Antecedents and Consequences of Service Innovation: An Empirical Study of Touring Business in the Southern Part of Thailand

Abstract

The objectives of this study was to investigate the relationships between the antecedents affecting service innovation, namely, entrepreneurial orientation, market orientation, service co-production, information technology adoption, human resource practice, and their relationships with service innovation affecting consequences, which was service performance taking into consideration business environments in selecting strategic factors leading to organizational competitive potential development. The subjects of the study were entrepreneurs and executives of 340 touring businesses in the Southern part of Thailand.  The data were collected through structural equation modeling.  The results of the study revealed the following. 1) Marketing orientation and human resource practice had positive direct effects on service innovation. 2) Entrepreneurial orientation, service co-production, and information technology adoption had indirect effects on service innovation. 3) Service innovation had positive direct effects on service performance and 4) the goodness of fit of the statistical model fitted well to the evident data.