Innovation Propensity and Performance in Tourism Industry: the Mediating Role of Trust in Public Authorities and Market Structure Perception

Based on an international survey of 674 firms based in Italy, France, UK, Germany and Spain, this paper is aimed at analysing the relation of firms’ innovative behaviour and performance. This study is based on a mixed methods research (MMR), therefore, it relies on both theoretical assumptions and statistical techniques and methodologies, precisely structural equation modelling (SEM). Considering the effects of the trust in public authorities and the market assessment, the mediating effect of NSD plays a sound positive role on performance. NSD 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.