Strategic thinking and innovation as panaceas for hotel performance in turbulent business environments

Figures & data

Figure 1. Conceptual model.

Table 1. Firm characteristics (N = 291).

Sample description	Frequency	Percentages
Firm size (employees)
Less than 30	96	33.0
30–99	109	37.5
100 or more	86	29.5
Firm age (years)
0 − 5 years	62	21.3
6–10 years	97	33.3
10–15 years	74	25.4
Above 15 years	58	20.0
Job position
Owner Manager /CEO	80	27.5
General Manager/senior executive	149	51.2
Head of operation	62	21.3
Industry
Hospitality	291	100

Table 2. Confirmatory factor analysis.

	Loading	CA	CR	AVE
Strategic thinking		0.918	0.921	0.652
The hotel is quick to adapt its strategies in response to changes in the market or industry.	0.786
The hotel regularly reviews and updates its strategic plan in light of changing conditions.	0.807
The hotel has a process in place for identifying and assessing new opportunities and threats.	0.835
The hotel has a process in place for developing and implementing strategies to exploit opportunities and mitigate threats.	0.813
The hotel is proactive in making decisions to adapt to changes in the business environment.	0.832
The hotel actively learned from crisis and adapted strategies for future resilience.	0.769
Strategic innovation		0.908	0.912	0.622
The hotel accepts demands that go beyond existing products and services	0.780
The hotel experiments with new products and services in our local market, e.g. utilizes new opportunities in new markets	0.804
The hotel commercializes products and services that are completely new to our organization	0.837
The hotel effectively integrates technology to improve guest services.	0.754
The hotel frequently refines the provision of existing products and services for our local market	0.788
The hotel regularly implements small adaptations to existing products and services	0.766
Hotel performance		0.876	0.885	0.586
The hotel adapts well to changing market trends and customer preferences, e.g. achieving predicted room and occupancy rates.	0.781
The hotel demonstrates efficient operational processes, e.g. booking, room service	0.778
The hotel has demonstrated strong financial performance.	0.810
The hotel has achieved a strong market share growth.	0.750
The hotel actively engages practices to enhance overall guest experience, e.g. check in, serving customers on time.	0.706

Table 3. Correlation matrix.

Variables	1	2	3	4	5	6	7
Firm age	1
Firm size	−0.109	1
R & D Function	−0.059	−0.035	1
Managerial position	0.071	−0.043	0.027	1
Strategic thinking	−0.024	−0.049	−0.008	0.023	0.807
Strategic innovation	−0.014	−0.012	−0.010	−0.008	0.434**	0.789
Firm performance	0.054	−0.056	0.026	0.022	0.450**	0.440**	0.766

**Correlation is significant at the 0.05 level (2-tailed). √AVE are bold.

Table 4. Heterotrait-monotrait ratio.

Variables	1	2	3
Strategic thinking
Strategic innovation	0.637
Firm performance	0.651	0.644

Figure 2. SEM model.

Table 5. Hypothesis path.

	β	S.E	T	p Value	95% CI	Decision
Controls
Firm age	0.321	0.283	1.132	0.258	−0.192–0.922
Firm size	−0.611	0.314	1.950	0.051	−1.298 – −0.048
R & D Function	0.030	0.036	0.839	0.402	−0.035–0.106
Managerial position	0.465	0.380	1.278	0.201	−0.258–1.242
Direct effect
ST → FP	0.449	0.064	7.054**	0.000	0.320–0.570	Supported
ST → SI	.0765	0.052	14.637**	0.000	0.648–0.848	Supported
SI → FP	0.372	0.064	5.824**	0.000	0.240–0.491	Supported
Indirect effect
ST → SI → FP	0.285	0.055	5.178**	0.000	0.175–0.391	Supported
Fit indices
R square, DV = FP, 0.697
R square DV = SI, 0.586

ST: strategic thinking; SI: strategic innovation; FP: firm performance

**Significant at the 0.05 levels.

Data availability statement

Data that support the findings of this study are available from the corresponding author, KKL, upon reasonable request.