Diversification strategies and failure rates in the Texas lodging industry: Franchised versus company-operated hotels

Lin, Shih‐Chuan; Kim, Yoo Ri

doi:10.1016/j.ijhm.2020.102525

Cited by 20 publications

(19 citation statements)

References 59 publications

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“…This includes the number of neighboring economy hotels ( economy ), the number of neighboring midscale hotels ( midscale ), the number of neighboring upper‐midscale hotels ( upper midscale ), the number of neighboring upscale hotels ( upscale ), and the number of upper‐upscale hotels ( upper upscale ). In previous research, the index was used to identify hotel quality (Kalnins & Chung, 2004; Lee, 2015; Lin & Kim, 2020; McCann & Vroom, 2010). The market structure determined by the entry and exit decisions of firms is affected by the nature of the competition within the market (Dunne et al, 2013), and thus, we analyze whether ownership structure changes have heterogeneous impacts on the magnitude of competition for hotels with different hotel quality segment tiers (dependent variable).…”

Section: Methodsmentioning

confidence: 99%

“…Independent hotels are establishments that are owned and operated by independent owners, whereas chain-affiliated hotels are affiliated with hotel chains and therefore operate, behave, and perform differently within and across markets (Xiao, O'Neill, & Mattila, 2012). Previous studies acknowledged significant differences in the incentives and objectives between chain-affiliated and independent hotels (Enz, Canina, & Liu, 2008), implying the heterogeneous effects of ownership structures on the competitive market (Lin & Kim, 2020). However, there is no empirical study that analyzes the relationship between the heterogeneity of firm ownership structures and competitive environments.…”

Section: Introductionmentioning

confidence: 99%

“…There is no research known to the researchers that provides comprehensive insights into the effect of ownership structure changes on the competition among neighboring hotels, especially research that considers different hotel quality segment tiers. It is common for hotels to diversify their quality segments as it minimizes risks and optimizes performance (Amit & Livnat, 1988), which strengthens their competition (Lin & Kim, 2020). Yet this implies that entry into new or existing markets may reshape the market structure.…”

Section: Introductionmentioning

confidence: 99%

“…Firms use different strategies to reduce business risks, gain competitive advantages, and reduce their failure rates. Location, branding, and positioning can be sources of product differentiation (Lin & Kim, 2020). Ownership structure itself can be viewed as a source of product differentiation because chain systems differentiate themselves by offering unique types of goods and services compared with independent owners (Adams, Gans, Hayes, & Lampe, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Heterogeneous effects of hotel ownership structure changes on localized market competition using multilevel mixed‐effect analyses

Lin

Kim

2020

Manage Decis Econ

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Ownership structure, a source of firm heterogeneity, can change competitive environments and market structures; the impact on the hospitality industry is unknown. This study investigates the impact of hotel ownership structure changes on the magnitude of localized competition of different quality segment hotels. Two-level mixed-effect analyses reveal that hotel ownership structure change from chain-affiliated to independent increases the number of neighboring economy hotels, whereas the change from independent to chain-affiliated increases the number of neighboring upper-upscale hotels. Ownership structure changes in the same market can be a key driver of market dynamics, suggesting that hotels should colocate with caution.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Heterogeneous effects of hotel ownership structure changes on localized market competition using multilevel mixed‐effect analyses

Lin

Kim

2020

Manage Decis Econ

Self Cite

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“…Research on hotel survival has focused on multiple aspects. These include the strategies adopted: Franchised hotels, hotels operated by companies and ownership structures [42]. Other scholars have investigated the recent economic crisis's impact on tourism sector companies [43].…”

Section: Introductionmentioning

confidence: 99%

Gender and Bankruptcy: A Hotel Survival Econometric Analysis

Escribano-Navas¹

2021

Sustainability

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This study’s objective was to understand how chief executive officers’ (CEOs) gender affects hotel businesses’ survival. Female managers’ influence has already been examined in other sectors, but researchers have not studied women CEOs’ role in hotel management and survival. A sample of 2615 Spanish hotel companies was examined during the period 2005–2018 for how their survival was affected by the variables of financial aspects, years of experience and the principal hotel executive’s gender. An econometrics-based survival analysis was conducted using a single complementary log-log model and panel data. The results indicate that some financial variables, such as sales, working capital to total assets ratio and each company’s experience, influence hotel businesses’ survival. The main finding was that women CEOs increase hotels’ survival rate. This CEO gender study is a novelty in the literature on hotel survival.

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The impact of incumbents' operational and governance responses on the sharing economy: An asset orchestration perspective

Zhang

Yoo

et al. 2023

J of Ops Management

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Leveraging an asset-sharing operating model, sharing economy platforms have disrupted incumbent firms in many industries. This research draws on the asset orchestration perspective to examine incumbents' asset orchestration (i.e., operational and governance actions) as they respond to threats from the sharing economy and the effectiveness of these actions in curbing a sharing economy firm's performance. We also analyze how the sharing economy firm's competitive moves counteract incumbents' asset orchestration responses. Our longitudinal empirical analysis in the accommodation industry demonstrates that the growth of sharing economy increases incumbent hotels' asset-based operational actions, which reduce the sharing economy's performance.Although incumbents' asset governance actions increase as the local sharing economy grows, they do not seem to hinder sharing economy's performance. This research highlights the role of asset orchestration in the competition between incumbents and the sharing economy and contributes to the operations and sharing economy literature.

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Diversification strategies and failure rates in the Texas lodging industry: Franchised versus company-operated hotels

Cited by 20 publications

References 59 publications

Heterogeneous effects of hotel ownership structure changes on localized market competition using multilevel mixed‐effect analyses

Heterogeneous effects of hotel ownership structure changes on localized market competition using multilevel mixed‐effect analyses

Gender and Bankruptcy: A Hotel Survival Econometric Analysis

The impact of incumbents' operational and governance responses on the sharing economy: An asset orchestration perspective

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