How dynamic marketing and service innovation capabilities translate into hotel performance: The roles of service excellence and brand identity

Type of the article: Research ArticleAbstractDue to intense competition and rapidly changing customer needs, hospitality firms are forced to develop their capabilities, specifically dynamic marketing capabilities and service innovation capabilities․ The current research seeks to study the moderated mediation impact of brand identity on the relationship between dynamic marketing capability, service innovation capability, and hotel performance through service excellence․ To test the mediation and moderation hypotheses, we surveyed 450 senior hotel managers in the Indonesian setting․ Dynamic marketing capabilities (β = 0.420, p < 0․001) and service innovation capabilities (β = 0․380, p < 0․001) were found to have a positive effect on service excellence․ Meanwhile, service excellence also positively influences hotel performance (β = 0․560, p < 0․001)․ The results show that service excellence fully mediates the relationship between dynamic marketing capability and hotel performance (α = 0․281)․ Service excellence also partially mediates the relationship between service innovation capability and hotel performance (α = 0․278)․ Besides, brand identity positively moderates the relationship between dynamic marketing capability and service excellence (β = 0․354) and the relationship between service innovation capability and service excellence (β = 0․317)․ The findings advance the understanding of how hospitality companies can not only develop these capabilities but also deliver and develop service excellence in order to achieve good hotel performance, particularly with strong brand identity․AcknowledgmentThe authors express gratitude to the Faculty of Economics and Business Universitas Pelita Harapan Tangerang, Indonesia, for supporting this research.