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Innovation, entrepreneurship, and restaurant performance: A higher-order structural model

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  • Lee, Craig
  • Hallak, Rob
  • Sardeshmukh, Shruti R.

Abstract

Drawing on theories from hospitality, innovation, and entrepreneurship, this study examines a higher-order structural model investigating business innovation, the owners' entrepreneurial self-efficacy (ESE), and human capital as drivers of restaurant performance. The theoretically derived model was tested on data from 198 café and restaurant owners in Australia. The PLS-SEM analysis found restaurant innovation activities and the owner's ESE to positively influence restaurant performance. Furthermore, the six ESE dimensions had varying effects on restaurant performance, with ‘Developing new product and market opportunities’ having the strongest effect. In contrast, the entrepreneur's ‘human capital’, representing their levels of business ownership experience and entrepreneurship/industry education, did not significantly affect restaurant performance. However, human capital indirectly affected performance through innovation and ESE. The findings of this study advance theories in restaurant entrepreneurship and performance and present important implications for industry authorities to develop a successful and sustainable restaurant sector.

Suggested Citation

  • Lee, Craig & Hallak, Rob & Sardeshmukh, Shruti R., 2016. "Innovation, entrepreneurship, and restaurant performance: A higher-order structural model," Tourism Management, Elsevier, vol. 53(C), pages 215-228.
    • Handle: RePEc:eee:touman:v:53:y:2016:i:c:p:215-228
    DOI: 10.1016/j.tourman.2015.09.017
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    6. Tanja Planinc & Marko Kukanja, 2019. "Efficiency Analysis of Restaurants Operating in the Rural Areas: The Case of Slovenia," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 12(2), pages 133-145.
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    8. Bernardo Gala-Velásquez & Américo Hurtado-Palomino & Angela Y. Arredondo-Salas, 2023. "Organisational Flexibility and Innovation Performance: The Moderating Role of Management Support," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(2), pages 219-234, June.
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    11. Ricardo Teruel‐Sánchez & Antonio Juan Briones‐Peñalver & Juan Andrés Bernal‐Conesa & Carmen de Nieves‐Nieto, 2021. "Influence of the entrepreneur's capacity in business performance," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2453-2467, July.
    12. Lee, Craig & Hallak, Rob, 2018. "Investigating the moderating role of education on a structural model of restaurant performance using multi-group PLS-SEM analysis," Journal of Business Research, Elsevier, vol. 88(C), pages 298-305.
    13. Nelson Andrade-Valbuena & Hugo Baier-Fuentes & Magaly Gaviria-Marin, 2022. "An Overview of Sustainable Entrepreneurship in Tourism, Destination, and Hospitality Research Based on the Web of Science," Sustainability, MDPI, vol. 14(22), pages 1-26, November.
    14. Fan, Songmei & Yan, Jingjing & Sha, Jinghua, 2017. "Innovation and economic growth in the mining industry: Evidence from China's listed companies," Resources Policy, Elsevier, vol. 54(C), pages 25-42.
    15. Hand, Chris & Iskandarova, Marfuga & Blackburn, Robert, 2020. "Founders’ social identity and entrepreneurial self-efficacy amongst nascent entrepreneurs: A configurational perspective," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    16. Umair Ahmed & Soleman Mozammel & Fazluz Zaman, 2020. "Impact of Ecological Innovation, Entrepreneurial Self-Efficacy and Entrepreneurial Orientation on Environmental Performance and Energy Efficiency," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 289-295.
    17. Mukhamad Najib & Abdul Aziz Abdul Rahman & Farah Fahma, 2021. "Business Survival of Small and Medium-Sized Restaurants through a Crisis: The Role of Government Support and Innovation," Sustainability, MDPI, vol. 13(19), pages 1-16, September.
    18. Sainaghi, Ruggero & Phillips, Paul & Zavarrone, Emma, 2017. "Performance measurement in tourism firms: A content analytical meta-approach," Tourism Management, Elsevier, vol. 59(C), pages 36-56.
    19. Hallak, Rob & Assaker, Guy & O’Connor, Peter & Lee, Craig, 2018. "Firm performance in the upscale restaurant sector: The effects of resilience, creative self-efficacy, innovation and industry experience," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 229-240.
    20. Jordan, Evan J. & Spencer, Daniel M. & Prayag, Girish, 2019. "Tourism impacts, emotions and stress," Annals of Tourism Research, Elsevier, vol. 75(C), pages 213-226.
    21. László Szerb & Zsófia Vörös, 2021. "The changing form of overconfidence and its effect on growth expectations at the early stages of startups," Small Business Economics, Springer, vol. 57(1), pages 151-165, June.
    22. Ariffin, Adlin B., 2023. "A Structural Relationship between Local’s Appreciation, Knowledge and Actual Visitation to Adaptive Reuse Heritage Buildings," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 11(4), pages 273-287.

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