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ScienceDirect

Procedia - Social and Behavioral Sciences 99 (2013) 752 – 761

9^th International Strategic Management Conference

Innovation and sustainable growth measurement in hotel industry: A hierarchical decision making model

Gizem ^a , ^b , Sinan Apak^c, c

a Gebze Institute of Technology, Kocaeli, 41400, Turkey

b 030, Turkey

cMaltepe University, Istanbul, 34857, Turkey

Abstract

The paper focuses on consideration of how to use indicators to monitor innovation and sustainability in a relevant and useful manner in tourism industry. Integrated information on sustainable development of a hotel is very essential for decision-making since it is very difficult to evaluate the performance of the company on the ground of too many indicators. The objective of the work was to design a model for obtaining composite sustainable development criteria in order to measurement on sustainable growth and innovation. industry concepts to present a conceptual framework. This was applied by determining the impact of individual indicator to the overall sustainability of a company using the concept of analytic hierarchy process.

Keywords: Analytic hierarchy process, Innovation and sustainability, Tourism and hotel industry.

2013 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the 9^th International Strategic

Management Conference

copy; 2013 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license.

Selection and peer-review under responsibility of the International Strategic Management Conference.

Introduction

In todays competitive business environment the major problem of companies to continued presence of their financial growth and assets, which they have to overcome on it. In this context, the scholarly studies usually focus on innovation and sustainability issues. The term of innovation basically describes a new generated idea that creates a business value, which is totally different than existing practices (Narvekar and Jain, 2006). And sustainability refers to being in relationship with the firms compliance with its whole organic environment without damaging the relationship by ensuring the continuation of this relationship (Wilson et al., 2007).

Actually, there are lots of studies in the literature concerning sustainable growth and innovation. For instance, successful innovation can be achieved through an integrated dev positioning, organization of work, technology and people (Sexton and Barrett, 2003). Beside, a strong link is found between market orientation-innovation and corporate performance (Han et al., 1998) and also between export orientation and innovation performance (Bagchi-sen and Macpherson, 1999). However, since now no study has analyzed the innovation effect and sustainable growth in hotel industry.

Tourism industry and hotel business operate both nationally -

Corresponding author. Tel. 90-216-626-1050 fax. 90-216-626-1070 Email address: sinanapak@maltepe.edu.tr

1877-0428 copy; 2013 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license. Selection and peer-review under responsibility of the International Strategic Management Conference. doi:10.1016/j.sbspro.2013.10.547

hotels are only operate national basis. For this reason, it can be claimed that there is a 'power asymmetry' in the hotel industry. As local boutique hotels having limited resources what extent they can be able to implement innovative approaches and they can perform sustainable growth in competitive business life. The aim of this paper is to answer this research question. Therefore, this study initially investigates tourism (service) industry concepts to present a conceptual framework. Later, the Turkish hotels are positioning their growth strategies based on their competencies, then measuring and evaluating their relative performance within scope of this framework.

Sustainable Business in Hotel Industry

From the macroeconomic point of view, influencing factors in each facet of sustainability can be categorized like that: social organizational environmental green

marketing, economic procurement, supporting local economy, ook from the micro economic

perspective to focus on tourism service industry and hotel business.

Particularly, economic and environmental responsibility view of sustainability has been mentioned in lots of studies. For example, Jayawardena (2008) mentioned the importance has to be given to recruitment, training and retaining of seasonal workers in Niagara hotels. The same approach is true for all seaside hotels in Turkey facing with seasonality problem. Collective applications of human resource management practices rather than individual applications are found important, to in

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