Entrepreneurial behaviors that shape performance in small family and non-family hotels during times of crisis (original) (raw)
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International Entrepreneurship and Management Journal
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American Journal of Industrial and Business Management, 0
In recent times, Entrepreneurial Orientation has been considered an important area that influences most hotel performance. Extant research shows there is a strong connection between business performance and entrepreneurial orientation. The objective of this study was to examine the probabilities and magnitude to which entrepreneurial orientation, industry forces, and a firm's resources impact business performance. A review of the literature about such was used to build the conceptual framework. This study adopted quantitative research and a questionnaire survey technique was used to collect the data from small size hotels. This study used a stratified sampling method to obtain a comprehensive sample. The conceptual model is then tested with a total of 396 completed questionnaires and analyzed using logistic regression analytical model. The results showed that entrepreneurial orientation has a significant and positive correlation with the business performance of small-size hotels. Also, innovativeness, proactiveness, competitive aggressiveness and risktaking showed significant correlations between each of the variables and business performance. The study covered some novelty aspects of the subject of entrepreneurial orientation and its effects on business performance. Thus, the use of constructs such as industry forces and firms' resources in the theoretical framework enhances entrepreneurial orientation to impact business performance.
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Most prior research on entrepreneurial orientation (EO) aggregates its features into a gestalt construct to investigate its influence on firm performance. This study deconstructs EO into innovativeness, proactiveness, and risk-taking dimensions, and focuses on the causal mechanisms by which those factors collectively affect performance. By drawing on the resource-based view of the firm and its dynamic capabilities extension, the study identifies multiple paths of complex causal recipes that can lead to certain organizational capabilities, competitive advantages, and performance. To do that, the study uses fuzzy-set qualitative comparative analysis (fsQCA), a technique that provides a holistic view of the examined interrelationships, compared to traditional net effect approaches that assume symmetric and linear relationships among variables. The study provides key conclusions and insightful implications for managers and researchers.
Risk perception in small- and medium-sized hospitality family enterprises
Tourism review, 2024
Purpose-The vulnerability of the tourism industry to an array of risks, encompassing family-related, small-and medium-sized enterprise-specific, strategic, tourism-specific and external factors, highlights the landscape within which small and medium family enterprises (SMFEs) operate. Although SMFEs are an important stakeholder in the dynamic tourism sector, they are not one homogenous group of firms, but have different strategic orientations. This study aims to investigate the interplay between strategic orientation and risk perception to better understand SMFEs risk perception as it is impacting their decision-making processes, resilience and long-term survival. The authors investigate how different strategic orientations contribute to different perspectives on risk among owner-managers. Design/methodology/approach-Based on a qualitative data corpus of 119 face-to-face interviews, the authors apply various coding rounds to better understand the relationship between strategic orientations and the perceptions of risks. Firstly, the authors analysed the owner-manager interviews and identified three groups of different strategic orientations: proactive and sustainability-oriented SMFE, destination-affirmative and resilience-oriented SMFE and passive SMFE. Secondly, the authors coded the interviews for different risks identified. The authors identified that the three groups show differences in the risk perceptions. Findings-The data unveil that the three groups of SMFEs have several differences in how they perceive risks. Proactive and sustainability-oriented SMFEs prioritize business risks, demonstrating a penchant for innovation and sustainability. Destination-affirmative and resilience-oriented SMFEs perceive a broader range of risks, tying their investments to destination development, emphasizing family and health risks and navigating competitive pressures. Passive SMFEs, primarily concerned with external risks, exhibit limited awareness of internal and strategic risks, resist change and often defer decision-making to successors. The findings underscore how different strategic orientations influence risk perceptions and decision-making processes within SMFEs in the tourism industry. Research limitations/implications-The authors contribute to existing knowledge include offering a comprehensive status quo of perceived risks for different strategic orientations, a notably underexplored area. In addition, the differences with respect to risk perception shown in the paper suggest that simplified models ignoring risk perception may be insufficient for policy recommendations and for understanding the dynamics of the tourism sector. For future research, the authors propose to focus on exploring the possible directions in which strategic orientation and risk perception influence one another, which might be a limitation of this study due to its qualitative nature. Practical implications-Varying strategic orientations and risk perceptions highlight the diversity within the stakeholder group of SMFE. Recognizing differences allows for more targeted interventions that address the unique concerns and opportunities of each group and can thus improve the firm's resilience (Memili et al., 2023) and therefore leading to sustainability destinations development. The authors suggest practical support for destination management organizations and regional policymakers, aimed especially at enhancing the risk management of passive SMFEs. Proactive SMFE could be encouraged to perceive more family risks. Social implications-Viewing tourism destinations as a complex stakeholder network, unveiling distinct risk landscapes for various strategic orientations of one stakeholder has the potential to benefit the overall destination development. The proactive and sustainability-oriented SMFEs are highly pertinent as they might lead destinations to further development and create competitive advantage through innovative business models. Passive SMFEs might hinder the further development of the destination, e.g. through missing innovation efforts or succession.
Entrepreneurial Business and Economics Review
The objective of this article is to identify strategies that can help small firms alleviate the negative impact of the Covid-19 crisis. We tested six strategies (namely, entrepreneurial, market penetration, market development, product development, diversification, and cooperation). In particular, we identified combinations of these strategies that may lead to performance during the current pandemic crisis. Research Design & Methods: This is a quantitative study that uses fuzzy-set qualitative comparative analysis (fsQCA). We identified and compared combinations of strategies that are specific for three market conditions; namely, non-crisis, the initial phase of the crisis, and the advanced phase of the crisis. The research sample consisted of 150 small printing enterprises operating across Poland. Findings: Our findings show that combinations that may lead to firm performance during crises differ from those that are specific for non-crisis conditions. Specifically, the presence of a diversification strategy together with the absence of a market-penetration strategy along with the presence of entrepreneurial, market-development, and product-development strategies may lead to an increase in firm performance before the crisis. During the initial phase of a crisis, the presence of an entrepreneurial strategy together with a product-development strategy or a product-development strategy that is accompanied by a diversification strategy may lead to an increase in firm performance. During the advanced phase of the crisis, the presence of an entrepreneurial strategy together with a product-development strategy along with a set of entrepreneurial, market-penetration, market-development, and cooperation strategies may lead to an increase in firm performance. The most common strategies are product-development and entrepreneurial strategies; these are present under all market conditions. Implications & Recommendations: This study confirms the role of a firm's strategy. This study exposes the necessity of adapting the strategy to changing market conditions. In particular, this study indicates which strategies and their combinations enable a firm to alleviate the impact of a crisis. These observations have meaningful managerial implications for entrepreneurs regarding the current Covid-19 pandemic crisis and possible future crises. Contribution & Value Added: The findings of this study contribute to the literature on the response to the Covid-19 crisis. In particular, this study indicates strategies that can help firms mitigate the impact of the pandemic crisis. This study implemented the fsQCA methodology to identify combinations of strategies that enable the mitigation of the negative impact of the crisis. Article type: research article
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Many businesses have been severely impacted by the COVID-19 pandemic, including those in the catering, hotel, and tourism industries. As a result, in addition to posing a threat to public health, COVID-19 has caused economic losses. VUCA must be resilient enough to survive in the current pandemic situation. This study focused on four four-star hotels in Makassar, namely Hotel Gammara, Hotel Citadines, Hotel Mercure, and Hotel Harper Perintis. Questionnaires and interviews were used to collect the data. 138 out of 187 people filled in the questionnaire. Structural equation modeling was used to analyze the data. The findings of this study have implications for researchers, hoteliers, and policymakers, particularly in terms of increasing competitiveness through entrepreneurship development. Keywords: strategy, entrepreneurship, hotel, VUCA era
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