Exploring The Internal Mechanism Between Top Management Commitment, Innovation Capability, And Service Performance, Moderated By The Direction Of Communication In The Thai Hotel Industry

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Sudarat Kliangsa-Art , Wanny Oentoro


The purpose of this research is to investigate the internal mechanism relationship between top management commitment, innovation capability, and service performance, moderated by the direction of communication. Resource-based view theory proposed that competitive advantage is enhanced by the organization’s resources and its capability. Specifically, the study applied directions of communication flow to determine the relationship between top management commitment and innovation capability that enhance organization’s service performance. The questionnaires were distributed to the accommodations industry with at least one star classification, and providing online service for 24 hours in Bangkok, Thailand. The result of the findings reveals that diagonal communication flow influence the most on the relationship between top management commitment and innovation capability toward service performance. Horizontal communication flow and vertical communication flow also report a great dedication to the service performance relationship. It is suggested that the communication in the organization should be monitored in all direction. Given that, the study contributed to the resource-based view (RBV) theory by incorporating directions of communication flow into the model as a moderating mechanism that strengthen the relationship between resource and service performance. Therefore, the findings clearly recommended that organization should emphasize on the diagonal communication because it helps enhancing the organization’s service performance which results to profitability and growth.

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