Product, absorptive capability and technological capability: A review on dimensions of innovative capability

The concept of innovation is not new (Ganotakis & Love, 2012, p. 839; Heidenreich & Handrich, 2015, p. 878). It is believed that innovation has been popularised by Schumpeter in the form of ‘creative destruction’ whereby new products/services overtake old ones from the economics perspective (Schumpeter, 1943, p. 83). Later, the importance of innovation has further been amplified when a distinct research distinct area especially for innovation related publications have been introduced (e.g., Journal of Product Innovation Management, R & D Management, Technovation) (Kohler, Matzler, & Füller, 2009; Perks, Gruber, & Edvardsson, 2012). Subsequently, innovation has become one of the hugely debated topics in various fields which include medical, economy, management, marketing, human resources and public management. Nevertheless, there is always argument pertaining to the depth of innovation related research in the hotel industry (A.-M. Hjalager, 2002, p. 465). For instance, Sundbo, Orfila-Sintes, and Sorensen (2007, p. 88) claim innovation research within the tourism industry is in embryotic stage whereas Gounaris and Koritos (2012) argue that tourism scholars need to bring forward innovation studies. Hence, this paper critically analyses several dimensions of innovative capability and how they have been practically as well as academically germanised across the hotel industry which is one of the highest contributors within the tourism industry