The Impact of Service Innovation on Tourist Satisfaction: Evidence from the Malaysian Tourism Industry

Author(s):  
Boon Liat Cheng

Objective - This study proposed a model to test the impacts of the four dimensions of service innovation (i.e., process innovation, organisational innovation, marketing innovation and product innovation) on tourist satisfaction in the Malaysian tourism. Methodology/Technique - Measurement items for the dimensions of service innovation were developed through focus group interviews. A convenience sampling approach was adopted with the distribution of 400 questionnaires among local and foreign tourists. Statistical tolls in the Statistical Package for the Social Sciences (SPSS) were adopted to analyse the reliability of items and the hypothesised relationships in the proposed research model. Findings - The findings reveal that the respective dimensions of service innovation are significantly related to tourist satisfaction. These findings contribute to the services marketing body of knowledge by providing insight on the impact of service innovation on tourist satisfaction. Novelty - Limited studies have been done to examine the impact of service innovation dimensions on tourist satisfaction.The findings of this study contribute to the services marketing body of knowledge by providing insight on the impact of service innovation on tourist satisfaction. At the same time to address the practical implications by recommending relevant and effective service innovation strategies for the tourism industry in Malaysia. This knowledge is useful for benchmarking better service innovation practices among the industry practitioners. Type of Paper - Empirical Keywords: Service Innovation; Process Innovation; Organisational Innovation; Marketing Innovation; Product Innovation; Tourist Satisfaction

Author(s):  
Simbarashe Muparangi ◽  
Forbes Makudza

The purpose of the study was to assess the impact of innovation on business performance of informal small business traders in Zimbabwe. The Open Theory of Innovation informed the study whilst data for the study was gathered using structured questionnaires where 175 informal small to medium enterprises (SME) offered validated responses. A causal, quantitative approach was assumed and data was analyzed using SPSS 22 software to identify the association, strength and direction of innovation and innovation determinants on SME performance. The results revealed that innovation is determined by product, process, marketing and organisational factors. The study thus found out that product innovation, process innovation and marketing innovation have strong positive association with SME performance (P < 0.05). However, the study found an insignificant association between organisational innovation and SMEs performance. The study thus concluded that for informal SMEs to enhance their performance and graduate from being small entities to large corporates, they should embrace product innovation, process innovation and marketing innovation.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cheng Boon Liat ◽  
S.R. Nikhashemi ◽  
Michael M. Dent

Purpose Having Middle Eastern tourism industry as the context, this study aims to examine the impact of the four main dimensions within service innovation (i.e. product, process, organizational and marketing innovations) on tourist satisfaction; subsequently, towards the development of destination loyalty. Realized that religiosity prevails as an important social force that shapes individual behaviours, this study, hence, placed further assessment upon its moderating role, specifically in the relationships between tourist satisfaction and destination loyalty. Design/methodology/approach With adopting the approach of self-structured questionnaire, 214 usable responses had been collected for this study. Obtained data was then analyzed by conducting exploratory factor analysis, confirmatory factor analysis and multiple linear regression analysis through the usage of structural equation modelling. Findings Analysis of obtained data has revealed all the investigated dimensions within service innovation as active predictors to tourist satisfaction, with the exception of product innovation, while having marketing innovation being of highest significance. In turn, tourist satisfaction is found to greatly influence the formation of destination loyalty. Findings then provide notable indication on religiosity as a moderating factor to the proposed relationships within the investigated framework, between service innovation and tourist satisfaction, as well as tourist satisfaction and destination loyalty. Originality/value This study, thus, revealed the level of religiosity, particularly from the standpoint of Islamic perspectives, in playing a critical role towards predicting capability of service innovation on tourist satisfaction, and further, destination loyalty. Contributions hereby lie on theoretical and pragmatic insights concerning aspects of service and Islamic marketing within today’s tourism front.


Author(s):  
Frederick Farai Muchena ◽  
Osaro Aigbogun

This study evaluates the extent to which product, technology, service, and process innovations influence the sustainability of Healthcare service businesses. The context of the study is Premier Service Medical Investments (PSMI) Limited, Zimbabwe. A quantitative research, with a deductive approach was conducted using a self-administered structured questionnaire which was anchored on a 7-point Likert scale for gathering survey primary data. A purposively recruited sample of 350 employees with leadership responsibilities, were drawn from executive, middle management and supervisory levels. After testing and validating the reliability and validity of the questionnaire measures, a logistic regression was run to test the research hypotheses. The results reveal the following: Service Innovation had a positive relationship with Sustainability, indicating that a unit increase in Service Innovation has an effect of a 256% increase in odds of Sustainability. Product Innovation had a negative relationship with Sustainability, indicating that a unit increase in Product Innovation has an effect of a 13% decrease in odds of Sustainability. Technology Innovation had a positive relationship with Sustainability, indicating that a unit increase in Technology Innovation has an effect of a 25% increase in odds of Sustainability. Process Innovation had a positive relationship with Sustainability, indicating that a unit increase in Process Innovation has an effect of a 117% increase in odds of Sustainability. Moreover, using the linear regression method, the variable Service Innovation indicated that with an additional service, Sustainability increases by 27.1%. Technology Innovation showed that with an additional technology, sustainability increases by 4.3%. Process Innovation indicated that with an additional process, Sustainability increases by 36.6%. From the results, using the both the logistic and linear regression models, the findings indicate that strategic innovation significantly influences sustainability of healthcare services business in Zimbabwe. Arising from this research, sustainability of healthcare care business is seen to be triggered and driven by all 4 types of innovation evaluated in this research, namely: service, process, product and technology. It is recommended that these innovation dimensions be implemented within a defined internal environment supported by an innovation hub. Keywords: Sustainability, Strategic Innovation, Logistic Regression, Linear Regression, Process Innovation, Service Innovation, Product Innovation, Technology Innovation


2019 ◽  
Vol 23 (07) ◽  
pp. 1950069
Author(s):  
JUSTIN DORAN ◽  
NOIRIN McCARTHY ◽  
MARIE O’CONNOR

This paper analyses the knowledge sourcing, transformation, and exploitation stages of the innovation value chain for a sample of Irish small to medium sized enterprises (SMEs) using Community Innovation Survey data. It explores the role of internal research and development (R&D) and external knowledge on SMEs’ innovation and performance. The open innovation paradigm, which stresses the importance of external linkages, is used to examine the impact of different external knowledge sources on SMEs’ innovation. The consideration of external linkages in the innovation performance of SMEs is crucial as these firms may be constrained in their ability to perform R&D due to their size. The analysis expands the traditional CDM methodology beyond the consideration of research and development as the sole source of knowledge for innovation by also considering a range of potential external knowledge sources. The findings indicate that SMEs generate knowledge internally through the performance of R&D, while also exploiting linkages to external agents. However, the impact of external sources of knowledge is not uniform. The results suggest that backward linkages have a positive impact on SME product innovation, but negatively affect SME process innovation, while public knowledge sources are positively related to the probability of product innovation occurring. This may have important policy implications. Finally, process innovation is also found to be a key determinant of SME productivity, while product innovation has no impact on SME performance.


2013 ◽  
Vol 5 (2) ◽  
pp. 113-118 ◽  
Author(s):  
Sunday Amiolemen ◽  
Olutunde Babalola ◽  
Stephen Adegbite ◽  
Idowu Ologeh ◽  
Olapeju Adekola ◽  
...  

The paper examined the dimensions of innovation in small scale manufacturing firms with a view to understanding the interaction and relationship among product innovation, process innovation, organizational innovation, and marketing innovation. It further determines the relationship that exists between sales turnover and the four dimensions of innovation. Forty-six small manufacturing firms were sampled across the 4 major small scale Industrial Estates in Lagos State. The paper observed that these small firms engaged mainly in process innovation. The correlation analysis revealed a significant relationship between marketing and process innovation (r = 0.51; p<0.01) while there is no causality between product and process innovation (r = 0.31; p<0.05); product innovation and organizational innovation (r = 0.22; p<0.05); product innovation and marketing innovation (r = 0.11; p<0.05); and process and organizational innovation (r = 0.27; p<0.05) in these firms. The paper concludes that these firms are solely interested in upgrading and renewal of products, improving new methods of production, supply and distribution. The paper finally submitted that the observed trend is not unconnected with poor R&D initiative between small firms and research institutions, poor technological innovation capability of firms, and poor linkages/collaboration among stakeholder on new product development.


2021 ◽  
Vol 5 (4) ◽  
pp. 13-29
Author(s):  
Hayek Talia Vergera ◽  
◽  
Derbez W. Mariano ◽  
Benito A. Lopez ◽  
◽  
...  

Strategic Innovation Management is critical for firms that are in pursuit of improved efficiency and their reward is often an increase in their profits and their market share. Process of Strategic Innovation Management is strongly associated with organizational learning and refers to ability of organization to generate, accept and implement new ideas, processes, products or services. The primary goal of process innovation is to generate a notable increase in productivity or to drive down costs significantly. This approach can help organizations achieve major reductions in process cost, improvements in quality, service levels and other business objectives. Strategic Innovation Management is contributor to creation of new markets and products for the market, however even after the benefits of Strategic Innovation Management has been established the impact of Strategic Innovation Management on efficiency of State Owned Enterprises has remained misunderstood. The specific objectives of the study were; to establish the effect of Service innovation on the efficiency of State Owned Enterprises in Mexico City, to establish the effect of product innovation on the Efficiency of State Owned Enterprises in Mexico City. The study used a desk study review methodology where relevant empirical literature was reviewed to identify main themes. Result findings from literature-based review indicated that innovation had positive and significant influence on the efficiency of State Owned Enterprises. It was recommended that innovation information should be available particularly to regulatory and advisory bodies for guidance to the State Owned Enterprises on the need to craft and employ sound strategies geared towards continuously embracing innovativeness since innovation leads to improved financial efficiency. Keywords: Product Innovation, Service Innovation, Efficiency.


2019 ◽  
Vol 4 (16) ◽  
pp. 10-26
Author(s):  
Mahadzirah Mohamad ◽  
Nur Izzati Ab Ghani ◽  
Muhamad Nasyat Muhamad Nasir

The competitive situation and challenges within the tourism industry worldwide entailed a better understanding of destination loyalty’s determinants in achieving Malaysia’s aspiration to retain its international reputation as one of the most desirable tourist destinations in Asia. Literature proved that factors such as perceived value, service quality and tourist satisfaction could influence in improving destination loyalty. In view of this, there is a need to examine the influence of several constructs namely perceived value, service quality and tourist satisfaction that can contribute to the loyalty of international tourists towards Malaysia as it was suggested in the literature review. Therefore, the main objectives of this study were to examine the influence of perceived value and service quality on tourist satisfaction, which in turn would influence destination loyalty. In this study, tourist satisfaction was treated as the mediating variable. The proposed model was tested using structural equation modeling on a sample of 337 foreign tourists selected using a random sampling method. The study was conducted from August 2014 to October 2014. The proposed model achieved acceptable goodness-of-fit. The requirements for reliability and validity were also met. The results of the empirical study indicated that perceived value influenced tourist satisfaction and destination loyalty. In addition, the findings revealed that service quality had a significant effect on satisfaction. However, service quality had no significant effect on destination loyalty. Moreover, the findings indicated that tourist satisfaction had a full mediating effect on the relationship between service quality and destination loyalty. The study contributed to a better understanding of behavioral factors that would represent a sustainable source for increasing customer retention at the level of individual providers as well as a destination as a whole. Individual providers should focus on delivering quality services related to accommodation, information and facilities, health and hygiene, and shopping that were associated with the visitor’s travel experience. Aspects of perceived value identified in the study could be used as a strategic tool in managing tourism offerings which could enhance the destination’s competitive edge.


2021 ◽  
Vol 58 (1) ◽  
pp. 5152-5163
Author(s):  
Dr. Naveen Nandal Et al.

The purpose of this research is to analyze the determinants of product innovation and its impact on the financial performance of the organizations. Specifically, the study examines the impact of intelligence generation, intelligence dissemination, product-process innovation, marketing support of the product, quality, Dependability/ Delivery, Technology selection, Flexibility on the financial performance of the automobile companies. The models of product innovation provided the theoretical framework for the research. The model of product-process innovation provides the basis for further research. The first concept explains the link between organizations surroundings and its innovation targets (Utterback JM 1974, 1975) (Miller & Friesen, 1982)(Milling, 1996) whereas the second concept explains the connection between firm’s performance level i.e. innovative performance, financial performance, organizational performance and marketing performance and its innovation types i.e. product innovation, process innovation, organizational innovation and marketing innovation (Abernathy & Townseed, 1975) (Abernathy & Utterback, June/July 1978) (Gunday, et al., 2011). From these concepts evolved this study i.e. to evaluate the impact of product innovation on the financial performance of the organizations.


Author(s):  
Yan Hong ◽  
Gangwei Cai ◽  
Zhoujin Mo ◽  
Weijun Gao ◽  
Lei Xu ◽  
...  

After the outbreak of COVID-19 (especially in the stage of tourism recovery), the bed and breakfast (B&B) tourism industry faced big challenges in improving its health strategies. B&Bs are very important for the tourism industry in China and many other countries. However, few studies have studied the impact of B&Bs, under COVID-19, on tourism in China. Our paper is among one of the first studies to investigate the impact of COVID-19 on tourist satisfaction with B&Bs in China. The work/travel restrictions started from 20 January 2020, and work/after travel resumed from 20 February 2020 in Zhejiang, China. Data were collected from 588 tourists (who experienced B&Bs in Zhejiang, China) from a WeChat online survey, from 1 March to 15 March 2020. The current study attempted to fill the gap by studying the changing tourist satisfaction levels with B&Bs before/after COVID-19. Moreover, some suggestions are given to the B&B industry for tourism resumption after COVID-19 by an importance–performance analysis (IPA).


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