Enhancing hospitality business performance: The role of entrepreneurial orientation and networking ties in a dynamic environment

Utilizing a sample of 192 hospitality firms, this study investigates the moderating role of a dynamic environment, coupled with business and social networking ties and technology resources, on the relationship between entrepreneurial orientation and organizational performance in hospitality firms. This research is novel in that we adopt business network ties and social network ties as two moderating variables along with technology resources between entrepreneurial orientation and business performance, providing evidence on a topic which has received little attention to date. The results posit that in an uncertain, dynamic environment a higher level of risk and entrepreneurial orientation benefit business performance especially when coupled with strong business and social networks.     

Women entrepreneurship orientation,networks and firm performance in the tourism industry in resource-scarce contexts

Drawing on network theory, this study examines how the entrepreneurship orientation (EO)-performance nexus is intermediated by networks firms establish with government agencies, suppliers, and resource acquisition. Structural equation modelling is used to test the model on a sample of 556 women tourism entrepreneurs in Ghana and Nigeria. Findings indicate that EO positively influences firms’ social ties, resource acquisition, and performance. The results also indicate that establishing strong ties with government agencies leads to more resource acquisition among women owned tourism businesses than strong business ties with suppliers. Furthermore, business ties are more beneficial when they mediate the effect of EO on performance and become weak and negative when the effect is sequentially mediated by business ties and network resource acquisition. Political ties negatively influenced performance. This study provides novel insights into the EO, networks and performance nexus in resource-scarce contexts. The managerial implications for supporting women entrepreneurs are critically examined.     

Determinants of radical innovation in clustered firms of the hospitality and tourism industry

Social capital is a key resource encouraging innovation in clustered firms of the hospitality and tourism industry, however it may be influenced by managers perception of market dynamism. This paper analyses the moderator role of ma’rket dynamism perception among the three dimensions of social capital −structural, relational and cognitive- and radical innovation. We conducted an empirical study on a sample of 215 hospitality and tourism firms located in World Heritage Cities of Spain, by considering each city as a cultural tourism cluster. The structural equations analysis shows divergent direct and moderated effects for the dimensions of social capital. Specifically, the negative effect of structural social capital on radical innovation worsens when market dynamism perception is higher. However, market dynamism perception improves the effects of relational and cognitive social capital on radical innovation. The study contributes to the understanding of the antecedents of radical innovation at firm level in the context of cultural tourism clusters.     

The impact of regulation and ownership structure on market orientation in the tourism industry in China

The nature of market orientation and its impact on business performance and other related outcomes have been extensively researched in a range of service contexts including tourism. In contrast, our understanding of the factors that influence market orientation is still limited. This paper reports on a study that contributes to our understanding of the determinants of market orientation within the tourism sector by focusing specifically on the role played by two strategically important variables, namely government regulation and ownership structure. The study analyses two national samples of hotels and travel services in the rapidly growing tourism industry in China. The hotel sector has been open to foreign investment for two decades and has a diversified ownership structure, whereas the travel services sector has been dominated by government owned firms and relatively closed to foreign investment. The results of the survey suggest that of the two new antecedents, only government regulation has a significant role to play in driving market orientation. Internally, access to appropriate managerial and marketing capabilities was identified as a significant predictor of the development of market orientation.     

Innovation,uncertainty, and inter-firm shortcut ties in a tourism destination context

Efficient inter-firm coproduction in the tourism industry can bear a resemblance to the concept of small-worlds, typically characterized by pockets of local clusters and shortcut ties that connect and decrease path-length between clustered network members. In this paper we analyze survey and inter-firm network data across several winter destinations, finding that innovating firms can reduce path-length, but uncertainty is a necessary catalyst for this process to take place.     

Motivation of internationalization and a moderating role of environmental conditions in the hospitality industry

As internationalization has been widely implemented throughout the tourism industry, it is important to understand what motivates a firm to internationalize its business. Thus, this study examines the motivation for internationalization based on the neoinstitutional theory. This study employs a hierarchical linear modeling (HLM) to test the proposed hypotheses, using the annual firm-level data of the tourism industry, and finds that tourism firms including casinos, hotels, and restaurants are demotivated to diversify their international expansion into different countries as their competitors increase the scope of countries in which they operate. However, if a firm perceives its competitors as speeding up the process of internationalization, that firm will also increase the pace of internationalization. In addition, this relationship between competitors and focal firms' internationalization varies according to environmental conditions (i.e., dynamism, complexity, and munificence). The findings of the study contribute to the internationalization and tourism literature.     

Government intervention in investment by Chinese listed companies that have diversified into tourism

This paper presents the outcome of empirical research into the influences of government intervention on tourism investment using a sample of Chinese listed companies that have diversified into the tourism sector. Government intervention is measured on the basis of the CEO’s political connections, the relationship between the government and the market, and the degree of financial market development. The results show that state-owned enterprises (SOEs) with strong political connections are likely to diversify into the tourism industry, especially in the area in which the government intervenes in the market excessively and the financial market is well-developed, although the tourism businesses of these firms tend to operate poorly after diversification. Amongst non-SOEs, in contrast, government intervention factors are not found to facilitate diversification into the tourism sector to any significant degree. Less government intervention is found to be beneficial for these firms, allowing them to improve their performance in the tourism sector. It is thus concluded that greater local government awareness of policy implementation is necessary to avoid unfair competition between SOEs and non-SOEs and to target the long-term positive development of the Chinese tourism sector.     

Validation of a market orientation adoption scale in rural tourism enterprises. Relationship between the characteristics of the enterprise and extent of market orientation adoption

Market orientation (MO) is considered as a competitive strategy for the rural tourism sector. A MO adoption scale is proposed and validated for the rural tourism sector. Given the importance of MO, it is important to know the relationship between a firm's characteristics and MO adoption. This study makes a hierarchical segmentation to predict the behaviour of these firms when adopting the MO. Activity and category are the two characteristics that most effectively predict a firm's behaviour. The contribution made by this work is of interest given the new field of application achieved and which have implications for the professional sector.     

旅游业上市公司多元化经营能够降低公司风险吗？——基于2004—2012年A股上市公司数据的实证研究

我国的旅游业上市公司普遍存在进入房地产业、高新技术产业等行业的多元化经营现象。国内外学者对多元化经营与公司风险之间的关系展开了一系列的研究,但是没有得出一致的结论。截至目前,对旅游类企业多元化经营能否降低公司风险的研究仍较为欠缺。因此,文章以2004—2012年国内23家A股旅游业上市公司1的184个截面数据为样本,利用多元回归分析法检验了旅游业上市公司多元化经营对其公司风险的影响。旅游行业自身的行业特征及其多元化特点使得针对旅游业上市公司多元化经营行为的分行业研究产生了与以往整体层面的研究截然不同的结论：旅游业上市公司多元化经营能够降低公司的财务风险,但无法降低公司的经营风险。进一步对多元化类型进行区分后发现：旅游业上市公司相关多元化水平的提升可以显著地降低公司的财务风险,但无法显著地降低公司的经营风险;而非相关多元化水平的提升无法显著地降低公司的财务风险与经营风险。基于上述研究成果,文章从促进融资体系多元化、完善主业发挥自身优势、谨慎选择多元化行业3个角度对旅游业上市公司的多元化发展提出了建议。     

Market orientation of small ethnic minority-owned hospitality firms

This paper seeks to evaluate the influence of changing co-ethnic consumer habits and the nature of competition on the market orientation of ethnic minority-owned hospitality firms in the UK. The paper reports and analyses the findings of 40 face-to-face interviews with Turkish small business owners. The findings of the study indicate that ethnic minority owned small firms operate within a strong socio-cultural environment. Not only co-ethnic customers and competitors but also both mainstream customers and competitors have a bearing on the market orientation of firms. Their market orientation is the result of the interplay between the changes in ethnic and mainstream business environments.     

Perceived environmental uncertainty in tourism: A new approach using the Rasch model

One of the core steps in all strategic management processes, but especially in tourism firms, is the consideration of the organisational environment. A methodology for scanning that environment is presented from the perspective of perceived environmental uncertainty, according to its dynamism and complexity. To that end, the Rasch model [Rasch, G. (1980). Probabilistic models for some intelligence and attainment tests. Chicago: University of Chicago Press (First publication in 1960, Chicago, IL. MESA Press)] is applied, and both dimensions are considered latent variables defined by a set of items. The concepts are assessed using a sample of tourism firms located in the Canary Islands (Spain). The results confirm that dynamism and complexity are related to the perception of uncertainty, and a specific function is presented. The environmental uncertainty can then be explained and determined with regard only to the managers’ perceptions, without the need to include parameters. The methodology also enables managers and institutions to identify the most uncertain perceived items.     

DOES BUSINESS ENVIRONMENT MATTER TO THE DEVELOPMENT OF A MARKET ORIENTATION?

Developing a market orientation is one of the key issues in market‐orientation research. In this study, based on a survey of top managers from 143 Chinese hotels and 72 travel services—two tourism sectors with distinctly different business environments—we explore the effects of environmental conditions on the development of market orientation. In particular we examine whether environmental conditions have a direct impact on the level of market orientation or whether they moderate the relationship between market orientation and its antecedents. We find that the effectiveness of top management emphasis varies under different environmental conditions but that the impact of other antecedents is not influenced by environmental conditions.     

How managerial ties affect hotels’ proactive environmental practices in China: The contingent role of institutional environments

Despite the increasing attention of environmental management in the hotel industry, few studies have examined how managerial ties impact hotels’ adoption of proactive environmental practices (PEPs) in China. Drawing on institutional theory, this study develops a model that investigates the differential effects of political ties and business ties on PEPs in the presence of important institutional factors. Using a primary survey and multiple secondary datasets on 190 Chinese hotels, we find that political ties inhibit a hotel’s adoption of PEPs whereas business ties facilitate PEPs. Moreover, advanced legal development and high levels of regional pollution reduce the impacts of both political ties and business ties on PEPs. We also test the relationship between PEPs and hotels’ financial performance. These findings provide novel insights into how managerial ties shape a hotel’s strategic behaviors for environmental protection under the influence of institutional environments in emerging economies.     

Tourism communities and social ties: the role of online and offline tourist social networks in building social capital and sustainable practice

Mobile connectivity enables the adoption of new ways to connect with social networks which are changing how we might, and could, seek support. In the tourism domain we increasingly blend online and offline presence to engage with social networks in the spatial location, at a distance and across time. This paper explores the forms of community that exist in physical tourism contexts, contexts not previously analysed through a community lens, and explores how mobile technology is creating connections within and beyond existing social networks. It examines how sustainable tourism can be enhanced by mobile connectivity through new space–time practices and using ephemeral interpersonal relationships to harness niche groups to create bottom-up social systems interested in sharing experiences, ideas and resources. Special attention is given to the concept of gelling socialities which proposes a less ridged network structure, and to the need to understand the increasingly liquid social dynamics of mobile social interactions. The paper adds to the theories surrounding community, social ties and tourism's value to society. It draws on data from in-depth interviews undertaken while designing and testing a collaborative travel app. It contributes to growing research into the new technologies increasingly available for sustainable tourism marketing and implementation.     

Strategic orientation and performance of tourism firms: Evidence from a developing country

This study investigates whether tourism firms in a developing country, namely Turkey, which adopt one of the four strategic orientations of Miles and Snow (1978), differ based on their financial and non-financial performance. The study results show that there is a difference in both financial and non-financial performance based on the strategic orientations followed by tourism enterprises. Generally, prospectors were found to outperform defenders, whereas analyzers showed a comparable performance to prospectors. The findings of this study imply that in developing countries, tourism businesses may be indifferent when choosing between these two strategies based on their internal characteristics since they yield similar financial results. Specific factors and developments in the macro environment and company-specific factors seem to affect tourism firms' strategic orientation as well as their performance. Better understanding and closer analysis of such factors can help improve the performance of tourism businesses in developing countries. Further research using both perceptual and objective measures is needed to confirm the present results to better assess possible differences in performance among strategic orientations in some other developing countries.     

An Investigation of Market Orientation (MO) and Tourism Small and Medium-Sized Enterprises’ (SMEs) Performance in Developing Countries: A Review of the Literature

This paper aims to build a structured literature review of the field of market orientation and its impact on tourism small and medium-sized enterprises (SMEs) performance in developing countries. This literature review will present a comprehensive survey of market orientation (MO) published articles to facilitate good understanding of MO. It serves as an archive and aims to help the scholars and practitioners to explore, analyse, and develop a clear understanding about the different research points and methodologies implemented in previous studies related to MO and its impact on tourism SMEs’ performance. The paper systematically reviews and categorizes the published literature implementing a three-stage methodology, and thereafter analyzes and reviews this literature methodologically. The review covered many areas and identified some factors that drive/hinder market-oriented activities within tourism SMEs. Furthermore, suggestions have been made to understand more thoroughly how market orientation influences tourism SMEs performance in developing economies. A research gap in the area of market orientation and tourism SMEs performance in developing countries was identified. The study provides great benefits for owner-managers, government policy makers, scholars, and educators by clarifying the concept of market orientation and its relationship with performance in the context of tourism SMEs.     

The resource-based and the market-based approaches to cultural tourism in alpine destinations

This study focuses on the relevance of cultural resources in tourism, including cultural heritage sites, cultural landscapes, events or festivals. It seeks to reveal the differences between two management strategy perspectives, the market-based view or approach (MBV) and the resource-based view or approach (RBV), of involved destination stakeholders and the impacts of those differing approaches on their perception of cultural tourism development. The literature on the strategy orientation of organizations/destinations is reviewed and serves as the theoretical background. Data were gathered from 38 semi-structured interviews with experts and key stakeholders in alpine destinations of cultural tourism in Northern Italy, using GABEK, a tool for analyzing complex qualitative data. The results indicate differences between destinations with diverse strategy-perspectives in terms of authenticity perception, standardization, leadership and sustainability orientation. The MBV requires larger financial resources to create an effective brand image. Authenticity was found to be very important and the VRIO framework (valuable, rare, inimitable and organized) a valuable tool. The RBV is best related to niche market products. The RBV also leads to more sustainable strategies for resource use but requires strong vision and network management skills.     

Fragility of leisure ties between ethnic minority and majority youth – an empirical case from Finland

This paper explores social integration of ethnic minority youth in the context of micro-level leisure interaction in Finland. The aim of the study is to disentangle the types of ties that are formed between ethnic minority and majority youth. Moreover, the article will examine how these ties build bridges across group boundaries in the form of providing new leisure resources for ethnic minority youth. The qualitative data of the study consists of multi-sited ethnography conducted in the context of youth work and distinct interview data of ethnic minority youth (n = 38). Strong interethnic ties in the form of close friendships are rare in the data. Instead, many weak ties in the form of distant acquaintances are maintained. However, because of manifold micro-level elements, these weak ties are often too fragile to function as bridges accumulating the leisure resources of ethnic minority youth. Strong interethnic ties seem to have more bridging qualities. Thus, the conceptual distinction of weak/bridging and strong/bonding ties originally formulated in the framework of the labour market may not be applicable in the fields of youth leisure.     

Attention to social issues and CEO duality as enablers of resilience to exogenous shocks in the tourism industry

The tourism literature recognises the importance of resilience to crises, but little is known about how tourism firms become resilient. In particular, the use of corporate social responsibility (CSR) as a risk-reduction strategy has been identified as an important gap in the literature. Aiming to fill this gap and adopt a more integrative view, this study examines complementarities between tourism firms' attention to social issues and corporate governance mechanisms in the context of the COVID-19 pandemic. Supported by the attention-based view and stewardship theory, the findings show that firms' attention to social issues and CEO duality might be associated with higher degrees of firm resilience. If firms have a CSR committee, the presence of CEO duality might leverage firms’ attention to social issues. The findings suggest that corporate governance should not restrict executive flexibility when tourism firms face exogenous shocks if firms pay attention to social issues.     

Unlocking the niche potential of senior tourism through micro-firm owner-manager adaptive capability development

This paper explores the role of adaptive capability development among micro-tourism owner-managers (OMs) in pursuit of the niche potential of the evolving senior tourism market. We discuss strategic adaptive capability development in a tourism micro-firm environment, prior to outlining the research context and adopted interview method used to elicit OM views. Findings indicate that limited human resources impede the level of adaptive capability engagement in micro-tourism firms, whereby operational level capabilities act as an antecedent to adaptive capabilities. Such adaptive capabilities, including market sensing capabilities and senior tourism alignment activities, are developed by OMs as a means of differentiating their respective firms from sectoral rivals in pursuit of niche market potential. Extracted from the findings, we present a Senior Tourism Adaptive Capability Framework prior to disclosing the study's practical and theoretical implications.