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Market turbulence and service innovation in hospitality: examining the underlying mechanisms of employee and organizational resilience

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  • Dagnachew L. Senbeto
  • Alice H. Y. Hon

Abstract

With changing customer demand, fierce market competition, and uncertainties, service organizations are facing dynamic or even highly turbulent environments. Fostering employees’ ability to innovate is an effective business strategy that can enable firms to overcome market turbulence and cope with these challenges. Drawing on resilience theory, this study examines (1) the mediating effect of employee resilience on the relationship between market turbulence and service innovation, and (2) whether such mediating process was moderated by organizational readiness for change. Data were collected from employees in the hospitality industry in a developing country, Ethiopia, and the results indicated that employee resilience partially mediates the relationship between market turbulence and service innovation. Moreover, the indirect link was stronger for hotels with higher readiness for change than for those with lower readiness for change. Implications for managers and directions for further research are also discussed.

Suggested Citation

  • Dagnachew L. Senbeto & Alice H. Y. Hon, 2020. "Market turbulence and service innovation in hospitality: examining the underlying mechanisms of employee and organizational resilience," The Service Industries Journal, Taylor & Francis Journals, vol. 40(15-16), pages 1119-1139, December.
    • Handle: RePEc:taf:servic:v:40:y:2020:i:15-16:p:1119-1139
    DOI: 10.1080/02642069.2020.1734573
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    Cited by:

    1. Gu, Xinbing & Chan, Hing Kai & Thadani, Dimple R. & Chan, Faith Ka Shun & Peng, Yi, 2023. "The role of digital techniques in organisational resilience and performance of logistics firms in response to disruptive events: Flooding as an example," International Journal of Production Economics, Elsevier, vol. 266(C).
    2. AlQershi, Nagwan & Saufi, Roselina Binti Ahmad & Ismail, Noor Azizi & Mohamad, Mohd Rosli Bin & Ramayah, T. & Muhammad, Nik Maheran Nik & Yusoff, Mohd Nor Hakimin Bin, 2023. "The moderating role of market turbulence beyond the Covid-19 pandemic and Russia-Ukraine crisis on the relationship between intellectual capital and business sustainability," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    3. Styliani Xanthopoulou & George Tsiotras & Dimitrios Kafetzopoulos & Eftychia Kessopoulou, 2023. "Investigating the Relationships among High-Performance Organizations, Knowledge-Management Best Practices, and Innovation: Evidence from the Greek Public Sector," Sustainability, MDPI, vol. 15(18), pages 1-17, September.
    4. Nay Chi Khin Khin Oo & Sirisuhk Rakthin, 2022. "Integrative Review of Absorptive Capacity’s Role in Fostering Organizational Resilience and Research Agenda," Sustainability, MDPI, vol. 14(19), pages 1-27, October.
    5. Namal Mete Kaan & Tufan Cenk & Köksal Kemal & Mert İbrahim Sani, 2023. "The Effect of Market and Technological Turbulence on Innovation Performance in Nascent Enterprises: The Moderating Role of Entrepreneur’s Courage," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 17(1), pages 1-19.
    6. Mu, Yu & Bossink, Bart & Vinig, Tsvi, 2022. "Developing a classification scheme of service innovation," Annals of Tourism Research, Elsevier, vol. 95(C).
    7. Liu, Dewen & Han, Shenghao & Zhang, Jieqiong, 2022. "The golden mean: Research on the mechanism of customer participation in employee service innovation," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    8. Amankwah-Amoah, Joseph & Adomako, Samuel, 2021. "The effects of knowledge integration and contextual ambidexterity on innovation in entrepreneurial ventures," Journal of Business Research, Elsevier, vol. 127(C), pages 312-321.
    9. Tai-Ming Wut & Stephanie-Wing Lee & Jing (Bill) Xu, 2022. "Role of Organizational Resilience and Psychological Resilience in the Workplace—Internal Stakeholder Perspective," IJERPH, MDPI, vol. 19(18), pages 1-14, September.

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