related to innovation, can have a positive impact on a company’s performance [15,16,17,18]

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