The hotel industry is characterized as a human-intensive service provider, therefore, innovation, particularly service innovation, does not generally depend on technological and scientific contributions. Most often, innovation in this industry is derived from human interaction that often leads to little adjustments or continuous improvement to meet potential customer expectations and to satisfy the current customers. Although several recent studies have begun to address this issue, an understanding of service innovation in low-technology and service industries, particularly hotel firms, is less understood. This research builds on the resource-based view (RBV) of the firm to examine the effects of entrepreneurial orientation on service innovation and service innovation on hotel performance. Utilising a quantitative approach, 73 hotel operators were taken as the sample of this study. A non-probability sampling of purposive sampling was used in this study whereby only hotels that have a star rating from one to five stars were chosen and included in the sample based on the list of registered hotels provided by Sarawak Ministry of Culture, Arts and Tourism Malaysia. The findings of the study found that there is a positive relationship between entrepreneurial orientation, service innovation and performance. This study makes a considerable contribution to the existing literatures on entrepreneurial orientation, service innovation, particularly in regards to explaining the performance of hotel industry in Sarawak.
Agarwal, R., & Selen, W. (2009). Dynamic capability building in service value networks for achieving service innovation. Decision Sciences, 40(3), 431-475.
akesson, M., Skalen, P., Edvardsson, B. and Stålhammar, A. (2016), Value proposition test-driving for service innovation: how frontline employees innovate value propositions, Journal of Service Theory and Practice, 26(3).
Bakar, L. J. A., & Ahmad, H. (2010). Assessing the relationship between firm resources and product innovation performance: A resource-based view. Business Process Management Journal, 16(3), 420-435.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. Barrett, M., Davidson, E., Prabhu, J., & Vargo, S. L. (2015). Service innovation in the digital age: Key contributions and future directions. MIS Quarterly, 39(1), 135-154.
Castellacci, F. (2008). Technological paradigms, regimes and trajectories: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation. Research Policy, 37(6-7), 978-994.
Cham, T. H., Cheah, J. H., Ting, H., & Memon, M. A. (2021). Will destination image drive the intention to revisit and recommend? Empirical evidence from golf tourism. International Journal of Sports Marketing and Sponsorship. 23(2). 385-409.
Chen, Y., Wang, Y., Nevo, S., Benitez-Amado, J., & Kou, G. (2015). IT capabilities and product innovation performance: The roles of corporate entrepreneurship and competitive intensity. Information & Management, 52(6), 643-657.
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern Methods for Business Research, 295(2), 295-336
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum Associates
Crema, M., Verbano, C., & Venturini, K. (2014). Linking strategy with open innovation and performance in SMEs. Measuring Business Excellence, 18(2), 14-27.
Damanpour, F., Walker, R. M., & Avellaneda, C. N. (2009). Combinative effects of innovation types and organizational performance: A longitudinal study of service organizations. Journal of Management Studies, 46(4), 650-675.
Den Hertog, P. D., Gallouj, F., & Segers, J. (2011). Measuring innovation in a ‘low-tech’service industry: The case of the Dutch hospitality industry. The Service Industries Journal, 31(9), 1429-1449.
Diamantopoulos, A., & Siguaw, J. A. (2006). Formative versus reflective indicators in organizational measure development: A comparison and empirical illustration. British Journal of Management, 17(4), 263-282.
Ireland, D. R., & Webb, J. W. (2007). A cross-disciplinary exploration of entrepreneurship research. Journal of Management, 33(6), 891-927. Durst, S., Mention, A. L., & Poutanen, P. (2015). Service innovation and its impact: What do we know about? Investigaciones Europeas de Dirección y Economía de la Empresa, 21(2), 65-72.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10-11), 1105-1121.
Ettlie, J. E., & Rosenthal, S. R. (2011). Service versus Manufacturing Innovation. Journal of Product Innovation Management, 28(2), 285-299.
Evangelista, R., & Savona, M. (2003). Innovation, employment and skills in services. Firm and sectoral evidence. Structural Change and Economic Dynamics, 14(4), 449-474.
Faul, F., Erdfelder, E., Lang, A. G., & Buchner, A. (2007). G* Power 3: A flexible statistical power analysis program for the social, behavioral, and biomedical sciences. Behavior Research Methods, 39(2), 175-191.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
Gignac, G. E., & Szodorai, E. T. (2016). Effect size guidelines for individual differences researchers. Personality and individual differences, 102, 74-78.
Gomezelj, D. O. (2016). A systematic review of research on innovation in hospitality and tourism. International Journal of Contemporary Hospitality Management, 28(3), 516-558.
Hair, J. F., Gabriel, M., & Patel, V. (2014). AMOS covariance-based structural equation modeling (CB-SEM): Guidelines on its application as a marketing research tool. Brazilian Journal of Marketing, 13(2). 44-45.
Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE publications.
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., & Thiele, K. O. (2017). Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods. Journal of the academy of marketing science, 45(5), 616-632.
Hayduk, L. A., & Littvay, L. (2012). Should researchers use single indicators, best indicators, or multiple indicators in structural equation models?. BMC medical research methodology, 12(1), 1-17.
Hilman, H., & Kaliappen, N. (2014). Market orientation practices and effects on organizational performance: Empirical insight from Malaysian hotel industry. Sage Open, 4(4), 1-8.
Hilman, H., & Kaliappen, N. (2015). Innovation strategies and performance: Are they truly linked? World Journal of Entrepreneurship, Management and Sustainable Development, 11(1), 48-63.
Horng, J. S., Wang, C. J., Liu, C. H., Chou, S. F., & Tsai, C. Y. (2016). The role of sustainable service innovation in crafting the vision of the hospitality industry. Sustainability, 8(3), 1-18.
Jogaratnam, G., Tse, E. C., & Olsen, M. D. (1999). An empirical analysis of entrepreneurship and performance in the restaurant industry. Journal of Hospitality & Tourism Research, 23(4), 339-353.
Kajalo, S., & Lindblom, A. (2015). Market orientation, entrepreneurial orientation and business performance among small retailers. International Journal of Retail & Distribution Management, 43(7), 580-596.
Kalay, F., & Lynn, G. (2015). The impact of strategic innovation management practices on firm innovation performance. Research Journal of Business and Management, 2(3), 412-429.
Kraus, S., Rigtering, J. C., Hughes, M., & Hosman, V. (2012). Entrepreneurial orientation and the business performance of SMEs: A quantitative study from the Netherlands. Review of Managerial Science, 6(2), 161-182.
Kraus, S. (2013). The role of entrepreneurial orientation in service firms: Empirical evidence from Austria. The Service Industries Journal, 33(5), 427-444.
Kumar, N., Stern, L. W., & Anderson, J. C. (1993). Conducting interorganizational research using key informants. Academy of management journal, 36(6), 1633-1651.
Lahap, J., O’mahony, B., & Dalrymple, J. (2016). The importance of communication in improving service delivery and service quality in the malaysian hotel industry. Procedia-Social and Behavioral Sciences, 224, 213-220.
Lassen, A. H., Gertsen, F., & Riis, J. O. (2006). The nexus of corporate entrepreneurship and radical innovation. Creativity and Innovation Management, 15(4), 359-372.
Lee, J. S., & Hsieh, C. J. (2010). A research in relating entrepreneurship, marketing capability, innovative capability and sustained competitive advantage. Journal of Business & Economics Research (JBER), 8(9).
Nagy, A. (2012). A review of tourism and hospitality innovation research. Annals of Faculty of Economics, 1(2), 364-370.
Nasution, H. N., & Mavondo, F. T. (2008). Organisational capabilities: Antecedents and implications for customer value. European Journal of Marketing, 42(3/4), 477-501.
Ndubisi, N. O., & Agarwal, J. (2014). Quality performance of SMEs in a developing economy: Direct and indirect effects of service innovation and entrepreneurial orientation. Journal of Business & Industrial Marketing, 29(6), 454-468.
Newbert, S. L. (2007). Empirical research on the resource-based view of the firm: An assessment and suggestions for future research. Strategic Management Journal, 28(2), 121-146.
Ngo, L. V., & O'Cass, A. (2009). Creating value offerings via operant resource-based capabilities. Industrial Marketing Management, 38(1), 45-59.
Nieves, J., Quintana, A., & Osorio, J. (2014). Knowledge-based resources and innovation in the hotel industry. International Journal of Hospitality Management, 38, 65-73.
O'Cass, A., & Weerawardena, J., (2009). Examining the role of international entrepreneurship, innovation and international market performance in SME
internationalization. European Journal of Marketing, 43(11/12), 1325-1348.
Oskam, J., & Boswijk, A. (2016). Airbnb: The future of networked hospitality businesses. Journal of Tourism Futures, 2(1), 22-42.
Ottenbacher, M. C. (2007). Innovation management in the hospitality industry: Different strategies for achieving success. Journal of Hospitality & Tourism Research, 31(4), 431-454.
Peteraf, M. A. (1993). The cornerstones of competitive advantage: a resource-based view. Strategic Management Journal, 14(3), 179-191.
Rajapathirana, R. J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge, 3(1), 44-55.
Ramadani, V., Abazi-Alili, H., Dana, L. P., Rexhepi, G., & Ibraimi, S. (2017). The impact of knowledge spillovers and innovation on firm-performance: Findings from the Balkans countries. International Entrepreneurship and Management Journal, 13(1), 299-325.
Ringle, C., Da Silva, D., & Bido, D. (2014). Structural equation modeling with the SmartPLS. Brazilian Journal of Marketing, 13(2), 56-73.
Saunila, M. (2014). Innovation capability for SME success: Perspectives of financial and operational performance. Journal of Advances in Management Research, 11(2), 163-175.
Snyder, H., Witell, L., Gustafsson, A., Fombelle, P., & Kristensson, P. (2016). Identifying categories of service innovation: A review and synthesis of the literature. Journal of Business Research, 69(7), 2401-2408.
Shamim, S., Cang, S., Yu, H., & Li, Y. (2017). Examining the feasibilities of Industry 4.0 for the hospitality sector with the lens of management practice. Energies, 10(4), 499. https://doi.org/10.3390/en10040499
Soto-Acosta, P., Popa, S., & Palacios-Marqués, D. (2016). E-business, organizational innovation and firm performance in manufacturing SMEs: An empirical study in Spain. Technological and Economic Development of Economy, 22(6), 885-904.
Thakur, R., & Hale, D. (2013). Service innovation: A comparative study of US and Indian service firms. Journal of Business Research, 66(8), 1108-1123.
Tigu, G., Iorgulescu, M. C., & Ravar, A. S. (2013). The impact of creativity and innovation in the hospitality industry on customers. Journal of Tourism Challenges and Trends, 6(1), 9-33.
Tse, T., Esposito, M., & Soufani, K. (2016). Fast expanding markets: The revolution of the micro economy. Thunderbird International Business Review, 58(1), 5-11.
Tseng, M. L., Lin, Y. H., Lim, M. K., & Teehankee, B. L. (2015). Using a hybrid method to evaluate service innovation in the hotel industry. Applied Soft Computing, 28, 411-421.
Wang, E. S. T., & Juan, P. Y. (2016). Entrepreneurial orientation and service innovation on consumer response: A B&B Case. Journal of Small Business Management, 54(2), 532-545.
Watson, S., & Hewett, K. (2006). A multi-theoretical model of knowledge transfer in organizations: Determinants of knowledge contribution and knowledge reuse. Journal of Management Studies, 43(2), 141-173.
Weerawardena, J., & O'Cass, A. (2004). Exploring the characteristics of the market-driven firms and antecedents to sustained competitive advantage. Industrial Marketing Management, 33(5), 419-428.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180.
World Tourism Organization. (2018). UNWTO Tourism Highlights, 2018 Edition. UNWTO, Madrid.
Zheng, P., Lin, T. J., Chen, C. H., & Xu, X. (2018). A systematic design approach for service innovation of smart product-service systems. Journal of cleaner production, 201, 657-667.
