Reinventing Service Climate in Hotels by the Role of Innovative Environment and Dynamic Capability

Rebuilding the post–COVID-19 damaged hospitality business has revealed myriad problems in organizational management. The hotel industry is having difficulty re-creating, maintaining, or even strengthening the service climate after the turbulence in the industry workforce caused by the pandemic. In this study, the authors addressed this neglected issue by proposing that external forces will be the best means of reestablishing the service climate in the resilient hotel businesses. An innovation-supporting environment and dynamic capability can be potential mediators of this relationship. Using the experience of Indonesian hotels, the authors explored these relationships by obtaining data from 329 managers from 77 hotels and conducting a path analysis using partial-least-square structural-equation modelling. The findings support all direct and mediating relationships, in addition to the external forces to service climate. Future studies can enhance global understanding of these issues by presenting a cross-country experience in a confirmatory analysis.