Do loyalty programs really matter for hotel operational and financial performance?

2018 ◽  
Vol 30 (5) ◽  
pp. 2195-2213 ◽  
Author(s):  
Nan Hua ◽  
Wei Wei ◽  
Agnes L. DeFranco ◽  
Dan Wang
Keyword(s):  
Financial Performance ◽  
Performance Indicators ◽  
Performance Indicator ◽  
Positive Impact ◽  
Empirical Support ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

PurposeThis study aims to use a sample of 2,120 individual hotel properties between 2011 and 2013 to evaluate the impact of loyalty programs on hotel operational and financial performance.Design/methodology/approachThis study provides empirical support for the impact of loyalty program based on both cross-sectional and panel data analyses and uses the instrumental variable technique to avoid potential heteroscedasticity, autocorrelation and simultaneity issues.FindingsFindings of this study show that loyalty program expenses have a significant and positive impact on all three operational performance indicators of RevPAR, ADR and Occupancy and the financial performance indicator of gross operating profit.Research limitations/implicationsThis study suggests that the benefits of loyalty programs should be understood against the backdrop of a reasonable set of controlled variables such as e-commerce, franchise, advertising, other marketing expenses, hotel size and hotel chain scales.Originality/valueGiven the conflicting viewpoints about the positive and negative impacts of loyalty programs, and that the literature is scant on empirical validation of the impact of loyalty programs on the overall operational and financial performance of hotel properties, this study is an early attempt to empirically test the impact of loyalty programs on a number of hotel operational and financial performance indicators by using an extensive list of individual hotel properties between 2011 and 2013.

Impact of social media usage on performance of construction businesses (CBs) in Abuja, Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luqman Oyekunle Oyewobi ◽  
Olufemi Seth Olorunyomi ◽  
Richard Ajayi Jimoh ◽  
James Olabode Bamidele Rotimi
Keyword(s):  
Social Media ◽  
Social Interaction ◽  
Structural Equation ◽  
Building Materials ◽  
Positive Impact ◽  
Research Approach ◽  
Cross Sectional ◽  
Content Type ◽  
Business Interest ◽  
The Impact

Purpose Many construction businesses are currently building and keeping social media pages for their enterprises to be visible to the public to improve their social interaction, promote business interest, build trust and relationships with their targeted audience on social media. The purpose of this study is to examine the impact of social mediausage on performance of construction businesses (CBs) in Abuja, Nigeria. Design/methodology/approach This study used a quantitative research approach by identifying constructs that reveal three aspects of organisation’s physiognomies that impact the process of espousing, implementing and using technological innovations in conducting businesses. Well-structured questionnaire was used to obtain data from 113 purposively sampled building materials’ merchant operating in Dei-Dei Market, Abuja, Nigeria. This study used partial least squares structural equation modelling technique to establish the relationship among the constructs. Findings The results of this study indicated that technology has significant relationship with social media adoption, whereas social media adoption has a very strong positive impact on organisation’s performance (P < 0.001) with respect to improved customer relations and services and enhanced information accessibility. Research limitations/implications This study has implications for CBs that wish to adopt social media to promote their businesses by presenting to them the opportunity to understand the impact of technology, environment and organisational potential in improving business performance. This study is cross-sectional in nature, and this calls for caution in interpreting the results. Originality/value This paper developed and tested a conceptual framework presented to understand the interrelationships amongst the constructs, which would be of great significance to business owners in developing their social interaction and promote business interest via social media. The outcome of this research is beneficial to researchers to further study how the different social media tools could help in influencing business decisions.

The impact of within-industry diversification on firm performance

2018 ◽  
Vol 13 (6) ◽  
pp. 1475-1501 ◽  
Author(s):  
Varaporn Pangboonyanon ◽  
Kiattichai Kalasin
Keyword(s):  
Financial Performance ◽  
Positive Impact ◽  
Labor Costs ◽  
Institutional Perspective ◽  
Product Lines ◽  
Content Type ◽  
Linear Pattern ◽  
Coordination Costs ◽  
Industry Diversification ◽  
The Impact

Purpose The purpose of this paper is to investigate how within-industry diversification affects the financial performance of small- and medium-sized enterprises (SMEs) in emerging markets (EMs). The authors draw on both the resource-based view and the institutional perspective and argue that within-industry diversification can enhance the financial performance of SMEs in EMs. Due to institutional voids in emerging economies, SMEs can gain additional benefits from scope economies, as well as from market returns, by filling product market voids and gaps in business ecosystems, while also enjoying low input and labor costs that reduce the coordination costs of diversification. This, in turn, enhances benefits of within-industry diversification, thereby resulting in higher financial profitability. Design/methodology/approach This study employs panel data econometrics to estimate the model. The authors test hypotheses on 195 firms, originating from five countries in Southeast Asia, during the period of 2009–2014. Findings The empirical results support the arguments. Within-industry diversification has a positive impact on the performance of SMEs in EMs. These effects become weaker when the institutional contexts are more developed. Nevertheless, such effects become stronger when SMEs in EMs are more efficient. Research limitations/implications The relationship between within-industry diversification and performance is a positive linear pattern, which differs from the pattern in advanced economies. In addition to unrelated diversification, the related diversification is preferable for firms in EMs. Practical implications The paper provides implications for SMEs that aim to enhance their performance by engaging in single product lines and within-industry diversification. Originality/value This paper examines the different ways within-industry diversification can enhance SMEs performance in EM contexts.

The bright and dark sides of green customer integration (GCI): evidence from Chinese manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taiwen Feng ◽  
Hongyan Sheng ◽  
Minghui Li
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Positive Impact ◽  
Resource Dependence Theory ◽  
Dark Side ◽  
Opportunistic Behavior ◽  
Moderating Effects ◽  
Customer Integration ◽  
Content Type ◽  
The Impact

PurposeBased on resource dependence theory and transaction cost economics this study explores how green customer integration (GCI) affects financial performance via information sharing and opportunistic behavior, and the moderating effects of dependence and trust.Design/methodology/approachThis study develops a theoretical model and tests it using data from two-waved survey data of 206 Chinese manufacturers. The hypotheses were tested using hierarchical linear regression analysis.FindingsThe results show that GCI has a significant and positive impact on information sharing, but its impact on opportunistic behavior is insignificant. Notably, information sharing has a significant and positive impact on financial performance, while opportunistic behavior has an insignificant impact on financial performance. In addition, dependence negatively moderates the impact of GCI on information sharing and positively moderates the impact of GCI on opportunistic behavior. Trust negatively moderates the impact of GCI on opportunistic behavior.Originality/valueAlthough GCI has received widespread attention, how it affects a firm's performance remains unclear. Most previous studies have focused only on its bright side and ignored its dark side. This study highlights how GCI affects financial performance through information sharing and opportunistic behavior, and the moderating effects of dependence and trust. This enriches the understanding of how and under what conditions GCI affects a firm's performance.

Interest rate liberalization and economic growth nexus: does corruption matter?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulhadi Aliyara Haruna ◽  
Abu Sufian Abu Bakar
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Positive Impact ◽  
Reform Process ◽  
Negative Effects ◽  
African Countries ◽  
Cross Sectional ◽  
Content Type ◽  
Interest Rate Liberalization ◽  
The Impact

Purpose This paper aims to examine the impact of interest rate liberalization on economic growth and the relevance of corruption in the five selected sub-Saharan African countries. Design/methodology/approach The study used the modified version of Driscoll and Kraay’s model by Hoechle, which solved the effects of cross-sectional dependence and heteroscedasticity. Findings The findings reveal a positive impact of the index on economic growth, and it was found that foreign direct investment (FDI) and credit to private sector by banks (CPSB) all stimulate economic growth. The interaction terms of corruption with FDI and CPSB indicate negative effects that show how corruption erodes the benefits of liberalization. Finally, the paper recommends the pursuit of appropriate policies with the sole aim of eradicating corruption and providing a conducive environment for business. Originality/value The paper developed a composite domestic financial liberalization index to capture the timing and essential dimensions of the reform process. The study investigates the effect of interest rate liberalization on economic growth and the relevance of corruption. Most of the recent and past studies only examined the impact of interest rate reforms on growth without investigating the relevance of corruption.

scholarly journals International diversification and firm’s value: evidence from developing nations

2016 ◽  
Vol 26 (2) ◽  
pp. 166-183 ◽  
Author(s):  
A.N. Bany-Ariffin ◽  
Bolaji Tunde Matemilola ◽  
Liza Wahid ◽  
Siti Abdullah
Keyword(s):  
Financial Performance ◽  
Multinational Corporations ◽  
Multinational Firms ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
International Diversification ◽  
Technological Advancement ◽  
Reverse Causality ◽  
Content Type ◽  
The Impact

Purpose This paper aims to evaluate the impact of international diversification, through the investment abroad activities of the Malaysian multinational corporations (MNCs), on their financial performance. Design/methodology/approach The paper applies the panel generalized method of moments (GMM) estimation technique that gives better results. Findings The empirical findings show that the move to invest abroad has brought a positive impact on Malaysian MNCs’ financial performance. However, in terms of a firm’s risk, the results contradict the general internationalization-risk hypothesis. Research limitations/implications The study focuses on the top 100 multinational firms; future researchers may extend the time period and use the entire sample of all the multinational firms. Practical implications Foreign investments offer rewarding returns due to cheaper labour and raw materials, competitive edge in terms of technological advancement and larger market opportunities. Originality/value The paper contributes to the literature using the panel GMM’s estimation that effectively control for reverse causality and serial correlation problem. The paper also contributes to the international diversification and performance relationship, in a fast-growing Malaysia.

What are the best HRM practices for retaining experts? A longitudinal study in the Canadian information technology sector

2015 ◽  
Vol 36 (3) ◽  
pp. 416-432 ◽  
Author(s):  
Stéphane Renaud ◽  
Lucie Morin ◽  
Jean-Yves Saulquin ◽  
Jocelyne Abraham
Keyword(s):  
Information Technology ◽  
Longitudinal Data ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Positive Impact ◽  
Cross Sectional ◽  
Content Type ◽  
Hrm Practices ◽  
Expert Status ◽  
The Impact

Purpose – The purpose of this paper is to answer the following two questions: What are the HRM practices that have a significant impact on employees’ functional retention?, and Does the impact of these HRM practices on functional retention differ based on the employee’s status as an expert or a non-expert? Our theoretical foundation rests on human capital theory and social exchange theory. Design/methodology/approach – This study uses longitudinal data that come from multiple surveys conducted on new employees within a Canadian subsidiary of an international information technology (IT) firm. Findings – Results show that four out of five HRM practices under study have a significant and positive impact on functional retention of employees regardless of their expert status: satisfaction with a respectful and stimulating work environment, satisfaction with training and development, satisfaction with innovative benefits and satisfaction with incentive compensation significantly increase functional retention of employees. Functional retention was found to be higher for experts than for their non-expert counterparts. Last, results show that expert/non-expert status play a moderating role between HRM practices and functional retention. Originality/value – In short, this study offers five main contributions to the literature: first, it focuses on retention rather than turnover; second, it goes further by examining functional retention as the dependant variable; third, it distinguishes between two categories of employees: experts and non-experts; fourth, it extends the limited literature on IT workers, HRM practices and retention; and fifth, it is based on longitudinal data whereas the overwhelming majority of published studies have been based on cross-sectional data.

scholarly journals Empirically examining the impact of corporate social responsibility on financial performance: evidence from Indian steel industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nripinder Kaur ◽  
Vikramjit Singh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Steel Industry ◽  
Positive Impact ◽  
Value Added ◽  
Annual Reports ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

PurposeThis paper aims to examine the impact of corporate social responsibility (CSR) on financial performance (FP) of Indian steel industry in terms of value-added (VAM), profitability (PM), market (MM) and growth measures (GM).Design/methodology/approachIt is an empirical study using secondary data of 40 companies for 14 years collected from CSR/annual reports/official websites of the companies and Prowess database. The panel regression analysis, MANOVA and univariate ANOVA have been conducted to examine the impact of CSR on FP.FindingsThe result indicates a positive impact of CSR on FP in terms of VAM, PM and GM, thereby indicating that more investments in CSR will generate wealth for shareholders, enhance profitability and sales. Moreover, this study shows no noticeable relationship between CSR and MM.Social implicationsThis study contributes to the literature on the CSR–FP relationship and also has implications for managers, investors and other stakeholders. Companies with higher CSR rating create a brand image, attract proficient employees, get greater profit, loyal customers and have less possibility of bribery and corruption. This study may result in being influential to companies confined not only to this sector but also reaching to the others, thus inspiring them to contribute their share of profit for the welfare of society.Originality/valueTo the best of the authors' knowledge, it is the first comprehensive study to examine the impact of CSR on FP of Indian steel industry by considering four dimensions for measuring FP. It provides evidence about the relationship between CSR and FP.

scholarly journals The association between intellectual capital and financial performance in the Islamic banking industry

2019 ◽  
Vol 13 (1) ◽  
pp. 75-93 ◽  
Author(s):  
A.A. Ousama ◽  
Helmi Hammami ◽  
Mustafa Abdulkarim
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Value Added ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Gcc Countries ◽  
The Impact

Purpose The purpose of this study is to empirically investigate the impact of intellectual capital (IC) on the financial performance of Islamic banks operating in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach The study measures IC by the value added intellectual coefficient model. A regression analysis was used to assess the impact of IC on financial performance. The research sample consisted of Islamic banks operating in the GCC countries during the years 2011, 2012 and 2013. Data originated from the annual reports of Islamic banks. Findings The results support the thesis that IC has a positive impact on the financial performance of Islamic banks. Even though the average IC is lower than that reported in other studies, the positive effect on financial performance is obvious. The findings also show that human capital (HC) is higher than capital employed (CE) and structural capital (SC). The study reveals that SC has an insignificant impact on the financial performance of the Islamic banks compared to CE and HC. Practical implications The findings provide empirical evidence that IC affects the Islamic banks’ financial performance. It helps Islamic banks in the GCC countries to understand how to use their IC efficiently, especially SC as it is yet to be used efficiently. Also, the findings benefit the relevant authorities (e.g. legislators and central banks) who could use them to emphasise strategic policy reforms whenever required. Originality/value The current research adds to the empirical studies in the GCC countries as it views the region as a collective as opposed to individual countries. It also extends the IC and performance measurement literature of Islamic banks in the GCC countries. Moreover, the current study enriches the limited literature on IC in the context of Islamic banking.

Loyalty program activity: make B2B customers buy more

2019 ◽  
Vol 37 (5) ◽  
pp. 542-554 ◽  
Author(s):  
Piotr Kwiatek ◽  
Marsela Thanasi-Boçe
Keyword(s):  
Loyalty Programs ◽  
Purchasing Behavior ◽  
Loyalty Program ◽  
Content Type ◽  
Logistic Regression Models ◽  
Program Activity ◽  
Consumer Markets ◽  
Business Customers ◽  
The Impact ◽  
Business To Business

Purpose Loyalty programs (LPs) in a business-to-business (B2B) context have been under-researched when compared to consumer markets. The purpose of this paper is to investigate if and to what extent the loyalty program activity (LPA) based on recency, frequency and monetary framework reflects the effectiveness of a specific LP. Design/methodology/approach Using the data obtained from 818 business customers enrolled in a LP, logistic regression models are run to find the impact of LPA on the company’s sales. Findings The results suggest that in a linear LP, the frequency of rewards impacts sales the most, compared to recency and amount of points redeemed. The intensity of a LPA is influencing the expected sales in a company. Research limitations/implications The current study is not focused on the redemption patterns and the value of the rewards offered in the program. Limitation of the study only to one country and in a single company does not allow to generalize presented findings. Practical implications Companies should focus their efforts on defining the best level of frequency rewards in their LPs. Reward timing should be considered as a factor that influences the change in customer purchasing behavior more than the amount of points accumulated. Originality/value The research provides empirical evidence to support the highest influence of frequency of rewards on sales, compared to recency and amount of points redeemed. This is one of the few LP studies conducted in the context of the B2B market.

Effect of digital banking-related customer experience on banks’ financial performance during Covid-19: a perspective from Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nhung Thi Hong Nguyen ◽  
Nguyen Kim-Duc ◽  
Teresa Lien Freiburghaus
Keyword(s):  
Customer Satisfaction ◽  
Financial Performance ◽  
Positive Impact ◽  
Financial Statements ◽  
Customer Experience ◽  
Moderator Variable ◽  
Content Type ◽  
Considerable Impact ◽  
Intermediate Variables ◽  
The Impact

Purpose This study aims to investigate customer experience (CE) and its relationship with intermediate variables to analyze the impact of digital banking (DB) on banks’ financial performance (FP) before Covid-19 and during the lockdown in Vietnam. Design/methodology/approach These research data are from a survey of Vietnamese customers. The survey was deployed to a sample of 238 and 218 customers of 20 Vietnamese commercial banks via email in 2018Q4 and 2020Q2, respectively. FP is measured using banks’ quarterly financial statements before Covid-19 and during the lockdown. Findings CE with DB had a significant and positive impact on FP via customer satisfaction before Covid-19, while the other two intermediate variables (word-of-mouth [WoM] and trust) had no considerable impact. During the lockdown, only WoM had a positive impact on FP. These findings indicate that before Covid-19, when customers could easily interact with their bank through many touchpoints, customer satisfaction with DB services created higher FP for the bank. However, during the lockdown, DB became the customer’s main touchpoint and WoM mediated the CE–FP relationship. Originality/value During the national lockdown from the beginning of the Covid-19 pandemic in January 2020, customers in Vietnam may have had different experiences with DB when no alternate modes of payment were available. The study uses Covid-19 as a moderator variable to offer different viewpoints and findings related to CE with DB and its impact on FP.

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