AN ANALYSIS OF MARKET ORIENTATION, SERVICE INNOVATIONS AND BUSINESS PERFORMANCES OF HOSPITALITY INDUSTRY IN ANCIENT CITIES OF SRI LANKA

Authors

  • A. A. K. K. Jayawardhana Department of Management Sciences, Faculty of Management Uva Wellassa University of Sri Lanka Sri Lanka
  • J. A. S. De Silva Department of Agricultural Extension, Faculty of Agriculture, University of Peradeniya Sri Lanka
  • A. M. T. P. Athauda Department of Agribusiness Management, Faculty of Agriculture and Plantation Management Wayamba University of Sri Lanka, Makandura Sri Lanka

Abstract

Market orientation (MKTOR) and service innovation (INNOV) are at the centre of attention of global business agenda as modes of reaping superior business performances. This study attempted to assess the impact of MKTOR on INNOV and sales performances in terms of Average Annual Sales Growth Rate (AASGR) within the hospitality industry in ancient cities of Sri Lanka. “Do the degrees of market orientation and service innovation in the industry lead to grasp superior business performances” was the question on which the research was designed. MKTOR was assessed on three main dimensions: customer orientation, competitor orientation and inter-functional coordination. INNOV was assessed based on new services that hotels introduced and AASGR was measured using sales volumes of hotels during the period from year 2007 to 2009. Data were collected from top level management of all 43 hotels registered in the ancient cities through interviews and administering a pre-tested questionnaire. Regression analysis, MANOVA and discriminant analysis were employed to analyse data. Results showed that MKTOR strongly and positively relates to INNOV and INNOV strongly and positively relates to AASGR. Further, the study ascertained that the degrees of MKTOR, INNOV and AASGR differ significantly from classified and non-classified hotel categories, and it further revealed that the type of strategic prioritization determines the degree of MKTOR, INNOV and AASGR. The study also identified some obstacles for lacking innovation and growth orientation, and lacking accessibility to new trends and information has found to be the most critical factor. The study strongly suggests that the business firms in hospitality industry in ancient cities of Sri Lanka should increase MKTOR as a mode of nurturing more service innovations and business performances to assure long term sustainability.


Key Words: Market Orientation, Service Innovations, Sales Growth, Tourism Industry, Ancient Cities in SriLanka

For full paper: fmscresearch@sjp.ac.lk

Published

2012-02-25

Issue

Vol. 8 (2011): Proceedings of the 8th International Conference on Business Management – 2011

Section

Articles