Innovativeness and Profitability: An Empirical Investigation in the Norwegian Hotel Industry

Izabela L. Sandvik, Dale F. Duhan, Kåre Sandvik

Research output: Contribution to journalArticle

32 Scopus citations

Abstract

This study addressed the relationship between the innovativeness of hotels and their profitability. The authors propose that innovativeness and the visibility of the benefits to customers from innovative activities both serve as endogenous variables. Competitive market advantage, sales growth, and capacity utilization serve as mediators. Both key informants and financial statements provided data for a sample of 298 hotels. The results show that the relationship between innovativeness and profitability is positive and fully mediated.

Original languageEnglish
Pages (from-to)165-185
Number of pages21
JournalCornell Hospitality Quarterly
Volume55
Issue number2
DOIs
StatePublished - May 2014

Keywords

  • capacity utilization
  • innovativeness
  • market advantage
  • profitability
  • sales growth
  • visibility of customer benefits

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