Factors Encouraging Innovation in Spanish Hospitality Firms

Abstract

An analysis of data from 443 Spanish hospitality firms highlighted four factors that encourage innovation. This original analytic model considered the joint effect on innovation of both internal and external factors but did not find that external factors—including government assistance programs—had a significant effect on hospitality innovation. The results confirmed a significant and positive relationship between hospitality innovation and four internal factors, namely, large firm size, membership in a business group (that is, a franchise, management contract, or membership association), willingness to change, and a sufficiently strong bureaucratic framework to manage and institutionalize any innovations.