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Dual-branded hotels: Resource-based entry strategies in agglomerated markets
Institution:1. Howard Feiertag Department of Hospitality and Tourism Management, Pamplin College of Business, Virginia Tech, Blacksburg, VA, 24061, USA;2. Dedman College of Hospitality, Florida State University, Tallahassee, FL, 32306, USA;1. School of Tourism Management, Sun Yat-Sen University, Guangzhou, China;2. Faculty of Hospitality & Tourism Management, Macau University of Science and Technology, Macau, China;3. Center for Tourism, Leisure and Social Development, Sun Yat-sen University, Guangzhou, China;1. School of Business Administration, Northeastern University, Shenyang, 110169, China;2. Division of Social Sciences, University of Chicago, Chicago, 60637, USA;3. School of Information Management and Engineering, Shanghai University of Finance and Economics, Shanghai, 200433, China;1. Research Assistant Professor, School of Hotel and Tourism Management, The Hong Kong Polytechnic University, China;2. University of Surrey, School of Hospitality and Tourism Management, UK;3. School of Tourism Management, Sun Yat-Sen University, Tangzhou Rd. 1, Zhuhai, China;4. UMDF Chair Professor of Smart Tourism, Asia-Pacific Academy of Economics and Management, China
Abstract:Despite the growing importance of dual-branded hotels, research on this trend is lacking. This study investigates the effect of resource-based entry strategies for dual-branded hotels vis-à-vis incumbent market competition on performance. Using a hierarchical linear model, we found that best performance is achieved by dual-branded hotels that pursue a diversification strategy by entering the market with one brand above and one brand below the mode class of the market. Dual-branded hotels can thus achieve competitive advantage by exploiting superior financial resources and tourism destinations are able to gain monetary advantage from resources employed by dual-branded hotels. This study extends current research on dual-branded hotels by investigating entry strategies and contributes to the resource-based view literature by investigating dual-brands’ resource exploitation and resource spillovers in agglomerated markets.
Keywords:Dual brand hotels  Resource-based view  Agglomeration  Market entry  Random effect model  Competitive advantage
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