Does size matter? Corporate social responsibility and firm performance in the restaurant industry

Despite an increasing number of hospitality studies on the link between corporate social responsibility (CSR) and corporate financial performance (CFP), the literature has predominantly focused on the CSR–CFP relation without considering moderating factors. Consequently, the current study introduces firm size as a potential moderator on the CSR–CFP relationship. Performing a two-way fixed-effects model by firm and year with Newey-West standard errors, this study finds that firm size moderates the effect of positive CSR on CFP while it does not moderate the effect of negative CSR on CFP in the U.S. restaurant context.     

Corporate social responsibility: The disclosure–performance gap

As increased stakeholder pressure requires companies to be transparent about their CSR practices, it is essential to know how reliable corporate disclosure mechanisms are, testing the gap between corporate social responsibility claims and actual practice. This study benchmarks corporate social responsibility policies and practices of ten international hotel groups of particular importance to the European leisure market. We found that corporate systems are not necessarily reflective of actual operations, environmental performance is eco-savings driven, labour policies aim to comply with local legislation, socio-economic policies are inward looking with little acceptance of impacts on the destination, and customer engagement is limited. Generally larger hotel groups have more comprehensive policies but also greater gaps in implementation, while the smaller hotel groups focus only on environmental management and deliver what they promised. As the first survey of its kind in tourism, both the methodology and the findings have implications for further research.     

Perceived corporate social responsibility and customers’ behaviors in the ridesharing service industry

This study aimed to investigate how a firm’s corporate social responsibility (CSR) practices affect customers’ attitudes, their self-brand connection, and, in turn, brand preference with ridesharing services (e.g., Uber). Adopting a second-order construct of perceived corporate social responsibility (PCSR) reflected from three CSR dimensions—environment, economy, and ethics—this study posited PCSR influences customers’ brand attitudes, self-brand connection, and brand preference. A total of 300 valid responses was collected from a convenience sample. Results revealed PCSR showed significant impacts on customers’ brand attitudes and self-brand connection. However, no direct impact of PCSR on customers’ brand preference was identified, while mediation effects were detected between PCSR and brand preference by brand attitudes and self-brand connection. This study also discussed the managerial and theoretical implications of PCSR practices for a ridesharing service industry.     

Are better-connected CEOs more socially responsible? Evidence from the U.S. restaurant industry

Extensive research has documented how corporate social responsibility (CSR) outcomes are determined by CEOs' intrinsic characteristics, while their social network status has been under-researched. Building on impression management theory and resource-based theory, the current study analyzes the association between CSR activities and top management's position in the social hierarchy, i.e., network centrality. The heterogeneous effects across different restaurant and CSR types are examined based on stakeholder theory. Using a panel dataset of publicly traded U.S. restaurant companies and a novel dataset of CEO network centrality, we find that firms with highly connected CEOs are involved in more socially responsible activities. In addition, the marginal effect of network centrality on CSR is stronger for fast-food than for full-service restaurants and more prominent for external than internal stakeholder subcategories. The results advance the determinant analysis of CSR and provide managerial implications for CEO selection and policy suggestions on CSR promotion.     

Are you good enough? CSR,quality management and corporate financial performance in the hospitality industry

Hospitality firms are increasingly investing in corporate social responsibility (CSR) to generate strong relationships with stakeholders while aiming to benefit their own performance. However, CSR may bring both costs and benefits to the focal firm. We analyze how corporate financial performance (CFP) is affected by CSR, finding that the impact of CSR on CFP has a U-shaped form, where CSR is a cost that translates into higher benefits only when it generates solid relationships between firms and their stakeholders. Furthermore, we adopt a contingency approach, assessing the role of quality management (QM) on the CSR-CFP relationship. We find that the simultaneous implementation of CSR and QM is less beneficial to CFP than the isolated implementation of CSR due to the redundancy of different activities aimed at similar goals, i.e., stakeholders’ satisfaction. In doing so, we advance academic understanding of the impact of CSR and QM on CFP.     

Social responsibility and total quality in the hospitality industry: does gender matter?

This empirical study examines the role of gender diversity in top management teams (TMTs) and their impact on corporate social responsibility (CSR), which is an underexplored topic within the hotel sector. Based on stakeholder theory, we argue that the relationship between gender diversity and hotel performance is indirect and mediated by CSR. Our study also analyses how the implementation of total quality management (TQM) and CSR influences hotel stakeholder results, and hence business performance. Using a sample of Spanish hotels, we provide evidence that gender diversity in TMTs increases the level of implementation of CSR within the hotel industry. The results show that the impact of gender diversity on hotel performance is mediated by CSR. The findings also suggest that the adoption of TQM and CSR management philosophies improves the capacity of hotels to benefit their stakeholders, and that this improvement has a positive effect on hotel performance.     

Do regional factors matter? Determinants of hotel industry performance in China

The hotel industry is deeply embedded in local regional conditions, though the influence of regional factors is seldom investigated. Three key hotel industry metrics, Revenue per Available Room (RevPAR), Average Room Rate (ARR), and rooms rented, were examined for their determinants using ordinary least squares and negative binomial regression models on key endogenous and exogenous (regional) factors, including Destination Attractiveness and Capacity, Business and Commercial Environment, Image and Openness, and Tourism Professional Specialization. Using China as a case study, and at different hotel star designations (2- to 5-star hotels), the results show that RevPAR is determined mainly by labor quality and Tourism Professional Specialization. Particularly, regional factors significantly affect ARR and rooms rented. The influence and sophistication of regional factors increases with higher star designations. This paper highlights links between the hospitality industry and regional economic development, which should be considered by both the hotel industry and tourism policy makers.     

Black–white differences in beliefs about the U.S. restaurant tipping norm: Moderated by socio-economic status?

A re-analysis of two national telephone surveys found that black–white differences in awareness that it is customary to tip a percentage of the bill declined as socio-economic status increased. However, black–white differences in awareness that is customary to tip 15–20 percent in restaurants was unrelated to socio-economic status. The practical as well as theoretical implications of these findings are discussed along with directions for future research.     

Narcissistic CEOs and corporate social responsibility: Does the role of an outside board of directors matter?

During recent years, there has been a growing interest in CEO narcissism across disciplines. Various scholars document that CEO narcissism is an important factor that should not be overlooked when analyzing various organizational outcomes and strategies. Research on CEO narcissism has focused on its negative implications on organization outcomes. However, little attention has been paid to its effect on corporate social responsibility (CSR). This study explores the relationship between CEO narcissism and two distinct facets of CSR (stakeholder management and social issue participation), while taking into account the moderating role of outside board of directors. Using a sample of publicly traded U.S restaurants, the results document that an outside board of directors plays a moderating role on the relationship between CEO narcissism and the two distinct facets of CSR.     

Compensation practices in the lodging industry: Does top management pay affect corporate performance?

The current study examines the relationship between executive compensation and firm performance in the U.S. lodging industry. It is not clear-cut whether performance leads to compensation or compensation drives firm performance. Our contention is that cash and lagged equity-based compensation drive the firm performance. Our findings suggest that chief executive officer's (CEO) contemporaneous cash-compensation and one-year lagged equity-compensation positively affect the accounting performance measures return on assets and Tobin's Q; but neither compensation components affects the market-performance measure, stock returns, in the lodging industry. Quantitatively similar findings are found for the chief financial officer (CFO). Further robustness test show that further lags of equity compensation of both named executives do not result in increased stock performance in the lodging industry.     

Environment management in the hotel industry: does institutional environment matter?

Limited theoretical attention has been paid to understand the underlying drivers of hotels’ engagement in environment management (EM). By using institutional theory, this study provides an integrated model that captures various social drivers of hotels’ engagement in EM. The associations between the three dimensions of institutional environment and hotel environmental practices were empirically tested, as well as the moderating role of hotel characteristics. A total of 414 usable surveys representing 414 hotels were collected from hotel managers in China. The results demonstrate positive associations of hotel EM practices with supportive state regulations, shared industry standards, competitors’ EM practices and expectations from various stakeholders such as employees, local community, and investors. Particularity, the strength of positive relationships between specific institutional pressures vary across hotel sizes and scales. Theoretical and practical implications are discussed     

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.     

U. S. winter migrants' park community attributes: An importance–performance analysis

North American seasonal migrants, who are usually retired, typically live in recreational vehicle/mobile home park communities in the southern U. S. during the winter months. This study examines the importance of specific park characteristics in the park selection process and uses the case of winter migrants in south Texas to demonstrate how parks may use a modified approach of importance–performance analysis and the promoter–detractor methodology to assess how well the parks perform on selected attributes. The analysis of survey responses from 1429 winter Texans categorized attributes based on the attributes' impact range and asymmetrical impact on park recommendation likelihood. Overall, seasonal migrants based their choice of location for their winter home largely on physical appearance (e.g., cleanliness) and affect (i.e., friendliness and caring management). Wireless Internet access and low rates were also of high importance. But park recommendation likelihood varies depending on the migrants' satisfaction with important attributes' performance.     

Is the tourism-led growth hypothesis valid after the global economic and financial crisis? The case of Spain 1957–2014

Since the first paper on the subject was published in 2002, the tourism-led growth hypothesis (TLGH) has constituted one of the most predominant topics in tourism literature. Spain is a leading country in the tourism industry and one where this hypothesis has been tested with several studies confirming the relationship between Spain's tourism development and its economic growth. However, the existing studies for Spain do not take into account recent turbulences such as the Global Financial and Economic Crisis and the Arab Spring uprisings that have shocked tourism markets. This paper re-examines the TLGH for the Spanish case in the light of these events in order to investigate the robustness of the relationship between tourism and economic growth.     

Memberships Levels in U. S. Private Clubs During the 2008–2010 Economic Downturn

This study measured membership changes in private clubs in the United States during the economic downturn from 2008 to 2010. Specifically examined were the changes clubs experienced with their number of members, waiting lists, and attrition rates. A letter was sent via e-mail to the same 1,000 private clubs that were sent a survey in a similar study conducted by Ferreira and Gustafson (2006 Ferreira, R. R. and Gustafson, C. M. 2006. Declining memberships during an economic downturn in U.S. private clubs. International Journal of Hospitality & Tourism Administration, 7(2/3): 3–18. [Taylor & Francis Online] , [Google Scholar]) The managers of these clubs were members of the Club Managers Association of America. The majority of respondents managed country clubs and member-owned clubs, representing different areas of the United States. An overall response rate of 53% was achieved. Most clubs experienced a decrease in the overall number of members and an increase in annual attrition rate. Fewer clubs reported having a waiting list of members wanting to join. The clubs without waiting lists reported a larger number of membership openings in their clubs. The results of this study suggest the levels of memberships in many private clubs are heavily influenced by economic conditions. An implication from this study is that clubs need to implement membership development strategies during economic downturns because of the decline in the number of members, candidates proposed, and waiting lists during these periods.     

Perceptions of Chinese restaurants in the U.S.: What affects customer satisfaction and behavioral intentions?

This study investigates American customers’ perceptions of Chinese restaurants in the U.S., using the Importance–Performance Analysis (IPA) approach. This study also examines which attributes of Chinese restaurants influence American customers’ satisfaction and behavioral intentions. The IPA shows that environmental cleanliness and attentive service are two important areas where Chinese restaurateurs can make improvements. In addition, food taste and service reliability appear to be key attributes for Chinese restaurants’ success. Overall, this study indicates that food quality, service reliability and environmental cleanliness are three pivotal attributes to create satisfied customers and positive post-dining behavioral intentions. Chinese restaurant managers should reasonably allocate their limited resources to restaurant attributes based on their contributions to customer satisfaction and behavioral intentions.     

Trust and outsourcing: Do perceptions of trust influence the retention of outsourcing providers in the hospitality industry?

The global trend toward outsourcing necessitates unprecedented symbiosis between client-based organizations—purchasers of these services—and their multiple suppliers. Building on existing empirical work that suggests that the level of trust that exists between a purchaser and a supplier is fundamental in determining the strength of such a dyadic relationship, we examine how an organization's outsourcing efforts can be influenced by trust, and how perceptions of trust influence buyer retention of outsourcing providers. The resulting causal model suggests that communication, benevolence, and trust are vital to developing and maintaining productive, enduring relationships between purchasers and suppliers.     

COVID-19-induced layoff,survivors’ COVID-19-related stress and performance in hospitality industry: The moderating role of social support

The COVID-19 pandemic has hit the hospitality industry hard globally, resulting in millions of employees being laid off. Drawing upon the conservation of resources theory, this study aims to empirically examine how and when COVID-19-induced layoff influences employees’ in-role and extra-role performance in the hospitality industry. We tested this model by using field data collected from 302 employees and their supervisors in China across two waves. Results revealed that COVID-19-induced layoff increases survivors’ COVID-19-related stress, which in turn leads to decreased in-role and extra-role performance. The strength of these indirect effects is mitigated by perceived family support against COVID-19. Unexpectedly, perceived organizational support against COVID-19 intensifies these indirect effects. The theoretical and practical implications of this study are further discussed.