Exploring the antecedents of effectiveness and efficiencyInternational Journal of Hospitality Management

About

Authors
Kayhan Tajeddini
Year
2015
DOI
10.1016/j.ijhm.2015.06.007
Subject
Tourism, Leisure and Hospitality Management / Strategy and Management

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International Journal of Hospitality Management 49 (2015) 125–135

Contents lists available at ScienceDirect

International Journal of Hospitality Management journa l homepage: www.e lsev ier .com/ locate / i jhosman

Explori ef

Kayhan T

Department of : 3090

Lund, Sweden a r t i c l

Article history:

Received 31 Ja

Received in re

Accepted 22 Ju

Keywords:

Financial orien

Entrepreneuri

Effectiveness

Efficiency effect fragm epren

Data trate iness noun s of b ext o mana 1. Introduction

Strategic management scholars have given intensive attention to exploring the sources of performance variations among organizations (O’Cass and Ngo, 2007). In the context of performance, within the emphasized building eff 2011a). Sin enhance sh tered aroun achieving t and Spence are often ai expenses o ness succes market sha secondary t mate respo

Spencer, 19

Financia decision-m sured in ter ∗ Correspon

E-mail add the short term. The basic thrust of a financially-oriented strategy is to focus on financial ratios and other measures (Masterson and

Pickton, 2004) to reduce costs, and to provide an adequate return on the stockholders’ equity (Beatty, 1988). Thus, firms are “seeking ways to minimize overhead costs, to eliminate intermediate prohttp://dx.doi.o 0278-4319/© strategic management domain, strategic planning has maximization of shareholder wealth with the goal of ectiveness and efficiency (Soteriades, 2012; Tajeddini, ce the role of strategic management is to protect and areholder wealth, strategic decision-making has cend determining what courses of actions are best at he primary strategic goal of financial return (Turner r, 1997). Management’s plans, decisions, and actions med at benefiting other stakeholders, sometimes at the f stockholders, to produce alternative forms of busis (e.g., customer loyalty, satisfaction, staff retention, re). However, these other strategic goals tend to be o financial performance goals given management’s ultinsibility to increase stockholders’ wealth (Turner and 97). l orientation is a strategic management approach to aking with emphasis on financial performance meams of profitability, and “bottom-line” performance in ding author. resses: Kayhan.Tajeddini@fek.lu.se, kayhan@tajeddini.ch duction steps, to reduce transaction and other ‘friction’ costs, and to optimize business processes across functional and organizational boundaries” (Treacy and Wiersema, 1993, p. 85).

An alternative approach to strategic decision-making, referred to in the strategic management literature as entrepreneurial orientation, emphasizes goals and performance measures that are long-term and “strategically” driven rather than financially driven (Lumpkin and Dess, 1996; Dess et al., 1997). A firm with an entrepreneurial orientation (EO)“. . .engages in product market innovation, undertakes somewhat risky ventures, and is first to come up with proactive innovations, beating competitors to the punch. . .” (Miller, 1983: 771). The ability to sustain competitive advantage in the long term depends upon whether competitors can emulate or overcome this advantage and deliver something of value to the marketplace (Ahmed and Rafiq, 1992).

Over the years a wealth of research suggests that various orientations imperative aimed at successfully enhancing business performance in the manufacturing industries (Tajeddini, 2010).

However, in recent years, we witness the economies of developed countries substantially shifting from production to services dominated (Palmer, 2001). Despite the fact that services are among the fastest growing sector in emerging, transitional, and develrg/10.1016/j.ijhm.2015.06.007 2015 Elsevier Ltd. All rights reserved.ng the antecedents of effectiveness and ajeddini ∗

Business Administration, School of Economics and Management, Alpha Building, Room e i n f o nuary 2015 vised form 14 June 2015 ne 2015 tation al orientation a b s t r a c t

Our knowledge of determinants of ever, this knowledge remains quite this study explores the effect of entr performance in the service industry. to examine the effect of a financial s on two widely-used standards of bus that these effects would be more pro provide new insights about the merit financial orientation. Within the cont implications of our findings for hotel directions.ficiency , P.O. Box 7080, Lund University, SE-220 07 iveness and efficiency of firms continues to expand. Howented and non-cumulative in the service industry. Herein, eurial and financial orientations as two key contributors to for this study were collected from 182 hotels in Switzerland gic orientation and an entrepreneurial strategic orientation performance—effectiveness and efficiency. We hypothesized ced under certain dynamic environment conditions. Findings uilding bridges between the entrepreneurial orientation and f existing research on strategic management, we discuss the gers and address the study’s limitations and future research © 2015 Elsevier Ltd. All rights reserved. 126 K. Tajeddini / International Journal of Hospitality Management 49 (2015) 125–135 oped countries (Tajeddini, 2011b), and service sector has become an extremely large part of the modern economy (Oldenboom and Abratt, 2000), empirical work related to service organizations is still quite scarce particularly in entrepreneurship research (Kraus, 201 manageme orientation superior pe study, we versus entr of “effective investigate the relation

We address balance bet entation to factors mod

Using data tistical tech effectivenes 2. Backgro 2.1. Entrepr

Entrepre process th by bringing marketplac alized “ent orientation clivity supp of strategic organizatio develop and

A numbe construct o to strategyan entrepre the culture risks, and ag

Lumpkin, 2 tal process, and assimi exploit prev

Such firms tion, proact

Sapienza et

In many and charac ease with w and service tal conditio interpret o decisions (D antecedent erature has manageme 2000) and e 2.2. Entrepr