Financing behaviour of Portuguese SMEs in hotel industry

In this study, using panel data models, we analyze whether the capital structure decisions of SMEs in the hotel sector follow the predictions of Pecking Order and Trade-Off theories. The results suggest that these theories are not mutually exclusive in explaining the capital structure decisions of SME hotels. The results obtained indicate that these firms follow a hierarchical order in their selection of financing sources, corroborating the assumptions of theory. The results also show that SME hotels adjust the level of actual debt towards optimal debt ratio as well as size, asset tangibility, growth opportunities, non-debt tax shields, and risk influence debt. These results suggest that the financing behaviour of SME hotels is in agreement with the predictions of theory. Therefore, Pecking Order and Trade-Off theories contribute to explaining the financing behaviour of SMEs in the hotel sector.     

Innovation and productivity in tourism small and medium enterprises: A longitudinal study

This paper examines the factors influencing innovation and the relationship between innovation and productivity among Australian tourism small and medium enterprises (SMEs). Unlike most past studies relying on cross-sectional data, this study employs longitudinal innovation data of 400 tourism SMEs over five years. A two-stage random-effects probit model is used to account for unobserved firm heterogeneity. The results show that innovation inputs, firm characteristics, and external environment significantly affect innovation in general with competition and demand uncertainty being the distinct drivers of marketing innovation. The study reveals a significant and positive effect of technological and marketing innovation on tourism SMEs' productivity. Findings inform policy discussions to improve the current low levels of productivity in the tourism industry.     

Lending technologies and access to finance for SMEs in the hospitality industry

Small and Medium-Sized Enterprises (SMEs) in the hospitality industry play a pivotal role in local economic development. However, lack of adequate access to financing may prevent a larger participation of hospitality SMEs. A possible reason for the limited availability of access to financing could be the presence of information asymmetries between borrowers and lenders that lead to credit rationing. Lending technologies, suitable for external sources of finance, are designed to reduce information asymmetries for lenders. Using Brazilian firm-level data, the purpose of this study was to examine the impact of lending technologies, such as fixed asset lending and financial statement lending, on access to financing for SMEs in the hospitality industry. While our results confirmed the role of lending technologies to mitigate information asymmetries, and increase a firm's likelihood of access to financing, we found a differing impact of these technologies on SMEs’ access to financing. Results suggest that fixed asset lending was the preferred lending technology. We also discuss implications of our findings on industry practice and policy discussion.     

Using competing models to evaluate the role of environmental pressures in ecommerce adoption by small and medium sized travel agents in a developing country

This study investigates the factors that influence e-commerce adoption in SME travel agents in a developing country. The research is based upon a questionnaire survey of travel agents in Egypt and employs advanced statistical techniques to test a conceptual framework that extends the technology acceptance model. Using competing models the study examines the relationship between e-commerce adoption, perceived benefits, perceived barriers and environmental pressures. The results indicate that environmental pressures significantly affect the perceived benefits and barriers of e-commerce adoption, in addition to having an indirect effect on adoption behaviour. Insights are provided into the nature of relationships between the key factors that determine e-commerce adoption and the extent to which they can be used to develop effective strategies for SME travel agent re-intermediation in the global travel market. Implications are identified for practice and government policy in relation to the use of e-commerce in SME travel businesses in developing countries.     

The critical success factors for a travel application service provider evaluation and selection by travel intermediaries

Current application service provider (ASP) is an emerging type of information technology outsourcing service that offer a comprehensive of information technology services for small and medium-sized enterprises (SMEs) to obtain information capabilities and maintain competitive advantage. Although numerous academics and practitioners have recognized the importance of information service suppliers, few studies has been conducted on decision analysis related to an ASP selection. Thus, this study combines two multiple criteria decision making tools to develop a multifaceted evaluation framework and identify the critical success factors (CSFs) for an ASP adoption by travel intermediaries in Taiwan. The empirical results implied different types of travel operations have different evaluation considerations for an ASP adoption. Travel intermediaries can devote to their core competencies, and acquire information support services through an ASP. On the other hand, ASPs can use differentiation strategies and allocate limited resources through focusing on these CSFs to enhance inter-organizational collaboration in travel supply chain.     

Aggravated fragmentation: A case study of SME behaviour in two emerging heritage tourism regions

This paper investigates the behaviour of small and medium sized enterprises (SMEs) within the heritage tourism supply chain (HTSC), in two emerging heritage regions. SMEs are conceptualised as implementers, working within the constraints of government level tourism structures and the heritage tourism supply chain. The research employs a case study approach, focusing on two emerging regions in Northern Ireland. In-depth interviews were carried out with small business owners and community associations operating within the regions. The research identifies SME dissatisfaction with the supply chain and the processes in place for the delivery of the tourism product. To overcome the perceived inadequacies of the heritage tourism supply chain SMEs engage in entrepreneurial behaviour by attempting to deliver specific products and services to meet the need of tourists. The challenge for tourism organisations is how they can integrate the entrepreneurial, innovative activities of SMEs into the heritage tourism system.     

Destination social capital and innovation in SMEs tourism firms: an empirical analysis in an adverse socio-economic context

Abstract

This study examines the structural relationships between internal and external resources that explain the innovation of small tourism firms in adverse socio-economic contexts. Specifically, it analyzes two internal resources, human and organizational-technological capital, and the valuable intangible resources derived from social interactions between the agents in the destination (other companies, institutions, and community). The research hypotheses are tested by means of structural equation analysis applied to an empirical study of 180 tourism firms located in Isla Margarita (Venezuela). The findings confirm the importance of external resources derived from relationships with destination agents in the innovation behavior of tourism small and medium-sized enterprises (SMEs). While business social capital affects innovative behavior directly, other types of internal intellectual capital mediate the relationship between innovative behavior and institutional and community social capital. It is the first to address the local community’s role in the innovation of tourism SMEs. The importance of integrating firm and destination resources should inform SMEs’ innovation policies in adverse contexts where the scarcity of resources make vulnerable the economic, social and environmental sustainability.     

Trade Associations: An Appropriate Channel for Developing Sustainable Practice in SMEs?

Small and medium-sized enterprises (SMEs), particularly the micro-enterprise, dominate the tourism industry numerically, and play a key role in delivering quality experiences to the tourist. Yet research by Hillary (2000) suggested that SMEs from all the economic sectors are responsible for around 70% of total industrial pollution. Strategic papers for the tourism sector in the United Kingdom refer to the promotion of emerging trade association activity in influencing SMEs' environmental behaviour. This paper examines the results of a postal survey of United Kingdom trade associations to assess their role in developing sustainable practice amongst SME tourism businesses. Responses from 17 national trade associations with a tourism-related membership coverage of around 12,500 SMEs suggested that only a small minority regarded meeting environmental criteria or signing up to an environmental code of conduct as compulsory requirements of membership, whereas there was more activity for different types of voluntary initiative, often through the aid of partnerships. Overall, there was less leadership from trade associations than was seemingly portrayed in the strategic documents.     

Exploitation of Renewable Energy in the Hospitality Sector: Case Studies of Gaborone Sun and the Cumberland Hotel in Botswana

This study examines the factors influencing the adoption of renewable energy technologies at two hotels in Botswana. Interviews with key informants from Gaborone Sun and the Cumberland Hotel were used to collect the data for this study. The study was designed along the general conceptual model of the drivers and barriers of corporate “greening.” Narrative analysis was used to present the findings. Results point to the fact that the availability of the biogas and solar technology in Botswana, political leadership, financial benefits, the availability of a comprehensive environmental sustainability program, and strong environmental management values were the driving forces behind renewable energy adoption by the two hotels. The major barriers against biogas adoption by the Cumberland Hotel included lack of financial resources and limited waste. For solar energy adoption at Gaborone Sun, the main problem was lack of space for further expansion, which has also constrained the hotel’s efforts for wastewater recycling. These results have implications at both local and national levels. Environmental management strategies and values should drive the exploitation of renewable energy by local hotels. At the national level, results imply that the government should take a more responsive approach in facilitating the adoption of renewable energy plans by the corporate world.     

Bandwagon and leapfrog effects in Internet implementation

This paper underscores the critical relationship between innovation adoption and innovation implementation, particularly how two contrasting effects—bandwagon and leapfrog—relate to organizational Internet diffusion. Bandwagon effects, adopting a technology due to fad and fashion, accelerate adoption but often lead to ineffective technology implementation. Leapfrog effects, however, attenuate adoption and often lead to effective technology use relative to early adopters. Drawing on and combining related Malaysian hospitality studies, this paper illustrates these two effects and extends the literature by showing that early, and late, adoption can relate positively to successful Internet implementation. In addition, the findings complement and question literature suggesting that business websites evolve through predictable linear patterns, and that adopter categories differ in innovation implementation styles.     

The intention to quit entrepreneurship in tourism SMEs: The effect of work addiction

Entrepreneurship is one of the fundamental tools in the generation of economic activity and labor in the tourism industry, with Small and Medium Enterprises (SMEs) playing a relevant role in the sector. Academic studies on entrepreneurship have focused more on the keys to entrepreneurial success, rather than on the factors leading to its abandonment. In the tourism sector, the lack of research on this matter is even more significant. In response to this gap in literature, this article aims to be a first approach to the study of work addiction as an antecedent of entrepreneurial abandonment. The main contribution of this study confirms the relationship between the different constructs that relate work addiction to entrepreneurship withdrawal. Thus, hypotheses relating driveness and lack of work enjoyment to the intention to quit entrepreneurship are supported. The hypothesis relating work involvement with the intention to quit is not supported, however. A number of important implications derive from this study. Among them, our results demonstrate that the relationship between workaholism and the intention to quit entrepreneurship in the tourist SME sector is supported, and that work enjoyment can act as a mediator strengthening the effect of the driveness to work on the intention to quit.     

A hierarchical model of technology adoption for small owner-managed travel firms: An organizational decision-making and leadership perspective

This article assesses the diffusion of innovation theory and the technology acceptance model, and explores the factors influencing the decision to engage in technology adoption in small owner-managed travel firms. This is done through the use of the overarching theory of organisational decision-making to identify concepts and constructs which relate to the decision to adopt. The work aims to identify the genesis of adoption decisions in particular where owners are themselves the managers and provide leadership for the organization. After the distillation of factors it was found that due to simple hierarchical structures and decision-making processes which were further exacerbated by immediate self-interest, leadership was the most significant driver. This article goes further to identify leadership typologies at each level of technology adoption in firms.     

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.     

A technology adoption and implementation process in an independent hotel chain

Successful technological initiatives in the hospitality industry are a product of a well-planned and executed innovation adoption process. This qualitative study investigated the adoption of radio frequency identification (RFID) enabled locking technology in an independent hospitality company as a mechanism for service innovation and improved internal process efficiency. Findings from the research generated themes significantly impacting the knowledge and persuasion stages of the diffusion of innovations (DOI) adoption process. Results produced theoretical implications which suggest the dual nature of adoption process in the service industries, as well as practical recommendations for the implementation of new technologies in the hospitality industry.     

Why do you use Yelp? Analysis of factors influencing customers’ website adoption and dining behavior

The number of review websites has increased within the past years since more people rely on online reviews to help their decision-making process. Previous studies have either focused on the attributes of the content posted on review websites (i.e., reviews) or customers’ behavior concerning their selection of review website on which to post reviews. This study, however, extends the Technology Acceptance Model (TAM) to investigate the factors that influence individuals’ restaurant review website adoption behaviors to read reviews and make dining decisions. In addition, this study will look at the differences in individuals’ perceptions of various restaurant review websites (i.e., Yelp vs. others). The findings revealed the role of influential factors on individuals’ review website adoption and dining decisions as well as the differences in proposed structural relationships among various restaurant review websites.     

Factors affecting E-Marketing adoption and implementation in tourism firms: An empirical investigation of Egyptian small tourism organisations

This study aims to analyze the different factors affecting the adoption of Electronic Marketing (E-Marketing) by Egyptian small tourism organizations. The study validates a conceptual framework extending TAM and IDT models to explain E-marketing adoption utilising a quantitative approach, in which data is collected based on survey strategy through questionnaires to address different levels of the study. Advanced statistical tools and SEM were used to analyze the collected data. The findings indicated that Egyptian tourism organizations internal and external factors have a great impact on the adoption of E-Marketing by such organizations. The findings also confirmed that IT theories (namely TAM and IDT) are valid in illustrating E-Marketing adoption by Egyptian tourism organizations. The results reinforce the importance of environmental factors on E-Marketing adoption and add to the extremely limited number of empirical studies that has been conducted to investigate E-Marketing adoption in developing countries.     

Augmented Reality Smart Glasses (ARSG) visitor adoption in cultural tourism

ABSTRACT

A number of organizations in cultural tourism have started to explore the use of augmented reality (AR) to enhance visitor experience. While many studies have been conducted to identify adoption criteria of mobile AR applications, research exploring the adoption of augmented reality smart glasses (ARSG) is still limited. This paper contributes to the technology adoption literature by investigating attributes of visitor adoption of ARSG in cultural tourism. Twenty-eight interviews were conducted with visitors to a UK art gallery, where they experienced an ARSG application. Findings inform an ARSG adoption framework that integrates societal impact, perceived benefits, perceived attributes of innovation, and visitor resistance as the main themes of ARSG adoption in cultural tourism.     

Deterrents of tourism business crowdfunding: Aversion decision and aversion behavior

Crowdfunding has been recently suggested as an effective means for tourism business founders to gain financial support. Yet, few business founders in tourism have employed the method to fund their business creation and development. Using the behavioral decision model in complex and uncertain business situations, this qualitative study explored the deterrents to crowdfunding adoption and the factors that shape the perception of the deterrents in tourism business founders. The data collected by in-depth and face-to-face semi-structured interviews with 22 informants. Our findings revealed a combination of perceived personal, social and contextual deterrents that avert crowdfunding adoption decision and actual behavior. More specifically, our analysis explored attitude towards crowdfunding, perceived control over using crowdfunding, social norms and perceived contextual feasibility of crowdfunding as the determinants of crowdfunding aversion decision and aversion behavior. This study contributes deeper insights into tourism business financial management and crowdfunding policy, theory, practice and research development.     

How does social capital influence the hospitality firm's financial performance? The moderating role of entrepreneurial activities

Although previous studies have examined the relationship between social capital and firm performance under boundary conditions such as firm age, industry characteristics, and institutional conditions, the literature is silent on the types of firm activities linking social capital to financial performance. This study investigates the moderating role of firm-level entrepreneurial activities (service innovation, corporate venturing and strategic renewal) on the relationship between social capital and financial performance in a sample of Chinese hotels. The findings indicate that the interaction of external and internal social capital has a positive effect on financial performance. In addition, innovation and corporate venturing enhance the relationship between financial performance and social capital. To achieve a competitive advantage, hospitality firms should not only accumulate social capital but should also deliberately implement strategies that enhance entrepreneurial activities to fully unleash the potential of social capital.     

The signaling effect of management response in engaging customers: A study of the hotel industry

Hotels today actively respond to online reviews given their tremendous influence on travelers' decisions. Yet, the questions of how to respond to online reviews continue to baffle hotel managers. By focusing on prospective travelers, we propose the effective management response signals hotels' care for customers and quality of service. Particularly, we postulate the frequency, speed and length of response influence the effectiveness of signaling in reducing information asymmetry. Based on the large-scale field data from TripAdvisor, this study demonstrates that the frequency and speed of response significantly enhance travelers’ engagement as indicated by more reviews, higher average valence, more votes for helpfulness, and higher popularity ranking. Furthermore, the frequent and speedy response is more effective for budget (vs. premium) hotels. Thus, management response to online reviews serves as a critical channel of communication to engage customers.