Why is asset-light strategy necessary? An empirical analysis through the lens of cost stickiness

The widespread trend among firms in the tourism and hospitality industry to adopt an asset-light strategy has enabled the U.S. tourism industry to grow rapidly by shaving off fixed assets. Our paper explores why an asset-light strategy is necessary from the perspective of cost management. Because cost is very “sticky,” meaning it does not change proportionally with changes in revenue, and change in cost is usually lagged, higher cost stickiness leads to lower financial performance. We found that cost stickiness does exist in the tourism and hospitality industry, and an excess of assets is its main determinant. Moreover, we found that management adjusts the amount of assets to reduce the effects of cost stickiness, and these adjustments are much more significant in revenue-declining years. Contributions, limitations, and practical implications are also discussed.     

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.     

Does cultural value exacerbate or mitigate the effect of perceived compensation gap between locals and expatriates in hotel industry?

Within the expatriation system in the hospitality industry, a large compensation gap exists between expatriates and local employees. Drawing upon equity and social exchange theories, this paper examines the relationship between the perceived reasonableness of the expatriate–local compensation gap and workplace deviance behaviors (organizational and interpersonal). Moreover, the paper discusses the moderating effect of power distance and traditionality as important cultural boundaries in this relationship. Results of a survey among 46 expatriates and 297 local employees in the Chinese hotel industry indicated that the perceived compensation gap is positively related to the organizational and interpersonal deviance of local subordinates. High traditionality mitigates the effect of the compensation gap on deviance. However, contrary to our expectation, high power distance exacerbates such effect. The paper likewise discusses the theoretical and practical implications of the findings.     

Does tourism affect the informal sector?

The effect of tourism on economic growth has largely been investigated in the literature. However, it is still poorly understood about how the impact of tourism on the size of the informal economy. The present study attempts to fill the research gaps in this field, and thus applies panel regression techniques to examine the relationship between tourism development and the size of the underground economy across 96 countries over the period 2000–2007. The estimation results show that tourism exhibits a U-shaped relation with informality. Specifically, the share of informal sector first decreases in the early stages of tourism development and then increases as tourism continues. Some policy implications, limitations, and future research directions are also discussed.     

What are the key success factors for strategy formulation and implementation? Perspectives of managers in the hotel industry

This study investigates how hotel managers describe strategy and identify key success factors for its formulation and implementation. The study analyzes qualitative data collected through semi-structured interviews with property level top managers of hotels in Hong Kong. The findings show that hotel managers prioritize competition analysis and macro-environmental conditions over internal characteristics such as teamwork in strategy formulation. In the implementation phase, however, internal considerations such as employee involvement and strategic consensus are given prominence. This study provides a significant contribution by examining how top level practitioners in the industry interpret success factors in their strategic management efforts, and it highlights a largely neglected area in the hospitality and tourism management literature.     

Which exhibition attributes create repeat visitation?

This study identifies exhibition attributes deemed important by attendees’ in determining their attendance at the UK biennial MICROSCIENCE 2008 exhibition using a self-administered internet-based questionnaire. Perceived performance of attributes by attendees’ is also established. Attendees’ consider meeting specialists as well as gaining product and technical information to be very important attributes for exhibition selection. Application of an Importance–Performance Analysis suggests that resources should be diverted by exhibitors and exhibition organizers to enhance the number and range of new products on display in order to enhance attendance rates. Further analysis based on regression techniques suggests that increases in the number of exhibiting companies, greater networking opportunities and increasing opportunities for obtaining technical advice would enhance the likelihood of repeat visitation.     

How Does the Work Status Affect Employees’ Job Attitude and Behavior in the Hotel Industry?

The study focuses on how work status impacts employees’ perception of job satisfaction, organizational commitment, and job performance in the hotel industry. Also, it explores whether supervisors perceive employees’ job attitudes and behavior in the same way as they perceive. Data were collected from a self-administered survey for five-star hotel employees and supervisors in Seoul, South Korea. A total of 335 valid responses were collected from 280 employees and 65 supervisors and analyzed by using structural equation modeling. The results of the study indicated that nonstandard employees expressed higher job satisfaction and higher organizational commitment but perceived lower job performance than standard employees did. Work status had no significant moderating effect on the relationships between job satisfaction, organizational commitment, and job performance; however, the results of this study indicated that supervisors’ perceptions of nonstandard employees’ job satisfaction, organizational commitment, and job performance were quite different from those of the nonstandard employees themselves. This study suggests that hotel operators should develop strategies to fully utilize nonstandard employees who reveal potential for quality service to guests.     

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.     

Environmental corporate social responsibility and the strategy to boost the airline’s image and customer loyalty intentions

This study aimed to uncover the role of an airline’s environmental corporate social responsibility in conjunction with building loyalty intentions of its customers while considering the mediating impact of its brand image, love and respect, as well as the moderating effect of environmental concerns. Our results from the structural analysis showed the salient role of environmental corporate social responsibility in determining loyalty intentions, and it was also a significant contributor to improving brand image, love, and respect that acted as significant mediators. Moreover, the results demonstrated a significant moderating effect of environmental concern on the brand respect and loyalty relationship.     

Does a low-cost carrier lead the domestic tourism demand and growth of New Zealand?

This study aims to provide a better understanding of the impact of New Zealand's low-cost carrier (LCC) on domestic tourism demand and growth. The panel data regression model and the two-stage least-square (2SLS) model (aims to control for the endogeneity effects) are used to empirically investigate the impact of LCC and the key determinants affecting New Zealand's domestic tourism using five regions (Auckland, Canterbury/Christchurch, Dunedin, Queenstown, and Wellington) from June 2009 to July 2015. The findings suggested that the LCC's services, GDP per capita, the regional tourism indicators (accommodation, and food and beverage), and land transport costs affected New Zealand's domestic tourism. The policy implications of the key finding regarding the significance of the LCC's operations on New Zealand's domestic tourism (local/regional tourism authorities and tourism operators), airline competition between incumbent airline (Air New Zealand) and the LCC (Jetstar), and airport authorities are discussed.     

What Does Vacation do to our Family? Contrasting the Perspectives of Parents and Children

Family has been identified as the most important consumption unit. This research builds on related theories of family system and vacation functions and empirically examines the dimensionality of family vacation functions. Through focus group interviews and survey techniques, a typology of family vacation functions was identified. Stressing both “home environment” and “destination environment,” “we” and “individual,” the functions are “Bonding and Sharing,” “Communication,” “Escape and Relaxation,” “Children’s Learning,” and “Novelty Seeking.” Fathers, mothers, and children showed significant differences in their perception of these five dimensions. Parents, especially mothers, appeared to be much more group well-being oriented, and their aspirations for vacation performing various functions were much more pronounced. Children did not demonstrate the equal amount of enthusiasm towards family vacation. Implications were discussed from both academic and applied perspectives.     

Does climate change matter to the travel trade?

This study evaluated the awareness of, attitudes toward and opinions about the ability of travel agencies in Hong Kong to help address tourism's contribution to greenhouse gas emissions. The retail travel agent sector is a major player in the tourism distribution system, accounting for about 25% of travel activity, and is the primary distributor of package tours. In-depth interviews were conducted with senior managers and owners/operators of a sample of travel agencies in Hong Kong, followed by a survey of 485 front line staff. The study revealed senior managers adopted a range of neutralisation techniques to abrogate themselves from any personal or corporate responsibility in this issue. Front line staff were largely unaware and ill-informed, and mainly see their role as simply pushing products. Cluster analysis revealed five groups with diverse views: Cluster 1, the “Deeply concerned” group (11%); Cluster 2, the “Deep knowledge” group (6%); Cluster 3, the “Moderate knowledge and awareness” group (18%); Cluster 4, the “Concerned but unaware” group (31%); and Cluster 5, the “Neither concerned nor aware” group (34%). The combination of lack of leadership among managers and ignorance among front line staff means that neither feels responsible for, nor able to, address this issue.     

Does living in the vicinity of heritage tourism sites influence residents’ perceptions and attitudes?

Abstract

This study investigates whether the perceptions and attitudes of residents living within the vicinity of heritage tourism sites differ from those living further afield. It examines residents’ attitudes toward tourism development; community attachment; environment and culture attitudes; economic gain; and involvement, alongside the moderating role of distance from heritage tourism sites. In doing so, it investigates how the aforementioned factors influence residents’ perceptions of tourism development in their city. Data was collected from inhabitants of Kashan and Tabriz, two historic cities couched within Iran’s growing heritage tourism sector, and analyzed using partial least squares - structural equation modeling. The findings demonstrate significant differences between the perceptions of tourism impacts, economic gain, environmental and cultural attitudes, and involvement between residents living within the vicinity of heritage tourism sites and those living further afield. However, these findings contradicted the hypotheses; identifying higher positive perceptions, environmental and cultural attitudes, economic gain, and involvement for residents living far from heritage tourism sites. Further, the findings did not support the moderating role of distance for the effects of influencing factors on residents’ perceptions. Therefore, this study proffers significant theoretical contributions and practical implications with regards to developing sustainable tourism in Iran.     

Can corporate social responsibility protect firm value during the COVID-19 pandemic?

The novel coronavirus (COVID-19) pandemic has caused a significant decline in the stock market worldwide, and hospitality companies are experiencing serious financial problems. Protecting and preserving firm value is a critical way of helping hospitality companies survive the crisis. The influence of corporate social responsibility (CSR) on firm value has been widely investigated. However, little is known about the stock price movement following CSR activity adoption during an industrial crisis. Using event study and difference-in-difference method, this study reveals that engaging in CSR activities can increase the stock returns and stakeholder attention of hospitality firms during the pandemic. Community-related CSR has a stronger and more immediate effect on stock returns than customer- and employee-related CSR. Results also indicate that hospitality firms that pursue improved stock market performance during a pandemic can invest in CSR to protect communities, customers, and employees for attracting further stakeholder attention.     

What is the value of networking? An examination of trade show attendee outcomes

Business events have become a key sector of growth in the events industry. However, there is a paucity of empirical studies that examine the outcomes that participants derive from these events. This study aims to address this by specifically focusing on one objective of business events—networking. A case study approach was used to explore how organizers design events for networking and the outcomes that participants gain from events. Findings revealed that objectives differed based on the type of attendee and attendees typically followed up with 20–30% of contacts after the event, indicating that the use of networking technologies could enable more valuable connections to be made.     

Does a VAT rise harm the tourism industry?Portuguese evidence

This paper estimates consequences of the VAT increase on tourism industry, by analysing the impact of the significant VAT rise in Portugal on profitability and survival of firms related to food and beverage service activities. The analysis is divided into 3 periods: before and after the VAT hike and during the financial crisis, with the total time period from 2003 to 2013. The sample is composed of 23,388 Portuguese unique firms with 5.1 year-observations per firm. The impact of the massive VAT change is assessed in comparison to the performance of 4,969 Greek and 59,841 Spanish (for robustness) unique firms for the exact time period. The results show that a dramatic VAT increase significantly affects firm profitability in the country of implementation, with the effect even more dramatic than the recent financial crisis. The equivalent to the proposed 10 percent VAT rise in Portugal has caused a significant decline in firm profitability (an average drop of 8.7% compared to 1.5% during the financial crisis), a massive increase in the number of inactive firms and amplified the likelihood of firms to become bankrupt by about three times. Such consequences inevitably affect unemployment and may cause a slump in tax revenue in the long run. Hence, this research has wide practical implications and should be considered by the Greek and Portuguese governments before taking a next step of intervening in the tourism sector.     

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.     

Does Women's Preference for Highbrow Leisure Begin in the Family? Comparing Leisure Participation among Brothers and Sisters

Research shows that women are more likely than men to participate in highbrow leisure activities, but we do not know whether this gap develops within the family at an early age or is the outcome of socioeconomic differences between men and women later in life. We compare highbrow leisure participation among brothers and sisters from the same family and report three findings: (1) gender differences in highbrow leisure participation are largely unrelated to family background, (2) there is little evidence that parents engage in gender-specific cultural socialization, and (3) socioeconomic position and family obligations account for less than 20% of brother-sister differences in highbrow leisure participation. Our results suggest that gender differences in highbrow leisure participation originate in factors outside the family.     

Participating in Business-to-Business Trade Fairs: Does the Buying Function Matter?

This research aims at understanding the main reasons for business-to-business trade fair participation and for visitors' interaction with suppliers. The nature of the study is exploratory and combines qualitative interviews with trade fair organizers, experts, and trade fair participants, and a survey administered to visitors of an international trade fair held in Portugal. The study revealed that visitors do not highlight buying at these events and the most experienced visitors are the ones who devalue most buying at trade fairs. Interestingly, even when considering the most important supplier with whom visitors have interacted, they do not underline using the trade fair context to place orders. Such conclusion allows drawing managerial implications for trade fair participants and organizers.