The effect of Hotel Absorptive Capacity on Service Innovation: Knowledge-based Technology as Catalyst

Abstract

The objective of this study is to provide the theoretical justification related to positive influences of knowledge-based technology (KBT) and hotel operational absorptive capacity (OAC) on service innovation. This study has reviewed related literature published between 1990 and 2018. The finding of this study proposes a theoretical model -- knowledge-based technology (KBT) facilitates potential OAC process which enables a hotel to create stock of new knowledge to innovate, and realized OAC process enables a hotel to utilize stock of new knowledge to innovate. The proposed model contributes to an effective systemic operational knowledge to improve service innovation.