Non-financial factors affecting the operational performance of hospitality companies: Evidence from Vietnam
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 betwee...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2021-10-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/15690/PPM_2021_04_Phan.pdf |
| _version_ | 1818082874764558336 |
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| author | Trung Kien Phan Thi Hong Thuy Nguyen Thu Ha Dang Van Thuan Tran Kim Ngoc Le |
| author_facet | Trung Kien Phan Thi Hong Thuy Nguyen Thu Ha Dang Van Thuan Tran Kim Ngoc Le |
| author_sort | Trung Kien Phan |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-12-10T19:29:02Z |
| format | Article |
| id | doaj.art-3e5069c84e814e059be2214d9399fa9d |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-12-10T19:29:02Z |
| publishDate | 2021-10-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-3e5069c84e814e059be2214d9399fa9d2022-12-22T01:36:17ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672021-10-01194486210.21511/ppm.19(4).2021.0515690Non-financial factors affecting the operational performance of hospitality companies: Evidence from VietnamTrung Kien Phan0https://orcid.org/0000-0002-4013-8704Thi Hong Thuy Nguyen1https://orcid.org/0000-0003-0047-249XThu Ha Dang2https://orcid.org/0000-0001-8655-6197Van Thuan Tran3https://orcid.org/0000-0001-7992-1301Kim Ngoc Le4https://orcid.org/0000-0002-8445-1081Ph.D., Associate Professor, School of Accounting and Auditing, Department of Auditing, National Economics UniversityPh.D., Lecturer, Faculty of Accounting and Auditing, VNU University of Economics and BusinessPh.D., Lecturer, Faculty of Accounting and Auditing, Hanoi University of IndustryPh.D., Associate Professor, School of Accounting and Auditing, National Economics UniversityPh.D., Associate Professor, School of Accounting and Auditing, National Economics UniversityNon-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.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/15690/PPM_2021_04_Phan.pdfflexibilityhospitalityinnovationmarket orientationresource utilizationservice quality |
| spellingShingle | Trung Kien Phan Thi Hong Thuy Nguyen Thu Ha Dang Van Thuan Tran Kim Ngoc Le Non-financial factors affecting the operational performance of hospitality companies: Evidence from Vietnam Problems and Perspectives in Management flexibility hospitality innovation market orientation resource utilization service quality |
| title | Non-financial factors affecting the operational performance of hospitality companies: Evidence from Vietnam |
| title_full | Non-financial factors affecting the operational performance of hospitality companies: Evidence from Vietnam |
| title_fullStr | Non-financial factors affecting the operational performance of hospitality companies: Evidence from Vietnam |
| title_full_unstemmed | Non-financial factors affecting the operational performance of hospitality companies: Evidence from Vietnam |
| title_short | Non-financial factors affecting the operational performance of hospitality companies: Evidence from Vietnam |
| title_sort | non financial factors affecting the operational performance of hospitality companies evidence from vietnam |
| topic | flexibility hospitality innovation market orientation resource utilization service quality |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/15690/PPM_2021_04_Phan.pdf |
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