The impact of service innovation on performance of travel agencies in the city of Tehran: The mediating role of service quality and customer satisfaction

Intense international competition, rapid technological evolution, and the more mature expectations of customers have produced unprecedented challenges in the service sector and change to the global business environment. In response to challenges posed by service globalization, intense market competition, and heightened customer expectations, service firms increasingly employ new service development as a competitive driver to increase revenues and attract customers. This study examines the impact of service innovation on the performance of travel agencies in terms of the role of mediator of service quality and customer satisfaction in the city of Tehran. The research conducted as a survey and correlation. The statistical population of the study was manegers and senior staff of travel agencies of the city of Tehran that 179 samples were selected randomly. The research instrument was a standard questionnaire that the resulting data analyzed using SPSS and PLS software. The findings showed that service innovation has a direct and positive effect on the non-financial performance of travel agencies in the city of Tehran (0/198). Also, the results showed that service innovation due to the mediating variable of service quality also has a positive and significant indirect effect on the non-financial performance of travel agencies in the city of Tehran (0/211). Finally, service innovation through the mediators of service quality and customer satisfaction also has a positive and significant indirect effect on the non-financial performance of travel agencies in the city of Tehran (0/192).