Market orientation and business performance: Evidence from franchising industry

This paper examines the relationships between top management factors, franchisor market orientation, competitive strategy, and business performance within the context of Korean franchisor companies. 156 food-service franchise firms provide the basis for this empirical investigation. Findings show that top management factors such as management emphasis and risk aversion can lead to market orientation. Franchisor market orientation was found to lead differentiation and cost strategies, which, in turn, increase financial and non-financial business performance. Also, market orientation directly increases financial and non-financial business performance. The context of the franchise industry differs from other industries, and this paper discusses the implications of these findings for researchers and managers in the franchise industry.     

Employment relationship in the small firm: Revisiting orientations to work

The purpose of this paper is to explore the role that owners’ orientations to work play in the employment relationship in the small business. Through four case studies in the restaurant sector the work challenges whether sector and size are influential or whether agency is vital to the discussion. The paper positions the importance of orientations to work in discussing the small business owner and highlights the role orientation to work plays on the employment relationship in these firms. Four alternate orientations to work operating within the businesses are discussed and their impact is evaluated through two examples: interacting with the labour market and pay setting.     

Examining the Impact of Four Key Cultural Dimensions on Ethnic Restaurants in Victoria in Australia

This study examines the impact (if any) of four key cultural dimensions on ethnic restaurants in regional Victoria, Australia. Based on a modified model developed by Nguyen and King [Nguyen, T., & King, B. (2002). Migrant communities and tourism consumption – the case of the Vietnamese in Australia. In C.M. Hall (Ed.), Tourism and migration. New relationships between production and consumption (pp. 221–256). The Netherlands: Kluwer Academic Publishers], this article explores the impacts of religion, co-ethnic ties, marriage and family support on the entrepreneurial behaviour of restaurants. These four cultural dimensions have been identified as influencing factors (Nguyen & King, 2002), but to what extent? It suggests that co-ethnic ties, marriage and family support are important to the daily operations of an ethnic restaurant, and potentially, long-term financial success. This is theoretically important in understanding how ethnic minority restaurants may differ regarding entrepreneurial business decisions compared to similar Western businesses. Utilising family and co-ethnic ties, labour resources offers a competitive advantage in four ways; reduced labour cost, efficiencies in communication, predictable behaviour and restaurant promotional opportunities. Religion, the fourth key cultural dimension put forward in Nguyen and King's (2002) model did not strongly influence entrepreneurial behaviour; however, it still may have relevance outside business behaviour.     

Ethnic dining: Need to belong,need to be unique,and menu offering

Many ethnic restaurants “Americanize” their menus to cater to mainstream American customers’ palate; on the other hand, they offer a “secret” (more authentic) menu to their original, ethnic customers. Inspired by consumer online reviews reflecting “secret menus” in ethnic restaurants, this research examines the joint impact of offering an authentic menu and the presence of other customers on customer satisfaction. Results from this study show that mainstream American customers’ satisfaction decreases when an authentic menu is not offered. The moderated mediation analysis further demonstrates that authentic menu offering influences satisfaction through the activation of two distinct psychological motivations, depending on the ethnic composition of other customers. Specifically, being surrounded by Asian (Caucasian) customers activates the need to belong (need to be unique) when an authentic menu is not offered. Such heightened psychological needs consequently lead to declines in customer satisfaction. Theoretical and managerial implications are discussed.     

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.     

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.     

Comparing nightclub customers’ preferences in existing and emerging markets

This research aims to compare the needs of nightclub and bar customers from two very different markets—the existing and well-established British late-night economy and emerging and developing Polish market by examining customer preferences towards the servicescape and service offerings provided by such venues in both countries. The findings point to the significant similarities and differences between British and Polish club goers, indicating the importance of various elements of the servicescape in influencing customer decisions to enter a venue. These findings can assist mainstream venues in the UK and Poland improve their competitive position by understanding and then providing both groups of customers with service offerings that match their preferences.     

An analysis of the relationship between market orientation and business performance in the hotel industry

The purpose of this study was to conduct an investigation into the link between market orientation and business performance in the hotel industry. Data were generated from 63 hotels in Hong Kong. The findings indicated that market orientation is positively and significantly associated with the marketing performance and financial performance of a hotel. The implications of the findings are discussed and the limitations of the study as well as future research directions are addressed.     

Linking customer-employee exchange and employee innovative behavior

Employee innovative behaviors lay the foundation for organizational innovation and are of importance to business success, especially for service firms. Although these innovative behaviors are performed at the individual level, employees still need to have frequent exchanges with others, such as customers. As there is little research investigating customer-employee exchange (CEX) and its influence on employee innovative behavior in services, this study aims to fill this gap in a hotel context. The results of a survey with 180 respondents indicate that both the solidarity and harmonization components of CEX have positive effects on employee innovative behavior, yet the information exchange between customers and employees does not significantly influence employee innovation. Also, higher level of CEX leads to higher level of perceived social psychological climate for innovation. The mediating effect of social psychological climate in the relationship between CEX and employee innovative behavior is partially supported. The findings contribute to the understanding of the role of social exchanges in facilitating employee innovative behavior and provide implications for the management of employee innovative behavior in hospitality firms.     

Understanding pioneering orientation in tourism clusters: Market dynamism and social capital

The aim of this paper is to study whether and how closed ties and diverse ties moderate the relationship between firms' market dynamism and pioneering orientation in a tourism cluster. We use original data on a sample of 215 firms belonging to the World Heritage Cities of Spain. The results show a curvilinear U-shaped relationship between market dynamism and pioneering orientation. This relationship is accentuated by higher closed ties, and is attenuated by higher diverse ties. Managers are advised to pay attention to changes in consumers’ needs so as to identify first-mover opportunities. Furthermore, firms located within tourism clusters might benefit from developing social capital. Specifically, managers should strengthen their closed ties when market dynamism is high and their diverse ties when the first changes in the market emerge.     

The influence of firm characteristics on earnings quality

This study examines the effect of firm characteristics on earnings quality using a sample of Spanish hotel firms during the period 2000–2011. First, we build a multidimensional measure of earnings quality including attributes as persistence, predictability, variability and earnings smoothing. Second, we examine variables that are potentially associated with earnings quality and sort these into five categories: market variables, business strategy, ownership structure, audit function and control variables. The findings suggest that the internationalization, the location, the ownership structure and the audit function influence earnings quality in hotel firms. This paper presents managerial implications for professionals, users of financial information, and academics.     

Customer responses to intercultural communication accommodation strategies in hospitality service encounters

With the increasing pace of globalization, hospitality firms are serving more and more international customers from distinctively different cultural backgrounds. In order to enhance intercultural consumption experiences, some hospitality firms have implemented two types of communication accommodation strategies: (a) match the cultural background of the service provider and the customer and/or (b) use the customer's native language to facilitate communications. This study aims to examine how such intercultural communication accommodations influence customers’ service encounter experiences. A 4 (communication accommodation: language congruence, ethnic congruence, language and ethnic congruence, and no accommodation) × 2 (focus of communication accommodation: intercultural vs. interpersonal) factorial between-subject experimental design was employed using videotaped hotel check-in scenarios as experimental stimuli. The findings suggest that consumers respond to communication accommodation strategies with increased felt pleasure, arousal, and dominance. Furthermore, accommodation strategies contributed to the perceived symbolic value of the service encounter, especially when employees expressed the intercultural focus of communication accommodation practices. The study results provide insights for hospitality practitioners in managing service encounters in today's highly global world.     

Service innovativeness and the structuring of organizations: The moderating roles of learning orientation and inter-functional coordination

This paper aims to investigate the influence of organizational structure on service innovativeness by testing the moderating roles of learning orientation and inter-functional coordination. This helps to understand how organic structure influences service innovativeness when it is effectively leveraged with favorable organizational factors. Data were collected from 178 hotel managers and executives in Japan and moderated regression analysis was performed to analyze the data. Findings of the study suggest that higher levels of service innovativeness are positively related to higher levels of hotel business performance. In addition, organic structure makes a positive influence on service innovativeness and an increase in the levels of learning orientation boost the effectiveness of organic structure on service innovativeness. Moreover, the positive association between organic structure and service innovativeness become stronger when all firm’s functions make an attempt to cooperate and contribute to disseminating customers and competitors’ information in the hotels. These findings contribute to understanding how hotel service innovation is affected by service innovativeness, organizational structure, learning orientation and inter-functional coordination.     

A conceptual framework of the service delivery system design for hospitality firms in the (post-)viral world: The role of service robots

This study aims to develop a conceptual framework of the service delivery system design for hospitality firms in the (post-)viral world. Several theoretical approaches such as resource-based view, value chain analysis, stakeholder theory, PESTEL analysis, positioning strategy, and service delivery system design were adopted. The paper identified three service delivery system designs (robotic, human-based, and mixed) and analyses their requirements, advantages, disadvantages, and potential target markets. According to the suggested model, hospitality firms need first to explore the expectations of tourists. Then comes the analysis phase (based on a holistic perspective, and consisting of RBV, Value chain, Stakeholder, and PESTEL analyses), which helps hospitality firms to identify how they should differentiate and position themselves in the market. Following, companies decide on what kind of service delivery system they should offer to their target customers, and position themselves in the market according to the chosen system.     

The Identification and Implementation of Key Competitive Factors for Tourism Based Firms

ABSTRACT

The main aim of this conceptual paper is to propose means of extending current theoretical approaches to understanding the traveller destination decision process. In order to achieve this, a means of better identifying and implementing strategies within the service system, by utilising a strategic management approach, is proposed. In addition, a number of researchers have argued that service leaders successfully introduce products and services to the market far in advance of customer expectations. It is argued in this paper that such products and services are delivered by innovative organisations, able to assess that the benefits of such innovations will outweigh the costs. The firm attempts to tap “latent” demands that have yet to be fully articulated by the consumer through established expenditure patterns. By tapping into such demands within the consumer psyche, service firms are able to “delight” customers with their creativity and innovation. It is concluded that such a service component has become an integral source for sustainable competitive advantage within a business and strategic planning framework.     

Market Structure Analysis of Media Selection Practices by Travel Services

This paper examined media selection practices by tourism business competing in Alaska. Two media selection decisions, media use and media mix, were investigated. Media use decisions focused on the use/not use of television, national magazines, radio, newspapers, outdoor advertising, and a regional travel magazine. Media mix decisions explored what combinations of these six media firms utilized. A market structure analysis revealed that both media selection practiced were affected by organizational, task, and demand characteristics facing firms. The market structure analysis also suggested that media mix decisions were likely to be more highly constrained that are individual media use decisions.     

Small business management and environmental engagement

Small firms in tourism are characterised by informal approaches to management, allowing their owners to meet a variety of often overlapping business and personal goals. Environmental certification schemes generally require members to subscribe to formal environmental management systems (EMS), even when aimed at small business operators. This paper examines in detail the managerial approaches of a small group of owner-managers who are operating within the approximately 3000-member Green Tourism Business Scheme (GTBS) available in the UK and Ireland. The findings suggest that the type of environmental practices adopted most willingly reflect the formality of management within the business and the owner-managers’ various backgrounds, values, reasons to be in business, expectations from acting and their understanding of the “environment”. It finds that the “Plan-Do-Check-Review” approach of most EMS does not easily relate to the complex motivations and needs of the world of small business. The paper concludes that environmental engagement is more likely to be fostered if owner-managers’ managerial approaches and assumptions are better understood and that shared visions for environmental engagement are encouraged through informed dialogue. Both economic benefits and the fostering of “feel good” factors should be stressed if small tourism businesses are to adopt EMS programmes.     

Marketing Culture and Business Performance in the Airline Industry

Abstract

In recent years the airline industry has witnessed increased emphasis on the cultivation of a culture which fosters the effective implementation of marketing programmes. This growing attention stems from the belief that sound marketing practices provide an important source of competitive advantage in the service sector which is characterised by high levels of interaction between firms and their customers. Moreover, marketing academics and managers proclaim that a strong marketing culture leads to customer retention, which in turn, yields higher profitability. In this study an attempt is made to investigate empirically the relationship between UK airline firms' marketing culture and business performance. Our results indicate a strong relationship between marketing culture and business performance. To conclude, implications of the findings for airline managers and avenues for future research are discussed.     

How do authenticity and quality perceptions affect dining experiences and recommendations of food trucks? The moderating role of perceived risk

A growing number of food trucks differentiate themselves in the competitive market by serving ethnic foods. The purpose of the study was to investigate the effect of customers’ authenticity and quality perceptions of ethnic food trucks on their memorable dining experience (MDE) and, consequently, word of mouth (WOM) while considering customers’ perceived risk. Data were collected from 540 customers who had dined at ethnic food trucks in the U.S. Structural equation modeling and hierarchical regression were employed to test the proposed hypotheses. The results indicated that authenticity perceptions influence quality perceptions and dining satisfaction directly, and MDE indirectly through dining satisfaction. Moreover, dining satisfaction affects WOM directly as well as indirectly through MDE. Among the three dimensions of perceived risk, hygienic risk mitigates both of the relationships between authenticity perceptions and dining satisfaction as well as between quality perceptions and dining satisfaction. Implications and suggestions for future research were discussed.     

Lifestyle businesses: Insights into Blackpool's hotel sector

The vast majority of firms in the sector are micro-businesses employing 10 or fewer staff. Indeed many are so small as to employ no permanent staff at all. Those running these businesses are not classical entrepreneurs driven by a need to maximise profits and build a business empire. Many are best described as lifestyle entrepreneurs, their key motives are more associated with improving their quality of life. This paper reports on the owners of a significant sample of Blackpool hotels. The majority have sold a domestic property to buy the hotel. Few have any prior hotel experience, or small business experience, for that matter. The linkage between commercial and domestic provision of meals and accommodation convinced many of these interviewees that they had the skill sets required for hotel ownership and management. The paper also confirms earlier findings that a subtantial minority withdraw from the hotel business in their first year. The lack of training in the business aspects of the hotel operation has serious implications for the quality of hotel operations in places like Blackpool, because a significant segment of hotel stock is being managed by these lifestyle entrepreneurs who are not primarily concerned with commercial objectives which prioritise service quality as a way of generating profits and growth.