The hospitality industry is widely recognised as a key driver of economic growth in modern economies, with hotels being a crucial sector that significantly contributes to the country’s revenue. Hotels are continually adapting their services and processes to meet evolving tourist demands due to the dynamic competition driven by globalisation. Nevertheless, hotels must demonstrate versatility and innovation to effectively address the increasing, unpredictable, and complex demands in order to maintain competitiveness in today's rapidly evolving markets, particularly in light of the impacts of COVID-19. Therefore, the present paper investigates innovation through a Competing Values Framework (CVF) model involving clan, adhocracy, market, and hierarchy cultures towards innovation. According to the Resource-Based View (RBV) theory, an organisation's culture may foster innovative behaviour among the employees by directing and motivating them to embrace innovation as an essential value of their organisation. Empirical research consistently shows a significant correlation between organisational culture and innovation. However, the specific impact of different cultural types on innovation within Malaysia's hotel industry was not clearly articulated in the study. This research elicited responses from the general managers using a questionnaire from a sample of 203 four- and five-star hotels in Malaysia. A total of 164 questionnaires were returned, and 101 questionnaires were usable. The data were analysed using partial least squares structural equation modelling (PLS-SEM). The findings reported that two types of organisational culture were significant predictors of innovation: adhocracy and market culture. Furthermore, it was concluded that the most agreeable cultural practices of the hotel industry in Malaysia were those of clan culture. This culture produced surprising results, showing that clan culture has a negative relationship with innovation. In sum, this study generates agenda for researchers to reach more conclusive evidence about the types of organisational culture practice towards innovation among the hotel industry players in Malaysia.
Aboramadan, M., Albashiti, B., Alharazin, H., & Zaidoune, S. (2020). Organizational culture, innovation and performance: a study from a non-western context culture. Journal of Management Development, 39(4), 437–451. https://doi.org/10.1108/JMD-06-2019-0253
Balli, A. I. K., Ustun, F., & Balli, E. (2021). The Mediating Role of Psychological Safety in the Effect of Organizational Culture on Innovation: A Research in Hotel Enterprises. International Journal of Business, 26(4), 46–69.
Baradarani, S., & Kilic, H. (2018). Service innovation in the hotel industry: culture, behavior, performance. The Service Industries Journal, 38(13-14), 897-924.
Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. John Wiley & Sons.
Cameron, K.S., & Quinn, R.E., (1999). Diagnosing and Changing Organizational Culture. Addison Wesley, New York, NY.
Chang, S. & Lin, C. (2007). Exploring organizational culture for information security”, Industrial Management and Data Systems, 107(3), 438-458.
Chang, S., Way, S. A., & Cheng, D. H. K. (2017). The elicitation of frontline, customer- contact, hotel employee innovative behavior: Illuminating the central roles of readiness for change and absorptive capacity. Cornell Hospitality Quarterly, 59(3), 228-238.
Crossan, M. & Apaydin, M. (2010). A multi-dimensional framework of organizational innovation: a systematic review of the literature. Journal of Management Studies,47(6), 1154-1191,http://dx.doi.org/10.1111/j.1467-6486.2009.00880.x.
Damanpour, F. (1991). Organizational innovation: a meta-analysis of effects of determinants and moderators. Acad. Manag. J. 34 (3), 555–590
Damanpour, R. & Gopalakrishnan, S. (2001). The dynamics of the adoption of product and process innovations in organizations. Journal of Management Studies, 38(1), 45-65.
Denison, D. R., & Mishra, A. K. (1995). Toward a theory of organizational culture and effectiveness. Organization Science, 6(2), 204–223.
Dwyer, L., Teal, G., & Kemp, S. (1998). Organisational culture & strategic management in a resort hotel. Asia Pacific Journal of Tourism Research, 3(1), 27-36. https://doi.org/10.1080/10941669908722005
Dwyer, S., Richard, O. C., & Chadwick, K. (2003). Gender diversity in management and firm performance: The influence of growth orientation and organizational culture. Journal of Business Research, 56(12), 1009-1019. https://doi.org/10.1016/S0148-2963(01)003290
Ferreira, J., Coelho, A., & Moutinho, L. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: the moderating role of entrepreneurial orientation. Technovation, 92- 93, 102061.
Gordon, G. G., & DiTomaso, N. (1992). Predicting corporate performance from organizational culture. Journal Management Studies. 29 (6), 783–798. https://doi.org/10.1111/j.1467-6486.1992.tb00689.x
Hanafiah, M. H. M., & Harun, M. F. M. (2010). Tourism demand in Malaysia: A cross-sectional pool time-series analysis. International Journal of trade, economics and Finance, 1(2), 200.
Hartmann, A. (2006). The role of organizational culture in motivating innovative behavior in construction firms”, Construction Innovation, 6(3),159-172.
Kemp, S., & Dwyer, L. (2001). An examination of organisational culture—the Regent Hotel, Sydney. International journal of hospitality management, 20(1), 77-93. https://doi.org/10.1016/S0278-4319(00)00045-1
Kotter, J.P., & Heskett, J.L. (1992). Corporate Culture and Performance. The Free press, NY.
Lau, C., & Ngo, H. (2004). The HR system, organizational culture, and product innovation. International Business Review, 13(6), 685– 703. doi:10.1016/j.ibusrev.2004.08.001
Lin, H. E., McDonough, E., Lin, S.J., & Lin, C. (2013). Managing the exploitation/exploration paradox: The role of a learning capability and innovation ambidexterity. Journal of Product Innovation Management, 30(2): 262-278
Asri, D. A. A. (2023). The mediating effect of innovation on organisational culture and hotel performance: a proposed theoretical framework. ESTEEM Journal of Social Sciences and Humanities, 7, 17-32.
Naranjo-Valencia, J. C., Jimenez-Jimenez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicologia, 48(1), 30–41. https://doi.org/10.1016/j.rlp.2015.09.009
Nepal, R., Indra al Irsyad, M., & Nepal, S. K. (2019). Tourist arrivals, energy consumption and pollutant emissions in a developing economy–implications for sustainable tourism. Tourism Management, 72, 145–154.
Nguyen, V. T., Siengthai, S., Swierczek, F., & Bamel, U. K. (2019). The effects of organizational culture and commitment on employee innovation: evidence from Vietnam’ s IT industry. Journal of Asia Buisness Studies, 13(4). https://doi.org/10.1108/JABS-09-2018-0253
Obenchain, A., & Johnson, W. (2004). Product and process innovation in service organizations: The influence of organizational culture in higher education institutions. Journal of Applied Management and Entrepreneurship, 9(3), 91–113
OECD & EUROSTAT (2005). Guidelines for Collecting and Interpreting Innovation Data: Oslo Manual, (3rd ed.). Organization for Economic Co-operation and Development and Statistical Office of the European Communities, Paris.
Okoe, A. F., Boateng, H., Narteh, B., & Boakye, R. O. (2018). Examining human resource practice outcomes and service innovation. Service Industries Journal, 38(7–8), 431–445.
Pfeffer, J., & Sutton, R. I. (1999). Knowing what to do is not enough: turning knowledge into action. Calif. Manage. Rev, 42(1), 83–108.
Porter, M. E. (1980). Competitive strategy: techniques for analyzing industries and competitors. New York: Free Press.
Saunila, M. (2014). Innovation capability for SME success: perspectives of financial and operational performance. J. Adv. Manag. Res. 11 (2), 163–175.
Saunila, M. (2016). Performance measurement approach for innovation capability in SMEs. Int. J. Product. Perform. Manag. 65(2), 162–176.
Schein, E. H. (1992). Organizational culture and leadership. San Francisco: Jossey-Bass Inc.
Serafim, G. H., & Cristovao Verissimo, J. M. (2021). The Relationship between Strategic Orientation, Service Innovation, and Performance in Hotels in Angola. Sustainability, 13, 6256. https://doi.org/ 10.3390/su13116256
Slater, S. F., Mohr, J. J., & Sengupta, S. (2014). Radical product innovation capability: Literature review, synthesis, and illustrative research propositions. Journal of Product Innovation Management, 31(3), 552–566. https://doi.org/10.1111/jpim.12113
Snyder, H., Witell, L., Gustafsson, A., Fombelle, P., & Kristensson, P., (2016). Identifying categories of service innovation: a review and synthesis of the literature. J. Bus. Res., 69(7), 2401–2408.
Stigler, G. (1968). The organization of industry. Chicago: University of Chicago Press.
Tajeddini, K. (2011) Customer Orientation, Learning Orientation, and New Service Development: An Empirical Investigation of the Swiss Hotel Industry. Journal of Hospitality & Tourism Research, 35, 437-468. https://doi.org/10.1177/1096348010380599
Vasudevan, A., kumaran, K. S., & Hai, S. T. (2021). The Influence of Organizational Culture on Innovation Management of Malaysian Small and Medium Enterprises (SMEs) towards Industry 4.0. Asian Journal of Entrepreneurship, 2(2), 1–8.
Wernerfelt, B. (1984). A resource?based view of the firm. Strategic Management Journal, 5(2), 171-180.
Werther, W. B., Kerr, J. L. & Wright, R. G. (1995). Strengthening corporate governance through board?level consultants. Journal of Organizational Change Management, 8(3),63-74. https://doi.org/10.1108/09534819510090169
Yesil, S., & Kaya, A. (2013). The effect of organizational culture on firm financial performance: Evidence from a developing coun- try. Procedia-Social and Behavioural Science, 81, 428-437.
Zeb, A., Akbar, F., Hussain, K., Safi, A., Rabnawaz, M., & Zeb, F. (2021). The competing value framework model of organizational culture, innovation and performance. Business Process Management Journal, 27(2), 658–683. https://doi.org/10.1108/BPMJ-11-2019-0464.
(Asri et al., 2024)
Asri, D. A. A. M., & Sulaiman, A. M. A. M. S. (2024). Enhancing Hotel Innovation through the Competing Values Framework (CVF) Model in Malaysia. Dian Aszyanti Atirah Mohd. Asri1, Ainul Mohsein Abdul Mohsin2, Suria Sulaiman3, 14(8), 450–465.
Copyright: © 2024 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode