How do senior managers influence experience innovation? Insights from a hospitality marketplace

Abstract

Pine and Gilmore garnered attention from both academics and practitioners when they introduced the experience economy paradigm (1998). Central to the authors’ work is the notion that experiences are distinct economic offerings – differentiated, co-created, and memorable – requiring continuous innovation to meet the needs of increasingly demanding and savvy consumers. The purpose of this study was to build upon the work of innovation researchers in business by examining innovation in an understudied context; the goal was to provide a back of the house view of innovation in organizations whose main economic offering is an experience. An exploratory sequential mixed methods study was conducted to examine the ways senior managers influence innovation at the business unit level and to test the relationships between specific leadership practices and innovation performance. Findings from executives in four segments of a hospitality marketplace suggest three organizational capacities – Connect, Energize, Refresh – are associated with continuous innovation of memorable experiences.