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The moderating effect of operator type: the impact of information technology (IT) expenditures on hotels’ operating performance

The moderating effect of operator type: the impact of information technology (IT) expenditures on... This study aims to examine how operator type moderates the relationship between hotel information technology (IT) expenditures and operating performance.Design/methodology/approachBy adapting and extending O’Neill et al.’s (2008) and Hua et al.’s (2015) research, this study constructed an empirical model and tested proposed hypotheses, with Newey and West (1994) errors computed to accommodate potential heteroscedasticity and autocorrelation issues.FindingsOperator type moderates the impact of hotel IT expenditures on operating performance. In particular, it appears that the operator type of franchising exerts a stronger moderating effect compared with other operator types explored.Practical implicationsThis study, as the first of its kind, shows that the choice of operator type shapes how a hotel can effectively use IT expenditures to improve operating performance. This finding can be beneficial for hotel owners when making operator type decisions. In addition, operator type moderates the direct impact of IT expenditures on revenues and gross operating income. This study’s results show that franchised hotels seem to use IT expenditures more effectively compared with independently owned hotels.Originality/valueThis study contributes both theoretically and practically to understand how operator type moderates the relationship between IT expenditures and hotel performance. The research outcome provides a more holistic view that governs the relationships between IT expenditures, operator type and operating performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Contemporary Hospitality Management Emerald Publishing

The moderating effect of operator type: the impact of information technology (IT) expenditures on hotels’ operating performance

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References (90)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0959-6119
DOI
10.1108/ijchm-09-2019-0753
Publisher site
See Article on Publisher Site

Abstract

This study aims to examine how operator type moderates the relationship between hotel information technology (IT) expenditures and operating performance.Design/methodology/approachBy adapting and extending O’Neill et al.’s (2008) and Hua et al.’s (2015) research, this study constructed an empirical model and tested proposed hypotheses, with Newey and West (1994) errors computed to accommodate potential heteroscedasticity and autocorrelation issues.FindingsOperator type moderates the impact of hotel IT expenditures on operating performance. In particular, it appears that the operator type of franchising exerts a stronger moderating effect compared with other operator types explored.Practical implicationsThis study, as the first of its kind, shows that the choice of operator type shapes how a hotel can effectively use IT expenditures to improve operating performance. This finding can be beneficial for hotel owners when making operator type decisions. In addition, operator type moderates the direct impact of IT expenditures on revenues and gross operating income. This study’s results show that franchised hotels seem to use IT expenditures more effectively compared with independently owned hotels.Originality/valueThis study contributes both theoretically and practically to understand how operator type moderates the relationship between IT expenditures and hotel performance. The research outcome provides a more holistic view that governs the relationships between IT expenditures, operator type and operating performance.

Journal

International Journal of Contemporary Hospitality ManagementEmerald Publishing

Published: Aug 4, 2020

Keywords: Operating performance; Franchise; Independently owned hotel; IT expenditures; Management companies; Operator type

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