The effect of organizational learning and Web 2.0 on innovation

Purpose - The purpose of this paper is to analyse the relationships between Web 2.0 adoption, innovation, organizational learning and organizational performance in the hotel industry. Design/methodology/approach - A sample of four and five-star hotels provides the data. The fieldwork took place between February and June 2013. The questionnaire was sent to top managers of Chinese hospitality firms that provide their e-mail addresses on the main Chinese tourism web pages. The final sample comprises 278 hotels. This percentage of responses yields a sample error of 6.9 per cent for a 95 per cent confidence level. The authors followed a two-step approach for structural equation modelling, using EQS 5.7 software to conduct the tests. Findings - Results suggest that competitive advantage in the hotel industry requires firm strategies focusing on Web 2.0, innovation capacity and organizational learning. This finding contributes to the strategic management field by offering an explanation of the differences in firm performance within a particular industry. Therefore, the findings mark an important contribution to the literature, introducing a new variable that mediates the relationship between Web 2.0 and firm performance. Originality/value - The results hold that Web 2.0 adoption is crucial for enhancing innovativeness, which is a fundamental source of sustainable competitive advantage. In addition, organizational learning also has a positive effect on innovativeness. Innovation, which is the essence of competitive advantage, is a key concept for firms nowadays.