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

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.