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Impact of Social Media in Service Innovations: An Empirical Study on the Australian Hotel Industry
Abstract
Service innovations have become an important source for organisations to gain competitive advantage in today's increasingly dynamic, complex, and unpredictable business environment. While the concept of technology as a driving force for service innovations has long been recognised, the recent growing popularity in the use of social media has given rise to many concerns by businesses as there is insufficient knowledge and understanding about the usage of social media in the context of service innovations. This research seeks to investigate the impact of social media and the key challenges that impede businesses from leveraging social media in service innovations within the Australian hotel industry. The research adopts the use of a case study methodology that involves 12 in-depth interviews conducted with 6 businesses in the hotel sector. The findings highlight 4 key themes (i.e. behavioural change, online reputation, customer service channel, and monitoring and responding) in which social media has impacted service innovations and also revealed 9 major challenges (i.e. lack of adequate funding, difficult to determine financial gains, lack of human resources, lack of management support, lack of understanding of social media innovation, resistance to change, lack of proven evidences, lack of technological infrastructure and knowledge, and security concerns) that pose potential barriers for businesses to adopt and leverage the use of social media in service innovations.
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