Unlocking performance: how innovation and employee resilience shape competitive advantage in the hotel industry

Purpose This study aims to examine how products, services and technology innovation enhance employee resilience, competitiveness and business performance in the hotel industry in Thailand. Design/methodology/approach This study used a quantitative approach. Data was collected from 425 hotel employees through a structured questionnaire. The responses were analyzed using partial least squares structural equation modeling, providing a strong foundation for drawing impactful conclusions. Findings The results of this study underscore the pivotal role of service innovation in driving competitive advantage. Employee resilience acts as a significant mediator in the relationship between service innovation and business performance. Both product and technology innovations also play a positive role in enhancing competitive advantage through employee resilience. Furthermore, the analysis reveals that employee resilience and competitive advantage fully mediate the relationship between product, service and technology innovations and business performance, emphasizing the importance of these factors in the hotel industry. Practical implications The results provide significant implications for hotel owners, managers and employees to enhance resilience and foster innovation. This study supports hotels in improving employees’ ability to adopt innovations and strengthen their resilience, ultimately unlocking the full potential of their workforce. The findings offer practical strategies for implementing innovation and resilience, equipping the industry to gain a competitive advantage through service differentiation. Originality/value Although the importance of competitiveness and business performance in the hotel industry is widely recognized, the hospitality literature lacks sufficient investigation into how hotel innovation supports operations and how employee resilience contributes to these outcomes. This study, with its unique focus on the influence of innovation and resilience on competitiveness and business performance, fills this gap. Drawing on dynamic capabilities and resource-based theories, the proposed model explores these relationships within the context of Thailand’s hotel sector, offering a fresh perspective and valuable insights.