Innovation in tourism: Re-conceptualising and measuring the absorptive capacity of the hotel sector

•This paper responds to calls for more theorising and l empirical research on aspects of innovation in tourism.•It considers one prominent strand in the organisational studies and innovation literatures; absorptive capacity.•It finds that current conceptions of absorptive capacity have limitations when applied to tourism.•An alternative conceptualisation is offered and its implications for future research and public policy are discussed.

Recent reviews of research on innovation in tourism have highlighted a number of weaknesses in the literature. Among these is the limited theorising and empirical investigation of innovative practices by tourism organisations. This paper responds to these concerns by examining one important dimension of innovation within commercial tourism organisations, namely their ability to acquire, assimilate and utilise external knowledge (absorptive capacity) for competitive advantage. The topic is pertinent because there is evidence to suggest that tourism organisations are particularly dependent on external sources of knowledge when compared with businesses in other sectors. Following a discussion of the conceptual antecedents of absorptive capacity and its dimensions, a validated instrument for its measurement is developed and used to measure the absorptive capacity of the British hotel sector. The results suggest that current conceptions of absorptive capacity have limitations when applied to tourism enterprises. Absorptive capacity is re-conceptualised to overcome these deficiencies. The research and policy implications of the findings are discussed.