Innovation capability and the feeling of being an innovative organization

Abstract

Companies today compete in a turbulent global environment characterized by considerable technological advance and a knowledge-based economy, and the basis for sustainable competitive advantage has shifted to innovation. Given that a capability is a source of competitive advantage under the Resource Based View (RBV) theory, the development of an innovation capability is a critical factor for success. The aimof this paper is to explore the degree to which certain companies have developed this innovation capability. We also explore the relationship between innovation capability and the feeling of being an innovative organization. Spain is no longer cost competitive, and this fact makes innovation a top priority for the tourism sector. In light of this state of affairs, the study focuses on Spanish hotels because it is expected that such companies have developed this innovation capability.