Change or perish: Examining the role of human capital and dynamic marketing capabilities in the hospitality sector

Many researchers have endeavored to explain which factors contribute to sustainable competitive advantage. Toward this end, this study contributes to the marketing and hospitality management literature by providing empirical evidence on how human capital, dynamic marketing capabilities, and market dynamism influence competitive advantage in the hotel sector. We collected cross-sectional survey data from marketing and sales managers in 165 hotels, along with in-depth interviews in three hotels, based in four Gulf Cooperation Council (GCC) countries, namely, Saudi Arabia, Qatar, United Arab Emirates and Bahrain. The findings reveal that human capital directly, and indirectly through dynamic marketing capabilities, plays a critical role on developing competitive advantage. To contextualize this role, our research reveals that market dynamism moderates the mediated relationship between human capital and competitive advantage via market sensing capabilities. We discuss how the findings offer theoretical and managerial implications for the development of competitive advantage in the hotel sector.     

How do dynamic capabilities explain hotel performance?

This research study explores the relationship between three dynamic capabilities and their impact on hotel performance. Specifically, we examine the relationship between human resource management (HRM), quality management (QM) and sustainability. In addition, we analyse how QM and sustainability explain hotel performance measured by occupancy rate, average daily rate (ADR) and revenues per available room (RevPAR). These capabilities can generate income, enabling hotels to adapt as quickly as possible to the changing environment. Findings show a significant relationship between HRM, QM and sustainability. The relationship between QM and hotel performance and between sustainability and hotel performance is fully mediated by the differentiation competitive advantage. Our results represent an advance in hotel theory and management because they integrate HRM, QM and sustainability, and show their ability to be a source of competitive advantage and profitability.     

Customer accounting and marketing performance measures in the hotel industry: Evidence from Australia

Increasingly competitive environments have focused hotel managers’ attention on gaining competitive advantage by maximising the potential of their customer base. This paper provides the results of a study of the use and antecedents of customer accounting and marketing performance measures in the Australian hotel industry. The findings of a survey of 165 Australian hotel managers provide evidence that large, highly market orientated hotels with a decentralised structure use more customer focused accounting and marketing practices. Additionally, support was also found for a significant positive relationship between market orientation and a prospector-type strategy, as well as market orientation and both financial and non-financial performance.     

Philanthropic giving of China’s hotel firms: The roles of state ownership,corporate misconduct and executive remuneration

This study utilizes value enhancement theory, agency cost theory and crisis management theory to scrutinize the philanthropic giving (PG) of China’s listed hotel companies from 2003 to 2018. The results of dynamic panel regression tests reveal that state ownership (company character), corporate misconduct (crisis management determinant) and executive remuneration (agency cost determinant) are influential factors in hotel firms’ PG, but none of the value enhancement determinants can explain PG. Specifically, state ownership is negatively correlated with PG, reflecting low PG in government dominated hotel firms in China. PG is negatively associated with executive remuneration, indicating that hotel managers care more about self-interest than social responsibility. PG is also positively related to corporate misconduct, suggesting that hotel firms use philanthropy to manage a crisis. Finally, the lagged PG has a positive effect on PG, implying that PG is intended to avoid damage to social image and reputation of China’s hotel firms.     

Information technology and destination performance: Examining the role of dynamic capabilities

Destinations can be considered as service ecosystems in which independent actors (largely firms) form elements in destination business networks. An understanding of resource capabilities and their configuration in relation to improved firm management, and competitive advantages within destination organisations, has implications for resource integration and ultimately destination performance. This study utilises dynamic capabilities theory and a survey approach with managers in different destination organisations to model resource configuration based on the fundamental role that Information Technology plays in competitive advantages and destination performance. The results confirm that information technologies cannot promote improved performance directly but contribute indirectly through enhancement of capabilities; coordination, integration and flexibility. The results provide implications for understanding links between management advantage and destination performance and competitiveness.     

女性高管会提升旅游企业绩效吗?——来自旅游上市公司的经验研究

旅游业是女性就业较为集中的行业。近年来,我国旅游企业中女性高管不断增加,文章以2003-2016年期间我国旅游上市公司作为样本,基于高阶理论构建研究假设,并利用非平衡面板数据建立计量经济学模型,实证研究我国旅游上市公司中女性高管对企业绩效的影响。研究发现,旅游上市企业中女性高管对企业绩效具有显著促进作用;然而,对酒店行业的进一步分析表明,女性高管对酒店企业绩效的正向作用,会因为行业高度竞争压力的存在而受到抑制。研究结果丰富了现阶段女性研究相关文献,也为旅游企业管理决策提供了理论依据和经验支持。     

Organizational Learning and Hotel Performance: The Role of Capabilities’ Hierarchy

Building on the capabilities’ hierarchy concept, a model of the effect of organizational learning on hotel performance is proposed and tested in this study. Data was collected from 240 managers in the hotel industry of United Kingdom and Pakistan via survey. The results revealed strong direct inter-relation between different level of capabilities and an indirect relation between organizational learning and performance through these capabilities. This paper makes theoretical contributions to management as well as hospitality and tourism research by generating an integrative and unifying framework for an organizational learning performance relationship, clarifying capabilities inter-relationships and empirically revealing the exact way these capabilities enhance performance. Also, it has practical implications for hotel managers’ understanding on the development and use of capabilities as a hierarchy in enhancing their hotel performance.     

Political connections,guanxi and adoption of CSR policies in the Chinese hotel industry: Is there a link?

This research note examines the existence of a potential relationship between the political connections possessed by senior Chinese hotel managers and their adoption of corporate socially responsible (CSR) policies in the Chinese hotel industry. Given (a) China’s Green Hotel policy and (b) a broader context where, it is argued political connections and guanxi are a means by which the State seeks to advance desired economic reforms and counter corruption practice, it is suggested that those hotels with better political connections may show evidence of higher levels of awareness and adoption of CSR policies. The data are derived from a usable sample of 404 senior hotel managers. The findings show a positive relationship between the variables of ‘political connectedness’ and ‘CSR adoption’ in areas relating to environmental and philanthropic action, but less of a relationship in other CSR areas such as human resource management and guest relationships. The implications for future research are discussed.     

Training plans,manager's characteristics and innovation in the accommodation industry

This paper explores the effect of training plans and managerial characteristics on innovation activity in the hospitality sector. This sector is featured by being labor-intensive so the examination of employment and managers skills deserves attention in order to determine the level of quality and competitive advantage in the provision of services. The data in the paper comes from a questionnaire administered to hotel managers in a representative sample of hotels in the Balearic Islands, a leading tourist destination. Results suggest that training plans positively affect innovation-related decisions and the extent of their implementation; however, managers should have more than experience to manage the innovation change, specifically skills and capabilities.     

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.     

This hotel is family-run! Enabling positive consumer response via perceived hospitableness

Family-run businesses are key players in the hotel industry and provide accommodations in many tourism regions such as the Austrian Alps. To date, research has failed to see the family firm status as a source of competitive advantage for the hospitality industry, despite often being used in practice to attract customers. Through the theoretical lens of signaling theory, this study therefore conducted experiments using fictitious hotel websites with participants from a German online panel (Austria’s largest incoming market) to investigate the effectiveness of family firm brand signals. The results confirm positive effects of communicating the family firm image on consumer response such as word-of-mouth, willingness to pay a price premium, and booking intention. We highlight that this effect is explained by perceived hospitableness. As such, we demonstrate that hotels can capitalize on their unique status by communicating their family firm image.     

Hotels’ corporate social responsibility practices,organizational culture,firm reputation,and performance

Corporate social responsibility (CSR) practices are considered one of the key success factors influencing firm performance. However, how CSR practices should be integrated into an organization’s business practices has not been investigated empirically. The present research proposes an integrated model incorporating the interrelationships among CSR practices, organizational culture, and corporate reputation to improve firm performance in the hotel industry. The proposed model is developed using stakeholder theory and the perceptions of the general managers. According to the study’s results, organizational culture influences different dimensions of CSR. The results further indicate that hotels using CSR practices related to employees and customers strengthen their reputation. Through improved reputation, CSR practices positively influence firm performance. Furthermore, hotel managers perceive that CSR activities in the local community and related to the environment do not significantly affect a hotel’s reputation. Theoretical and practical implications are provided, and the limitations of the study and future lines of research are discussed.     

Effects of psychological contract breach on attitudes and performance: The moderating role of competitive climate

The performance of hotel employees is an important driver of customer satisfaction, which in turn affects hotels’ financial outcomes. Hotel managers should encourage their staff to deliver quality service and should inspire them to perform their best. This study advances a multilevel model that draws connections among competitive climate, organizational identification (OID), job performance, affective commitment (AC), and psychological contract (PC) breach from a sample of hotel staff. The results indicate that (1) PC breach is negatively related to OID and AC, (2) OID and AC have a significant positive relationship with job performance, and (3) competitive climate at the organizational level moderates the effects of OID and AC on hotel workers’ in-role performance. These results offer valuable implications for managers to produce more efficient hotel human resource management techniques.     

The influence of uncertain demand on hotel capacity

We examine the effects of uncertain demand on hotel capacity using the operation data of international tourist hotels in Taiwan from 1996 to 2008. Abel (1983) argued that demand uncertainty leads to an increase in the capacity of a firm if uncertain demand takes the form of output price uncertainty for the competitive market. We empirically test Abel's model. Our findings support the demand uncertainty hypothesis in Abel's model. Moreover, our results indicate that effective management of hotel capacities is a more important issue for managers of medium-sized hotels than for small or large-sized hotels in the Taiwanese hotel industry.     

Hotel safety and security systems: Bridging the gap between managers and guests

Safety and security are important factors in guests’ selection of a hotel. Hoteliers normally follow local regulations when designing a hotel's safety and security systems, but which system features hotel guests perceive to be the most important and which they expect to find in place remain open questions. The main aim of this research is thus to investigate the gap between hotel safety and security managers’ and hotel guests’ perceptions of the relative importance of safety and security facilities. Two sets of questionnaires – designed for managers and guests, respectively – containing 32 attributes were used to gauge respondents’ perceptions of different hotel safety and security system installations. Independent t-tests and one-way ANOVA were employed to examine significant differences in the way managers and guests rate the importance of hotel in-house safety and security systems.The findings reveal that guests perceive “well-equipped fire prevention systems in accordance with local regulations”, “an emergency plan”, “an emergency lighting system”, “a 24-h uniformed security guard” and “the regular testing of hotel safety and security systems” to be the top five in-house safety and security systems, whereas hotel managers perceive “closed-circuit television systems for hotel public areas”, “emergency lighting systems” and “application of a guest key to activate the lifts to guest floors” to be the third through fifth most important. The results also indicate two good matches, six under-perceptions and four over-perceptions, indicating that managers may require a better understanding of guest expectations.In addition to gap analysis, this study discusses the importance of staff safety and security training, the acceptance of high-tech safety and security systems and the need for female guest floors, and provides a number of insights to help hotel managers better understand the needs of their customers, thereby allowing them to employ measures that are likely to keep customers’ satisfied.     

Tourist motivation and place attachment: the mediating effects of service interactions with hotel employees

Using social facilitation theory, this study evaluates the mediating effects of service interactions with hotel employees on the relationship between tourist motivation and place attachment. The moderating effects of nationality and hotel star-rating on these relationships are also examined. The overall model tested on a sample of 545 international visitors to the island of Mauritius showed that service interactions mediated the relationship between tourist motivation and place attachment. Partial least squares-structural equation modeling (PLS-SEM) multi-group analysis found that the relationships among the constructs differed according to tourists’ nationality and the hotels’ star rating. The findings have important implications for hotel managers and destination marketing and management.     

Creating competitive advantage: Linking perspectives of organization learning,innovation behavior and intellectual capital

Drawing on learning theories and the intellectual capital (IC) theory, organizational learning research has discussed the benefits of searching for market opportunities and maintaining a competitive advantage in dynamic environments. To explain organizational performance and survival, the previous literature has focused mainly on what organizations do, but it has failed to address how and what they should do. This study argues that if hotel management is open-minded about exploratory and exploitative learning, it can open the door to capturing opportunity and competitive advantage through increased innovation behavior and human capital accumulation. Further, IC theory has also confirmed that social capital and relational capital will strengthen the relationship between innovation behavior and human capital. This study analyzes data from 595 hotel managers and finds strong support for the proposed hypotheses.     

Hotel property performance: The role of strategic management accounting

In the current study, we contend that to enhance their competitiveness and performance, hotel properties need to develop and implement internal policies and procedures such as strategic management accounting that are consistent with their business strategies and account for changing competitive demands. We employ a sample composed of 80 hotel properties to investigate the key precursor of hotel property strategic management accounting use and its impact on hotel property customer and financial performance. The results highlight that market orientation business strategy is a key determinant of hotel property strategic management accounting use and illuminate the mediating influence of hotel property strategic management accounting use and hotel property customer performance on the relationship between hotel property market orientation business strategy use and hotel property financial performance. Recommendations are provided for both researchers and hotel managers concerning their future study of, or use of, strategic management accounting.     

Entrepreneurial Characteristics,Motives, and Business Challenges: Exploratory Study of Small- and Medium-Sized Hotel Businesses

ABSTRACT

The purpose of this study is to gather information about the determinants and characteristics of the owners/managers of small- and medium-sized hotels (SMSHs) and identify various issues in starting up and operating businesses in the United Arab Emirates. The results of this study reveal that the majority of the owners/managers of SMSHs in the United Arab Emirates are male, young and middle age, and relatively new to the tourism industry. The motivations for the business ventures of the entrepreneurs include wanting to be financially independent, become one’s own boss, involvement in family business and the opportunities of the hotel business. Among the key business challenges highlighted by the owners/managers of SMSHs are stiff competition in the hotel industry, increased operating costs, reduced demand, and lack of skilled employees. Several key strategies have been employed to face these challenges. These include offering competitive pricing, improving the marketing and channels of promotion, enhancing the quality of service and providing superior customer service.     

Improving the perceptions of hotel managers

This research seeks to identify the importance of various capabilities and psychosociological factors of hotel managers, in order to improve their perception of the competitive environment emerging in the post-Internet era. Specifically, the study analyzes the relevance of education, experience, globalization capabilities, networking, creativity and vision of the future, and other factors related to personality and leadership, to advance the accuracy of this perception. The research used questionnaires with Spanish hotel managers, a Delphi study with international experts, and structural equation modeling to test the hypotheses formulated. The results corroborate the model established, and stress the importance of the education and globalization capabilities in this field.