The Strategic Performance Measurement System and Organisational Performance Through the Lenses of Contextual Factors: Empirical Evidence from the Hotel Industry

Alphun Cihan (), Turker Nuray and Sainaghi Ruggero
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Alphun Cihan: Faculty of Tourism, University of Kyrenia, Kyrenia, North Cyprus via Mersin 10, Turkey
Turker Nuray: Safranbolu Faculty of Tourism, Karabuk University, Karabuk, Turkey
Sainaghi Ruggero: Università IULM, Department of Business, Law, Economics, and Consumer Behaviour, Milan, Italy

European Journal of Tourism, Hospitality and Recreation, 2023, vol. 13, issue 1, 1-13

Abstract: The unprecedented effects of COVID-19 have been problematic for hotels. Therefore, implementing a performance measurement system (PMS) has become critical for hotel organisations. This study thus examined how the balanced scorecard (BSC) as a strategic PMS has a function in revealing hotel performance. Two contextual factors of hotels—external environmental uncertainty (EEU) and decentralised decision-making—were also investigated to understand their effects on the use of the BSC, which, in turn, determines hotel performance. A survey was conducted involving 145 four- and five-star hotels in Turkey. Partial least squares structural equation modelling was used to test the hypotheses. It was found that EEU is significantly related to decentralised decision-making but not to the BSC. Meanwhile, the BSC does not have an indirect effect on the relationship between EEU and hotel performance; however, it was found to act as a mediator between the decentralisation of decision-making and hotel performance. Finally, decentralised decision-making was found to act as a mediator between EEU and the BSC.

Keywords: Performance measurement system; COVID-19; balanced scorecard; external environmental uncertainty; decentralised decision-making; hotel performance (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ejothr:v:13:y:2023:i:1:p:1-13:n:8

DOI: 10.2478/ejthr-2023-0001

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