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Does Innovation Type Influence Firm Performance? A Dilemma of Star-Rated Hotels in Ghana

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  • Xuhua Hu

    (Division of Open Economy and Industry Development, Research Institute of Industrial Economics, School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Bertha Ada Danso

    (Division of Open Economy and Industry Development, Research Institute of Industrial Economics, School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Isaac Adjei Mensah

    (Institute of Applied Systems Analysis, School of Mathematics, Jiangsu University, Zhenjiang 212013, China)

  • Michael Addai

    (Marketing Department, Accra Technical University, P.O. Box GP 561, Accra, Ghana)

Abstract

Innovation, which leads to process changes and product development, tends to increase the sustenance of companies and helps firms to expand faster and more effectively, eventually more profitably than non-innovators. Innovation is commonly seen as a key source of sustainable competitive advantage in a changing environment. However, the success of the hospitality industry relies a lot on how well they gear their innovations towards preserving the natural and cultural attractions that make tourist/customers to visit their destinations. This study, therefore, is empirically designed to explore how innovation types, which include process, product, marketing, and organizational innovation, impact performance of hotel firms in Ghana. With top-level managers being our target respondents, 680 star rated hotels were purposely sampled from the hospitality industry, among which 550 hotel firms provided valid and accurate responses. Data obtained from the survey through the administration of a well-structured questionnaire was analyzed through SPSS statistical package. Through the estimation of series of regression models using the Hierarchical regression method of analysis, we witnessed that process, product, marketing, and organizational innovation employed as innovation types have palpable and statistically significant liaison with performance of hotel firms in Ghana. We, therefore, conclude that, for hotels to achieve high firm performance, personnel within the firm should be encouraged and empowered to develop innovative mentalities and abilities. In addition, hotel firms and the industry at large should be abreast of current trends of sustainability and endeavor to gear their innovation operations towards a more sustainability-oriented firm since incorporating sustainable innovative strategies into firms’ operations will not only create a good image and reduce cost but would also safeguard the natural attractions that guests patronize.

Suggested Citation

  • Xuhua Hu & Bertha Ada Danso & Isaac Adjei Mensah & Michael Addai, 2020. "Does Innovation Type Influence Firm Performance? A Dilemma of Star-Rated Hotels in Ghana," Sustainability, MDPI, vol. 12(23), pages 1-27, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:23:p:9912-:d:451894
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