Abstract
Previous research has mostly considered separately the direct effects of innovations, and of internal and external factors, on performance. This paper assesses a model which recognizes the critical role of staff-related innovations in mediating between other types of innovations and factors and hotel performance. An exploratory factor analysis of a sample of UK hotels identifies five factors which have been utilised in a SEM model of “innovation - performance” relationships. The findings reveal that staff innovations have the strongest direct impact on performance, along with product innovations and two external factors. Staff innovations mediate partially the effects of these factors, and fully the influence of management innovations and internal factors, on performance. Therefore, the model provides evidence of the complexity of the relationships between hotel performance factors and types of innovation, as well as insights into the key role that staff-related innovations play in realising performance improvements.