Building dynamic capabilities through knowledge resources

Recent literature has highlighted the role of dynamic capabilities as determinants of sustainable competitive advantages, although few investigative works have studied the organizational variables that encourage and support these capabilities in the tourism industry. This study addresses this gap and investigates the possible antecedents of dynamic capabilities in the hotel industry. The analyses provide empirical evidence of the role of knowledge in achieving dynamic capabilities in this sector. The results show that prior knowledge and skills at the individual and collective level form the basis for developing dynamic capabilities in firms in the hotel sector.     

Relationships between external knowledge,internal innovation,firms’ open innovation performance,service innovation and business performance in the Pakistani hotel industry

The purpose of this study is to test the relationships between external knowledge, internal innovation, firms’ open innovation performance, service innovation and business performance in the Pakistani hotel industry. A simple random sample of 285 managerial staff in the Pearl-Continental Hotels & Resorts of Pakistan was surveyed. The findings show that firms’ open innovation performance has a positive influence on service innovation and business performance. They also reveal that external knowledge and internal innovation positively influence firms’ open innovation performance and that further leads to service innovation and business performance respectively. This study provides practitioners with firms’ open innovation performance as a tool to enhance business performance while adopting the strategy.     

Capital structure in the hospitality industry: The role of the asset-light and fee-oriented strategy

An asset-light and fee-oriented strategy (ALFO), which reduces risk and facilitates firm growth with minimum capital investment, has increasingly gained attention from industry practitioners and academic scholars alike, especially in the service sector like the hospitality industry. We empirically examine how ALFO is employed and how it is related to the capital structure, i.e. the proportion of debt and equity financing, in hospitality firms. Using a sample of 982 firm-year observations over the period 2002–2016, we find that ALFO is widely used by the hospitality industry, and as expected, the fee-income ratio and the degree of franchising have increased, while asset tangibility and capital intensity have decreased. Interestingly, although ALFO is positively related to long-term debt ratios of hospitality firms, our sub-sector analyses indicate that the relationship is only significant in the restaurant sector and not in the hotel sector. Our study contributes to the literature by identifying an important industry-specific variable that affects the capital structure of hospitality firms.     

Determining factors in entry choice for international expansion. The case of the Spanish hotel industry

The hotel sector, as a service industry where it is possible to separate capital investment from management skills, is a clear example of how internationalisation can be modelled without shareholding involvement through foreign direct investment. This paper is an empirical examination of the key factors influencing the decision process carried out by Spanish hotel companies in choosing an entry mode for international expansion. The main objective is to verify whether the concepts derived from the transaction-cost, agency and the strategic theories of organisational capability and knowledge in companies can really explain the mode of foreign expansion employed by the Spanish hotel sector. This study will allow comparison of findings on holiday resort hotel chains with other analyses on the international hotel industry.     

Impacts of peer-to-peer accommodation on the hotel industry: Hoteliers’ perspectives

The sharing economy is a new phenomenon that has considerable implications for traditional industries in general and the hospitality sector in particular. Although some recent studies have investigated the effects of sharing economy on the hotel industry, they primarily focused on quantifying its effects which are not exploratory for a phenomenon. This study attempts to achieve two research objectives. First, an exploratory qualitative method via a semi-structured in-depth interview is employed to investigate the impacts of P2P accommodation on the industry from hoteliers’ perspectives in China. Second, the current study provides valuable insights about traditional hotel marketing and operations. A social science perspective is proposed because prior hospitality research, merely in its commercial sense, fails to capture the essence of hospitality. Results indicate that P2P accommodation has effects on the hotel industry in terms of host–guest interactions, product offerings, staff empowerment, and platform collaboration. The study also suggests that the extent to which P2P accommodation impacts the hotel industry is different in terms of hotel star ratings and operating model. P2P accommodation and the hotel industry in China have a supplementary relationship. This study contributes to social studies of the hospitality literature by gaining insights from hotel senior management level. It also has great implications for the hotel marketing and management practices within the sharing context.     

Bridging the gap: An examination of the relative alignment of hospitality research and industry priorities

Effective organisational decision making in a highly competitive and fragmented market demands current and relevant insights. Given the global perspective in which the hotel sector operates, the need for such insight is intensified. This study seeks to establish a dialogue focussed on responding to this need by examining the relative alignment of hospitality research and industry priorities for the purpose of informing industry practices. First, a literature review of academic and trade publications in the hotel sector provide a baseline understanding of current discussion in their respective communities. Second, a series of in-depth interviews with managers of hotel properties were used to assess the perception of industry priorities on contemporary issues. Findings suggest that industry priorities are not consistent with the emphasis in the literature. Most notable, generational change was identified as of particular importance with respect to managing employees, while brand differentiation, or lack thereof, was highlighted as a concern when operating in a highly competitive market. To date, both issues appear to have received limited attention in the literature, representing a significant opportunity for future academic research.     

Enhancing business performance of hotels: The role of innovation and customer orientation

Innovation management and customer orientation have been widely recognized as key factors in enhancing the business performance of hotels. Our research investigates the interplay between customer orientation, innovation, and business performance in the Alpine hospitality industry. The study contributes to current innovation research by jointly investigating hotel innovativeness and innovation behavior as two distinct dimensions of the innovation concept. Analyzing data from 203 hotel managers, this study shows that the effect of hotels’ customer orientation exceeds the effects of innovativeness and innovation behavior on financial and non financial business performance. Mediation analysis shows that innovation behavior partially mediates the effect of customer orientation on business performance. The results of the study provide hotel management with relevant insights into the customer orientation innovation performance chain.     

The Implementation of Saudization in the Hotel Industry

Saudi Arabia's localization policy, “Saudization,” aims to decrease reliance on expatriate workers, but it has been more successful in the public sector than in the private sector. This study explores the issues involved in effectively implementing the policy in the hotel industry in Saudi Arabia, specifically four- and five-star hotels. Tourism professionals, HR professionals, and hotel managers were interviewed and hotel managers and employees surveyed. The research specifies criteria for the effective implementation of Saudization and identifies the issues involved in implementing this policy in four- and five-star hotels. It makes recommendations, which could assist in implementing the policy effectively in the hotel industry.     

Innovation in tourism: Re-conceptualising and measuring the absorptive capacity of the hotel sector

Recent reviews of research on innovation in tourism have highlighted a number of weaknesses in the literature. Among these is the limited theorising and empirical investigation of innovative practices by tourism organisations. This paper responds to these concerns by examining one important dimension of innovation within commercial tourism organisations, namely their ability to acquire, assimilate and utilise external knowledge (absorptive capacity) for competitive advantage. The topic is pertinent because there is evidence to suggest that tourism organisations are particularly dependent on external sources of knowledge when compared with businesses in other sectors. Following a discussion of the conceptual antecedents of absorptive capacity and its dimensions, a validated instrument for its measurement is developed and used to measure the absorptive capacity of the British hotel sector. The results suggest that current conceptions of absorptive capacity have limitations when applied to tourism enterprises. Absorptive capacity is re-conceptualised to overcome these deficiencies. The research and policy implications of the findings are discussed.     

Determinants of using operating lease in the hotel industry

This study investigated the determinants of using operating lease in the hotel industry. The hotel industry has utilized operating lease not only for operating equipment but also as a financing instrument through ‘sales and lease back.’ This study found that hotel firms with less internal funds and/or with higher debt ratios are more likely to use operating lease. Contrary to the studies of other industries, hotel firms with less financially distressed are more likely to use operating lease. This study indicated that operating lease decrease as firm size increases, but only up to a certain level, after that level operating lease increase as firm size increases. Contrary to our expectations, the growth opportunity of hotel firms appeared to have no relationship to use of operating lease. These findings contribute to further understandings of hotel industry-specific information regarding what drives hotel firms to use operating lease.     

A preliminary assessment of the function and conference service product at a UK stately home

The UK conference market is estimated to be worth £6 billion and is thought to be the fastest growing sector of the hotel industry. An increasing number of less conventional venues are aiming to attract corporate business, though most empirical research focuses on the hotel conference product. A UK stately home is the venue studied in this article. To identify possible areas for improvement, a telephone survey of customers was undertaken to assess the service and facilities. The high average ratings indicate that generally organisers have a favourable impression of the stately home. The research revealed significant differences in the average ratings given for the Main Hall and His Lordship's Apartment, the two rooms available for functions. Event category and organiser experience were not found to influence the ratings. Due to the relatively small sample size, only tentative observations are made about the trends which emerged from the analysis.     

Improving hotel budgetary practice—A positive theory model

Budgeting is the most widely used management accounting technique. This research considered contemporary hotel sector practice and theory concerning budgeting. The rationale for existing practice was further explored through qualitative research. This led to the development of recommendations concerning budgetary processes within the hotel sector.The results identified some aspects of practice that can be improved, particularly participation in the budgeting process at lower management levels in organizations and the financial training needs of non-financial managers. These findings have implications for management in the industry and recommendations for how current budgeting practice in hotels can be enhanced are given.     

Energy conservation in large-sized hotels: Insights from a developing country

Tourism can drive positive, transformative changes in modern societies, but also becomes a source of significant environmental externalities. This is often the case for developing economies where the problem is exacerbated by immature national sustainability agendas. Targeted research, accounting for the local context, is necessary to enable transition of developing countries towards more sustainable patterns of tourism development. This study targets the hotel sector in Iran, one of the most energy inefficient hotel sectors around the world, to explore its pathway towards environmental sustainability. The dominance of domestic ownership and control and the prevalence of international economic sanctions are the distinctive features of the Iranian hotel sector. The study pinpoints reconfigurations in technology, knowledge, legislation and behavioural norms as the determinants of the sector’s environmental sustainability quest. Domestic hospitality companies should champion transformative pro-environmental changes in the Iranian hotel sector until international economic sanctions are lifted.     

Knowledge Transfer in Hotel Firms: Determinants of Success in International Expansion

This study analyzes the determinants of knowledge transfer success in the international expansion of hotel firms. First, international growth strategies, followed by hospitality firms and their relationship to knowledge transfer, are discussed. Next, we address the determinants of knowledge transfer success in international expansion by discussing the relevance of the topic and potential barriers that may lead to failures. This leads to the presentation of four research hypotheses. The hypotheses are then empirically tested from the international expansion of Spanish hotel chains. The results demonstrate the influence of the absorptive capacity, the cultural aspects, and the motivation of the knowledge sources.     

Strategic groups in the hospitality industry: Intergroup and intragroup performance differences in Alicante, Spain

The hotel sector is currently immersed in a very uncertain, highly competitive environment, due to which it needs information for the correct management of its establishments. This information can be obtained from the classification of hotels in strategic groups. The present empirical research presents strategic groups in the hospitality industry as a useful tool for the planning and implementation of strategies by hotels that helps to determine their competitive strategies and advantages. This research paper additionally shows how the levels of performance between the hotels belonging to each group can be evaluated from strategic groups. In this study, the tool is applied to the hotel sector of the Spanish province of Alicante, a very important geographical area in the context of international tourism. The dimensions resource commitment and tourist activity scope have been used to define the strategic groups.     

Drivers of environmental innovation in Majorcan hotels

Using a database of Majorcan hotels, this paper examines several previously untested determinants of environmental innovations in hotels derived from the Porter hypothesis and from the specifics of knowledge transfer in the tourism industry. The empirical analysis is original in that it distinguishes between eight types of environmental innovations. The results show that hotels’ general predisposition to implement innovations, manager remuneration based on environmental performance, staff satisfaction, environmental accounting, and trainings are important determinants of the overall environmental innovation activity of Majorcan hotels. Moreover, the use of environmental management systems is associated with innovations with cost-saving potential, whereas the hotel star category is associated with innovations that contribute to hotel quality, such as wastewater treatment, noise reduction, noise isolation, and visual impact improvements. Furthermore, high levels of staff satisfaction are related to the implementation of water-saving and noise reduction innovations, as such innovations require staff participation, whereas the role of information sources in explaining innovation adoption varies based on the technical complexity of innovations. The paper concludes with policy implications for sustainable tourism development, recommendations for the hoteliers, and directions for future research.     

Knowledge agents as drivers of environmental sustainability and business performance in the hospitality sector

This study examines the role of knowledge agents as key enablers in the process of creating and updating the environmental knowledge base of a firm and, in doing so, having a positive effect on business performance. From the perspective of a hotel as the most important cog in the machinery of the hospitality sector, knowledge agents are those individuals who can provide information and knowledge that enables the firm to deal with environmental issues effectively. The paper describes an empirical, longitudinal study of 87 organisations in the Spanish hospitality industry. The results highlight the importance of the relationship between knowledge agents and environmental knowledge for business performance. Furthermore, our findings indicate that the role of knowledge agents is also relevant for the future management of the environmental knowledge base of a firm within the hospitality sector.     

Predicting Korean lodging firm failures: An artificial neural network model along with a logistic regression model

Using financial variables as predictors, this study developed logistic regression and artificial neural network (ANN) models to predict business failures for Korean lodging firms. While both models demonstrated comparable Type I errors, the ANN model showed considerably lower Type II errors for both in-sample and hold-out sample predictions. This study also found that interest coverage is the most important signal of business failure for the Korean hotel industry. This ratio is directly related to the hotel's solvency, ability to service debts and productivity of profits and can thus be regarded as a survival indicator of Korean hotel firms.     

Innovation activity in the hotel industry: Evidence from Balearic Islands

The paper provides empirical evidence on technological activity in the Spanish service sector, in particular for the tourist accommodation in the Balearics. The study wants to fulfil the lack of analyses in the field of tourism. Commonly, the study of innovation activity has been carried out from a manufacture perspective, for that reason the paper discusses the precise definition of innovation in accommodation services. The data refer to a large representative sample of hotels in Balearic Islands (Spain), providing a homogeneous set of information. The results show as higher-categories hotels are more innovative than lower-categories hotels; an aggregated measure of technological innovation presents a rate over the average for hotels that belong to a chain, and that for hotels under management contract. Half of innovative companies adjust the human capital skills and abilities. The hotel industry is a supplier-driven sector that innovates introducing R&D embodied technology rather than undertaking internal R&D activities.     

Measuring hotel performance using the balanced scorecard: A theoretical construct development and its empirical validation

A key contribution to the performance measurement literature was the introduction of the balanced scorecard (BSC) in 1992. However, despite its appealing rationale in capturing different aspects of performance and its wide and increasing use in a range of industries, there has been no rigorous psychometric development and testing of performance scales from the BSC perspective in the hospitality industry. In order to contribute to fill this gap, this study adopted a two-stage design seeking to develop and test a scale of organizational performance using the BSC in the hotel sector. In Stage 1, the authors generated and refined the scale items, recognizing unique characteristics of the hotel sector. In Stage 2, the scale has been assessed in terms of dimensionality, validity, and reliability. The findings suggest that managers do make a meaningful distinction between five aspects of hotel performance. Unexpected results, contributions, limitations, directions for future research, and managerial implications are all discussed.