The moderating role of social network on the relationship between innovative capability and performance in the hotel industry

Abstract

Purpose A rise in international travel leads to increased competitiveness in the hotel industry. The purpose of this paper is to examine the moderating effect of social networking relationships on the association between innovative capability (IC) and firm performance in Ghana’s hotel industry. Design/methodology/approach Data are collected from managers of 200 registered hotels in the northern region of Ghana. Data were collected by means of a structured questionnaire, with variables measured on a seven-point Likert scale. Findings The findings reveal a mixture of confirmation for the relationships hypothesized in this study. IC influences the financial as well as the operational performance of hotels and guesthouses in Ghana. Social network relationships have a slight tendency to positively impact on business performance. Network relationships with the community leaders enable hotels to gain knowledge from local communities to build its IC. Social networking with political leaders does not moderate the relationship between IC and performance. Originality/value The findings provide empirical support for the viability and performance benefits of developing IC, so as to inform management interventions. It is focused on Sub-Saharan Africa specifically, where managers in the hospitality industry need to find new approaches to develop IC in order to remain competitive. The potential contribution of this study lies in the moderating role that IC plays in the relationship between different types of social networking relationship and performance of hotels.