Innovation Capability Enhancing Competitive Advantage and Business Performance of Small Hotels in Thailand
Article Sidebar
Main Article Content
บทคัดย่อ
This study aimed to examine the causes and outcomes of innovation capability enhancing the competitive advantage and business performance of small hotels in Thailand. The sample in the study included 356 small hotels in Thailand that have been certified by the Amazing Thailand Safety & Health Administration (SHA). The research instrument is the online questionnaire. The data were analyzed by descriptive statistics, namely frequency, percentage, mean and standard deviation and inferential statistics, namely structural equation modeling.
The findings revealed that the model analysis results of the research hypothesis of innovation capability enhancing the competitive advantage and performance of small hotel businesses in Thailand with environment dynamism as a variable (after adjusting a model) found that all values met the specified criteria, indicating that the model developed by the researcher based on related concepts and theories was consistent with the empirical data. When considering the innovation capability model enhancing the competitive advantage and business performance of small hotels in Thailand, it was found that causal variables directly influenced the competitive advantage. Innovation capability had a path coefficient of 0.78. It was also found that causal variables directly influenced a firm's financial performance. Competitive advantage and innovation capability had path coefficients of 0.34 and 0.22, respectively. This research described the cause and result of the innovation capability of small hotels in Thailand to suggest guidelines to develop the innovation capability of small hotels despite the complexity and rapid change in the business environment nowadays.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Amin, F. M. (2001). Innovation in Small and Medium Enterprises (SMEs) in the Malaysian Information Technology (IT) industry. Doctoral dissertation, D.PUBP, George Mason University, Virginia.
Bontis, N. (2001). Assessing knowledge assets: A review of the models used to measure intellectual capital. International Journal of Management, 3(1), 41-60.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Bank of Thailand. (2019). Thai service sector…change to be bang! Adjust to be hit!. Retrieved July 10, 2021, from https://www.bot.or.th/Thai/ResearchAndPublications.
Cai, S. and Yang, Z. (2014). On the relationship between business environment and competitive priorities: The role of performance frontiers. International Journal of Production Economics, 151, 131–145.
Cao, J. and Wang, Z. (June 26, 2015) Impact of intellectual capital on firm performance: The influence of innovation capability and environmental dynamism. In 21st Americas Conference on Information Systems (pp. 1-16). Puerto Rico: Association for Information Systems.
Chen, S., Harris, L., Li, W. and Wu, D. (2015) How does XBRL affect the cost of equity capital? Evidence from an Emerging market. Journal of International Accounting Research, 14(2), 123-145.
Ferreira, A. and Otley, D. (2009). The design and use of performance management systems: An extended framework for analysis. Management Accounting Research, 20(4), 263-282.
Ferreira, J., Coelho, A. and 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, 102061.
Galunic, D. C. and Eisenhardt, K. M. (2001). Architectural innovation and modular corporate forms. Academy of Management Journal, 44(6), 1229-1249.
Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, 33(3), 114-135.
Griffith, D. A., Noble, S. M. and Chen, Q. (2006), The performance implications of entrepreneurial proclivity: A dynamic capabilities approach. Journal of Retailing, 82(1), 51-62.
Haseeb, M., Hussain, H. I., Kot, S., Androniceanu, A. and Jermsittiparsert, K. (2019). Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability, 11(14), 3811.
Hult, G. T. M., Hurley, R. F. and Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429-438.
Kafetzopoulos, D. and Psomas, E. (2015). The impact of innovation capability on the performance of manufacturing companies: The Greek case. Journal of Manufacturing Technology Management, 26(1), 104-130.
Keskin, H. (2006). Market orientation, learning orientation, and innovation capabilities in SMEs: An extended model. European Journal of Innovation Management, 9(4), 396-417.
Kline, R. B. (2016). Methodology in the social sciences, principles and practice of structural equation modeling (4th ed.). New York: The Guilford Press.
Krejcie, R. V. and Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607-610.
Krungsri Research (2020). Business/industry trends 2020-2023: hotel. Retrieved July 1, 2020, from https://www.krungsri.com/th/research/industry/.
Khan, M. (2014). Identifying the components and importance of intellectual capital in knowledge-intensive organizations. Business and Economic Research, 4(2), 297-307.
Le, P. B. and Lei, H. (2018). The effects of innovation speed and quality on differentiation and low-cost competitive advantage: The case of Chinese firms. Chinese Management Studies, 12(2), 305-322.
Li, D. Y. and Liu, J. (2012), Dynamic capabilities, environmental dynamism, and competitive advantage: evidence from China. Journal of Business Research, 67(1), 2793-2799.
Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S. and Rao, S. S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107-124.
Mendoza-Silva, A. (2020). Innovation capability: A systematic literature review. European Journal of Innovation Management, 24(3), 707-734.
Ministry of Tourism and Sports. (2019). Accommodation-Hotels in Thailand. Retrieved July 7, 2021, from https://www.mots.go.th/news/category/618.
Noble, C. H., Sinha, R. K. and Kumar, A. (2002). Market orientation and aiternative strategic orientations: A longitudinai assessment of performance impiications. Journal of Marketing, 66(4), 25-39.
Omri, W. (2015). Innovative behavior and venture performance of SMEs: The moderating effect of environmental dynamism. European Journal of Innovation Management, 18(2), 195-217.
Organisation for Economic Co-Operation and Development. (2005). Scope of the Manual. In OECD. Oslo manual: Guidelines for Collecting and Implementing Innovation Data (3rd ed.). France: OECD Publishing.
Phiriyakul, M. (2013). Analysis of the type structural equation model Second order model analytical techniques for second order SEM. Management Journal Faculty of Management Science Lampang Rajabhat University, 6(1), 97- 111.
Rindova, V. P. and Kotha, S. (2001). Continuous “Morphing”: Competing through dynamic capabilities, form, and function. Academy of Management Journal, 44(6), 1263-1280.
Sahoo, S. (2019). Quality management, innovation capability and firm performance empirical insights from Indian manufacturing SMEs. The TQM Journal, 31(6), 1003-1027.
Saunila, M., Ukko, J. and Rantanen, H. (2014). Does innovation capability really matter for the profitability of SMEs?. Knowledge and Process Management, 21(2), 134-142.
Silva, J. J. and Cirani, C. B. S. (2020). The capability of organizational innovation: Systematic review of literature and research proposals. Gestão & Produção, 27(4), 1-16.
Suliyanto, S. and Rahab, R. (2012). The role of market orientation and learning orientation in improving innovativeness and performance of small and medium enterprises. Asian Social Science, 8(1), 134-145.
Sulistyo, H. (2016). Innovation capability of SMEs through entrepreneurship, marketing capability, relational capital and empowerment. Asia Pacific Management Review, 21(4), 196-203.
Tindika, O. K. N., Wanjau, K. L., Kariuki, G. M. and Muchiri, J. (2020). Moderating role of environmental dynamism on the relationship between opportunity evaluation and growth of NGOs in Kenya. Expert Journal of Business and Management, 8(1), 98-109.
Tourism Authority of Thailand. (2021). Business sector data. Retrieved September 9, 2021, from http://dpa.dopa.go.th/DPA/hotel_report.php.
Türkaya, O., Solmaza, S. A. and S¬engül, S. (2011). Strategic analysis of the external environment and the importance of the information: Research on perceptions of hotel managers. Procedia Social and Behavioral Sciences, 24, 1060–1069.
Udriyaha, U., Tham, J. and Azam, S. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile SMEs. Management Science Letters, 9(9), 1419–1428.
Vanichbuncha, K. (2002). Statistical analysis: Statistics for administration and research (6th ed.). Bangkok: Chulalongkorn University Printing House.
Vanichbuncha, K. (2019). Structural equation analysis (SEM) with AMOS (4th ed.). Bangkok: Chulalongkorn University Printing House.
Wang, C. L. and Ahmed, P. K. (2004). The development and validation of the organisational innovativeness construct using confirmatory factor analysis. European Journal of Innovation Management, 7(4), 303-313
Wang, H. and Chen, W. R. (2010). Is firm-specific innovation associated with greater value appro priation? The roles of environmental dynamism and technological diversity. Research Policy, 39(1), 141-154.
Yaemkong, S. (2012). Cause-and-effect factors of relationship customer management capabilities. of hotel business in Thailand, Doctor dissertation, D.B.A., Sripatum University, Bangkok.