Topic: BusinessAccounting

Last updated: March 16, 2019

of service innovation success, market synergy (Cooper and De Brentani, 1991; De Brentani and Ragot, 1996) and market attractiveness are particularly important influences. In process-related determinants, the implementation of a proficient and market-oriented new product development process including pre-launch activities (Atuahene-Gima, 1996), employee involvement in the process (De Brentani, 1991), supporting the new project with excellent communication (Edgett, 1994) and effective process management during the process (De Brentani and Ragot, 1996) have been shown to be important. Finally, organizational-related determinants include synergies between the new service and the marketing, managerial and financial resources (De Brentani, 1991). This type of innovation emphasize more researchers (OECD & Eurostat 2005). Hjalager (2002) distinguishes four types of innovation dealing with competencies: regular innovations, niche innovations, architectural innovations, and revolutionary innovations. While niche innovations emphasize the new cooperation and untouched existing competencies, architectural innovations introduce new structures and redefine relationships to stakeholders. And also this study mention another five innovation types, product innovation, process innovation, market innovation, logistics innovation and institutional innovation.

Production innovation mean launch new product or services or increase the production mix, process innovation is new way of producing products or providing the services including new roles for delivery process, market innovation is new modes of communicating with among with the others in external and internal environment, logistics innovation mean new constellation of services and organization of flows, finally institutional innovation is emergence of new organization and new way of providing organization performance. Cihan, Kateina, Michael and Mehmet (2011) measure impact of innovative technology amenities on guest satisfaction. It measure guest satisfaction by used four type of innovation: in room technology innovation, comfort technology innovation, business essential innovation and internal assess innovation. This type of innovative technologies are impact guest satisfaction not also those are affect to the hotel operation. Because operational or organization performance can measure through customer satisfaction. There is literature about the relationships among innovation with service quality, customer satisfaction and the consumer loyalty, the gap in studies relationship among the performance and the innovations.Birgit Pikkemaat and Mike Peters discuss innovation as competitive advantage in the tourism and in particular, in the small and medium sized hotel industry (Michael Attenbacher, Vivienne Shaw, and Andrew Lockwood; 2014). However Less research has been carried out on innovation in the tourism industry (Hjalager, 2002; Weiermair and Peters, 2002; Keller, 2004; Pikkemaat, 2005; Pikkemaat and Weiermair, 2004, Inanovic 2010; OECD & Eurostat 2005).

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From the authors’ point of the view recently two studies combined both empirical measurement of innovation with guest satisfaction and the performance (Cihan Cobanoglu, Kateina Berezina, Michael L. Kasavana and Mehmet Erdem, 2011; Weiermair, 2003). This research dimension categories according to Birgit Pikkemaat and Mike Peters study: reservation technology innovation, in room technology innovation, comfort technology innovation, business essential innovation and internal assess innovation. 2.

3.2. Innovative technological amenities in hotels and performanceCihan Cohaniglu, Kateina, Michael L. Kasava and Mehmet Erdem (2011) emphasis on there is positive relation between innovation and guest satisfaction. This research found comfort technologies impact guest’s overall satisfaction. In additionally this research emphasis comfortable technologies and business essential technologies impact to business travelers. And this research find the highest rated guest satisfaction amenities, there are in room voice mail/ messaging, in room fitness system, in room guest control panel, In room universal battery charger, Also least satisfaction amenities are check in and check out system in room PC, in room telephone, in room alarm clock and the easily accessible electronic outlets.

Srikanth Beldona and Cihan Cihanoglu (2007) emphasis innovation have only a marginal impact on hotel performance. It also analysis best five innovative technological amenities, there are in room temperature control system, online reservation capabilities, easily accessible electronic outlets, wireless internet access in hotel and the business center amenities. Ani Bilgihan, Fevzi Okumus, Khaldoon Nusair and David joon- Wuk Kwun (2011) emphasis on IT capabilities and IT competencies can help hotel companies achieve competitive advantage. This research categories IT base innovation amenities into four section, there are front office application, back office applications, restaurant and banquet, and guest-related interface application. Under this research reservation system, check in/ check out system, in house guest information function, guest accounting modules, purchase and inventory modules, beverage control system, menu management system, electronic locking system, and Guest operated devices amenities classify according to above four categories.

Korczynski (2002) Modern Information application of systematic are involves human resource management careful selection of employees, employee training, empowerment, low formalization, behavior-based evaluation and a strategic approach to human resource management. In this research measure the innovative technological amenities and its impact on performance. 2.

4. Organizational performanceHigh number of innovative technologies has in the hotel industry, those innovation directly impact to the hotel performance. According to the Louise James organization performance relates to successfully an organized group of people with a particular purpose perform a function. Organization performance measure different ways: financial, employee, marketing, and operational performance. The evaluation of new services and products is most frequently based on financial measures of performance (Montoya- Weiss and Calantone, 1994).

Nevertheless, using only financial measures is too limited, because it neglects several aspects of benefit to the company. The findings of success studies in innovation have shown that success on one specific dimension of performance does not necessarily mean success on the other performance dimension (De Brentani; 1991).Study of Ottenbacher (2014) mention four innovative factors that influence of chain hotels’ performance of new service development on organizational relationship: market attractiveness, new service development process management, market responsiveness and empowerment. And that study emphasize five key success factors for independent hotels innovations: training employee, effective marketing communication, evaluation behavior, marketing synergy and employee commitment. Innovation includes planned employee training programs to improve the performance of individuals and groups of employees. Innovation the changes employees’ knowledge, skills, attitudes and social behavior (Cascio, 1989). Training of operational level employees is critical in order to enhance front-line expertise (De Brentani and Cooper, 1992). Innovation are used for marketing aspect of the launch were better & right targeted customer and better & right communication.

It should result in more effective advertising or promotion than competitors, and create a better brand image (Ottenbacher, Shaw, and Lockwood; 2014). New service development performance measure along 12 dimensions: total sales, improved loyalty, improved image, enhanced profitability, market share, profitability, and sales of hotel services, new markets opened up, new customers attracted, cost efficiencies, customer satisfaction, positive employee feedback and competencies of employees.2.4.1.

Operational performance Brentani (1991) findings success studies in innovation have shown success on one specific dimension of performance does not necessarily mean success on the other performance dimension. This study measures operational performance along six dimensions: market share, new services innovation, cost efficiencies, customer satisfaction, positive employee feedback and service quality. And also According to Ige Pirnar and Cagri Bulut (2010) Operational performance measure by market share, new service introducing, service quality, marketing effectiveness, and customer satisfaction. And Michael Ottenbacher, Vivienne Shaw, Andrew Lockwood (2014) are investigation of the factors affecting innovation performance in chain and independent hotels. That research performance measure dimension are total sales, market share, profitability, improved loyalty, improved image, enhanced profitability and sales of other hotel services, new markets opened up, new customers attracted, cost efficiencies, customer satisfaction, positive employee feedback and competencies of employees. In this research measure hotels’ operational performance in Galle district.

This research measuring dimension obtain according to evaluating past researches (Ige Pirnar and Cagri Bulut, 2010; Michael Ottenbacher, Vivienne Shaw, Andrew Lockwood; 2014). New service introduction This is illustrated by Hult (2004), who note that “Innovative technologies is likely to be useful for allowing the firm to pre-empt competitors with improved new products, diversify products lines, and expand the firm’s scope of activities. All of these outcomes can help contribute to achieving sustainable competitive advantage.” Evidence from this study also points to the importance of managerial emphasis on the creation of an internal business environment conducive to innovative activities, focusing on the needs of the customer.

Specifically, customer orientation, entrepreneurial orientation with innovativeness was found to have a positive effect on business performance in the long-term (K. Tajeddini, 2010). The purpose of this study was twofold: to measure hotel operational performance through the number of new products or services introduction with existing technology- based amenities.

Cost efficienciesCost efficiency means comparison of the work input and the work output level. The amount of work could refer to time, effort, capacity, or tangible item. High level of efficiency implies a minimal amount of wasted time, effort, capacity, and material. In three method used to measure the cost efficiency: first way is labor efficiency: difference between actual labors worked hours and standard hours multiplied by standard labor cost: Second way is material yield variance: different between actual and standard hours works multiplied standard cost per unite. Third way is variable overhead efficiency variable: different between actual and standard overhead rate multiplies standard overhead cost. The purpose of this study was twofold: to measure hotel operational performance through the level of cost efficiencies with existing technology- based amenities. Time saving According to the Brencic, Vera and Youg (2009) time is the major input into production of good and services. The study of “time saving innovations, time allocation, and energy us: evidence from Canadian households” highlight time saving is innovations allows household to change their activities patterns and to reallocate their time across competing activities. This study mansion adoption of time- saving technologies for basic household chores, such as meal preparation and laundry, can impact energy use due to the fact that time saving technologies. 2.

4.1.4. Service quality Service quality defined as the customer gets out and is willing to pay for services or products rather than what the supplier puts in (Ducker, 1991). Service Quality has been identified as to which extent where the service fulfils the needs or the expectations of consumers. Service can also be defined as an intangible offer by one party to another.

Service Quality should start from the needs of the customer and ends with customer satisfaction or dissatisfaction and positive or negative perception of service quality. Both consumer and service provider have a significant value on service creation or the delivery process. Somehow the complete definition for Service Quality was defined as “a long term process of cognitive evaluation of service delivery in the firms, according to the above mentioning it implies that the customer has a particular service standard in mind prior to the service consumption, observe the service performance and then compare it with their expectation and the prior experience after that they are forming the satisfaction based on the comparison (Lovelock, 2002). The purpose of this study was twofold: to measure hotel operational performance through the level of service quality with existing technology- based amenities.2.5. HypothesisAccording to the Kayhan Tajeddini’s study customer orientation, entrepreneurial orientation, and innovation technology have a positive impact on hotel service performance.

This research highlight customer orientation and innovation technologies has positional advantage. Birgit Pikkemaat & Mike Peters (2014) study innovative technological amenities in the small and medium sized hotel industry. Under their research they testing six hypothesis. According to their one of hypothesis larger and stranded hotels are use the more innovative technological amenities.

And also innovation are positively impact to hotel performance by increasing the quality of the hotel. It’s identify three indicator to measure the degree of innovation. Cihan, Kateina, Michael and Mehmet (2011) study relationship between overall accommodation-based customer satisfaction and the innovative technological amenities. According to past researchers’ empirical gap in this research measure the impact of the innovative technological amenities on hotels operational performance by using service quality, customer satisfaction, and time save and cost effective.

According to Cihan, Kateina, Michael and Mehmet study this research also take their dimensions to develop the hypothesis.


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