Entrepreneurial Orientation and Service Innovation on Consumer Response: A B&B Case

Edward Shih-tse Wang and Pei-yi Juan

Journal of Small Business Management, 2016, vol. 54, issue 2, 532-545

Abstract: Extant studies have documented the effect of entrepreneurial orientation (EO) and innovation performance on firm-level outcomes. However, the underlying mechanisms of the specific aspects of EO (i.e., autonomy, risk-taking, and proactiveness) and innovative performance affecting consumer-level responses remain unexplored. A total of 401 dyadic sample data were collected from both bed-and-breakfast (B&B) innkeepers and corresponding consumers. We used structural equation modeling to test the research framework and hypotheses. The statistically significant paths extended from risk-taking and proactiveness to service innovation performance, then to consumer-perceived service value and consumer satisfaction, and finally to repatronage intentions. To retain consumers, B&B innkeepers must enhance service innovation performance by reshaping their risk-taking and proactiveness.

Date: 2016
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DOI: 10.1111/jsbm.12156

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