INNOVATION, BUSINESS SUCCESS AND LEADERSHIP IN TOURISM

This paper analyses the relationship between innovation and business success and the role of a leader in such relationship. The main question addressed herein refers to how can a leader uses innovation to influence competitiveness and business success in tourism in an increasingly global competitive environment.
The paper introduces the Scheme of success and applies it to the issue of leadership, innovation and business success in tourism. Results indicate that a leader’s influence on a company’s success through innovation is very high and that it is quite different in today’s conditions of global competitiveness than it used to be. A leader can influence competitive advantage through innovation development in two basic interconnected ways: being innovative himself/herself i.e., undertaking a pioneering endeavour; and developing an innovative, learning organization, based on an organizational culture that supports innovation at all organizational levels. This second approach to leadership influence is a novelty compared to the time of mass tourism and competition before it became global. Practical implications for effective leadership in tourism are also addressed and recommendations for further research are provided.