Model of Improving Tourism Industry Performance through Innovation Capability

The capability of innovation is an important factor for the economic performance of tourism companies, (Martínez-Román etal. 2015). This study aims to examine the influence of innovation capabilities on product innovation and process innovation and then these results influence marketing performance. The design of the research is explanatory research with a quantitative approach. The population of this research is 168 starred hotels in southern Sumatra, the data used are primary data. Processing data used a structural equation model. The conclusion of this study shows that the capability of innovation influences product innovation and process innovation, which in turn influences marketing performance.

Keywords: innovation capability; product innovation; process innovation; marketing performance.