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Linking operations, marketing and environmental capabilities and diversification to hotel performance: a data envelopment analysis approach

  • Ram Ramanathan
    ,
  • Usha Ramanathan
    ,
  • Yubo Zhang
Research Output: Contribution to journal Article Peer-review

Open access

Abstract

This study examines the impacts of marketing capability, operations capability, environmental capability and diversification strategy on performance of hotel industry in the UK. We conceptualize these impacts by drawing on the resource-based-view of a firm as the theoretical underpinning. We use the financial archival data and information obtained from websites. We use content analysis, regression analysis and Data Envelopment Analysis (DEA). Our results show that operations capability and environmental capability have significant positive effects on performance, marketing capability has a significant negative impact but diversification strategy does not impact on performance. Additionally, there is no evidence of the moderating effects of efficiency on these impacts. Our study suggests that hotel industry in the UK ought to focus on developing operations and environmental capabilities especially by exploiting the synergies between them but reduce excessive reliance on marketing. This paper makes two important contributions to the literature. First, it applies a framework linking the three capabilities (operations, marketing and environment) and diversification to the specific case of the hotel industry. Second, unlike similar previous studies, ours is the first to incorporate environmental capabilities in the analysis.

Publication Information

Output type

Research Output: Contribution to journal Article Peer-review

Original language

English

Pages from-to (Number of pages)

Pages 111-122

Journal (Volume, Issue Number)

International Journal of Production Economics (Volume 176)

Publication milestones

  • Accepted/In press - 14/03/2016
  • Published - 29/03/2016

Publication status

Published - 29/03/2016

ISSN

0925-5273

External Publication IDs

  • handle.net: 10547/604165
  • Scopus: 84962428150

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