The Impact of Corporate Social Responsibility on Firm Value During the COVID-19 Pandemic

In this chapter, the authors have investigated the effect of CSR on firm value during the pandemic. They used the event study technique and noted that an engagement in the CSR activities increases the stock returns to the hospitality firms during a pandemic crisis. The results showed that the hospitality firms that showed a better stock market performance during the pandemic invested in CSR activities. This would indicate a theoretical application and practical implication on their business duties towards the society, and any future research in CSR would allow them to successfully handle a critical disaster like this pandemic in the future.

The Effects of the COVID-19 Pandemic on the Hospitality Industry

As the hospitality industry is one of the industries most drastically affected by the COVID-19 pandemic, it is essential that managers of this industry develop effective strategies to reduce the damage of the pandemic and be better prepared for possible future crises. In this respect, this chapter discusses the effects of the COVID-19 pandemic on the hospitality industry and highlights preventive measures, employee support, service innovations, and CSR activities as the key strategic areas for enhancing resilience and recovery of hospitality firms during and even after the COVID-19 pandemic. This chapter also underlines the significance of adopting a holistic stakeholder approach that discusses the effects of the pandemic and proposed strategies from the perspective of multiple stakeholders, as the COVID-19 pandemic has affected them all.

Hospitality in the Experience Economy

Experience economy plays a predominant role in the hospitality industry. Consumer experience has always been of great importance for the hospitality business. As consumer experience evolved, businesses needed and still need to find new ways to differentiate themselves. To remain competitive and stay in the market, hospitality firms are working towards creating outstanding and memorable experiences that exceed guest expectations. In the context of Pine and Gilmore's experience economy conceptual model, the chapter attempts to theorize and explain how hospitality businesses are curating consumer experiential encounters. Digital nomads are the ignition source of driving an experience economy. The chapter further highlights how technology would additionally ease hospitality enterprises to frame excellent strategies focused on supplying the value to the digital consumers and then expecting their customers to generate additional business.

Elucidating the effect of information technology capabilities on organizational performance in UAE: a three-wave moderated-mediation model

PurposeThis paper aims to investigate information technology capabilities (ITC)’s influence on organizational performance (OP) within the hospitality industry. Specifically, it analyzes the indirect effects of sustainability practices (SP) and service quality (SQ) on the relationship between ITC and OP. The moderating effect of top management support (TMS) is also examined.Design/methodology/approachUsing a three-wave time-lagged design, 507 UAE hotels' managers took part in the study. Hierarchical regression bootstrapping approach was used to examine the hypothesis.FindingsThis study suggests that ITC are positively related to OP. Furthermore, the study found that SP and SQ mediate the ITC-OP relationship. TMS moderates the positive relationship between ITC and OP and also moderates the relationship between SQ and OP. Additionally, TMS moderates the indirect effect of SQ on the association between ITC and OP, such that the mediating effect is stronger when TMS is at a high level.Research limitations/implicationsThe study shall assist the practitioners of the hospitality firms to focus their attention on ITC to improve SQ and hence achieve optimal performance.Originality/valueThe novelty of this research lies in the presentation of an integrated framework based on a resource-based view to solve the contemporary challenges facing hospitality firms operating in emerging markets in integrating ITC and SP for better organizational results.

AN ANALYSIS OF COMPETITIVE CAPABILITIES AND ACCOMMODATION PERFORMANCE FOR SMALL AND MEDIUMSIZED ACCOMMODATIONS (SMSAs) IN EAST-COAST OF MALAYSIA DURING THE COVID-19 PANDEMIC

The COVID -19 pandemic has posed an unprecedented threat to the hospitality industry. Numerous hospitality firms have been impacted by strategies used to flatten the COVID-19 curve. Hospitality firms are required to significantly alter their operations in the COVID-19 business climate in order to secure industry survival and to mitigate the impact of the pandemic. As a result, this study focuses on small and medium-sized accommodations (SMSAs) on Malaysia’s East Coast, which are particularly hard hit by the pandemic. The study of SMSAs on Malaysia’s East Coast discovered that marketing and human resource management contribute significantly to accommodation performance, while the other two factors have a negligible effect on accommodation performance during this pandemic, as determined by multiple regression analysis.

Convex-concave effect of financial flexibility on hospitality performance: quantile regression approach

Purpose The purpose of this paper is to study the influence of financial flexibility (FF) on enterprise performance (EP) within Taiwan’s hospitality industry during the COVID-19 shock and explore whether EP varies with hospitality industry characteristics. Design/methodology/approach Secondary data of 39 Taiwan Stock Exchange-listed hospitality firms were collected from the Taiwan Economic Journal databases. Quantile regression analysis was applied to examine the FF-EP relationship Findings The results evidence that there is a U-shaped (convex) FF-EP relationship for hospitality firms in the 10th, 25th and 50th Tobin’s Q quantiles and in asset-heavy firms. For asset-light firms, FF has an inverted U-shaped (concave) effect on EP in the 90th Tobin’s Q quantile Practical implications The empirical results highlight the need for Taiwan’s hospitality industry as a whole to take rolling adjustment and optimization of FF and concentrate on liquidity risk management after the COVID-19 pandemic and for long-term sustainability. Originality/value To the best of the authors’ knowledge, this study is one of the first to examine the nonlinear FF-EP relationship in the hospitality industry of Taiwan, particularly amid the COVID-19 shock. Moreover, this study extends current literature by revealing the hospitality industry’s FF-EP relationship and highlights the importance of the pandemic crisis context.

Influence of transactive memory systems and strategic orientations on the performance of hospitality firms

PurposeSince the hospitality industry is driven by people, effective utilization of knowledge among various organizational units is required to ensure guest satisfaction and in turn superior performance. Research trying to find the implications of transactive memory systems (TMSs), an integrative mechanism for knowledge management in organizations, has yielded ambiguous and mixed results, leading the researchers to believe that the linkages may not be as straightforward as previously imagined. In this study, the authors theoretically build their arguments based on the knowledge-based view of the firm and empirically test these linkages using data collected from the small hotels of India.Design/methodology/approachData were collected from the owner-managers or senior executives of small hotels operating in the Uttarakhand state of India, and analysed using structural equation modelling (SEM) and Hayes process macro.FindingsIt was found that for the hospitality firms, the TMS is an enabler for performance only when the focus of knowledge creation and utilization is on building effective strategic orientations. Further, the technology orientation (TO) and learning orientation (LO) of the hotel mediate the relationship between the TMS and firm performance.Practical implicationsEffective knowledge sharing among employees helps availability of credible and crucial information about customers, which eventually helps in long-term mutually beneficial relationships with the customers, leading to greater economic value creation for the hotel.Originality/valueBy establishing theoretical links between knowledge creation and utilization, and validating these linkages using data collected from the hotel industry in India, this study offers unique and useful insights for the theoretical advancement of the hospitality literature. This study also makes a case that small hotels investing their energy and resources into the creation of a transactive memory systems could reap benefits through appropriate strategic postures.

Impact of Firm-specific Variables on Capital Structure Decisions. Evidence from the Indian Hospitality Sector

This study investigates the determinants of capital structure for hospitality firms listed in India. The study validates the contradiction in the determinants of capital structure by using the data for firms listed on the Bombay Stock Exchange. Using fixed-effects regression models, the findings indicate that firm size and return on assets are significantly associated with total debt ratio (TDR), long-term debt ratio (LTDR) and short-term debt ratio. The variables such as growth rate, tangibility and volatility are found to be significantly associated with TDR and LTDR. Non-debt tax shield is found to be significantly associated with only TDR. Each of the stated determinants has a unique impact on capital structure decisions. The study partially confirms the applicability of the pecking order theory for hospitality sector firms. With the findings on hospitality firms, we hope to provide useful insights to lending institutions and corporate executives.

Environmental Orientation and Green Competitive Advantage of Hospitality Firms in South Africa: Mediating Effect of Green Innovation

The hospitality industry exerts significant pressure on the environment through the consumption of resources such as energy and water. However, the industry can also enhance environmental preservation through their operation and strategy. This study examined whether environmental orientation (internal and external) and green competitive advantage are significantly positively related. This study also investigated the indirect effect of green innovation. A quantitative research method was used for this study. The cross-sectional survey method was used as the method of data collection. This study used Partial Least Square Structural Equation modelling to test the hypotheses. The findings showed that environmental orientation and green competitive advantage are significantly positively related. The indirect effect of green innovation is significant. Theoretically, the study developed a model that linked green innovation to environmental orientation. Practically, the study suggests some recommendations on how the managers of hospitality firms can improve environmental orientation. These include the provision of training and development workshops on environmental strategy for management and employees.