LEARNING ORIENTATION, ENTREPRENEURIAL ORIENTATION, INNOVATION AND THEIR IMPACTS ON NEW HOTEL PERFORMANCE: EVIDENCE FROM SURABAYA

Based on investor perspective, Surabaya city is still recognized as a promising investation land especially in tourism industry. As can be seen based on recent last three years, whereas a lot of new hotel establishment are introduced. The presence of these new hotel establishment could be the indicator of the tourism and economic growth in Surabaya city. However, the growth may also lead to a tighter competition. Therefore, in order to competitively compete during its early years, new hotel establishment should have a strategic orientation within its business operational with additional innovation breakthrough to create a value or a competitive advantage. In order to maintain its existence, new hotel establishment also should maintain its good performance. This research is conducted to observe the implementation of Strategic Orientation, especially related with Learning Orientation and Entrepreneurial Orientation which is conducted by the establishment to achieve a better performance, which is also supported by the predesigned innovative programs. The empirical result based on 49 new hotel establishment in Surabaya city as the research sample, indicated that there is an indirect relationship between Learning Orientation and Entrepreneurial Orientation to performance with innovation as the mediator. It is suggested to add Market Orientation as the intervening variables for the future researchs especially regarding the role of Strategic Orientation and Innovation in new hotel establishments due to their infancy stage.