LAUSR

Abstract This paper aims to investigate the influence of organizational structure on service innovativeness by testing the moderating roles of learning orientation and inter-functional coordination. This helps to understand how organic structure influences service innovativeness when it is effectively leveraged with favorable organizational factors. Data were collected from 178 hotel managers and executives in Japan and moderated regression analysis was performed to analyze the data. Findings of the study suggest that higher levels of service innovativeness are positively related to higher levels of hotel business performance. In addition, organic structure makes a positive influence on service innovativeness and an increase in the levels of learning orientation boost the effectiveness of organic structure on service innovativeness. Moreover, the positive association between organic structure and service innovativeness become stronger when all firm’s functions make an attempt to cooperate and contribute to disseminating customers and competitors’ information in the hotels. These findings contribute to understanding how hotel service innovation is affected by service innovativeness, organizational structure, learning orientation and inter-functional coordination.