Attributes and Firm Performance in the Hospitality Industry

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hospitality industry

Are you aware of the attributes that contribute to the performance of firms in the hospitality industry? The research suggests that there are certain characteristics that make for superior organizational performance in the industry. These include a diversity of leadership and board members, financial flexibility, entrepreneurial behavior, and board size. However, these factors have limitations as well, which should be taken into account when making decisions.

Financial flexibility

Financial flexibility is a determinant of firm performance. It refers to an enterprise’s ability to restructure, obtain and manage required finance. Companies with high financial flexibility are able to invest more, and can restructure their financing needs to accommodate future business and market demands. However, excessive investment or underinvestment may occur if firms have low financial flexibility.

A number of studies have investigated the relationship between financial flexibility and firm performance. While some studies conclude that high financial flexibility is associated with improved enterprise performance, others suggest that it has a negative effect. These studies analyzed a variety of variables.

The quality of earnings is another factor to consider. Better earnings quality should lead to lower information asymmetry. Enhanced information asymmetry can lead to a firm’s financial flexibility being impaired.

Board diversity

Board diversity has been a hot topic of academic research. Several studies have analyzed the effect of board structure types on firm performance. These include CEO-chairman duality, board size, board diversity, and busyness.

However, few studies have examined the relationship between board diversity and firm performance in the hospitality industry. This study is the first to look at the relationship between career-wide industry experience and firm performance. The sample includes publicly-traded companies from the restaurant, hotel, and airline industries. Its findings have implications for the U.S. tourism industry.

The study finds that firms with a greater diversity of board directors have a better financial performance. The positive effect of board diversity on firms is dependent on firm and institutional ownership. Specifically, in non-high-technology firms, the positive relationship is stronger. Moreover, the presence of institutional investors is beneficial to the market value of a firm.

Entrepreneurial behavior

One of the important research areas in organizational behavior is entrepreneurial behavior and firm performance. Entrepreneurship is a type of social capital development. It involves the preference for innovation. The study identifies and analyzes several variables that support the performance of firms. These include managerial entrepreneurship behaviors and their related employee satisfaction statements.

The most important findings from the tests are grouped into two categories. First, there are variables that have been associated with a better performing company. Among these is the degree of complexity. Second, there is the presence of a company with a unique organizational culture.

For instance, a study found that a 4-star hotel had a more positive impact on customer relations than a one-star hotel. This effect was attributed to competitive strategy. In addition, a study found that the entrepreneurial orientation of an organization was positively correlated with the quality of its customer relations.

Impact of COVID-19 epidemic on family businesses

COVID-19, also known as coronavirus disease, has caused a major economic shock. It has affected all industries. However, the hospitality industry has seen the largest negative impact. This is due to the fact that Chinese people are prevented from traveling outside their country.

During the pandemic, many family businesses proved their resilience. They were able to adapt their business model and product offerings to meet the demand. Some businesses even changed their production processes to cope with the demand. In addition, some businesses were forced to close.

For other family-run companies, COVID-19 caused a revenue drop. In this case, some of them turned to government support schemes. Other businesses used their resources to transform their business. Some of them also needed extra capital.

Limitations of the study

If you want to conduct a great research study, then you need to understand the limitations of your work. These can be quite complex, but it is important to know what to write in the limitations section of your paper. Keeping these in mind can help ensure the accuracy of your results.

Limitations are usually the result of inadequate academic resources or the lack of previous studies in your field of interest. For example, if you are conducting a study on a government organization, you might find that you are limited in your access to data. Rather than limiting your research efforts, you may want to restructure your study.

However, if you are studying a topic that is already well-known, such as genetics, then you might not have any need to worry. While it is not a good idea to overstate your findings, it is not a bad idea to state the limitations affecting your study.