Subjective Norms, Innovation Source and Customer Satisfaction Among Small Hospitality Firms in Ghana

Abstract

This study examined the relationships between norm perceptions about innovation, innovation source and customer satisfaction with sample data from small-scale hospitality businesses in Ghana. We adopted the quantitative approach and correlational survey design using sample data from 465 small-scale hospitality firms. Partial Least Squares Structural Equation Modelling was used to analyse the data. Measurement model classification and validation procedures comprised construct specification, indicator reliability assessment, internal consistency reliability, convergent validity (AVE), discriminant validity (HTMT and Fornell–Larcker), and collinearity diagnostics within the PLS-SEM framework. Results showed that a significant negative relationship exists between subjective norms about innovation adoption and customer satisfaction. This finding diverges from the Theory of Planned Behaviour because, contrary to its assumption that subjective norms foster positive behavioural outcomes, socially driven innovation in small-scale hospitality settings may encourage conformity-based decisions that undermine customer-oriented value creation. However, a significant positive relationship was found to exist between subjective norm perceptions about innovation adoption and innovation source. A significant positive relationship was also found to exist between innovation source and customer satisfaction. Innovation source positively mediated the relationship between subjective norm perceptions about innovation adoption and customer satisfaction. The study’s findings are relevant for owners and managers of small-scale hospitality firms seeking to align innovation decisions with customer needs, as well as for policymakers aiming to strengthen industry support systems. It offers insights into how social influences and innovation sources can be leveraged to enhance service quality and customer satisfaction in small hospitality businesses.