Investigating the effects of offline and online social capital on tourism SME performance: A mixed-methods study of New Zealand entrepreneurs

Entrepreneurial social capital develops through the accrual of resources gained from an entrepreneur's social ties. These are integral to entrepreneurial success, enabling access to financial, marketing, and human resources, and innovation. Entrepreneurs increasingly manage their networks through online platforms such as Facebook, LinkedIn, and Twitter. However, there are major gaps in the extant empirical research concerning how online social capital is manifested, if this differs from an in-person context, and the effects ‘online’ and ‘offline’ social capital resources on tourism business success. This study adopts a mixed-method approach to examine tourism entrepreneur's behaviours in building offline and online social capital, and their nuanced effects on firm performance. The results found tourism entrepreneurs' networking activity manifests in three distinct configurations, Active Online Networkers, In-Person Networkers, and the Less Engaged. Each configuration demonstrated varying effects on expected business growth and performance with regards to number of employees, sales revenues, and net profit.     

Working capital,cash holding,and profitability of restaurant firms

Efficient working capital management is becoming important for restaurant firms coping with weak financial conditions and increased economic uncertainty. This study investigates the impact of restaurant firms’ working capital on their profitability. We further examine the effects of firms’ cash levels on the relationship between working capital and profitability. The findings ascertain a strong inverted U-shape relationship between working capital and a firm's profitability, which indicates the existence of an optimal working capital level for restaurant firms. This study also reveals that a firm's cash level is an important factor for efficient working capital management. The results suggest that interactive effects exist among working capital, cash levels, and profitability. Thus, restaurant managers should consider these different roles and impacts when developing an efficient working capital management strategy. Detailed results and implications are presented in the main body of this paper.     

Is restaurant franchising capital a substitute for or a complement to debt?

Since Oxenfeldt and Kelly’s 1969 study, the resource scarcity hypothesis has been considered a representative theory to explain franchising motivations. Whether franchising capital is a substitute for or a complement to debt has been discussed in the franchise literature but the relationship remains unclear. Using Frank and Goyal’s (2003) financial deficit model along with trade-off and pecking order theories, this study shed light on whether franchising capital acts as a substitute for and/or to complement debt in the restaurant industry. This study discovered that the adjustment speed of long-term debt leverage was faster for franchise restaurant firms than non-franchise restaurant firms. Further, the average long-term leverage target was lower for franchise restaurants. Consequently, this study revealed that franchising capital functioned as a substitute for long-term debt. In contrast, the adjustment speed of short-term debt leverage was slower for franchise restaurants and, thus, franchising capital complemented short-term debt.     

An exploratory study of managerial compensation in the restaurant industry

ABSTRACT

Set within the human capital framework, the focus of this exploratory study is to investigate how individual and industry attributes affect the earnings of salaried restaurant managers in the United States. Previous compensation studies in the restaurant industry have almost exclusively focused on executive compensation and its relationship to a firm's financial variables. Given the size of the industry, it is important to investigate compensation practices at various levels of its leadership. The findings show that relevant work experience, gender, education, race, and property size are significant attributes effecting restaurant managers’ compensation. Practical implications are provided.     

Contingent effects of close relationships with suppliers upon independent restaurant product development: A social capital perspective

Despite recommendations that the restaurant industry more readily engage suppliers within their operations in order to expand capabilities, associations with restaurant business performance and supplier relationships remain unexplored in today’s current restaurant literature. This study assessed restaurant-supplier relationships from the social capital perspective and evaluated roles social capital played in product enhancement and new product development within the independent restaurant context. Results demonstrated that independent restaurant product enhancement was positively and linearly associated with social capital derived from restaurant-supplier relationships. Results also found that building social capital within restaurant-supplier relationships positively influenced new product development, but when taken to an extreme, it exhibited a negative association through an inverted curvilinear effect. Results provide new insights for future research and practice regarding independent restaurant supply management practices.     

生计资本视角下大都市近郊区农民旅游创业的影响因素——以北京市怀柔区莲花池村为例

十九大报告明确指出，促进农村一二三产业融合发展，支持和鼓励农民就业创业，拓宽增收渠道。乡村旅游是农民创业的热点行业，也是乡村振兴的重要举措。本研究以北京市怀柔区旅游山村莲花池村为例，利用半结构式访谈及田野调研资料，基于扎根理论分析了农民旅游创业的行动逻辑及影响因素，建立了创业者特征、创业条件以及创业环境3个主范畴下农民旅游创业的影响因素理论模型，采用二元logistic回归分析方法，从是否旅游创业、是否存续的角度，讨论了农民旅游创业因素作用的动态变化。研究发现：（1）农民旅游创业决策模型分为创业者与创业条件两个维度。其中，创业条件包括家庭人力资本、物质资本和社会资本；（2）农民旅游创业存在女性化、年轻化趋向，家庭劳动能力、道路便捷性是进行创业的先决条件，家庭社交支出、创业者周围人群以及区域大环境是创业存续的促进条件；（3）农民旅游创业主导因素由个体因素转为外部社会化因素。     

Relationships between external knowledge,internal innovation,firms’ open innovation performance,service innovation and business performance in the Pakistani hotel industry

The purpose of this study is to test the relationships between external knowledge, internal innovation, firms’ open innovation performance, service innovation and business performance in the Pakistani hotel industry. A simple random sample of 285 managerial staff in the Pearl-Continental Hotels & Resorts of Pakistan was surveyed. The findings show that firms’ open innovation performance has a positive influence on service innovation and business performance. They also reveal that external knowledge and internal innovation positively influence firms’ open innovation performance and that further leads to service innovation and business performance respectively. This study provides practitioners with firms’ open innovation performance as a tool to enhance business performance while adopting the strategy.     

Brand knowledge and non-financial brand performance in the green restaurants: Mediating effect of brand attitude

The restaurant business has been increasingly recognized for its ability to help mitigate many negative environmental impacts. To develop a competitive advantage, green restaurants may adopt an innovative branding strategy. Marketing management recognizes that understanding brand attitude is critical for marketing strategies. Studies have examined the relationship between brand knowledge and non-financial brand performance. However, it remains unclear how the green restaurant brand attitude affects this relationship.This study aims to fill this research gap by identifying the composition and structure of the brand attitude in Taiwan’s green restaurants and examining the mediating effects of brand attitude on the relationship between brand knowledge and brand performance. The findings of this study broaden and deepen the current knowledge of the role of brand attitude in Taiwan’s green restaurant industry. In practice, it is suggested that green restaurant management should develop well-known brand knowledge to form brand attitudes and foster brand performance.     

Entrepreneurial motives and characteristics: An analysis of small restaurant owners

The purpose of this study was to gain information about the characteristics of small restaurant owners in China. The data for the study were hand-collected by survey questionnaires in four cities across three provinces in China. We found three main results. First, small restaurant entrepreneurs were characterized by one of three distinct motives in that they were autonomy seekers, family protectors, or profit seekers. Second, their funding sources were predominantly private rather than institutional. And third, the entrepreneurial business was the main source of the family's income. These findings have implications for development programs, financing, and education in developing China's restaurant industry. This study appears to be the first to investigate empirically entrepreneurial activity among small business owners in the Chinese restaurant industry.     

Top managers’ environmental values,leadership, and stakeholder engagement in promoting environmental sustainability in the restaurant industry

This study examines the role of top managers’ values and leadership in advancing environmental sustainability. It also investigates the effects of stakeholder engagement on restaurants’ environmental sustainability and assesses the impact of related practices on restaurant performance. A web-based survey was administered to collect data from top-level restaurant managers in the United States. The sample was selected from panels recruited by a research company specializing in panel surveys. Invitation emails were sent to 2500 managers and 240 responses were returned, 218 of which were retained for final analysis (response rate: 8.7%). Structural equation modeling was used for testing hypothetical relationships among key constructs in the proposed research model: environmental values, leadership, stakeholder engagement, environmental sustainability, and restaurant performance. Findings confirmed the significant role of top management values and leadership in advancing environmental commitment. The results also demonstrated the strong impact of stakeholder engagement on restaurants’ commitment to environmental sustainability. Finally, they indicated the positive influence of restaurants’ environmental sustainability performance on both financial and nonfinancial performance. The study presents a theoretical framework, integrating theories or models from extant literature, and contributes to an enhanced understanding of restaurants’ environmental sustainability. The findings suggest several practical implications for managers in the restaurant industry.     

“Just Trying to Keep the Customer Satisfied”

SUMMARY

The paper compares the predictive validity of six models used in the measurement of satisfaction; it is concerned with their application at destination level, with particular reference to Orlando, Florida. Using factor analysis and multiple regression, the ‘performance only’ model was clearly identified as the best predictor of satisfaction. The incorporation of ‘importance’ and ‘performance’ ratings did not improve the predictive power of the ‘performance only’ solution. From tourists' ‘performance’ ratings, five ‘dimensions’ of Orlando's tourism offering were identified: ‘primary,’ ‘secondary’ and ‘tertiary’ attractions, ‘facilitators’ and ‘transport plus.’ Notwithstanding Orlando's reputation as the world's theme park capital, Orlando's ‘secondary’ attractions (such as shopping and dining opportunities) and ‘facilitators’ (such as accommodation and customer service) were identified as having the most influence on overall tourist satisfaction with Orlando.     

Moderating effect of capital intensity on the relationship between leverage and financial distress in the U.S. restaurant industry

During the recent and ongoing economic turmoil, countless businesses have been facing financial distress and many have filed for bankruptcy. This issue is especially critical for the restaurant industry due to restaurants’ sensitivity to economic fluctuations. Therefore, the purpose of this study is to examine the financial distress issue in the U.S. restaurant industry. In particular, the study examines a moderating effect of capital intensity on the relationship between a firm's leverage and degree of financial distress. The dataset includes publicly traded U.S. restaurant firms during the period 1990–2008. The study measures the degree of financial distress by modified Z-scores, and findings suggest a positive moderating effect of capital intensity on the relationship between leverage and financial distress.     

Afraid to travel after COVID-19? Self-protection,coping and resilience against pandemic ‘travel fear’

COVID-19 has generated an unprecedented level of public fear, likely impeding tourism industry recovery after the pandemic is over. This study explores what trigger the public's pandemic ‘travel fear’ and how people impose self-protection, coping and resilience related to travel. The study integrates theories including protection motivation theory, coping and resilience theories to address the research aim. Using a quota sampling, an online survey of 1208 respondents across mainland China was conducted. Results found that threat severity and susceptibility can cause ‘travel fear’, which leads to protection motivation and protective travel behaviors after the pandemic outbreak. Findings also revealed that ‘travel fear’ can evoke different coping strategies, which increases people's psychological resilience and adoption of cautious travel behaviors. Several strategies are provided on how to mitigate people's ‘travel fear’ and encourage travel in a post-COVID-19 world.     

Human Capital,Organizational Orientations and Performance: Evidence From the Restaurant Industry

ABSTRACT

The study examines how human capital combines with and influences organizational orientations to determine performance. Specifically, this study investigates small restaurant businesses’ ability to effectively exploit intangible resources and capabilities, rather than tangible resources, in order to produce sustainable competitive advantage. A structured questionnaire was used to survey owners/managers of small independent restaurants in the United States. The results demonstrate that human capital, market orientation and entrepreneurial orientation serve as intangible resources and capabilities that can augment the competitive position of independent restaurants, and thereby improve performance. Human capital also combines with and influences the adoption of market orientation and subsequent performance.     

Uncertainty risks and strategic reaction of restaurant firms amid COVID-19: Evidence from China

To contain the pandemic of coronavirus (COVID-19), social distancing, self-isolation and travel restrictions have been imposed globally. To shed light on how COVID-19 is affecting restaurant industry, this study aims to explore the factors that affect restaurant firms’ financial turnaround for their sustainability after the business shutdowns amid the COVID-19 pandemic. By utilizing a total of 86,507 small- and medium-sized restaurant firms’ sales data collected from nine cities in Mainland China, the exploratory approach of this study successfully determines positive impacts of three aspects of operational characteristics (i.e., delivery, discounts, and service type) and brand effects as uncertainty minimizing factors amid distinctive business shutdowns and restrictions. This is the first empirical study in the management realm on the impacts of COVID-19 on restaurant industry. This paper strengthens the extant literature by highlighting the impact of COVID-19 on the restaurant industry after the business restrictions are lifted.     

Does franchising help restaurant firm value?

A company's financial performance is of keen interest to many groups of people, including management, employees, shareholders, government, and so on. Although franchising has been one of the most common strategies to maximize a firm's financial performance in the restaurant industry, little research has been conducted regarding the relationship between the degree of franchising and the restaurant firm's financial performance. This study initially proposed a sigmoid relationship between the degree of franchising and the restaurant firm's financial performance based on the diversification theory. Findings, however, do not fully support the sigmoid relationship; rather a more quadratic or inverted U-shaped relationship was found.     

New performance indicators for restaurant revenue management: ProPASH and ProPASM

Measuring business performance is the first step of the improvement process but without knowledge there can be no purposeful action. Revenue per Available Seat Hour (RevPASH) is an effective and reliable indicator of a restaurant's performance, however, it may not provide the whole picture of a restaurant's business performance. In restaurants, the contribution margin of each menu item is different and it should be taken into consideration when evaluating restaurants’ performance, because the goal of restaurant revenue management is to maximize profit, not just revenue. Although several researchers have explored various issues regarding restaurants’ revenue management (RM) strategy, there has been little discussion on how to measure the performance of RM strategies as they apply to restaurants, except RevPASH. Therefore, this study proposes new metrics, ProPASH (Profit per Available Seat Hour) and ProPASM (Profit per Available Square Meter) and discusses how they can be applied to measure the effectiveness of restaurants’ RM strategies.     

Creativity and innovation in the restaurant sector: Supply-side processes and barriers to implementation

Evidence supports creativity and innovation as important drivers of firm performance. However, research in the restaurant sector has focused heavily on ‘culinary’ innovations, with little emphasis on creativity and innovations in marketing, management, processes, and services. This study adopts a broader perspective, exploring sources for creative ideas, the different types of innovations, and barriers to their implementation. The paper reports the findings of a systematic review of restaurant innovation literature and empirical data from interviews with restaurant owners in Australia. Results of the study revealed that restaurant entrepreneurs generate new ideas by 1) imitating the practices of leading competitors and 2) analysing customer feedback. Marketing innovations were the most commonly developed type of innovation, whereas management system innovations were the least developed. Finally, creativity in idea generation and implementation of innovation is restricted by two main challenges: staff resistance to change and customer non-acceptance of new innovations.     

Rapid responding to the COVID-19 crisis: Assessing the resilience in the German restaurant and bar industry

The COVID-19 pandemic has fundamentally impacted the restaurant and bar industry. Simultaneously, this industry is already undergoing structural change. Using the concept of organisational resilience, we analyse the impact of the COVID-19 crisis on owner’s assessment of resilience in the German restaurant and bar industry. Findings from an online survey with 623 owners and managers show that ex-ante business problems, and financing by loans or credit, reduce the likelihood of owners perceiving their business as resilient; while, delivery and takeaway service, ownership of property and higher age of owners, increase the likelihood of enterprise resilience. The paper contributes to understanding how restaurants and bars absorb and cope with the COVID-19 crisis. Furthermore, we make recommendation for future research on the recovery and adaptability of the business sector.     

Enhancing business performance of hotels: The role of innovation and customer orientation

Innovation management and customer orientation have been widely recognized as key factors in enhancing the business performance of hotels. Our research investigates the interplay between customer orientation, innovation, and business performance in the Alpine hospitality industry. The study contributes to current innovation research by jointly investigating hotel innovativeness and innovation behavior as two distinct dimensions of the innovation concept. Analyzing data from 203 hotel managers, this study shows that the effect of hotels’ customer orientation exceeds the effects of innovativeness and innovation behavior on financial and non financial business performance. Mediation analysis shows that innovation behavior partially mediates the effect of customer orientation on business performance. The results of the study provide hotel management with relevant insights into the customer orientation innovation performance chain.