How dynamic marketing and service innovation capabilities translate into hotel performance: The roles of service excellence and brand identity

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Type of the article: Research Article

Abstract
Due to intense competition and rapidly changing customer needs, hospitality firms are forced to develop their capabilities, specifically dynamic marketing capabilities and service innovation capabilities․ The current research seeks to study the moderated mediation impact of brand identity on the relationship between dynamic marketing capability, service innovation capability, and hotel performance through service excellence․ To test the mediation and moderation hypotheses, we surveyed 450 senior hotel managers in the Indonesian setting․ Dynamic marketing capabilities (β = 0.420, p < 0․001) and service innovation capabilities (β = 0․380, p < 0․001) were found to have a positive effect on service excellence․ Meanwhile, service excellence also positively influences hotel performance (β = 0․560, p < 0․001)․ The results show that service excellence fully mediates the relationship between dynamic marketing capability and hotel performance (α = 0․281)․ Service excellence also partially mediates the relationship between service innovation capability and hotel performance (α = 0․278)․ Besides, brand identity positively moderates the relationship between dynamic marketing capability and service excellence (β = 0․354) and the relationship between service innovation capability and service excellence (β = 0․317)․ The findings advance the understanding of how hospitality companies can not only develop these capabilities but also deliver and develop service excellence in order to achieve good hotel performance, particularly with strong brand identity․

Acknowledgment
The authors express gratitude to the Faculty of Economics and Business Universitas Pelita Harapan Tangerang, Indonesia, for supporting this research.

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    • Figure 1. Proposed research model
    • Table 1. Descriptive statistics and correlations
    • Table 2. Reliability, validity, and discriminant validity
    • Table 3. Structural model path coefficients
    • Table 4. Moderation analysis results
    • Conceptualization
      Evo Sampetua Hariandja
    • Data curation
      Evo Sampetua Hariandja, Indra Santo
    • Formal Analysis
      Evo Sampetua Hariandja, Indra Santo
    • Funding acquisition
      Evo Sampetua Hariandja
    • Investigation
      Evo Sampetua Hariandja, Indra Santo
    • Methodology
      Evo Sampetua Hariandja, Indra Santo
    • Resources
      Evo Sampetua Hariandja
    • Software
      Evo Sampetua Hariandja
    • Supervision
      Evo Sampetua Hariandja
    • Validation
      Evo Sampetua Hariandja, Indra Santo
    • Writing – original draft
      Evo Sampetua Hariandja
    • Writing – review & editing
      Evo Sampetua Hariandja, Indra Santo
    • Project administration
      Indra Santo
    • Visualization
      Indra Santo