Бесплатный фрагмент - Managing Innovative Projects in the Hospitality Industry

WITHOBSESSION
INCHARGE

The relevance of research on this topic is due to the need to develop new approaches to managing innovative projects in the hospitality industry, taking into account institutional factors and industry specifics. This will increase the efficiency of innovative activities in the restaurant business and ensure its sustainable development in the face of high competition and constant changes.

The aim of the study is to clarify the theoretical provisions and propose methodological solutions for the implementation of innovative projects in the hospitality industry, taking into account the institutional approach.

Research objectives:

— Analyze the theoretical foundations of innovation project management through the prism of institutional theory.

— To identify the features of managing innovative projects in the hospitality industry.

— To investigate the influence of institutional factors on the success of innovative projects in the hospitality industry.

— To develop a methodology for managing innovative projects in the hospitality industry, taking into account the institutional approach.

— Develop recommendations for improving the management of innovative projects in the restaurant and hotel business.

The object of research is innovative projects in the hospitality industry.

The subject of the research is organizational and economic relations that arise in the process of management in the hospitality industry.

Research methods:

— Analysis of scientific literature and regulatory documents.

— System analysis and synthesis.

— Expert surveys and interviews.

— Survey results.

— Mathematical and statistical methods.

The scientific novelty of the study is as follows:

— Theoretical foundations of innovative project management in the restaurant and hotel business are developed, taking into account the institutional approach.

— Features of management of innovative projects in the restaurantindustry are revealed.

— The influence of institutional factors on the success of innovative projects in the hospitality industryis studied.

— A methodology for managing innovative projects in the restaurant business has been developed and verified, taking into account the institutional approach.

The practical significance of the study lies in the fact that its results can be used for:

— Improving the efficiency of innovative project management in the restaurant and hotel businessе.

— Development of state support measures for innovative activities in the hospitality industry enterprises.

— Training of personnel in the field of innovative project management in restaurantsand hotels in Russia.

The results of the study were tested on the materials of the Federation of Restaurateurs and Hoteliers of Russia and restaurant enterprises in Moscow. The results of the study were presented at scientific conferences and published in scientific journals.

Chapter 1. Theoretical principles of innovative project management in the hospitality industry

1.1 Formation and development of the concept of innovative project management.

An innovative project is a program of changes that allows you to achieve strategic business goals. The project may include separate marketing, production, research, process management activities, as well as complex work in several areas simultaneously.

The development of many states, regions, small and large companies today largely depends on innovation activities. Innovation is the engine of modern development, so this area attracts a lot of attention not only in the practical plane, but also in the theoretical one.

Innovation is a fairly strong advantage for any company operating in a market environment, and the development of innovation is an important factor in the economic growth of the national economy. Innovations can take many forms, including new products, services, technologies, and so on. At the same time, almost every innovation is created within the project. Thus, an innovation project is a set and sequence of stages of an enterprise’s activity aimed at creating and distributing innovations.

In a broad sense, the implementation of an innovation project can be divided into two large stages. As part of the first stage, strategic goals and objectives are formulated that should be achieved based on the results of allinnovative activities. At this preparatory stage, the current state is also analyzed, the prospects of the entire project are evaluated, goals are decomposed into specific tasks and activities, and the entire project is drawn up. [1,c.100]

Within the second stage, all planned activities are implemented, constant monitoring and control of activities is carried out, and the results of solving all the main tasks are evaluated. In general, all the processes and stages of an innovation project can be divided into 6 groups, which are shown in Figure 1.

Figure 1-Main processes of the innovation project

Free implementation of innovations is limited by the company’s existing resources: finances, deadlines, personnel, and technical equipment. When implementing a project, the company also faces various types of risks that prevent it from achieving the planned results.

Risks in innovative projects. The general concept of risk is uncertainty that can cause losses. This is a hard-to-predict probability of problems occurring. Risks can be internal or external, acceptable or critical, as well as technical, political, environmental or commercial. [2,c.240]

Their appearance is influenced by the human factor, global changes in the world, or market mechanisms. The complete classificationof risks is shown in the diagram (Fig. 2).

Figure 2-Classification of business risks

In innovation, a special role is played by mixed risks directly related to the novelty of the project — it is difficult to predict in advance how successfully it will be implemented. For example, the risk that new products or services are not required as a result of innovation is important. It occurs due to the uncertainty of the external environment and the capabilities of the organization.

External risk factors for non-demand for products during the implementation of the innovationproject::

— political reasons, including sanctions restrictions;

— regulatory changes, such as the entry into force of new laws;

— demographic factors — falling birth rate, rising life expectancy, population migration;

— socio-economic — changes in the solvency of consumers and demand;

— financial — changes in the key rate and rates on business loans, inflation, currency fluctuations;

— environmental or climatic factors, for example, the impact on the environment, stricter environmental regulations, man-made accidents, natural disasters;

— market-the appearance of competitors or similar products. These reasons cannot be influenced by the organization. They must be taken into account and predicted. The activity of the company itself also affects the risk of non-demand for products and these factors canbe adjusted.

These internal reasons are:

— incorrect organization of business processes, violations in the production scheme;

— low qualification of personnel, which affects the quality of products and production efficiency;

— lack of own funds, irrational use of resources, failures in supplies and supplies;

— mistakes in sales policy and incorrectmarketing decisions;

— problems in managing the team and lack of leadership qualities in the management;

— lack of state support and underdeveloped innovation infrastructure

— lack of banking, legal, intermediary services and services.

If any of the risks arise, you need to make a decision and adjust your actions so that the project does not fail. Risk management. The process of identifying, evaluating, minimizing, and controlling risks is called risk management.

FigureK 3-Risk management scheme

Ways to protect yourself from risks that are available when implementing innovative projects:

— avoiding, evading, avoiding solving the problem, ignoring the risk;

— maintaining and accepting the risk and its consequences;

— transfer of risk, for example, to insurance companies, venture funds or partners;

— minimizing the consequences, reducing the degree of risk impact on the project, reducing possible losses and reducing the likelihood of impact.

One of the most effective protection options is a management solution based on information analysis and the use of big data.

Today, it is easier to make a complete analysis of the market, the preferences of potential customers and the offers of competitors, using modern technologies. Data analysis should be actively used to manage project risks.

Another way to protect the project from risks is to limit the amount of investment, respectively, and possible losses. So, you can limit the cost of a project and not go beyond a pre-defined budget. Diversification of project activities will also allow the company to reduce the risk of losses in the implementation of individual projects. This will work if you run several projects in different industries and directions in parallel.

You can transfer risks not only to third-party organizations, for example, in insurance, but also take care of yourself by creating an internal insurance fund, a kind of reserve of funds to cover unexpected losses, or by using hedging — entering into counter-transactions to cover project risks with other requirementsand obligations.

In general, risk management in innovative projects is at the heart of all decisions — financial, industrial, and technical. There is always the possibility of events that can affect the project. The company must be prepared for this in order to reduce the impact of external and internal factors on the final results of its activities.

УManaging an innovative project is a complex process consisting of many stages. It is important to note that in innovation activities, the qualityof implementation and each stage directly affects the final results of the activity. To date, quite a large number of project management methodologies and standards have been developed.

Strategic management of innovative projects includes situational analysis, forecasting the impact of a range of entrepreneurial and industrial success factors, the main ones being the management system and its organizational forms, the potential of the development and research sphere, and the culture and ethics of entrepreneurshipринимательства. [3,c.200]

In the field of innovative technologies, project life cycles are the main innovation processes, the strategic management of which is divided into a number of areas, such as: the system of ensuring innovative projects; the life cycle of innovative projects; the system of strategic planning of innovative projects.

Strategic management of the project support system is focused on increasing the efficiency of investments; the quality of labor resources participating in project activities; transparency of expenses and compliance of costs with the result obtained; accounting for the impact of business risks on the tasks and goals of implemented projects.

In the system of strategic planning of innovations, the following targets of the project generation process are identified:

— ensure the achievement of project goals;

— achieve compliance of the information system with the requirements of contracts, regulations, and legislation;

— determine the order of business needs.

— respond appropriately to organizational and business requirements that are consistent with the adopted strategy.

Any methodology is a set of rules, recommendations, and tips on how to most effectively build all project management processes. Not all methodologies will be effective in implementing an innovation project, but it is recommended to use them as a specific reference point. Thus, the most popular and widely used methodology is the PMI Code of Project Management PMBOK (Project Management Institute ProjectManagement Body Of Knowledge). This set of rules is periodically reviewed and updated, the last seventh version was published in 2021, and it reviews the project through tencore areas of expertise.

Each of these sections contains recommendations for managing processes. The innovation sphere is characterized by a high degree of risk and uncertainty, so it is important to avoid forming even minor deviations. To do this, it is customary to monitor the main stages of activity. That is, at each stage, planned indicators are compared with actual ones, but in an innovativeом projectе it is important to act more quickly. That is why, among other recommendations, the need for daily monitoring of activities is particularly highlighted.

Ubiquitous monitoring of all internal processes allows you to identify deviations in real time and quickly eliminate them. This approach will allow you to implement any innovative project with high efficiency, as a result of which all strategic goals will be achieved. The controlling system has a number of advantages for implementing projects, including in the field of innovation.

These advantages include the following:

{} improve interaction between project participants.

{}increasing the level of staff flexibility;

{} ensuring the stability of all tasks during the cycle;

{} increase the personal responsibility of project employees;

{} reduction of production process costs;

{} increase the probability of project completion on time.

Assessment of the state of innovation activity and innovative development of Russian enterprises at the national and international levels indicates a low efficiency of management of innovative projects of enterprises. Unfortunately, many entrepreneurs, having implemented one or several innovative projects, abandon the innovative path of development and return to the traditional type of activity inherent in the enterprise. Quite often, such decisions are associated with the failure to achieve the expected maximum effect, a high level of risk of innovation activity and fear of the result of changes, an irrational ratio of opportunities and threats in the implementation of innovative projects, etc.

It should be noted that innovative projects are characterized by novelty, competitiveness (new markets) and priority (the main goal of commercialization). Such projects arise as a response to the accumulation of qualitative changes, the need to make a transition to a new type of development. The entire set of characteristics of an innovation project forms its multi-criteria, which is periodically updated during the innovation life cycle. [4,c.200]

In the face of fierce competition, enterprises are making radical changes, as well as gradually moving to an innovative path of development.

Russian entrepreneurship has a high level of innovation potential for this, but, unfortunately, in the process of using it to implement innovative projects in the management of this area, a number of problems arise that negatively affectthe level of the expected effect. One of the problems affecting the effective management of innovative projects is the lack of an innovative culture in the enterprise.

The team is not aware of the need to carry out innovative activities, does not want to switch to an innovative path of development, respectively, there is resistance to changes, conflicts in the team and a decrease in the level of human resources in the fieldof innovation. It is also worth noting one of the problems that almost every enterprise solves in the process of implementing innovative activities, namely, the financial limitation of its own resources, as well as the rational distribution of budget funds for an innovative project.

Russian enterprises lack real mechanisms for pooling available resources and concentrating them in the process of implementing innovative projects. In the current economic environment, it is advisable to take a number of measures that will significantly increase the level of efficiency of managing innovative projects of enterprises and ensure the long-term development of this area. Drawing up a scheme for improving the management of innovative projects allows you to clearly identify external factors that influence the process of managing an innovative project. First of all, the regulatory framework for innovative entrepreneurship should be improved.

The new legislation should be adopted at the international level and in accordance with the current needs of the Russian economy. It is necessary to improve the tax legislation and mechanisms of its application.

The impact of improving the legislative regulation of the implementation of innovative projects is necessary due to the fact that it is regulatory support that is a structural element of the integrated infrastructure concept of innovative projects, as well as a key strategic guideline for creating a management model for each individual project. The content characteristics of the regulatory framework should be aimed at providing favorable conditions for the implementation of these projects, as they contribute to solving the problem of stimulating the activities of scientific institutions and enterprises implementing innovations.

The state should create conditions for the organization of production of high-tech products and the development of advanced technologies, while ensuring the implementation of innovative projects of enterprises with stable financial support. The next important factor influencing the management of innovative projects is the creation of a favorable investment climate for foreign investment in innovations of Russian enterprises.

To implement this direction, it is necessary to legislate favorable and stable conditions for foreign investors, create an effectively functioning infrastructure support system for innovative projects, and so on. [5,c.100]

The process of managing innovative projects is directly influenced by the favorable system of taxation and crediting of domestic enterprises, since it is especially those enterprises whose products are not in demand and are not competitive in the market with a low level of innovation application in the production process that require innovative projects. Such enterprises have an unstable financial situation and significant financial constraints, so this factor is thekey to their development, which will allow them to operate at a qualitatively new level.

An important element of effective management of innovative projects is the presence of an innovative culture in the system of the general corporate culture of the enterprise, which combines in one chain intellectual capital, high responsibility and universal values that fill innovative processes with ideological content.

Solve the problems of interconnection between production and science and enable enterprises working in various fields to systematically get acquainted with new developments by creating information and consulting centers, unique specialized information centers at the level of municipal and state administrations.

In order to improve the efficiency of managing innovative projects of enterprises, it is advisable to create regional networks of business incubators in all areas of scientific knowledge, including higher educational institutions. It is also advisable to form innovative clubs for entrepreneurs, whose main task should be to create conditions for the implementation of innovative entrepreneurshipin any field. If an enterprise’s innovation project management system does not produce the desired result, a necessary condition is the restructuring of internal management of enterprises to adapt to market changes, and the establishment of effective relationships with consumers of innovative products and services.

In the process of managing the implementation of innovative projects in enterprises, it is important to use the services of consulting firms. Involvement of professional experts in solving complex issues of overcoming innovative risks will ensure the achievement of the desired economic and non-economic effect, reduce the level of material losses, implement the project on time, etc.

Domestic enterprises should use foreign experience in the process of planning and managing innovative projects. To ensure effective management of innovative projects in the world practice, the project cycle management methodology is used, which is built on the basis of integrated and logical-structural approaches, the functioning of project offices and the methodology ofearnedEarned Value Management. Overcoming the main problems of effective management of innovative projects of Russian enterprises based on the formation of factors of positive influence on this process will ensure the long-term development of innovation activities at domestic enterprises.

Thus, the implementation of an innovative project is a complex and rather unpredictable field of activity. Following the sequence of all planned actions within the framework of an innovation project, as well as ensuring clear control and monitoring, will significantly increase the effectiveness of this project and improve the final results of innovation activities.

1.2 Modern approaches to the formation of the interaction management system in an innovative project.

Project management is the application of processes, methods, skills, knowledge, and experience to achieve specific project objectives in accordance with project acceptance criteria within agreed parameters.

A project is the application of knowledge, skills, tools, and methods in project activities to meet project requirements. Project management, in turn, is the professional activity of managing resources by applying methods, tools, and management to successfully achieve set goals as a result of performing a set of interrelated activities with certain requirements for deadlines, budgets, and characteristics of expected results. According to A. A. Kulaev, project management is understood as a set of methods for managing the process of creating complex objects in a short time.

Thus, project management tools have become the main tools in strategic management, especially in the context of the transition to an innovative economy.

Increasing the role of scientific and technological potential in modern business has led to the fact that the competitiveness of companies is increasingly determined by the process of continuous improvement of technologies. The transition to an innovative economy at the national level, in addition to solving the macroeconomic problems of modern society, requires serious innovative changes in the management of the main link of any economy, a radical reform of the mechanisms for managing innovation processes and the creation of support measures from the state, as well as in companies themselves when developing and mastering innovative solutions.

Currently, in developed countries, the management of innovative projects and the formation of an innovative economy are the subject of special attention of economic science. Unfortunately, Russia has not yet paid enough attention, although the search for new and improving existing methods of economic growth is a fundamental problem of the country’s sustainable development due to the transition of the world economic system to post-industrial management methods based mainly on the formation of the knowledge economy.

The innovative business created today in Russia generally corresponds to the scheme adopted in developed countries. However, in our country, this practically does not work due to two main reasons:-the lack of an organized and effectively managed process of creating and commercializing intellectual activity results in companies; — the lack of effective demand for innovations from the real sector of the domestic economy, i.e. the same companies, but already operating as consumers of innovative business-products. Only thanks to the creative activity of our compatriots, the presence of a large number of specialists with good engineering and management education on innovative projects in Russia still arises and develops. But when they analyze the potential effective demand for their inventions, they usually conclude that their markets are located abroad. [7,c.30]

The need to focus on a foreign user leads to the fact that many Russian innovative projects are implemented in other countries, where domestic specialists move or are transferred (for relatively little money) to the results obtained at the initial stage of the project.

According to expert estimates, Russia spends only 1.2% of GDP on research and innovation activities, and about 60% of this amount falls on budget investments, while in the United States this figure is 2.6—2.7% of GDP per year, and in the European Union and Japan, the share of spending on innovation projects reaches 2.7—3.1% of GDP per year. Given these data, we can say that state support for Russian innovative businesses is not active enough and ineffective. Unlike their European or Chinese counterparts, the authors of innovative projects in Russia do not have tax incentives.

The rent that most of our small businesses have to pay is about 10 times higher than that of similar firms in the West. Therefore, it is not surprising that the number of innovative projects in Russia is very small. To change the situation for the better, it is necessary to significantly improve the financial situation and morale of domestic innovators, providing them with the opportunity to receive financial support, tax incentives, the necessary production facilities and the opportunity for public recognition of their services to the country. In Russia, it is necessary to create a legislative framework that supports innovative entrepreneurs and provides them with a number of advantages. [8,c.30]

In a country that has declared its goal of moving from a resource-based economy to an innovative economy, industrial policy should include active and effective support for innovative projects. At the same time, solving the problem of innovation in the Russian economy at the macro level is not enough to get practical results from investing in a new national innovation system. It is also necessary to increase the level of innovative development of the main participants in this process-the companies themselves. They should be primarily interested in developing and implementing innovations as a means of ensuring strategic leadership. The fact that innovation should be the basis for achieving a strategic competitive advantage of companies does not require any evidence.

Michael Porter, a recognized global expert in competitive strategy, bluntly states: “Every successful company applies its own strategy, but the nature and evolution of all successful companies are basically the same. The company achieves competitive advantages through innovation.” As you know, innovations are the final results of a person’s intellectual activity, which were implemented in the form of a new or improved product (work, service) sold on the market, a new or improved technological process used in practice.

Innovation includes all changes (innovations) that are first applied in the company and have brought it economic or social benefits. In addition, innovations include: new or improved types of products (services); new methods of production and distribution (warehousing, delivery and sale) of the product; development of new markets; formation of new strategic orientations of the company; new schemes for obtaining financial results, new methods of using and accounting for financial resources.

In general, innovation can be defined as know-how, innovation, improvement. The main thing is that innovative projects are the engine of modern business, they help it develop and keep up with the times. The word” project “is used as a synonym for the words” company”, ” business “and implies that any business or company can be projects, and a business project has the opportunity to grow into a” startup” into a medium and / or large company, business, corporation. The word “start-up” indicates a certain stage of business development. [9,c.55]

In the modern practice of innovative entrepreneurship, there is already a fairly stable typification of the stages that pass through an innovative (knowledge-intensive) project: seed (pre-seed stage), seed (seed stage), start-up (start), early stage (early growth), expansion (expansion), exit (exit). It makes sense to focus on the initial stage, which is characterized by the presence of a registered legal entity, the beginning of sales of an innovative product with its simultaneous refinement and improvement, a lack of funding, unstable sales, and a small team consisting of the owner and his team.

Unfortunately, in Russia, 90% of startups fail. What is the reason for such sad statistics? The success of any innovative project depends on the quality of project management as much as technical and market advantages. Therefore, projects are often evaluated in terms of not only their potential effectiveness, but also the ability of effective management to realize this potential.

Innovative management performs the functions that determine the formation of the structure of the management system. There are two types of innovation management functions: — functions of the subject of management; — functions of the object of management. The subject of management can be one or a group of employees who perform purposeful work of the object of management. The object of management is innovation, the innovation process, and economic relations between innovation market participants. Communication between the subject of management and the object of control is carried out by transmitting information, which is the management process.

Innovation management techniques can be divided into the following groups:

1) innovations that affect only production;

2) affecting both the production and implementation, promotion and dissemination of innovations;

3) affecting only the implementation, promotion and dissemination of innovations.

Techniques that only affect the production of innovations have a single goal-to create a new product or a new operation (technology) with high quality parameters. These techniques include benchmarking, market research methods, and innovative marketing planning.

The second group of innovative management techniques includes engineering innovation, reengineering innovation, and brand strategy. The structure of the third group includes the price management technique, before the market, margin. The main goal of all the techniques of this group is to accelerate the sale of innovations with the greatest benefits and efficiency now and more return on this sale in the future.

Speaking about the problems of innovative business, you can not ignore the marketing of innovations. Weak development of marketing at innovative enterprises and scientific and technical projects. Marketing support for the creation of new products is one of the most significant and serious problems of an innovative company. Approximately 30% of new products do not bring any profit and become unprofitable. The high risk of innovative products is confirmed by the experience of many projects. Market features and product specifics have a big impact on its introduction to the market. There are many reasons for the failure of new products on the market. The main ones are incomplete market analysis, product shortcomings, lack of effective marketing activities, too high costs, competitors ' activity, weak support when products enter the market, and production problems.

However, there are factors that contribute to the success of the product:

— competitive advantage of the product (features that make the product more attractive to the buyer);

— marketing activity of the company (the ability to predict and understand the behavior of the buyer and the market as a whole in relation to a new product);

— availability of technological equipment.

But, as already mentioned, just a technological advantage, unfortunately, is not an absolute guarantee-of any commercial success. Therefore, for any innovator or innovative company, there comes a time when you should pay attention to marketing factors.

Innovation can be called a separate unique market in the field of know-how. If we compare its characteristics with the market of ordinary goods, it is impossible not to notice its versatility. It covers all possible aspects of the relationship that may arise between the seller and the buyer, which have a significant impact on the company’s marketing policy.

There are several main features of this market:

— product originality (product characteristics, technologically complex implementation, high production costs at the first stages);

— market innovations for the company (especially for a small innovative company that is at the initial stage of development);

— uncertainty of the product (and often-the manufacturing company) for the market; —

inability to predict customer behavior.

— low price elasticity of demand.

In this regard, pricing becomes limited.

— the capacity of a small market (especially for products containing high quality and high level of technology);

— lack of direct competitors, since there is a monopoly on intellectual property;

— development of the theoretical area of the company and obtaining certain results in it, together with a well-designed company promotion policy, can significantly improve the company’s rating among buyers.; — understanding the relationship between the marketing of innovative products and the level of innovation potential of consumers. [10,c.70]

The fact is that many new products are not just sold because of the general technological backwardness of many sales markets. The problems of promoting innovative, unfamiliar products to the market are primarily associated with the risk of unpredictable customer reactions. This is typical for companies operating in any industry, but for the high-tech market, where the product update rate is particularly high, this is most relevant.

An innovative product can “fail” without proper consumer training, without a well-thought-out strategy for bringing this product to market.

As already mentioned, the specifics of the innovation market determine the features of innovative marketing. This is manifested in the following:

— it is necessary to search for and study potential consumers in several sectors at the same time, since often the results of scientific and technological development are intersectoral in nature;

— the sale of innovative products requires a long and consistent advertising campaign, since the buyer must “mature”: they need to explain in detail the meaning and benefits of innovation, otherwise they will simply not buy this product because they are not familiar with it.

— innovative products should not only meet qualitatively new needs or old needs, but also provide additional advantages that consumers can understand in comparison with existing analogues and substitutes.

When promoting complex scientific and technical products on the market, you should be guided by an experienced, so-called collective consumer (“procurement center”, which can include employees from different departments, from procurement to production)

— the sale of innovative products requires lengthy negotiations, since high-tech products in both the commodity and consumer markets are pre-selected products, and therefore the purchase is carried out through multiple comparison procedures and discussions with experts;

— very often, the technical complexity of innovative products is associated with the organization of good after-sales service. In other words, there is no service — there is no commercial success for the new product. An example is the introduction of hybrid vehicles to the market, the distribution of which was limited not only by their price, but also by the insufficient development of infrastructure for their maintenance at the first stage;

— the image of an innovative company is significantly influenced by the results of theoretical research of employees, so they can be used in PR campaigns. In addition, for innovative businesses, conferences, scientific forums, and other forms of communication in the professional community can serve as channels for marketing communications.

— the complexity of an innovative product creates special prerequisites for the formation of a so-called holistic product, where all its real and potential advantages are considered in a complex. The Russian market is open to new and improved products, but at the same time it is rich enough to accept various competing products.

Currently, project management processes, including innovative ones, are regulated by various standards that are constantly changing and, despite their long life span, are popular and relevant.

In our opinion, despite the high degree of risk, the implementation of innovative processes in project management is the future, which will ensure the competitiveness and sustainability of enterprises using the project approach.

Chapter 2. Institutional approach to innovation project management

2.1 The role of institutional factors in the innovation project management process

In recent years, the hospitality industry has found itself at the crossroads of intensive development of new technologies and changes in consumer preferences, which significantly increases the need for effective management of innovative projects. Innovation, as recognized by many experts, is becoming one of the fundamental engines of sustainable growth and competitiveness of enterprises in this industry. From hotels to restaurants, from tourism to entertainment, all subsectors face the need to adapt to rapidly changing market conditions and customer needs, which is impossible without introducing innovations.

The process of managing such projects is complicated by various factors, among which a special place is occupied by institutional conditions. Institutional factors include legislative frameworks, political stability, socio-cultural norms, economic conditions, and educational infrastructure, which can have both stimulating and constraining effects on the development and implementation of innovations. For example, strict environmental and safety regulatory requirements can encourage hotels to adopt green technologies and improve resource management, while high levels of taxes or bureaucracy can make it difficult to finance and develop innovative projects.

This chapter is aimed at analyzing the role of institutional factors in the management of innovative projects in the hospitality industry. The main purpose of the study is to identify and assess the impact of these factors on the success and effectiveness of innovative projects in this industry. To achieve this goal, the chapter is supposed to solve the following tasks:

— review theoretical approaches to understanding institutional factors and their impact on innovation activity;

— study real-world examples from the practice of innovation management in the hotel business, restaurant business and other segments of the hospitality industry;

— analyze how changes in the institutional environment have contributed to or hindered the implementation of specific innovative projects.

— identify the most significant institutional barriers and suggest ways to overcome them to stimulate innovative development in the industry.

The study also provides an analysis of the role of educational institutions and research centers that can serve as a bridge between theory and practice in innovation. Educational programs aimed at training personnel for the hospitality industry should include elements of innovation management and technological literacy in order to train professionals who can effectively manage changes and implement new practices in the industry’s enterprises.

Данная This chapter aims not only to identify and analyze the institutional factors that influence innovation management in the hospitality industry, but also to offer specific recommendations for businesses and policy makers to create an enabling environment for innovation development. This approach will not only improve the current state of the industry, but also ensure its long-term sustainability and progress.

1. Review of the main provisions of institutional theory, its applicability to innovation management. Institutional theory is one of the key approaches in the study of economics and management, which focuses on the role of formal and informal rules in the economic life of society. This theory describes how legal, political and social institutions shape the behavior of individuals and organizations, as well as affect economic efficiency and innovation activity. Based on the work of scientists such as Douglas North and Oliver Williamson, it can be argued that the institutional environment largely determines how and at what speed innovations are introduced in various industries.

As applied to the hospitality industry, institutional factors have a significant impact on the management of innovative projects. Formal regulations, such as environmental legislation, safety standards, and labor laws, directly affect the implementation of new technologies and business practices. For example, the laws governing waste management in the European Union encourage hotels to introduce technologies for recycling and reusing materials, which is an innovative approach to resource management [11—2, p. 31—37].

Informal rules, such as cultural traditions and norms of behavior, also play a significant role in the innovation process. In countries with a high level of respect for tradition, such as Japan, hospitality innovations are often aimed at improving the quality of service and maintaining high standards of hospitality, which requires businesses to pay special attention to detail in implementing innovations.

Research shows that effective management of innovative projects in the hospitality industry depends on the ability of organizations to adapt to the institutional environment and actively use its opportunities. One example of such adaptation is a hotel chain in Scandinavia, which has implemented a smart home system to manage energy consumption in rooms. This innovation was successfully implemented thanks to the incentives of the state policy in the field of energy conservation, which allowed the hotel not only to reduce costs, but also to attract environmentally conscious customers.

On the other hand, organizations that do not take into account institutional constraints or are not able to effectively overcome them often face problems in implementing innovative projects. An example is the attempt to introduce an online booking system in the restaurant business in some developing countries, where the low level of Internet penetration and the lack of habit of using digital technologies among the population significantly slowed down the adoption of this innovation. These restrictions required additional effort and investment from restaurants in customer education campaigns and staff training, which increased the overall cost of the project and the time frame for its implementation.

There is a vivid example from India, where legislative initiatives to support startups and innovative companies have created a favorable environment for the development of technological innovations in the hospitality industry. Thanks to government support, many hotels and restaurants have been able to invest in developing their own applications to improve the level of service and manage customer bases, which has helped to increase their competitiveness at the local and international levels.

It is also worth noting that institutional factors influence not only the choice of specific innovations, but also their implementation strategies. In countries with a developed legal system and transparent market mechanisms, such as the United States or the United Kingdom, hospitality companies are more active in introducing innovations focused on optimizing operational efficiency and improving the quality of service. These countries provide strong legal protection for intellectual property and encourage investment in research and development [11—1].

An example of successful adaptation to the institutional environment is the introduction of a loyalty program in a hotel chain in Europe, which integrated the principles of sustainable development and social responsibility. The program offered guests the opportunity to participate in environmental initiatives, which not only strengthened the company’s reputation, but also attracted new customers interested in eco-friendly tourism.

Theanalysis of institutional factors in managing innovations in the hospitality industry allows us to conclude that the successful implementation of innovations depends not only on the internal resources of the enterprise, but also on the ability to adapt to the external institutional environment. Taking these factors into account allows organizations to plan and implement innovative projects more efficiently, minimize risks, and increase the chances of success.

2.Innovative projects in the hospitality industry. The hospitality industry is constantly exploring new opportunities to improve its services and offerings through innovation, which is a response to changing customer needs and increased competition. These innovations cover a wide range of areas, from improving management processes to creating new products and services. Examples of such innovations include the development of boutique hotel concepts, the introduction of sustainable technologies in building management, and the creation of personalized travel experiences for guests.

Taking into account the management of accommodation facilities, we can mention hotels that have implemented smart lighting and temperature control systems that significantly reduce energy consumption, increase the comfort of guests ' accommodation and reduce operating costs. An example from Scandinavia shows how a hotel complex using the installation of motion sensors and adaptive lighting control was able to reduce energy consumption by 20% in the first year of operation of the new system.

In the food segment, innovations are also actively applied to improve the quality of service and increase profitability. Restaurants that integrate farm products into their menus not only contribute to the sustainable development of local economies, but also attract customers interested in healthy eating. An example is a restaurant in California that started using only locally produced products, which strengthened its reputation among environmentally conscious consumers and increased its attendance by 30% [11—5].

In addition, innovation in the field of hospitality includes the development of unique tourist experiences, which is becoming increasingly important in the context of global competition. Hotels and travel companies that offer unique cultural or adventure packages are significantly different from their competitors. An example from New Zealand, where a hotel offered guests “adventure accommodation” packages that included kayaking, sailing, and mountain hiking resulted in a doubling of bookings per season.

It is also important to note the introduction of sustainable innovations that are aimed at reducing the impact of hotel activities on the environment. Hotels around the world are implementing water conservation, waste management and renewable energy systems. A hotel in Germany has developed a system that allows all organic waste to be recycled into compost, which is then used to fertilize the hotel’s garden. This practice not only reduced the amount of waste sent to landfills, but also attracted the attention of environmentally-oriented tourists, which increased the hotel’s workload.

In addition to sustainable technologies, many businesses in the hospitality industry are adopting innovative approaches to customer service and relationship management. For example, some hotels have implemented loyalty programs that analyze customer preferences and offer them personalized services, such as individually selected excursions or special offers in hotel restaurants. This approach not only increases customer satisfaction, but also increases customer loyalty.

An example of an innovative approach in the field of accommodation is also the creation of themed hotels that offer guests immersion in a certain atmosphere or era. This Viking — style hotel in Sweden offers not only unique interiors, but also themed events such as master classes in ancient crafts and traditional Scandinavian banquets. This attracts tourists interested in the history and culture of the region, and opens up new opportunities for marketing and expanding the customer base.

Special attention in the hospitality sector is also paid to the development of spa services. Innovations in this area include the use of local natural resources, such as mineral waters or thermal springs, which allows you to create a unique offer on the market and increase the attractiveness of a holiday destination. An example is the resort in Iceland, where guests can enjoy swimming in geothermal springs with views of the Aurora Borealis, which has become a significant factor in attracting international tourists.

ИInnovative projects in the hospitality industry cover a wide range of areas and are aimed at meeting the specific needs of modern travelers, ensuring the sustainability of the business and its adaptation to current environmental and social requirements. These examples highlight the importance of innovation as a means of achieving competitive advantage and improving the quality of services offered.

3. Institutional factors. Institutional factors have a significant impact on the management of innovation in the hospitality industry, influencing decisions about the introduction of new technologies and practices. Legislation, the political environment, as well as cultural and social aspects in different countries and regions create a unique context in which enterprises develop and implement innovative projects. Understanding these factors and their impact on the hospitality industry helps identify both opportunities and barriers to innovation.

Legislation can promote innovation by providing incentives and subsidies, or, conversely, create obstacles through strict regulatory requirements. For example, in the European Union, strict environmental regulations encourage hotels to adopt environmentally friendly technologies and practices. In particular, regulations on reducing carbon dioxide emissions and using renewable energy sources encourage the industry to invest in green technologies. In Denmark, for example, a number of hotels have implemented fully automated building management systems that allow real-time monitoring of energy and water consumption, significantly reducing operating costs and improving the environmental profile of businesses.

The political environment also plays a crucial role, as the stability of government and transparency of its policies can either strengthen or undermine the confidence of investors and entrepreneurs. In countries with unstable political situations, such as in some African countries, political uncertainty can deter investment in major innovative projects. Enterprises in these conditions are often limitedаto short-term or less risky projects in order to minimize possible losses [11—3].

Cultural and social aspects influence the perception and acceptability of innovations in society. Cultural traditions can both promote and limit the adoption of new ideas and technologies. In Japan, for example, the high value attributed to minimalism and aesthetics has led to the development of hotel room concepts that optimize space and create a cozy atmosphere using cutting-edge technology. This is an example of a successful combination of traditional values with innovative approaches that resonates with consumers.

Social aspects, such as demographic changes and changing consumer demands, also directly affect innovation in the hospitality industry. The growing interest in a healthy lifestyle and sustainable development has led to the emergence of hotels offering special programs for physical activity and dietary nutrition. For example, a hotel chain in the United States successfully implemented detoxification and yoga programs, which allowed attracting a new category of guests interested in wellness services.

Thus, the analysis of institutional factors shows that successful innovation management in the hospitality industry requires a deep understanding and consideration of these factors. Legislative incentives and barriers, political stability, as well as cultural and social characteristics play a decisive role in shaping the innovation landscape in this industry.

4. Analysis of the impact of institutional factors. Institutional factors have a significant impact on the management of innovation in the hospitality industry, defining the framework within which companies can develop and implement innovations. These factors include legislation, political stability, cultural norms, and social expectations, all of which can play a crucial role in the success or failure of innovative projects.

An example of the impact of legislation on innovation in hospitality is the introduction of strict environmental safety standards in Europe, which require hotel complexes to minimize their impact on the environment. In response to these demands, a hotel chain in the Netherlands has started using water treatment systems that purify and reuse wastewater for the technical needs of buildings. Such systems not only helped hotels meet the new environmental standards, but also led to a reduction in water costs and an improvement in the overall environmental image of companies [11—4].

In countries with political instability, such as parts of Africa, innovation in the hospitality industry can suffer due to high investment risks. However, some businesses are finding ways to grow by focusing on innovations that do not require large capital investments. An example is a hotel in Kenya, which introduced mobile payments to simplify booking and payment processes, which significantly increased customer convenience and made it easier to manage financial flows in the face of political uncertainty.

Cultural norms also play a significant role in shaping innovative approaches in the hospitality industry. In Japan, where harmony and minimalism are highly valued, one of the Tokyo hotels has developed the concept of rooms that are as free from frills as possible, but at the same time equipped with high-tech devices for comfort management. This innovation takes into account cultural preferences and at the same time increases the attractiveness of the hotel for technologically aware travelers.

Social expectations also shape the direction of innovation, especially in the context of the growing demand for personalized and unique travel experiences. In the United States, the hotel chain has introduced a service that allows guests to choose not only rooms, but also decorations for them, depending on the event or preferences, whether it’s a romantic dinner or a family vacation. This innovation has significantly increased customer satisfaction and increased brand loyalty, taking into account the desire of consumers to personalize their journey.

In addition, social changes associated with increased awareness of health and well-being have contributed to the introduction of healthy lifestyle programs in hotels. For example, a group of hotels in Scandinavia offered guests specialized nutrition and fitness programs that are closely integrated with local sports facilities and nutritionists. These programs not only improve the health of guests, but also increase the attractiveness of hotels for tourists who are looking for opportunities to maintain their healthy diet and activity during travel.

Cultural differences may also limit the adoption of certain types of innovations. In countries with conservative views on alcohol, such as some Middle Eastern countries, hotels have adapted their services to meet local expectations and norms, offering, for example, special non-alcoholic drinks and cocktails as an innovative product in the menu of their restaurants and bars. These adaptations allow you to attract a wide range of clients, while respecting local cultural and religious norms.

It is also important to note the impact of data protection legislation on the management of customer information in the hospitality industry. With the introduction of the General Data Protection Regulation (GDPR) in the European Union, hotels and other hospitality businesses have been forced to innovate their data management systems to ensure a high level of protection for guests ' personal information. This includes the introduction of stronger encryption systems and more thorough management of access to information, which not only strengthens customer confidence, but also increases their satisfaction with the service.

Thus, an analysis of the impact of institutional factors on innovation management in the hospitality industry shows that taking these factors into account is critical for successful innovation implementation and achieving competitive advantages. From the correct understanding and application of the legal framework to adapting to the cultural and social characteristics of the market — all these aspects must be carefully thought out and implemented in the innovation strategy of hospitality enterprises.

5. Comparative analysis. Institutional factors influence innovation management in various industries, but the nature and extent of this influence may vary significantly. Let’s look at the hospitality industry in comparison with the pharmaceutical industry and the information technology sector to identify unique features and differences in the impact of legislation, regulations, cultural and political aspects on innovation.

In the hospitality industry, as noted earlier, institutional factors have an impact through environmental legislation, cultural characteristics of the region, and political stability, which directly affect opportunities and strategies for innovation. For example, hotels in the European Union face the need to adapt to strict environmental regulations, which encourages the development and implementation of “green” technologies [11—6].

In the pharmaceutical industry, institutional factors are manifested primarily through strict regulation in the development, testing and approval of medical products for use. Laws and regulatory standards, such as the FDA in the United States or the EMA in Europe, define clinical trial procedures and quality standards. These requirements lead to high costs and long lead times for the development of new medicines, which significantly affects the innovation processes in the industry.

The information technology sector, by contrast, is characterized by less regulation than the pharmaceutical industry. Innovations in this sector often outstrip existing legislation, which creates room for experimentation and rapid innovation. However, regulatory restrictions are also beginning to appear in this area, for example, related to data protection and confidentiality of information, which are beginning to have a greater impact on the activities of companies.

A comparison of these three industries reveals differences in how institutional factors can stimulate or constrain innovation activity. In the hospitality and pharmaceutical industries, regulations often act as barriers or incentives to certain types of innovation, requiring significant investment in compliance with standards. In the field of IT, a lighter regulatory regime allows for faster innovation, although new challenges are beginning to arise here with tighter control over data processing.

АAnalysis shows that in each industry, institutional factors create unique conditions for the development and implementation of innovations. These conditions should be taken into account when developing innovation strategies.

It is important to note that in the hospitality industry, where cultural aspects and sustainability needs have a significant impact, companies must adapt to the diverse requirements and expectations of consumers. For example, the introduction of sustainable practices such as the use of renewable energy sources and waste minimization becomes not only a response to legal requirements, but also a means of attracting new customers interested in an environmentally responsible approach to business.

The pharmaceutical industry, in turn, faces the need for intensive research and development, which requires significant investment and time to obtain all the necessary approvals before launching a product on the market. These requirements create a high barrier to entry for new players and limit opportunities for rapid innovation. However, such conditions also contribute to a high level of consumer confidence in the product, as each new drug is strictly tested before it becomes available on the market [11—4].

Unlike the pharmaceutical industry, the information technology sector allows companies to quickly respond to market changes and consumer trends by introducing new products and services with relatively low initial costs. But even here, new challenges arise due to the tightening of data protection legislation, which requires companies to invest in the security and privacy of user data.

It is also worth noting that in each of these industries, companies face the need not only to comply with current regulations, but also to anticipate future changes in legislation and public sentiment. This requires businesses to be flexible and adaptable, as well as adopt an integrated approach to innovation management that takes into account both technological capabilities and institutional constraints.

Thecomparative analysis shows that although institutional factors create different conditions for innovation activity in different industries, the general need is to take these factors into account when planning and implementing innovative projects. Understanding the specifics of institutional influence allows companies to manage risks more effectively and take advantage of opportunities provided by the market and regulatory environment.

6. Challenges and obstacles. Organizations in various industries face numerous obstacles when trying to innovate, many of which are caused by institutional barriers. These barriers may include legislative and regulatory constraints, political instability, cultural differences, and social rejection of innovations. All these elements combine to create a complex environment in which companies must navigate to successfully implement and execute innovative projects.

In the hospitality sector, for example, strict environmental and safety legislation is a significant barrier. While these regulations are designed to protect the environment and ensure customer safety, they also require hotels and restaurants to invest heavily in upgrading their equipment and systems. For example, the implementation of environmental management systems in hotels in Europe requires expensive technological solutions that may be too heavy for small businesses, thus limiting their ability to compete with large chains.

Political instability is also a significant barrier to innovation in many countries. In regions where political changes or conflicts are frequent, investors and companies may feel insecure about the security of their investments. In countries with low levels of legal protection of intellectual property, organizations may face the risk of copying their innovations without compensation, which reduces the motivation to develop unique products and services. An example is a travel company in South America, which developed a unique eco-tour programэкотуров, but faced imitations, which significantly reduced the expected profit from the project [11—3].

Cultural characteristics can also have a deterrent effect on innovation. In countries where traditions play an important role and changes are taken with caution, companies may face resistance from consumers when trying to introduce new, non-standard practices. In Japan, for example, where the tradition of hospitality is highly valued, the introduction of fully automated hotel services may be frowned upon by customers who prefer a high level of personal service.