Linking firms conduct and performance in a globalised market: the mediating role of innovation

Based on an international survey of 674 travel services related firms based in Italy, France, UK, Germany and Spain, this paper analyses the effects of business orientation, marketing and communication skills, ICT and HR on performance. This study is based on a mixed methods research relying on both theoretical assumptions and statistical techniques and methodologies, precisely Structural Equation Modelling (SEM). Results show that new service development (NSD) and innovation oriented firms take advantage from the competitive market dynamics by searching, developing and transforming new ideas into business, launching new or updating existing services, thus enhancing their offer. The models discussed constitute the novelty of this research as most prior empirical research investigating mechanisms through which some factors affect firm performance diverges in terms of methodology, population and purpose.