Non-financial factors affecting the operational performance of hospitality companies: Evidence from Vietnam
Open Access
- 12 October 2021
- journal article
- Published by LLC CPC Business Perspectives in Problems and Perspectives in Management
- Vol. 19 (4), 48-62
- https://doi.org/10.21511/ppm.19(4).2021.05
Abstract
Non-financial factors including quality of services, the flexibility of a company, utilization of resources, and market orientation are regarded as significant determinants that enhance the profitability-based performance of a service company or a hotel. The study investigated the interaction between these factors and hotel operating performance measured by the hospitality performance and results indicators. Data on 346 executives of Vietnam’s hospitality companies were collected. A structural equation modeling (SEM) method was utilized to examine the positive-direct and moderating effects of non-financial factors on hotel performance in terms of occupancy rate (OCR), average daily rate (ADR), and the revenue per available room (RevPAR). The findings showed that service quality ( = 0.118, p < 0.05), flexibility ( = 0.173, p < 0.05) and resource utilization (= 0.172, p < 0.05) positively affected the performance of Vietnam’s hospitality companies. Meanwhile, innovation showed no direct influence (p = 0.068) but an indirect impact on the performance through service quality ( = 0.311, p < 0.05). Market orientation did not impact the performance (p = 0.076) but it positively affected both innovation ( = 0.322, p < 0.05) and service quality ( = 0.146, p < 0.05). The study contributed to a theoretical enhancement of the current level of knowledge on the factors that affect the performance and developed a reliable scale for measuring the performance of hotels in Vietnam.Keywords
This publication has 65 references indexed in Scilit:
- Evaluating the optimal occupancy rate, operational efficiency, and profitability efficiency of Taiwan's international tourist hotelsThe Service Industries Journal, 2011
- Linking a service‐driven market orientation to service qualityManaging Service Quality: An International Journal, 2006
- Performance implications of strategic performance measurement in financial services firmsAccounting, Organizations and Society, 2003
- Antecedents to perceived service quality: an exploratory study in the banking industryInternational Journal of Bank Marketing, 2003
- ADR Rule of ThumbCornell Hospitality Quarterly, 2003
- Modularity, strategic flexibility, and firm performance: a study of the home appliance industryStrategic Management Journal, 2002
- An importance-performance analysis of hotel selection factors in the Hong Kong hotel industry: a comparison of business and leisure travellersTourism Management, 2000
- The Effect of Marketing Orientation on Company Performance in the Service Sector:Journal of International Consumer Marketing, 1995
- Re-Examining Perceived Ease of Use and Usefulness: A Confirmatory Factor AnalysisMIS Quarterly, 1993
- On the evaluation of structural equation modelsJournal of the Academy of Marketing Science, 1988