Market orientation and hotel performance: investigating the role of high-order marketing capabilities

Abstract

Purpose Using the resource-based view (RBV), the purpose of this paper is to examine the potential mediation effect of customer relationship management capability, branding capability and service innovation capability on the established link between market orientation (MO) and hotel performance. It further investigates the complementarity between these capabilities in relation to hotel performance. Design/methodology/approach The survey data were collected from 216 UK hotels. AMOS 23 was used to analyse the research data. Findings The link between MO and hotel performance appears to be indirect via customer relationship capability, branding capability and service innovation capability. The three capabilities also appear to play different complementary roles when affecting hotel performance. Practical implications The current study offers hotel managers a ranking of the contribution of individual capabilities to hotel performance. It also helps them to make better investment decisions in developing the right capability combinations to enhance their hotel performance. Originality/value The research is based on integrating MO and RBV into a single framework to gain a deeper understanding of the relationship between MO and high-order marketing capabilities and how these factors shape hotel performance.

The Effect of Market-Oriented and Brand-Oriented Service Improvement on Hotel Performance

“…In this regard, customer performance of a hotel is approached over service quality, customer retention rate, and customer satisfaction level (Turner et al, 2017). Economic performance is estimated through considering the growth in sales, market share, occupancy rates, online reservation rates and revenues from foreign customers (Alnawas & Hemsley-Brown, 2019;Campo et al, 2014). Financial performance, on the other hand, is an indicator covering the return on hotel investment, rate of return and gross income (Turner et al, 2017).…”

“…The related literature includes many studies concerning the relationship between market orientation and hotel performance (Alnawas & Hemsley-Brown, 2019;Qu, 2014;Sampaio et al, 2019;Tse et al, 2005;Zhou et al, 2009). Similarly, there are studies revealing the effect of brand orientation on enterprise performance as well (Laukkanen et al, 2016;Liow et al, 2019;Tajeddini & Ratten, 2020;Wong & Merrilees, 2007).…”

Employee’s Market Orientation Behavior and Firm’s Internal Marketing Mechanism: A Multilevel Perspective of Job Performance Theory

“…Instead of customer acquisition, market orientation focuses on customer retention and has a more pronounced effect on a firm's profit than sales. Market orientation is crucial for a firm in an intensively competitive environment to maintain its responsiveness to market changes and attain its business performance goal, especially in service-related industries [5,6]. Two seminal works in 1990 established market orientation as the cornerstone of marketing management.…”

Matrix Analysis Of Competitive Stability Of Horeca Industry In Federal Districts Of Russia

“…HoReCa is a comprehensive concept that includes a lot of organizations that are somehow involved in the provision of services or the sale of hospitality products (Alnawas & Hemsley-Brown, 2019). The translation of the abbreviation HoReCa from English is the following: Ho -Hotel, Re -Restaurant, Ca -Catering.…”