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.     

Workplace incivility in restaurants: Who’s the real victim? Employee deviance and customer reciprocity

This study expands upon previous literature that focused on examining the impact of managers’ incivility towards their employees and the effects on employee behavior and attitudes, as well as customers’ perceptions and behavior intentions following workplace incivility from the maltreated employees. Using mixed-methods of sequential incident techniques and a scenario-based experiment, the study found that when customers received a good service from the employee who was maltreated by his/her supervisors, customers are more likely to revisit the restaurant and tend to provide more tips to the employee compared to customers who received a bad service from the employee. Also, employees who try to continuously provide a good service to customers regardless of their mistreatment from the manager, trigger customers’ moral unease, thus lead them to give more tips.     

Revisiting the financing behavior of restaurant firms: The firm-size perspective

In International Journal of Hospitality Management, Jang and Ryu [Jang, S., Ryu, K., 2006. Cross-balance sheet interdependencies of restaurant firms: a canonical correlation analysis. International Journal of Hospitality Management 25 (1), 159–166] published a research article about the financing behavior of restaurant firms, using a canonical correlation analysis. Even though the study presents a general picture of financing in restaurant firms, the financing behaviors of firms of different sizes may differ because they often face different financing environments. Thus, this study re-examines restaurant firms and compares the results with Jang and Ryu [Jang, S., Ryu, K., 2006. Cross-balance sheet interdependencies of restaurant firms: a canonical correlation analysis. International Journal of Hospitality Management 25 (1), 159–166] to further enhance the understanding of the financing behaviors. The results show that, despite the differences in firm sizes, overall financing behaviors are similar to those reported by Jang and Ryu [Jang, S., Ryu, K., 2006. Cross-balance sheet interdependencies of restaurant firms: a canonical correlation analysis. International Journal of Hospitality Management 25 (1), 159–166], although they also suggest that restaurant firms of different sizes do indeed exhibit some different cross-balance sheet interdependencies including relatively more reliance on accounts payable among small and medium firms and more use of long-term debts among large firms. Moreover, long-term assets related to stockholder equity more among large firms but related to supplier credit more among small and medium firms.     

Does corporate growth really matter in the restaurant industry?

In this study, the authors hypothesize that growth strategies are not necessarily always performance-enhancing strategies that are sustainable. This is contrary to what industry managers tend to believe to be the outcome of growth strategies. Based on past research, a second hypothesis is developed that corporate liquidity impacts performance in a more positive way than growth strategies, and therefore, should be considered in the decision-making framework of firms before they launch into new products and/or markets. The interrelationship between corporate growth and liquidity is also tested, which further highlights the importance of pursuing corporate liquidity.     

Analysis of the financial practices of high and low performing firms over periods of peaks and troughs of the restaurant industry cycle

This study examined the financial practices of high and low performing firms in the restaurant business over the industry cycles. The purpose is to determine whether differences exist in the financial practices of high performers versus low performers during different stages of the cycle. In this manner, this study is able to reveal the nature of financial practices of successful firms in the restaurant business. Results show that the patterns of exercising their financial strategy over the industry cycles are significantly different. The findings of this study can be used for improving corporate investment performance through understanding the cyclical behavior of the economy and the restaurant industry. This should then presumably result in competitive investment decisions of various firms, thereby improving the effectiveness of resource allocation.     

Making Employee Turnover Calculations Useful

ABSTRACT

There seems to be a consensus among industry practitioners regarding the detrimental effects of turnover. However, based on interviews conducted with seven human resource directors of national hospitality brands, it appears that the turnover ratios in current use may not identify employee turnover root causes. Because of the variability and the subjectivity of turnover cost calculations, the research proposed that turnover efforts be focused on resolving root causes rather than on calculating costs. The research provided a turnover ratio calculation process that facilitates corrective action. This process provides sufficient detail so that management may identify core turnover issues. Recommendations included: (1) Differentiate between types of turnover (controllable or uncontrollable), (2) Separate ratio calculations of management from those of hourly employees, (3) Use average number of employees as the ratio calculation denominator, and (4) Break calculations down by department (by division and then further by front and back of the house).     

Does a minimum wage increase endanger restaurant jobs? Examining the role of franchising

This study examined the effect of federal minimum wage increases on the U.S. restaurant industry. Based on the competitive labor market perspective, this study expected that minimum wage increases would negatively (positively) influence restaurant employment (compensation), while franchising would positively moderate the minimum wage-employment (minimum wage-compensation) relationship. The results of the analysis showed that minimum wage increases negatively influence employment, while franchising positively moderates the adverse effect of minimum wage increases on restaurant employment. This study also revealed that minimum wage increases positively influence per employee compensation, but franchising does not significantly moderate the relationship. This study suggested that franchising provides a buffer that absorbs the adverse effects of minimum wage increases on restaurant employment. Conversely, franchise restaurants may face potential service quality issues because franchise firms seem to strategically adjust full-time employees to part-time workers to address minimum wage increases.     

Do emotions play a mediating role in the relationship between owner leadership styles and manager customer orientation,and performance in service environment?

This study examines the dynamic relationships among leadership style (transformational and transactional), emotion in service employees, customer orientation (dimensions of enjoyment and needs), and job performance. The study proposes a model based on existing literatures and examines the mediating role of service employees’ emotion in the relationship between leadership style and their customer orientation. The study found that all four elements of transformational leadership have a significant effect on positive emotion. Emotion is found to have a significant influence on both enjoyment and needs dimensions of customer orientation and to partially mediate the relationship between leadership style and customer orientation.     

Achieving task and extra-task-related behaviors: A case of gender and position differences in the perceived role of rewards in the hotel industry

The study drew on a sample (n=284) from the hotel industry in Hong Kong to advance our understanding about the perceived effectiveness of various reward instruments in achieving specific task and extra-task performance behaviors. We found that the perceived motivating value of a reward varied according to its type. Non-financial rewards, for example, were found to play a prominent role in achieving extra-task performance dimensions. Employee characteristics also affected the perceived performance implications of various rewards. Nevertheless, caution must be exercised when interpreting the results, as other factors may also influence reward–performance relationships, thus paving the way for future research.