Does technological innovation have an impact on employment in the hospitality industry?

Abstract

Purpose This study aims to empirically analyze the impact of technological innovation on the quantity and quality of employment in the hospitality industry. Design/methodology/approach Using the data of 30 provinces in China from 2010 to 2020, this paper makes an empirical analysis through the fixed effect model. Findings The results show that process innovation has a significant positive impact on employment quantity, while product innovation has a significant negative impact on employment quantity. The creative effect of process innovation and the substitution effect of product innovation offset each other, so in the long run, the impact of technological innovation on employment quantity is not significant. However, technological innovation has significantly improved the employment quality of the hospitality industry. Practical implications Because technological innovation has replaced part of the labor force, hospitality could guide the labor force in a positive direction. To promote innovation and retain talents, hotels should train employees’ digital thinking and attract high-skilled talents. Originality/value This research is unique in using process innovation and product innovation as the main measurement indicators of technological innovation, unlike previous studies that often relied on technological progress to conclude.