Effects of internal strategic resources and capabilities on service innovation

Abstract

This study aims to enrich the extant literature by investigating the predictive ability of IT capability on service innovation in the luxury hotel sector, with the mediating roles of organizational responsiveness and organizational learning capability. The study also examines how the alignments between and among IT capability, organizational responsiveness, and organizational learning capability affect service innovation. Results of structural equation modeling using a sample of 237 luxury hotels indicate that IT capability is positively related to service innovation, and organizational responsiveness has a positive mediating effect in this relationship. In addition, organizational learning capability positively mediates the link between IT capability and organizational responsiveness. Notably, the alignments between and among IT capability, organizational responsiveness, and organizational learning capability all positively influence service innovation. A bootstrap analysis of another sample of 213 luxury hotels confirms the relationships between the variables. This study’s findings provide implications for researchers and managers regarding enhancing service innovation for luxury hotels from the perspectives of IT capability, organizational responsiveness, and organizational learning capability.