Innovation and Performance of Firms in the Tourism Industry in Zimbabwe: The Mediating Role of Service Quality

The study sought to assess innovation in the tourism industry in Zimbabwe. More specifically the study was guided by two key objectives. First, to determine antecedents to innovative behaviours in the tourism industry in Zimbabwe and second, to establish the impact of innovation on the performance of firms in the tourism industry. The quantitative method was used and generation of knowledge was guided by the positivist philosophy. The dynamic capabilities theory constituted the theoretical framework of the study. The study population was 2 068 hotel workers. Stratified random sampling was used to create the research sample. A sample size of 327 people was used in keeping with Krejcie & Morgan (1970) tables. The study followed the explanatory research design as it sought to address cause - effect issues. Data was collected electronically through a structured questionnaire with closed ended items. Reliability of the data was measured through Cronbach Alpha index which was found to be 0.88. Prior to the administration of the questionnaire to the respondents, a pilot study was conducted with 10 people from the hotel industry to validate the research instrument. Data was analysed through Stata software to test hypotheses and execute structural equation modelling. The study found out that the antecedents of innovative behaviour in the tourism industry were employee engagement, innovation networks, information technologies, innovation management and customer participation. It was also found that service innovation influences firm performance either directly or through service quality. Recommendations arising from the study are that firms in the tourism industry should promote innovation through: employee engagement; customer participation; innovation management; innovation networks and information technology adoption and that firms in the tourism industry should promote firm performance through service innovation direct or through service quality