A Dyadic Perspective on Determinants of Entry Choices in the Global Hospitality Industry

Yang Kun and Buschman John D.
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Yang Kun: College of Business Administration, Central Michigan University, USA
Buschman John D.: Chaplin School of Hospitality and Tourism Management, Florida International University, USA

International Journal of Management and Economics, 2017, vol. 53, issue 4, 77-92

Abstract: This paper discusses the firm-level determinants of international hotels’ foreign markets entry choices, contrasting acquisition with management and franchise contracts, based on a resource-dependency perspective and appropriability theory. It points out that brand equity, relatedness of products and market segmentation, partner-specific knowledge of hotels, international experience, and the duration of proprietary knowledge impact hotels’ decisions on how to enter a foreign market. In addition, the paper suggests the existence of entry choices sequence favorable to acquisition probability after the end of management contract when the franchisors’ or management companies’ proprietary knowledge attenuates. Contract activity is likely to be renewed after the acquisition, once the management company has established a new form or a higher level of proprietary knowledge.

Keywords: cross-border acquisition; contract; hotel; entry strategy (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ijomae:v:53:y:2017:i:4:p:77-92:n:6

DOI: 10.1515/ijme-2017-0027

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