CSR and financial performance: The role of CSR awareness in the restaurant industry

Initiatives for corporate social responsibility (CSR) often have served business as a source of competitive advantage. However, despite firms’ attempts to capitalize on their CSR efforts, stakeholders’ low awareness of these initiatives makes it difficult to realize the full value of the strategic CSR. In this study, we propose and test in the context of the restaurant industry whether CSR awareness, measured by CSR media coverage, moderates the relationship between the social and financial performance. Our results support the notion that stakeholders’ CSR awareness affects the manner in which CSR initiatives can result in financial gain. Our research has implications both for firms’ investment policies in social initiatives and for highlighting the importance of communicating CSR initiatives to relevant stakeholders.     

Board diversity and firm performance in the U.S. tourism sector: The effect of institutional ownership

This study examines the relationship between board diversity and firm performance in the U.S. tourism sector by using institutional ownership as a contingency that moderates this relationship. The study's sample includes publicly-traded companies from the U.S. restaurant, hotel and airline industries. The hypotheses are tested via two-way fixed-effects regression, and the findings of the study indicate that board diversity is positively associated with financial performance (Tobin's Q), and the effect of board diversity on performance is contingent on the degree of institutional ownership. More precisely, the study finds that board diversity has a larger effect on financial performance when institutional ownership is low on a tourism firm's ownership structure. Overall, the findings suggest that boards' internal control and monitoring on management is important to derive higher financial performance, and even yet it is more important when external monitoring by institutional owners, proxied by percentage of institutional ownership, is weak.     

Exploring the connections among CSR performance,reporting, and external assurance: Evidence from the hospitality and tourism industry

This study explores the connections among corporate social responsibility performance, reporting, and external assurance in the hospitality and tourism industry by incorporating the Global Reporting Initiative framework. The originality of the study is that it tests signaling theory and the greenwashing tendency by examining different facets of corporate social responsibility engagement using a holistic approach with a cross-country sample. The data for the study were derived from the Thomson Reuters Eikon database for the years between 2012 and 2018. A panel data analysis with a Random-Effects estimator was run to test the hypothesized associations. Several conclusions were drawn based on the study. First, higher corporate social responsibility performers among hospitality and tourism companies have a higher propensity to publish corporate social responsibility reports. Second, higher corporate social responsibility achievements are a significant driving force behind the Global Reporting Initiative framework adoption. Third, among corporate social responsibility reporters, higher corporate social responsibility performers are more likely to assure their corporate social responsibility reports externally. Fourth, among corporate social responsibility reporters, Global Reporting Initiative framework adopters are more likely to assure their corporate social responsibility reports externally. Overall, the results verified the signaling theory but reject a greenwashing tendency in the hospitality and tourism sector. The proven links among the four dimensions of CSR incorporated into the study models indicate complementarity among the indicators. Besides, it should be noted that there is still a gap for improvement, particularly for non-corporate social responsibility reporters and for non-Global Reporting Initiative adopters.     

A review of the business case for CSR in the hospitality industry

Despite prolific research on corporate social responsibility (CSR) in its various forms in the hospitality industry, there is no consensus regarding the business case for CSR initiatives. Using a stakeholder lens, we review the research on CSR and its rationale by analyzing its impact on the environment, employees, customers, community, and investors in the hospitality industry. Our review analyzes 170 articles published between 1990 and 2017 covering different conceptual frameworks, measures, and samples to evaluate the current state of the field, integrate findings, identify gaps, and suggest avenues for future research. Our review calls for a) more studies that examine hospitality-specific CSR initiatives to examine impact on firm performance, b) greater theory-driven research, and c) expansion of contexts both in terms of different sectors of the industry and geographical locations, than is covered by existing studies. Future research directions are provided.     

The impact of employee-oriented CSR on quality of life: Evidence from the hospitality industry

This paper builds on recent corporate social responsibility (CSR) literature and on stakeholder theory. Our aim is to analyze the direct and indirect effects of employee-oriented CSR on hotel workers' quality of life (QoL). Based on survey collected from a sample of hotel employees in the Canary Islands (Spain), relationships were empirically examined through partial least square structural equation modeling (PLS-SEM). This study confirms that workers' perceptions of employee-oriented CSR positively and directly enhance their QoL. We found indirect positive effects through several mediators. Our results highlight the key role of working conditions, task significance, turnover intentions, and intrinsic quality on the relationship between employee-oriented CSR and QoL. Moreover, hotel service quality level is an antecedent of employee-oriented CSR. These findings advance the literature on CSR and reveal important managerial implications, especially in a post-pandemic scenario in which workers’ overall QoL is essential to ensure no one is left behind.     

Balanced scorecard in the hospitality and tourism industry: Past,present and future

After its introduction in 1992, the balanced scorecard (BSC) has attracted considerable interest from both scholars and practitioners. This is evidenced by the increasing number of publications addressing BSC and the large number of professional events devoted to it. However, there is little research on BSC in the hospitality and tourism industry. This study aims to contribute towards filling this significant gap through studying 106 top-ranked journal articles on BSC, of which 37 belong to the hospitality and tourism industry. In so doing, the study highlights the research focus that has been placed so far on BSC and examines its trends and the relationships amongst its perspectives. It also provides valuable input to identify gaps currently impeding BSC development in the hospitality and tourism industry, recommends future research opportunities intended to improve understanding and practice of BSC along with building up on emerging research topics like sustainable tourism and new tourism management.     

The asset-light strategies and the dividend puzzle: International evidence from the hospitality industry

This study investigates the impact of the asset-light strategy on dividend policy using a sample of large international publicly-listed companies (399 firm-year observations) operating in the hotel and restaurant industry over the 2006–2018 period. Taking the perspective of agency theory, we posit that the asset-light strategy in conjunction with significant growth is a context in which high agency conflicts arise. Using Tobit and OLS models, our results indicate that adopting an asset-light strategy only impacts dividend policy for firms with high growth. More interestingly, the positive impact of the asset-light strategy on dividend payouts occurs for firms with substantial growth if institutional ownership is low. In such situations, significant potential agency conflicts (due to high free cash flows) coupled with the lack of monitoring from institutional investors lead firms to use dividends as a monitoring tool. Finally, a change analysis supports our main findings.     

The link among board characteristics,corporate social responsibility performance,and financial performance: Evidence from the hospitality and tourism industry

The aim of this study is twofold: to explore whether board characteristics (i.e. a sustainability committee, board independence, board diversity, and board diligence) lead to greater corporate social responsibility (CSR) performance, and to test whether CSR performance enhances firms' financial performance in the hospitality and tourism (H&T) industry. Data were collected from the Thomson Reuters Eikon database for the H&T firms listed there between 2011 and 2018. We employed panel data analysis, after which we ran robustness tests. The results indicated that having a CSR committee and female directors on the board are robust factors driving firms to show superior CSR performance in all dimensions, including environmental, social, and governance (ESG). Independent directors and directors' diligence selectively enhance the overall CSR score and individual pillars of CSR. Investigating the relationship between CSR performance and firms' financial performance did not produce a significant outcome. The findings propose a straightforward roadmap for H&T firms and policymakers to identify characteristics of CSR-friendly boards.     

Supply management practices and performance in the Canadian hospitality industry

As the competition to gain customers becomes more intense, the hospitality industry has faced increasing pressure to find new approaches to create and deliver value to customers through supply chain management (SCM) practices. Over the past decade there has been a growing realization of the important contribution that purchasing and supply management can have on an organization's performance. This paper addresses SCM practices, with an emphasis on strategic purchasing (SP), in one sector of the Canadian hospitality industry. Using data collected from 105 Canadian hotels, this study tested seven hypotheses of the impact of SP on SCM practices and verified the impact on the hotel's performance. All of the hypothesized relationships were supported. The results indicate that SP is positively related to the relationship with the supplier (SR), communication (COM), service quality (SQ), financial performance (FINP), and customer satisfaction performance (CUSP). The managerial and research implications of these findings are discussed in the paper.     

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.     

Student perceptions of ethics,CSR, and sustainability (ECSRS) in hospitality management education

This study examines how hospitality students perceive ethics, corporate social responsibility (CSR), and sustainability (ECSRS) with regard to their current academic program and future career. Previous literature has shown an evolution in higher education institutions to implement ECSRS topics into their curriculum. This quantitative study measured 202 first-year students’ levels of interest, perceived importance, and potential implementation of ECSRS in a hospitality management program. Based on student responses, there is a high expectation that courses on ECSRS will be taught during their academic program to better prepare them for their future ambitions and the future of the planet.     

Diversification strategy and financial performance in the Taiwanese hotel industry

This study categorized 25 highly market-diversified international tourist hotels into two sub-groups, based on the highest proportion of hotel revenue generated either by (1) food and beverage (F&B) services; or by (2) room services. We investigated the differences in financial performance of these two sub-groups and concluded that hotels with a major proportion of the revenue from F&B services obtained higher growth but unstable profit margins, compared to another group of hotels with profit mainly from room service. Our study results can serve as a valuable reference for hospitality industries to evaluate the tradeoff between investing more resources in room or F& B service, especially at markets where F&B is highly valued.     

Control,use and ownership of big data: A reciprocal view of customer big data value in the hospitality and tourism industry

While the large-scale harvesting of consumer data is a common practice in the hospitality and tourism industries, the seemingly unassailable right of companies to collect and share consumer data is not without critics. The purpose of this paper is to explore the nature of data-based value co-creation under varying conditions of consumer control and benefits. Academic and press articles were used to explore the nature of big data value co-creation in a wide range of hospitality, tourism, and other industries. A forward-looking approach was adopted by considering the implications of policy and technology as key mechanisms for sharing the power dynamic regarding the ownership, control and use of personal data. The results suggest that reciprocal big data value creation can be seen as a function of the level of benefit and control afforded to consumers regarding the use of their data. Four types of reciprocal big data value creation are proposed.     

Impacts of positive and negative corporate social responsibility activities on company performance in the hospitality industry

In spite of growing concern for corporate social responsibility (CSR) in various industries including the hospitality industry, the relationship between CSR activities and financial performance is a rarely examined subject in the hospitality context. Especially, research measuring the separate impacts of positive and negative CSR activities on companies’ financial performances remains, as yet, unconsidered. Thus, this study examines different impacts of positive and negative CSR activities on financial performance of hotel, casino, restaurant and airline companies, theoretically based on positivity and negativity effects. Findings suggest mixed results across different industries and will contribute to companies’ appropriate strategic decision-making for CSR activities by providing more precise information regarding the impacts of each directional CSR activity on financial performance.     

Moderating effect of capital intensity on the relationship between leverage and financial distress in the U.S. restaurant industry

During the recent and ongoing economic turmoil, countless businesses have been facing financial distress and many have filed for bankruptcy. This issue is especially critical for the restaurant industry due to restaurants’ sensitivity to economic fluctuations. Therefore, the purpose of this study is to examine the financial distress issue in the U.S. restaurant industry. In particular, the study examines a moderating effect of capital intensity on the relationship between a firm's leverage and degree of financial distress. The dataset includes publicly traded U.S. restaurant firms during the period 1990–2008. The study measures the degree of financial distress by modified Z-scores, and findings suggest a positive moderating effect of capital intensity on the relationship between leverage and financial distress.     

Depletion of psychological,financial, and social resources in the hospitality sector during the pandemic

This study details how psychological, financial, and social factors shape employee deviant interpersonal behaviors during a pandemic. Data were collected with a survey of 372 front-line employees of hotels and analyzed with PLS-SEM. The findings showed social disconnectedness and perceived risk of unemployment leads to perceived isolation, which further creates depression in employees. The findings also showed that depression is positively related to employee deviance. Financial strain is a major cause of perceived isolation, depression, and deviant behaviors among front-line employees. Results also proved that social support reduces fear of isolation, depression, and employee deviance. This study provides guidelines that hotels need to understand the psychological stance of employees and design policies to overcome employee perceived fears and psychological disorders.     

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.     

Recontextualising the determinants of external CSR in the services industry: A cross-cultural study

Although the relationship between institutional pressures and corporate social responsibility (CSR) has been well studied, its underlying mechanisms and boundary conditions are not well understood. To remedy these gaps, we draw on institutional theory and the literature on organisational sensemaking, stakeholder salience and the resource-based view of the firm. We test our conceptual model using survey data from 442 managers of hospitality and tourism enterprises based in Egypt and the United Kingdom. SEM-based results show that both stakeholder issue salience and discretionary slack mediate the link between institutional pressures and external CSR. National culture moderates the effects of institutional pressures on both stakeholder issue salience and external CSR. Multi-group analyses reveal noticeable differences between Egyptian and British managers regarding their interpretations of CSR issues and the institutional environment. This study contributes to the emerging micro-institutional stream and cross-cultural CSR research, providing important insights for managers, policymakers and researchers.     

Measuring financial performance through operating business efficiency in the global cruise industry: A fuzzy benchmarking study on the “big three”

Surprisingly, despite extensive research on the impacts of COVID-19 on the hospitality industry, no study develops financial performance benchmarks that reflect these effects. This research seeks to fill this gap by examining the financial performance of companies in the shipping sector, specifically the cruise sub-sector. The "three biggest players" in the sector are the focus of this analysis. Benchmarking is essential for both existing market participants and potential new entrants. Fuzzy methods are used in modeling situations that involve uncertainty. The findings indicate that the three companies' operations must be redesigned in order to produce income and pay off debts. Additionally, Carnival Corporation's resilience is evident in times of crisis, as it demonstrates the best growth prospects, remains dominant in terms of liquidity, presents the highest return on assets, and borrows less than the other two companies.