Highlights
Abstract
Keywords
1. Introduction
2. Theory and previous research
3. Method
4. Results
5. Discussion
6. Conclusion
Acknowledgments
Appendix A. Innovation measure
References
Abstract
The purpose of this paper is to explore how sustainable human resource management (HRM) practices impact the innovation-customer satisfaction relationship in Swedish hotels. Responding hotels were profiled into four groups based on their involvement in two sustainable HR practices. The findings indicate the relationship between innovation and customer satisfaction is dependent on sustainable HR practices in the organization. Although innovation and sustainable HR practices impact customer satisfaction positively, their interaction suggests that the one can substitute the other to achieve superior customer satisfaction. The study concludes that sustainable HR practices enhance a hotel’s capability to innovate and to have satisfied customers. The relationship between sustainable HR practices and innovation is discussed.
1. Introduction
Innovations are identified as an important catalyst for economic survival and growth in the hospitality literature (e.g., Binder et al., 2013; Orfila-Sintes and Mattsson, 2009; Ottenbacher, 2007; Wikhamn et al., 2018). Their positive impact is well recognized. For instance, innovative hotels are reported to perform better in terms of occupancy rate (Mattsson and Orfila‐Sintes, 2014) and customer loyalty (Tsai, 2017). Chadee and Mattsson (1996) show that innovative new products and services improve the financial performance and reputation of a hotel. Storey and Easingwood (1998) also identify a positive link between innovation behavior and hotel reputation. Hjalager (2010) and Hall and Williams (2008) argue that innovations have positive impacts on customer preference, service quality, employee productivity, firms’ market value and share, and customer retention. Despite its significance, innovation and its relationship with organizational performance is a major challenge facing the hospitality industry globally (Hjalager, 2002; Miralles, 2010; Ottenbacher and Gnoth, 2005). Some research reports indicate that the innovation-performance relationship may depend on organizational factors, such as implemented HRM policies and practices (Wheatley and Doty, 2010).