Abstract

The purpose of the study is to contribute to the existing literature by reviewing empirical studies conducted in the restaurant industry on innovation to develop a dynamic capabilities-based research model for independent restaurants which can be tested by future scholars in the restaurants industry. The review covered innovation models that have been used and tested in restaurants; types of innovation; dynamic capabilities as an antecedent for innovation; the mediating role of human capital between dynamic capabilities and innovation; and the relationship between innovation and performance. The results of the study revealed that innovation activities described in the literature can be categorised into the dynamic capabilities components of sensing, learning, integrating, and co-ordinating capabilities thus supporting the proposed dynamic capabilities research model. The model, therefore, provides a comprehensive framework for investigating innovation activities in independent restaurants.

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