The Influence of Brand Orientation and Knowledge Creation on Organisational Performance of Malaysian Tourist Resorts

Abstract

The purpose of this paper is to examine the effects of brand orientation and knowledge creation process on the organisational performance of tourist resorts from the perspective of tourism entrepreneurs. Despite a plethora of branding and knowledge management literature, a limited number of studies have investigated the effects of brand orientation and knowledge creation process together on organisational performance. The studied tourism entrepreneurs exhibit low involvement in branding activities and knowledge creation according to government of Malaysia sources. The significance of brand orientation and knowledge creation process for improving the organisational performance of tourist resorts remains inconclusive. For this study, empirical data was drawn from 322 tourist resorts in Malaysia. The hypothesised relationships are analysed using structural equation modelling (SEM). The results show that brand orientation and knowledge creation process have a positive and significant effect on organisational performance whereas knowledge creation process partially mediates brand orientation and organisational performance. We propose higher involvement of tourism entrepreneurs in knowledge sharing sessions to develop distinctive brands to attract customers, which will in turn improve organisational Melissa Li Sa Liow et al. 176performance. The top-down management approach in instituting branding activities remains pervasive in tourist resorts in Malaysia's high-power distance society.

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

“…Thus, market (customer and competitor) orientation may cause a business to turn into a brand-oriented one over time. Studying the importance of brand orientation in hospitality enterprises, Liow et al (2019) concluded that brand orientation enhances organizational performance. The study conducted by Liow et al (2019) and Urde's (1999) assumptions that brand orientation is built upon market orientation reveal that brand orientation, like market orientation, would affect service improvement behavior positively.…”

“…Studying the importance of brand orientation in hospitality enterprises, Liow et al (2019) concluded that brand orientation enhances organizational performance. The study conducted by Liow et al (2019) and Urde's (1999) assumptions that brand orientation is built upon market orientation reveal that brand orientation, like market orientation, would affect service improvement behavior positively. Since market orientation affects brand orientation positively (Laukkanen et al, 2016), the mediating effect of brand orientation can be observed in the relationship between market orientation and service improvement.…”

“…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). However, the lack of studies on the relationship between service improvement and enterprise performance is interesting.…”