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Research and Development(R&D) is not only a word for establishing new products in manufacturing industry, but also an important tool of enhancing competitive edge in service industry. Breakthroughs for leveling up service quality by appropriate R&D is one of essential strategic alternatives in recent hotels, which should plow through the waves of dynamic market environments and resulting severe competition. The purpose of this study is to conceptualize and to measure the construct of R&D activities for hotels, so that hotel managements can utilize indicators of service R&D to enhance service quality and the entire competitiveness of hotel business. The initial components of service R&D were developed by extensive literature review of past research and reflecting the situations of hotel management and operations. The AHP(Analytic Hierarchy Process) was used to delineate the specific variables composing the service R&D in hotel business from managers of deluxe hotels(5-star, 4-star). The results of this study suggest relative importances and priorities of R&D indicators, categorized into 3 hierarchies by their levels of detail(major, interim, minor) and by their contents(strategy, technology, management). The strategy dimension was found to be composed by process, policy, marketing, and investment, whereas the components of technology were information and new technology. The management dimension appeared to be composed by organization, human resources, environment, and facilities. Hotels would be able to utilize the results of this study for establishing the R&D management system to develop new services, enhance service quality, and attain the ultimate competitive advantage of hotel business.