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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Enhancing Hotel Innovation through the Competing Values Framework (CVF) Model in Malaysia

Dian Aszyanti Atirah Mohd. Asri, Ainul Mohsein Abdul Mohsin, Suria Sulaiman

http://dx.doi.org/10.6007/IJARBSS/v14-i8/22095

Open access

The hospitality industry is widely recognised as a key driver of economic growth in modern economies, with hotels being a crucial sector that significantly contributes to the country’s revenue. Hotels are continually adapting their services and processes to meet evolving tourist demands due to the dynamic competition driven by globalisation. Nevertheless, hotels must demonstrate versatility and innovation to effectively address the increasing, unpredictable, and complex demands in order to maintain competitiveness in today's rapidly evolving markets, particularly in light of the impacts of COVID-19. Therefore, the present paper investigates innovation through a Competing Values Framework (CVF) model involving clan, adhocracy, market, and hierarchy cultures towards innovation. According to the Resource-Based View (RBV) theory, an organisation's culture may foster innovative behaviour among the employees by directing and motivating them to embrace innovation as an essential value of their organisation. Empirical research consistently shows a significant correlation between organisational culture and innovation. However, the specific impact of different cultural types on innovation within Malaysia's hotel industry was not clearly articulated in the study. This research elicited responses from the general managers using a questionnaire from a sample of 203 four- and five-star hotels in Malaysia. A total of 164 questionnaires were returned, and 101 questionnaires were usable. The data were analysed using partial least squares structural equation modelling (PLS-SEM). The findings reported that two types of organisational culture were significant predictors of innovation: adhocracy and market culture. Furthermore, it was concluded that the most agreeable cultural practices of the hotel industry in Malaysia were those of clan culture. This culture produced surprising results, showing that clan culture has a negative relationship with innovation. In sum, this study generates agenda for researchers to reach more conclusive evidence about the types of organisational culture practice towards innovation among the hotel industry players in Malaysia.