12
CHRIE Communiqué 1 April 2017 Welcome to the third special Communique issue dedicated to presenting research articles written by ICHRIE members! The special topic issues (Educational topics as well as Research topics) were created as part of the ICHRIE Strategic Plan for 2020 as a response to members’ requests for more benefits and networking remains as one of the most important benefits to our members. Therefore, I hope that as you read the articles, you will get some ideas for more research, respond to the authors with questions and comments, find something to share with students, and the like. In other words, let’s create some interest and discussion around these important topics! Qu Xiao, ICHRIE Director of Research, has assembled a variety of research articles for your perusal. Included are articles on Organizational Structures and the Hotel Firms’ Value by Tarik Dogru, the Implications of Financial Distress on Employee Relations in Hospitality Companies from Yinyoung Rhou, Yoon Koh, and Manisha Singal, the Exploration of a Theory of Lodging and Theory of Dining Behavior by Chris Roberts and Linda Shea, the Case of Twitter Use by Hotels from Woohyuk Kim, the Ingredients for Research by Linda Cain, How Stereotyping and Social Modeling Impacts Consumers’ Food Choices by Lisa Yixing Gao and Anna Matilla, and the importance of Food in International Tourism by Seongseop Kim. Enjoy this special Communique issue and provide the Board of Directors of ICHRIE with your feedback about the value you found in this issue. And I want to thank Qu and all of the authors for their work on this project. I am delighted to introduce this research themed Communique to you, as I am positive you will be inspired by many fresh thoughts and research findings shared in the following pages. Together they have suggested several interesting new directions for future hospitality and tourism research. In the article written by Dr. Chris Roberts and Dr. Linda Shea, “Exploring a Theory of Lodging and a Theory in Dining Behaviors”, in-depth discussions is called on the value of hospitality theories. Another call on re- examining today’s common research practices is made by Dr. Lisa Cain, who shared her thoughts on the role of research method in the article “The Ingredients for Research”. While firm value has been among the most important dependent variables in both the mainstream and hospitality literature for a long time, as revealed in Dr. Tarik Dogru’s recent research, “Organizational Structures and Hotel Firms’ Value, and Cash Management, Investments, and Financial Policies”, more research opportunities clearly exist in investigating different organizational forms. In addition, on the tourism side, Dr. Sam Kim strongly evokes more studies in food tourism since there are also numerous research gaps in this interesting field. It is always great to see how the new generation scholars in our field are developing into strong researchers. In this Communique, you will find several summaries of the Best Papers of the 22nd Graduate Conference Education & Graduate Student Research Conference. These studies, conducted primarily by Ph.D. students, were well executed CHRIE April 2017 Volume 31 • Number 4 International Council on Hotel, Restaurant, & Institutional Education 2810 N. Parham Road, Suite 230 Richmond, Virginia USA 23294 Telephone: 01 (804) 346-4800 Fax: 01 (804) 346-5009 Email: [email protected] Website: www.chrie.org Mokie Steiskal is President of ICHRIE and Chairperson Emeritus at Columbus State Community College continued on page 5 SPECIAL ISSUE RESEARCH R Board Activities & Updates Fresh Thoughts and New Directions in Research R New directors in Research Qu Xiao is Director of Research for ICHRIE and Associate Professor at The Hong Kong Polytechnic University.

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Page 1: SPECIAL ISSUE RESEARCH - chrie.org“Organizational Structures and Hotel Firms’ Value, and Cash Management, Investments, and Financial Policies”, more research opportunities clearly

CHRIE Communiqué 1April 2017

Welcome to the third special Communique issue dedicated to presenting research articles written by ICHRIE members! The special topic issues (Educational topics as well as Research topics) were created as part of the ICHRIE Strategic Plan for 2020 as a response to members’ requests for more benefits and networking remains as one of the most important benefits to our members. Therefore, I hope that as you read the articles, you will get some ideas for more research, respond to the authors with questions and comments, find something to share

with students, and the like. In other words, let’s create some interest and discussion around these important topics!

Qu Xiao, ICHRIE Director of Research, has assembled a variety of research articles for your perusal. Included are articles on Organizational Structures and the Hotel Firms’ Value by Tarik Dogru, the Implications of Financial Distress on Employee Relations in Hospitality Companies from Yinyoung Rhou, Yoon Koh, and Manisha Singal, the Exploration of a Theory of Lodging and Theory of Dining Behavior by Chris Roberts and Linda Shea, the Case of Twitter Use by Hotels from Woohyuk Kim, the Ingredients for Research by Linda Cain, How Stereotyping and Social Modeling Impacts Consumers’ Food Choices by Lisa Yixing Gao and Anna Matilla, and the importance of Food in International Tourism by Seongseop Kim.

Enjoy this special Communique issue and provide the Board of Directors of ICHRIE with your feedback about the value you found in this issue. And I want to thank Qu and all of the authors for their work on this project.

I am delighted to introduce this research themed Communique to you, as I am positive you will be inspired by many fresh thoughts and research findings shared in the following pages. Together they have suggested several interesting new directions for future hospitality and tourism research. In the article written by Dr. Chris Roberts and Dr. Linda Shea, “Exploring a Theory of Lodging and a Theory in Dining Behaviors”, in-depth discussions is called on the value of hospitality theories. Another call on re-examining today’s common research practices is made by Dr. Lisa Cain, who

shared her thoughts on the role of research method in the article “The Ingredients for Research”. While firm value has been among the most important dependent variables in both the mainstream and hospitality literature for a long time, as revealed in Dr. Tarik Dogru’s recent research, “Organizational Structures and Hotel Firms’ Value, and Cash Management, Investments, and Financial Policies”, more research opportunities clearly exist in investigating different organizational forms. In addition, on the tourism side, Dr. Sam Kim strongly evokes more studies in food tourism since there are also numerous research gaps in this interesting field.

It is always great to see how the new generation scholars in our field are developing into strong researchers. In this Communique, you will find several summaries of the Best Papers of the 22nd Graduate Conference Education & Graduate Student Research Conference. These studies, conducted primarily by Ph.D. students, were well executed

CHRIE

April 2017 Volume 31 • Number 4

International Council on Hotel, Restaurant, & Institutional Education • 2810 N. Parham Road, Suite 230 • Richmond, Virginia USA 23294

Telephone: 01 (804) 346-4800 • Fax: 01 (804) 346-5009 • Email: [email protected] • Website: www.chrie.org

Mokie Steiskal is President of ICHRIE and Chairperson Emeritus

at Columbus State Community College

continued on page 5

S P E C I A L I S S U ER E S E A R C H

R Board Activities & Updates

Fresh Thoughts and New Directions in ResearchR

New directors in Research

Qu Xiao is Director of Research for ICHRIE

and Associate Professor at The Hong Kong

Polytechnic University.

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2 CHRIE Communiqué April 2017

Researching ICHRIE to Gain InsightKathy McCarty, Chief Executive Officer, International CHRIE

CHRIE Communiqué(USPS) 734-430 (ISSN) 1042-5918

is published monthly by the International Council on Hotel, Restaurant and Institutional Education,

at 2810 North Parham Road, Suite 230, Richmond, Virginia USA 23294. Periodicals postage paid at Richmond, Virginia and at additional offices.Postmaster: Send address changes to CHRIE

Communiqué The International Council on Hotel, Restaurant and Institutional Education, 2810 North Parham Road, Suite 230,

Richmond Virginia 23294 USATelephone 01.804.346.4800; FAX 01.804.346.5009;

Email: [email protected] • www.chrie.orgMembership in ICHRIE includes a

subscription to CHRIE Communiqué. Nonmember subscriptions are US $65

US$75 in Canada • US $85 Internationally.Publisher: Kathy McCarty

© 2016 International Council onHotel, Restaurant and Institutional Education.

We are pleased to recognize the following ICHRIE members for exceptional contributions:

International CHRIE Corporate Partners 2016 - 2017

Titanium PartnersMarriott International

Platinum PartnersThe American Hotel and Lodging Educational

Institute • Smith Travel Research

Gold PartnersCornell University • Cvent • Knowledge Matters • The Pennsylvania State University • Wiley & Sons

Silver Partners California State Polytechnic University Pomona • DePaul University • Hyatt • Johnson & Wales

University • University of Houston • White Lodging

Bronze PartnersCesar Ritz Colleges Switzerland • The Hong Kong

Polytechnic University • REDGlobal Simulations and Certifications • Russell Partnership • University of

Delaware

ICHRIE Corporate MembersACCOR • The American Hotel and Lodging

Educational Institute • Athina Palace • Chevy Chase Club • Cruise & Hotel Industry • Cvent • Drury

Hotels • Eisenstodt Associates, Inc. • Foundation Nestle Pro Gastronomia • Hilton Worldwide • HOSCO

• Hospitality & Tourism Consultants • Hospitality Tourism Strategies • Hotel Rudrakshya Pvt. Ltd • HSMAI • Hyatt Hotels & Resorts • Institute of

Hospitality • Island Training Solutions • Jumeirah Group • Kate Burda & Company • Knowledge Matters • Marriott International • Multicultural Foodservice

& Hospitality Allicance • Nova Scotia Tourism Human Resource Council • PMGH —PM Hospitality Group LLC • Powerful Resources Hotels & Resorts Co.

Ltd. • Red Global Simulations and Certifications • Safehotels Alliance AB • Smith Travel Research • So Toulouse • The Total Simulator Company Ltd. • The

Wesley Hotel • White Lodging • Wiley & Sons • Xenia Hotels & Resorts, Inc.

www.chrie.org

You will begin hearing more and more about the ICHRIE board decision to perform a comprehensive organizational review meant to examine the current and future needs of International CHRIE and its members. The decision to do a comprehensive organizational review (COR) began with the

recognition that there have been many conversations in the last few years centered on the belief that our organization, the environments in which we operate and our constituents are in a sea of change and uncertainty.

The 80 million young adults born between 1976 and 2001—labeled Gen Y’ers or millennials—are often described as the most diverse generation to date. At some point in the very near future, they will comprise the majority of our membership and the face of who we are and what we need to offer in terms of products and services will be quite different. The demographics of ICHRIE members is changing and in order to remain relevant, ICHRIE needs to perform this COR to recognize the generational differences occurring and how to maximize the priorities that motivate millennials.

Our members—and our industry—have new expectations. We need to deliberately align ICHRIE and our members’ expectations and values at the very core of how our organization sees and organizes itself, how it behaves and how it delivers on its core purpose.

This COR is necessary because we need to know where we are, where we want to go, how we might get there and what might be in the way. We need to have a clear picture of our organization’s strengths and weaknesses and the opportunities and threats we face. In order to make smart decisions we need a mix of information: a clear and objective understanding of our offerings’ value; close monitoring of how ICHRIE is perceived; analysis of our position; empathetic sense of our industry’s needs, motivations and decisions; and a clear read on our leadership’s vision.

To develop a clear picture of ICHRIE, research in four dimensions will help us gain insight: quantitative, qualitative, internal and external. The COR is intended to utilize these four research dimensions through traditional market research, polls, surveys, etc. to measure actions and see patterns; interviews and focus groups, etc.to allow members to express their ideas in open-ended environments; looking inward to our members’ perspectives values; and external research to help us understand who our audiences and customers are, what they care about, and how their interests align with ours.

ICHRIE’s comprehensive organizational review involves carrying out research in all of these dimensions and implementing strategies that support ICHRIE. Our objective is the same: gather intelligence that will result in informed decisions. Facts are not enough: We need knowledge to act. The COR research should yield penetrating insights—information that will not only help us gain insight but will also provide meaningful direction and guide our strategic decisions.

In the near future, you will be asked to participate in our COR research efforts and I encourage every member of ICHRIE to participate.

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CHRIE Communiqué 3April 2017

Most public eating takes place in the presence of other consumers and other consumers’ food choices have a significant impact on consumer decision-making processes (Berger & Heath, 2007, 2008). Building on the stereotyping and social modeling literature, the current research investigates whether perceived competence of other consumers

influences the focal consumer’s food choices. Across two studies, we find that consumers use cues of affluence as signals of competence, and therefore, are likely to model their food choices accordingly. Conversely, the modeling effect is not observed when competence cues are absent. Moreover, social norms are less established in a snacking situation (Pliner & Mann, 2004), and therefore, the modeling effect will be attenuated in the context of indulgent treats choice.

Our findings provide important managerial implications for food service operators. For example, we suggest that marketers should emphasize customers’ competence cues when advertising marked-up menu items such as organic foods. Or, restaurant managers should seat their high-paying consumers in the middle of the dining room in order to influence other consumers’ choices. As for indulgent foods, the social influence doesn’t seem to matter, and therefore, focusing on sensory cues might be more effective than displaying people in the ads.

R The Importance of Food in International Tourism

The significant role that food plays in a tourist destination has been discussed by many tourism scholars because of its importance as a tourism attraction. First, consumption of local food has a significant economic influence in a tourism community. For example, it is reported that 30% to 40% of a foreign

tourist’s budget is allocated to eating food or purchasing it as a gift in a tourism destination (Correia et al., 2008). This leads to substantial economic benefits for a destination, especially for local agricultural, restaurant, and food processing businesses (Plummer et al., 2005).

Second, as food can be a regional/national symbolic brand in a destination, it may enhance both a regional or national image and the attractiveness of a destination (Kim et al., 2014). Because local food is an important tourist attraction and central to a tourist’s experiences, it can help to kindle intentions to revisit a place or strengthen destination loyalty (Kivela & Crotts, 2009).

Food tourism researchers have investigated a diverse range of matters, the typology of tourist experiences in relation to food consumption being among them (e.g., Getz & Robinson, 2014; Mkono et al., 2013). Because local cuisines have been widely used as a destination marketing tool,ee beenc visitors tionse. You might mean “ the role of culinary experiences in overall tourist satisfaction – and tourists’ preferences for local food – have been much studied (e.g., Chang, Kivela, & Mak, 2010, 2011; Correia et al., 2008).

However, there are numerous research gaps in the food tourism literature. For example, there have been few studies of the economic benefits of tourists’ food consumption to local economies. The popularization of health foods means that profiles of the tourists who seek such food are needed. Studies of tourist demand for ethnic food and of the specific food requirements of tourists whose religions forbid the consumption of certain foodstuffs are also required. In addition, there is a lack of research on food as a sustainable tourism resource, for example, how to reduce food waste, to measure the amount of CO2, and hygiene issues. Thus, tourism researchers need to take more interest in food tourism or food as a tourism attraction and extend their interests to swiftly respond to newly-emerging industrial trends and fill these research gaps.

ReferencesChang, R. C. Y., Kivela, J., & Mak, A. H. N. (2011). Attributes that influence the evaluation of travel dining experience: When east meets west. Tourism Management, 32(2), 307-316.

Correia, A., Moital, M., Da Costa, C. F., & Peres, R. (2008). The determinants of gastronomic tourists’ satisfaction: A second-order factor analysis. Journal of Foodservice, 19(3), 164-176.

Getz, D., & Robinson, R. N. S. (2014). Foodies and food events. Scandinavian Journal of Hospitality and

Tourism, 14(3), 315-330.

Kim, S. S., Agrusa, J., & Chon, K. (2014). The influence of a TV drama on visitors’ perception: A cross-cultural study. Journal of Travel & Tourism Marketing, 31(4), 536-562.

Kivela, J., & Crotts, J. C. (2009). Understanding travelers’ experiences of gastronomy through etymology and narration. Journal of Hospitality & Tourism Research, 33(2), 161-192.

Mkono, M., Markwell, K., & Wilson, E. (2013). Applying Quan and Wang’s structural model of the tourist experience: A Zimbabwean ethnography of food tourism. Tourism Management Perspectives, 5(0), 68-74.

Plummer, R., Telfer, D., Hashimoto, A., & Summers, R. (2005). Beer tourism in Canada along the Waterloo–Wellington ale trail. Tourism Management, 26(3), 447-458.

Sam Kim is Director of Reseach for APacCHRIE and

Associate Professor at The Hong

Kong Polytechnic University.

R The Impact of Stereotyping and Social Modeling on Consumers’ Food Choices

Lisa Yixing Gao is a Student & Anna Mattila is Marriott

Professor of Lodging Management and

Professor-in-Charge Graduate Program

at The Pennsylvania State University.

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4 CHRIE Communiqué April 2017

Hospitality is often perceived as an applied field; that is, one that does not have its own theories. It is often described as worthy of study because of the unique characteristics of the field. Such characteristics include large firms that operate across extensive geographic areas, possibly having operations on multiple continents.

Such far-reaching operations result in units operating at a distance from headquarters where decisions are made.

Operations management theory has been used to describe the value chain and to develop efficiencies in operations. Gener-ally Accepted Accounting Principles for hotels and restaurants have been developed to handle the recordkeeping. Marketing principles are routinely applied in the sales and marketing activities to generate reservations (advance sales). Human resources practices are employed to attract, train, retain, and develop the large number of workers that are needed. Certainly, there is no hospitality theory necessary to describe any of this. It is the epitome of a business enterprise in action regardless of location, culture, language, or laws.

But if the business practices are well explained, what is dis-tinctive about human behavior in hospitality? What do we do as guests in a hotel or diners in a restaurant that is different from what we do at home? We are proposing an open discussion among hospitality scholars to explore the possibility of theory.

For example, is there something about how we choose to act when staying in a hotel at a distant place that is different from how we act within our own home and community? It is likely not about the business product (the hotel room). Those estab-lished business practices appear to be well explained by busi-ness economic theories. It is the difference in human behavior while in a hotel that may require study and explanation.

The observed patterns of human behavior regarding dining when it occurs in different venues also seems to distinctive. These venues include [1] in-home dining, [2] “eating out” in local community restaurants, and [3] dining while trav-eling. While at home, we are responsible for planning all meals, obtaining and storing food, provding cooking facili-ties and using them to prepare the food, consuming it, and then cleaning up afterward. When dining out in the local community, we only have to select the food and consume it. Our duties are lessened. The range of selections is broader. While traveling, we may feel more “food adventurous.” Do we indulge? Do we experiment?

The differences in dining locale and related behavior pres-ent the opportunity to consider a theory of dining. The ob-served differences in how people behave in a hotel room from how they behave in their own homes also presents an opportunity to explore a theory of lodging. Are we certain there is enough here to develop theories? We are not sure. But we believe the questions are worthy of dicsussion. Come join us in Baltimore at the ICHRIE summer conference where we will be hosting open theory discussion sessions.

Follow International CHRIE on:

Chris Roberts is Professor/Graduate Programs Director, DePaul University.

Linda Shea is Professor, University of Massachusetts-

Amherst.

R Exploring a Theory of Lodging and a Theory of Dining Behaviors

Many of you are on spring break as I write this column. It always amazes me how fast the spring semester goes by. We are now just four months away from the Annual ICHRIE Conference in Baltimore. It is time to start planning your conference. Many of you will have papers to present, or posters to show. Our congratulations to you on such an achievement. The Annual ICHRIE Conference has become the most important conference to attend for hospitality management professionals. Your CHRIE FutureFund™ has been very pleased to sponsor the four Best Paper Winners from the Graduate Research Conference to our Annual Conference in each of the past two years. These young professionals are the future of our academic field.

But, you also know CHRIE FutureFund™ has a goal every conference. We aim to raise funds to support the mission of the CHRIE FutureFund™, which has been to provide for the future of our association. We do provide support to the Graduate Conference Best Paper Winners, and we have supported other ICHRIE activities. In order to do this, we need your support at Annual Conference. Let’s start with the 50-50 Raffle. The winner walks away with half of the total accumulated. In recent years that win has averaged at least $800. That’s a great investment on $20 (which gives you 10 tickets for the drawing). It’s also a good investment on $10 (3 tickets), or $5 (1 ticket). Or perhaps racing gets your juices flowing. Well, we have the infamous Duck Race. Similar to the 50-50 Raffle, the winner walks away with half the total amount. There are only 175 ducks, and at $10 per duck, that means you could walk away with $875, again, a very good investment on your $10 purchase of a duck. And finally, our Silent Auction. If you are looking for a hotel stay, or nice bottle of wine, or restaurant meal, or other unique items, wander by our Silent Auction tables, and sign your name on an item. You could make one heck of a deal.

Please remember that your CHRIE FutureFund™ is about the future of ICHRIE and members whom you don’t know yet, since they may not even be born. I hope you will join with us this July in Baltimore for a fun-filled conference. Please plan on being part of the CHRIE FutureFund™ this year.

Bob Bosselman, Chair, CHRIE FutureFund™ Committee

Your CHRIE FutureFund™ is Coming to Baltimore

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CHRIE Communiqué 5April 2017

overinvestment and that firm value is negatively affected if franchising signals overinvestment whereas firm value increases if shareholders perceive franchising as a solution to underinvestment. However, a comprehensive examination of the determinants of franchising within the context of both franchising and corporate finance theoretical frameworks have received scant attention from researchers. Therefore, further research is necessary to better explain why and how choice of organizational forms create value in some firms and destruct value in others.

ReferencesDogru, T. (2017). Under- vs. over-investment: Hotel firms’ value around acquisitions. International Journal of Contemporary Hospitality Management, 29(8). Jensen, M. C. (1986). Agency costs of free cash flow, corpo rate finance, and takeovers. The American Economic Review, 76(2), 323-329.

Myers, S. C., & Majluf, N. S. (1984). Coporate financing and investment decision when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221.

R Organizational Structures and Hotel Firms’ Value, and Cash Management, Investments, and Financing Policies

Looking for a Unique Way to Reach This Year’s Conference Attendees?

Contact the ICHRIE office at 01 (804) 346-4800 or [email protected] for more information.

R SponsorshipsR Exhibit Booth

The hotel industry has idiosyncratic characteristics compared to other industries given the fact that it adopts franchising business model extensively

for investment and expansion with no or little capital investment. The following quote from Marriott’s management discussion and analysis of financial condition statements sums up the idiosyncratic characteristics of the hotel industry.

“Our emphasis on long-term management contracts and franchising tends to provide more stable earnings in periods of economic softness, while adding new hotels to our system generates growth, typically with little or no investment by the company…”

Yet, hotel firms also make investments that require substantial capital spending, such as development and acquisition of hotel properties and acquisitions. The complex nature of the hotel industry raises questions, such as why firms adopt the franchising business investment model and the extent to which organizational forms affect hotel firms’ value and cash management, investments, and financing policies. The extant franchising literature offers several theoretical explanations that partly answer these questions, and empirical studies provide little evidence supporting these theories. Both capital scarcity and agency theories of franchising provide explanations on determinants of franchising investment. However, empirical studies that examine these theories have certain methodological shortcomings. Furthermore, the determinants of franchising have only exclusively been studied within the context of franchising theories. However, analyzing the determinants of franchising solely based on organizational form choices within the context of franchising theories may be less than perfect.

Certain theories from the corporate finance literature can be adapted to contribute to the explanation of why firms expand through franchising. Specifically, there are two contrasting theories that can enhance our understanding of why firms adopt franchising. First, underinvestment theory postulates that firms face underinvestment problem due to financial constraints since they cannot undertake all value-increasing projects and hence franchising could be a solution to reduce underinvestment problem for hotel firms (Myers & Majluf, 1984). Second, while firms may adopt franchising due to financial constraints, they may also be exposed to empire building if CEOs seek private benefits. Most hotel firms make investments that require substantial capital spending in addition to franchising investments, and that CEOs of firms with free cash flows and unused borrowing powers could undertake negative net present value projects (Jensen, 1986). Franchising model generates immediate cash flows through a combination of franchising and royalty fees, which give CEOs extra leverage in terms of free cash flows (Dogru, 2017). Thus, managers of hotel firms with desires to build empires may adopt franchising to be able to make investments that benefit them but not necessarily the shareholders. In a recent study, Dogru (2017) showed that franchising could be due to both underinvestment and

Tarik Dogru is Assistant Professor at Boston University.

and insightful, including “The Impact of Stereotyping and Social Modeling on Consumers’ Food Choices” (by Lisa Gao), “Understanding the Relationship among Social Media Use, Resource Capacity, and Hotel Performance: The Case of Twitter Use by Hotels” (by Woohyuk Kim), and “What Does Financial Distress Imply For Employee Relations In Hospitality Companies?” (by Yinyoung Rhou).

I hope you will let us know what topics you would like addressed in future research themed editions. I look forward to hearing from you: [email protected].

Xiao—continued from page 1

R Bag InsertR Career Fair

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6 CHRIE Communiqué April 2017

R Understanding the relationship among social media use, resource capacity, and hotel performance: The case of twitter use by hotels

Although hotels have increasingly adopted social media (Twitter in particular), there has been little research into how the utilization of microblogging and social networking platforms increase performance in

the hospitality context. This study addresses two research questions: (1) the relationship between the use of social media by hotels and their financial performance, and (2) the relationship between a hotel’s resource capacity and its use of social media. In order to more clearly understand the effect of the use of this technology, the study uses two dimensions: electronic word-of-mouth (eWOM) and customer engagement. eWOM is the degree of potential virality of hotels’ messages in the Twitter sphere. Customer engagement represents the level of intercommunication between hotels and their customers.

The list of hotel parent companies in the U.S. was acquired from STR (Smith Travel Research). The two dimensions of the hotels’ Twitter use are calculated based on the data extracted from their user profiles and historical tweets, which are accessible through Twitter API (Application Programming Interface). For a practical purpose of this study, a social media index (SMI), which combines eWOM and the customer engagement score was used to determine the overall level of Twitter use by hotels.

For Question #1, the hotels were divided into two groups (high and low) in terms of SMI. The financial performance of the two groups was then compared. Question #2 addressed the relationship between hotels’ resource capacity and social media use. As social media use is an innovative business practice, resource capacity is expected to influence the adoption and use of social media by hotels. We utilized the hotel chain scales from STR to determine the hotels’ resource capacity. 129 hotels were divided into four groups (luxury, upscale, midsize, and economy). The analysis involved determining whether or not there was a statistically significant difference in the level of Twitter use by the four types of hotels.

There were two general findings. First, there was a positive association between the level of Twitter use and hotel performance. The results showed that those hotels influential in and engaging in the Twitter sphere experienced higher financial performance than those not so engaged. The implication is that hotels should increase their social media presence and use social media for marketing, customer relationship management, and advertising. Second, the hotels with greater resource capacity had more influential and engaging in the Twitter sphere than those with less resource capacity. In particular, hotels in the luxury, upscale and midsize chains were more active in Twitter use than economy hotels. Social media use appears to be associated with the level of firm resources. However, there was no

Woohyuk Kim is a Doctoral Student & Graduate Research Assistant at Kansas State University—

Manhattan.

statistical difference in the use of Twitter by luxury, upscale, and midsize hotels. This implies that social media utilization requires fewer resources than other technological initiatives (e.g., RFID technology, enterprise resource planning systems) in hospitality contexts. The study develops several implications for research and practice, and finally discusses the limitations of the current study.

International CHRIE would like to recognize

and thank our Premium Members

ACCOR • Ashford University • Bethune-Cookman University • Boston University • Bradley University • California State Polytechnic University, Pomona • California State University, East Bay • Cesar Ritz Colleges Switzerland • CETT-UB • Cphbusiness • Culinary Institute of America • Cyprus University of Technology • DePaul University • Drexel University • Dublin Institute of Technology • Dusit Thani College • Ecole Superieure Internationale de Savignac • Endicott College • ESDAI de la Universidad Panamericana • Fairleigh Dickinson University • Florida Atlantic University • Free University of Bolzano • Georgia State University • HAAGA-HELIA University of Applied Sciences • Hotel Management School—Stenden University • Hotelschool The Hague • Indiana University - Purdue University Fort Wayne • Indiana University of Pennsylvania • Institut Paul Bocuse • International University Of Applied Sciences Bad Honnef * Bonn • Iowa State University • James Madison University • Johnson & Wales University, Charlotte • Johnson & Wales University, Denver • Johnson & Wales University, North Miami • Johnson & Wales University, Providence • Kansas State University • Knowledge Matters • Lasell College • Lillebaelt Academy of Professional Higher Learning • Manchester Metropolitan University • Metropolitan State University of Denver • Michigan State University • Missouri State University • Monroe College • MSU - Management and Science University • National Kaohsiung University of Hospitality and Tourism • National University of Ireland, Galway • New Mexico State University • NHTV Breda University of Applied Sciences • Niagara University • Nova Southeastern University • Oklahoma State University • Oxford Brookes University • Purdue University, West Lafayette • Rochester Institute of Technology - Dubrovnik • Rochester Institute of Technology - Rochester • Roosevelt University • Ryerson University • San Diego State University • San Ignacio University • Saxion University of Applied Sciences • South Dakota State University • St. Cloud State University • Stockton University • Taylor’s University, Malaysia • Temple University • Texas Tech University • The Culinary Institute of America, Graystone • The Hong Kong Polytechnic University • The Pennsylvania State University • University College of Northern Denmark • University of Central Florida • University of Delaware • University of Hawaii at Manoa • University of Houston • University of Maryland Eastern Shore, Shady Grove • University of Massachusetts, Amherst • University Of Memphis • University of Missouri—Columbia • University of Nebraska-Lincoln • University of Nevada, Las Vegas • University of New Hampshire • University of New Orleans • University of South Carolina • University of Southern Mississippi • University of Surrey • Virginia Polytechnic Institute and State University • Virginia State University • Washington State University • Widener University • York College of Pennsylvania • Zeeland Institute of Business &

Technology • ZUYD Hogeschool

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CHRIE Communiqué 7April 2017

When starting out in research, the introduction to research methods texts are like recipe books- detailed scripts that help guide our way of thinking so that we may better understand the

world. And in every methods textbook, and every research paper, there is a specific order to the operations that, like a good recipe, will produce the desired outcome if followed. Since my very first methods class, I have been taught that you start with a research question and then, based on that question, you decide the appropriate method (Cooper & Schindler, 2011). Depending on what it is you want to know, you may explore an issue using qualitative methods or explain an issue using quantitative methods, generally speaking. Assuming you decide to explain an issue, you then choose the appropriate specific method: (Multiple) Analysis of Variance, (Multiple) Regression, Cluster Analysis, Path Analysis or Structural Equation Modeling, to name a few.

Enter the university setting and this principle, while delightful in our theoretical classes, goes down the drain faster than burnt soup at a 5-star restaurant. Because once on a tenure track, the new recipe for success is publish, lest we perish. And it seems that the recipe for publishing success is to use the most complex research method—not necessarily the one that answers the most interesting or useful question. It seems we covet Structural Equation Modeling (SEM) as Chefs covet Michelin Stars, and that if it is used even moderately well, SEM will more readily allow the author to obtain an acceptance letter in a highly ranked journal.

Perhaps the real issue is that we tend to view the methods as part of the ingredients and forget that they are simply our tools with which to create meaningful research. Take crème brulee. While you cook the base of crème brulee in the oven, that crunchy top is best created using a blow torch—a very powerful tool. But you wouldn’t take a blow torch to the base—that’s not what the recipe calls for. Just like you wouldn’t use SEM to answer every research question—because although it is a very powerful research tool, it is not what the question requires. And

Lisa Cain is Assistant Professor at Florida

International University.

R The Ingredients for Research

if order matters, as it does in a recipe, then the question must come first. Choosing the method before the question is like cooking the eggs for crème brulee before mixing in the vanilla, cream and sugar—it just doesn’t work. Perhaps it is time to revisit what is truly of import in our field and then help to explain those issues using whichever tool does the best job.

So, do we follow the research methods recipe card? Which should come first? Do we follow in the steps of scholars before us and assess what the most interesting questions are? And then use the method that best answers those questions? Or have we determined that the methods are the superior ingredient and that the questions should be formulated around the tools?

Just a little food for thought.

Reference:Cooper, D.R. & Schindler, P.S (2011). Business Research Methods (11th ed.). New York: McGraw-Hill.

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8 CHRIE Communiqué April 2017

A D VA N C E P R A I S E“Impressively establishes itself as an essential and in-formative guide for those in the hospitality, marketing, and advertising industries. The book expertly proves the LGBT sector to be an economic, political, and societal force that cannot be ignored. The authors have compiled thought-provoking data and smartly executed interviews with leaders in hospitality.

“This guide successfully serves as a concise and thorough guide to understanding the LGBT consumer/tourist, and offers advice flexible enough to be pertinent to all aspects of hospitality. The subject is handled with a brevity and perspicacity that makes it easy to navigate and utilize. Through compelling research and testimony, this handbook is a useful and effective guide for existing and newly established hospitality professionals to tap into LGBT tourism and hospitality.”

­—FOREWORD­REVIEWS

The Handbook of LGBT Tourism and Hospitality: A Guide for Business Practice includes interviews with nearly a hundred industry experts and analyzes multiple emerging trends among LGBT travelers. It offers an easy-to-read, practical, and relevant guide-book with a simple goal: to help marketing profes- sionals, business owners, tourism and hospitality professionals, students, and trainees compete in the increasingly competitive global LGBT travel and hospitality industry.

C O N T E N T S

1. The Foundations of LGBT Tourism and Hospitality

2. Business Essentials: Understanding the LGBT Travel Market

3. Business Opportunities

4. Marketing Your Business

5. The Global View: Opportunities and Challenges

6. Trends and Industry Resources

Index

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CHRIE Communiqué 9April 2017

TransitionsSend news about ICHRIE member marriages, births, deaths, promotions and any other of

life’s transitions to [email protected].

In line with stakeholder theory (Donaldson & Preston, 1995), the utility of a favorable relationship with stakeholders becomes important. Although who become legitimate stakeholders may vary by firms, employees represent one of the key stakeholder groups of any firm (Rupp

et al., 2006). Therefore, employee relations should be of particular importance. The efforts to build a good relationship with employees can be made with financial slack (Waddock & Graves, 1997). That being said, employee relations can be worsened by financial distress, which indicates a condition where a company’s financial obligations to its creditors are not met or met with difficulties (Wu et al., 2008). For example, financial distress may lead firms to not act beneficially towards employees because the firms could have strong motivations to increase cash flows and avoid immediate bankruptcy by cutting employee benefits. In addition, financially distressed firms may act even harmfully towards employees as the firms are more likely to execute mass layoffs or frequent downsizing and the like.

Notably, the hospitality industry is characterized by high sensitivity to economic conditions and higher level of debt as well as fixed assets (Singal, 2012; Singal, 2015), all of which are likely to increase financial distress. That may explain why hospitality companies are often characterized by poor working conditions, such as minimum wage and suffering, long and irregular working hours, and high levels of job insecurity (Lee et al., 2015). Based on the logic, we examine if and how financial distress influences employee relations. Specifically, we compare the results between hospitality and non-hospitality companies given the high likelihood of having financial distress but the importance of employees in hospitality companies where employees have more interactions with customer, thereby determining perceived quality of the product.

Our findings reveal that both hospitality and non-hospitality (retail) companies tend to build a better relationship with employees as their financial condition gets healthier, but the impact appears less salient in hospitality companies, suggesting poorer working conditions in hospitality companies than in retail companies under the same financial distress. The results therefore support the slack resource theory in employee relations, but we also find industry differences. Given the importance of employees in hospitality companies, many researchers have studied what makes companies become the best companies to work for (e.g., Hinkin & Tracey, 2010); however, we find corporate distress as a possible determinant to make the companies cut down such efforts. Practically, results of this study can be used for employees as a yardstick to measure how they will be treated by the company that they work for.

R What Does Financial Distress Imply for Employee Relations in Hospitality Companies?

Yinyoung Rhou is affiliated with

Virginia Tech. Yoon Koh is affiliated with

University of Houston. Manisha Singal is

affiliated with Virginia Tech.

References Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65-91.

Hinkin, T. R., & Tracey, J. B. (2010). What makes it so great? An analysis of human resources practices among Fortune’s best companies to work for. Cornell Hospitality Quarterly, 51(2), 158-170.

Lee, J. S., Back, K. J., & Chan, E. S. (2015). Quality of work life and job satisfaction among frontline hotel employees: A self-determination and need satisfaction theory approach. International Journal of Contemporary Hospitality Management, 27(5), 768-789.

Rupp, D. E., Ganapathi, J., Aguilera, R. V., & Williams, C. A. (2006). Employee reactions to corporate social responsibility: An organizational justice framework. Journal of Organizational Behavior, 27(4), 537-543.

Singal, M. (2012). Effect of consumer sentiment on hospitality expenditures and stock returns. International Journal of Hospitality Management, 31(2), 511-521.

Singal, M. (2015). How is the hospitality and tourism industry different? An empirical test of some structural characteristics. International Journal of Hospitality Management, 47, 116-119.

Waddock, S. A., & Graves, S. B. (1997). The corporate social performance-financial performance link. Strategic Management Journal, 303-319.

Wu, D. D., Liang, L., & Yang, Z. (2008). Analyzing the financial distress of Chinese public companies using probabilistic neural networks and multivariate discriminate analysis. Socio-Economic Planning Sciences, 42(3), 206-220.

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10 CHRIE Communiqué April 2017

VACANCY ANNOUNCEMENT AND POSITION DESCRIPTION for EDITOR(S)

Journal of Hospitality & Tourism Cases

Position start date: January 1st 2018(updated March 2017)

Applications are invited for the position of Executive Editor(s) of the Journal of Hospitality &Tourism Cases (JHTC), one of the prominent ICHRIE academic journal publications. JHTC, along with ICHRIE’s other publications (i.e., The Journal of Hospitality and Tourism Research, Journal of Hospitality and Tourism Education, and ICHRIE Research Reports), is one of the “essences” of the organization.

Therefore, the position of the Executive Editor for JHTC is a prestigious and honored position recognizing an individual’s proven abilities and his/her knowledge in the hospitality/tourism field, while it also carries with it much responsibility for fulfillment of an important part of ICHRIE’s obligations to ICHRIE’s membership. Given the enormous administrative and academic work of the Executive Editor, we will also consider joint appointments.

The Executive Editor(s) will be expected to promote JHTC in their geographical area and around the globe and to seek paper submissions from academics domestically and internationally. The overarching goal is to enhance the reputation and standing of JHTC as the premier publishing outlet of high quality research on educational experiences, pedagogies and trends/issues conducted in various countries related to hospitality and tourism, while also providing the opportunity for researchers around the world to promote, disseminate, share, and co-learn from others’ experiences.

The Executive Editor(s) of the Journal of Hospitality & Tourism Cases has the overall responsibility to:

• Establish editorial policy and vision for the journal within the ICHRIE guidelines;

• Encourage and solicit the submission of rel-evant, original, high quality manuscripts from an international audience;

• Coordinate conscientious and expeditious peer reviews of each submitted manuscript;

• Select meritorious manuscripts for publication;• Coordinate publication activities and scope of

materials utilized with editors of other

Call for Editor(s)—JHTC

ICHRIE publications;• Work with the ICHRIE publications staff to as-

sure timely and professionally packaged issues of the journal;

• Promote JHTC at international conferences, other academic events and publications;

• Collaborate and work with the Research Com-mittee for drafting and executing a long-term strategy for JHTC aiming to further enhance its impact factor, international presence and ap-peal as well as its ranking in academic journal lists.

The ICHRIE Board of Directors appoints the Editor(s) for the Journal of Hospitality & Tourism Cases for a four-year term, with an additional year to help transition the new Editors. The Editor(s) may reapply to the new Call for Editors, and the application would be evaluated as a new entry along with others in the pool.

The appointment will begin on January 1st 2018, although new Editors will work with current Editors beginning August 2017 to insure a smooth transition. Within the ICHRIE organizational structure, the Editor(s) reports to the Director of Research and is expected to attend all meetings of the Research Committee. In addition, the Editor(s) makes frequent reports to the ICHRIE leadership and members on the status of the journal, works closely with the ICHRIE publications staff, and selects and oversees an editorial review board and a group of ad hoc reviewers to assure timely and conscientious reviews of submitted materials. There is no remuneration from any source associated with this position, as is the case with all other ICHRIE leadership positions. Costs in time and resources incurred by the Editor(s) must be borne by the individual and/or his/her institution.

To successfully fulfill these responsibilities, persons selected for Editor(s) positions should meet the following minimum qualifications:

• Must be a member of ICHRIE.• Must possess adequate review and editorial ex-

perience.• Should be committed to the mission and goals

of ICHRIE and the role and function of the par-ticular publication within the overall array of ICHRIE publications.

• Should be able to make the time commitment that will be required. It is estimated that an

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CHRIE Communiqué 11April 2017

editor will spend approximately 10 hours per week on his/her editorial work.

• An individual who is an administrator should discuss his/her time commitments to his/her department, college, or university with the Research Committee chair relative to the de-manding time commitments of an ICHRIE pub-lications editor position.

• Should represent an institution committed to providing appropriate support for the editor. That support should include, but may not be limited to:• Work load allowances to allow the individ-

ual the time required as indicated above;• Usual costs for long distance phone calls,

faxes, postage fees, and duplication.• Access to e-mail is required; and• Travel costs to support the individual’s

attendance at meetings of the Research Committee, and the annual conference of ICHRIE. The individual’s participation in these events is essential to enable him/her to interface with ICHRIE members who are writers and reviewers as well as to interact with members of the Research Committee.

In addition to the above criteria, the following are other factors that may impact on the ability of an individual to function in an editorial capacity for ICHRIE:

• The Editor(s) of the Journal of Hospitality & Tourism Cases should be well grounded in the total perspective of the hospitality and tourism industries and current research and industry trends. A global perspective, familiarity with the “total picture” of the industry, and general experience with writing for the publication of research papers, articles, or textbooks is seen as a good background for this position.

• The Editor(s) must have good writing skills and a strong background in grammar and the struc-ture of written materials.

• The Editor(s) should be a supportive individual who is able to relate well with members from all types of backgrounds. The editor(s) should be able to provide positive, constructive feed-back to writers, and encourage ICHRIE mem-bers to develop their writing and publication skills.

• The Editor(s) could hold a faculty and/or ad-ministrative position in either a four-year or a

two-year school.• The Editor(s) should have a high degree of or-

ganizational ability and be able to manage the flow of publications in a timely, efficient man-ner.

• The Editor(s) should understand the impor-tance of publication deadlines and work closely with the ICHRIE office to meet the established publications calendar.

• The Editor(s) should understand the impor-tance of following the policies and guidelines of ICHRIE and the ICHRIE Research Committee in the management of the publication and of adherence to those guidelines in his/her ac-tions as the editor.

• The Editor(s) should have a knowledge and un-derstanding of the current publication trends and challenges (such as open access to re-search, journal rankings, impact factors etc.) and be able to identify and execute strategies for JHTC to address the above mentioned.

• For joint editorship, the Editors should be complementarity (in terms of geographical ar-eas, academic disciplines and interests).

Persons interested in applying for the position of Editor(s) for the Journal of Hospitality & Tourism Cases should submit their application via mail or email to:

Dr. Qu XiaoSchool of Hotel & Tourism ManagementThe Hong Kong Polytechnic University17 Science Museum RoadKowloon, Hong KongTelephone: (+852) 3400 2266 | Email: [email protected]

Applicants should include the following in the application packet:

• Curriculum vitae.• Statement of interest in the editor position and

vision for the continued development of the Journal of Hospitality & Tourism Cases.

• Separate statement discussing time availability and the anticipated institutional support.

• Letter of support from the appropriate administrator.

The deadline for applications to be received is May 10, 2017.

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12 CHRIE Communiqué April 2017

International CHRIE2810 North Parham Rd., Suite 230Richmond, Virginia USA 23294

It’s Time to Register for the 2017 ICHRIE Summer Conference!

Registration Information: https://www.chrie.org/i4a/pages/index.cfm?pageid=3358