Oleksandr P. Krupskyi

Innovations as a source of competitive advantages for an enterprise are described in the article; the influence of organisational culture and its elements are analysed with regard to finding ways of innovative development. The major problems hindering the implementation of the culture that enables innovations in the hospitality and tourism industry in Ukraine have been identified under own research of 69 hospitality enterprises. It was found out that degree of innovativeness depends on the size of the company, and for certified hotels - the number of stars. According to the staff, the latter partially due to the following reasons: lack of incentives (primarily material ones) to training; reluctance to submit proposals which may cause a negative reaction of a team; poor awareness of the company’s success; conservatism, relying on the traditional ways of doing business; lack of understanding of the need to meet consumer requirements in the best for him, not a firm, manner; lack of confidence in leadership and others. The recommendations to overcome the problems have been made.