Efforts to Enhance Service Quality: The Roles of Innovation Capability and Service Recovery

This research aims to discuss the service quality issue at 4-star hotels in Medan. Next, build a model on how to enhance service quality.  A sample of 560 guests was taken by random proportional from each hotel. Structural equation models with the lisrel software supported. Market orientation influences innovation capability and service quality. Value co-creation influences innovation capability, service recovery, and service quality. Innovation capability influences service recovery. Innovation capability mediation can increase the influence of market orientation on service recovery. Service recovery affects service quality. Integration between functions in hotels, especially information dissemination in formulating policies to increase innovation capabilities, is important to pay attention to. It is important to develop a risk-taking attitude to improve service recovery. Recovery strategies are important to pay attention to in efforts to improve service quality. The role of market orientation needs to be followed by innovation capability to improve service recovery.