The effect of innovativeness and customer-oriented systems on performance in the hotel industry of Iran

PurposeInnovation and new services’ development are important strategic features to pledge sustainable wealth and growth for every industry, but in particular for those industries where markets are saturated and clients choose services and products from all over the world, such as in the case of the hospitality industry. In the hospitality context, there is little research on innovation. The purpose of this study is to understand how innovation and customer-oriented value systems can affect performance in the context of the hospitality industry.Design/methodology/approachA comprehensive literature review is conducted to identify the major indices of innovation in the context of the hospitality industry. A self-administered questionnaire survey was used, and the target population included the managers and employees who work in the 3- and 4-star hotels of Isfahan. The sample size was 226. A convenience sampling approach was used to collect the required sample.FindingsThe results of structural equation modelling indicated that customer orientation and innovativeness orientation have a significant influence on hotel performance. Furthermore, customer orientation influenced the innovativeness orientation of hotel employees.Originality/valueThis paper provides a valuable insight into the measurement of innovation, customer orientation and performance in the hospitality industry and offers a foundation for future hospitality innovation research.