Perceived financial performance in sport services firms: the role of HRM practices and innovation

Abstract

PurposeThe aim of the present study is to examine the impact of human resource (HR) practices (human resource empowerment, organizational culture and transformational leadership) on innovation activities as well as the effect of innovation activities on perceived financial performance within sport services firms.Design/methodology/approachThe proposed relationships were examined using empirical data from 172 managers of Greek sport services firms. Seemingly unrelated regression (SUR) analysis was used to investigate the role of human resource management (HRM) practices on innovation activities and whether innovation activities affected the perceived financial performance.FindingsThe results of the study indicated that HRM practices, such as human resource empowerment, organizational culture and transformational leadership, significantly impact innovation activities and subsequently innovation activities have a significant and positive effect on perceived financial performance as measured by satisfaction levels in relation to specific key performance indicators (KPIs) such as profit, ROI, sales volume and market share.Practical implicationsThis study presents useful theoretical and managerial implications that can be used by sport service firms to assess the effects of HRM practices on innovation activities and perceived financial performance.Originality/valueThis study contributes to the literature on several merits. Firstly, the authors jointly estimate the impact of HRM practices on innovation and its concurrent effect on perceived financial performance, which is not methodologically considered before. Secondly, the authors incorporate a more thorough measure of perceived financial performance including four dimensions of performance, and finally the authors analyze a larger sample of sport services firms relative to previous studies, leading into more concrete conclusion on the research hypotheses.

Total Quality Management in Sport Tourism and the Hospitality Industry: The Case of Greek Luxury Resorts with Sport and Recreation Facilities and Services

“…The effect of leadership on innovation in the work environment has been studied in many fields, such as technology, industry, construction, manufacturing, sports, etc. [25], but in the field of hospitality, research is still limited [11,26]. The hospitality sector and its provided services favor the development of innovation as employees, in order to face and solve problems that arise with customers and to satisfy their expectations, develop innovative behaviors and processes with the aim of improving services [27].…”

“…Following the literature, one should find a significant accordance between organizational culture and innovation in the work behavior in the sport tourism sector [11,13]. It seems that organizational culture contributes to creating a favorable environment for designing new services, products and processes and planning to penetrate new markets in an innovative, attractive and effective way [14].…”

“…With respect to this fact, leadership is a key factor in the development of innovation in the work environment because leaders significantly influence employees' innovation behavior from the development to the execution of innovative ideas or solutions [9,10]. Additionally, leadership has been proven to be an essential factor for guiding sport and service organizations and their human capital toward the achievement of their strategic objectives and contributing to their long-term development and viability [11,12].…”

“…Also, empirical research has proven human resource empowerment to be a critical element of service innovation [10,11,17]. Human resource empowerment practices that develop a favorable environment for innovation include authorizing and giving autonomy to subordinates so that they can exercise control over decisions concerning their work.…”

“…It also enhances skill and confidence building through cooperation, sharing and team learning. In principle, it is the encouragement and reward of initiative and imagination that result in increased innovation capability [11].…”