Summary of dessertation: The impact of organizational competences on their performance - The case of hotels in Lam Dong province

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Research Objective: Identify organizational competences of Lam Dong hotels; measuring the impact of these competences factors on the performance of Lam Dong hotels; suggested management implications, policy implications to support Lam Dong hotels to improve their competitiveness.

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Nội dung Text: Summary of dessertation: The impact of organizational competences on their performance - The case of hotels in Lam Dong province

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY -------------------------- BACH NGOC HOANG ANH THE IMPACT OF ORGANIZATIONAL COMPETENCES ON THEIR PERFORMANCE: THE CASE OF HOTELS IN LAM DONG PROVINCE MAJOR IN BUSINIESS ADMINISTRATION CODE: 62.34.01.02 SUMMARY OF DESSERTATION HCM CITY. AUGUST, 2018
The work was completed at: University of Economics Ho Chi Minh City Science Instructor: Vice Professor – Doctor. Phuoc Minh Hiep Doctor. Nguyen Van Dung Reviewer 1:............................................................................................................ ................................................................................................................................ Reviewer 2:............................................................................................................ ................................................................................................................................ Reviewer 3:............................................................................................................ ................................................................................................................................ The dissertation defense before review committee at school level will be hold at ...................................................................................................................................... ..................................................................................................................................... At ............................ More information can be found at library :.................................................................
CHAPTER 1: INTRODUCTION Intruduction The competitive advantage has been studied by scholars with many typical perspectives such as: the theory of resources-based view (Barney, 2001), the theory of competence-based view (Sanchez & ctg, 1996), the dynamic capabilities approach (Teece & ctg, 1997), dynamic resource-based view (Helfat & ctg, 2007), competence-based theory of the firm (Freiling, 2008) or the correlations between the relationship of resources, capabilities, and competing competencies of Hubbard et al. (2008). Overall, these theories suggest that the competitiveness of the firm is validated from management capabilities, integrative capabilities and the dynamics capabilities to adapt to turbulance changing market. In order to have a clearer view of the process of mangagement and resource integration that make the organization archive competitiveness, this thesis uses theories of total quality management (TQM ), market orientation and service climate to develop a theoretical model that explains the performance of firms. By reviewing previous studies, the thesis reveals that TQM, market orientation and service climate are important competences of the organization. As proposed by Tena et al. (2001), TQM is the ability to integrate and manage resources to create specific competences for the organization, thereby organizational performance is enhanced. According to Youseff's (1996) horizontal and vertical TQM integration framework, TQM will create unique capabilities that help organizations achieve their goals. These resources integrations have been investigated by Wang et al. (2012) in the research for the hotel industry in Taiwan, with result that TQM helps to promote market orientation and thereby enhance the performance of these firms. To further clarify how TQM integration in the organization can deliver competitiveness, this thesis will synthesize previous researches to build conceptal research model. Then, a quantitative research was conducted in Lam Dong Province for testing the conceptual model and hypotheses. The context for this research is the hotel industry in Lam Dong. Hotel restaurant service and tourism are considered the key economic sectors in Lam Dong province, especially in DaLat City. In order for the tourism industry to survive and develop, especially in the context of increasingly globalization and fierce competition, every tourism enterprise and service organization must find ways to gain competitiveness. It is essential to have a research on how these service organizations can afford competences that help them successful archive their bussiness goals. Therefore, the theme " The impact of organizational competences on their performance: The case of hotels in Lam Dong Province " was formed. Research Objective - Identify organizational competences of Lam Dong hotels. - Measuring the impact of these competences factors on the performance of Lam Dong hotels.
- Suggested management implications, policy implications to support Lam Dong hotels to improve their competitiveness. Subjects and scope of the research The subjects of the research are: organizatinal competences and organizational performance. The subjects of the survey are the CEO of hotels in the city of Dalat. The scope of space research will focus on all 1 to 5-star hotels in Da Lat City. The study period is divided into two phases. Preliminary research will be conducted from February 2016 to May 2016 and the formal research will be conducted from May 2016 to December 2016. Research methology This empirical research is using both qualitative and quantitative methods. The study was divided into two phases: preliminary research and formal research. Preliminary research includes preliminary qualitative research and preliminary qualitative research. Preliminary qualitative research was conducted using discussion techniques to explore, adjust, and supplement the scale of the research model. Preliminary qualitative research had been conducted by direct interviewing middle managers of some hotels in Da Lat through questionnaire to assess the scale reliability before formal study was implemented. The formal study was conducted using questionnaire survey method to understand the relationship between the four constructs: TQM, service climate, martket orientation and organizational performance. Data was analyszed through SPSS 22 and AMOS 21 softwares with the following steps: Scale Reliability Test, EFA Discovery Factor Analysis, CFA Assay Factor Analysis and test the theoretical model of the study using the SEM model. Significance of the research The research done will contribute to the generalization of the theory, giving a clearer view of the role of competences in the performance of the organization. This research also explains the gap of integrating TQM elements in the framework of Youseff (1996), demonstrates the role of TQM as operational philosophy, an ideology and also a precursor of the organization's competitiveness. The result of this study has demonstrated the view of Tena et al (2001) and consolidates the finding of Wang et al (2012) that TQM enhance organizational performance by promoting two mediating competences of the organization: the market orientation and service climate. Based on the quantitative results, the study also contributes some implications for managers of service organizations to develop long-term strategies for gaining sustainable competitiveness.
CHAPTER2: THEORY AND RESEARCH MODEL 2.1 Competitiveness Competitiveness of a firm is defined by it’s capatibility to stand its ground when it faces rivals (horizontal dimension) and validate itself in market processes (Scheneider, 1988). Maintaining competitiveness is essential for survival in a competitive market, and thus (current) survival is indicative of (current) competitiveness. The shift of explanandum from ‘‘competitive advantage’’ to ‘‘competitiveness’’ is compatible with the foundational concepts in competence-based theory (Freilling et al, 2008). In the RBV literature, capabilities have generally been defined as ‘‘repeatable patterns of action’’ that a firm can integrate, build, and reconfigure to create competences that enable it to perform value- adding activities. A firm’s overall competences are defined as its ability to sustain coordinated deployments of resources and capabilities in ways that help the firm achieve its goals (Hubbard et al, 2008). Organizational competences are varied and complex, but generally, they are made up of three main capabilities: the dynamics capabilitiy, management capabilitiy and integrated capability. The dynamics capability of organization has been stydied in form of market orientation (Kohli & Jaworski (1990), Narver & Slater (1990), Kotler & Amstrong (2012); It demonstrates the organizational capability to collect market information related to competitors and customers (Kohli & Jaworski, 1990) then analyze and take actions to adapt the changing environment (Hou, 2012). Management capabilitiy and integrated capability are expressed through the concept of Total Management Quality (TQM). Total quality management (TQM) is a widely recognized management philosophy, and has become the key slogan as organizations strive for advantage in markets (Wang et al, 2012). To better understand the process of shaping the competitive advantages for a firm, this study aim to build a conceptual model through integrating some organizational competences such as TQM, market orientation or service climate to explain for organizational performance. 2.2 Total Quality Management Powell (1995) and Savolainen (2000) used a resource base view and an ideological perspective to provide a solid theoretical foundation for TQM's role as a competence that can enhance the performance of the organization. TQM is a collection of tacit resources that serves as strategic resources and potential resources for the organization's sustainable competitive advantage. TQM is a resource that competitors can not imitate entirely because it allows the creation of an independent hidden mechanism that can prevent the copying of the opponent (Powell, 1995). According to Winter (1994), TQM can promote the development of a series of iterations of organizational behavior and result in a continuous process of self-learning and continuous improvement. The idea of quality firstly arises in the perception of management; then it’s gradually absorbed by employees through the actual organizational environment and ultimately becomes the value of the organization. Belén (2004) defines TQM in the service industry as comprising two components: TQM basic principles that refer to what the organization needs to do, and TQM practices that answer the question: how to apply these quality management principles into their operations? Thus, TQM can be applied openly through the issuance and commitment to the implementation of quality management principles that are standardized in the form of standards such as ISO (International Organization for Standardization) or EFQM excellence model (European
Foundation for Quality Management). In cases being publicly applied (mostly in large organizations), TQM often is studied in terms of TQM practices (Bou -Llusar & ctg, 2009). However, TQM can also be applied by small and medium organizations in the form of commitment to quality management principles (Belén, 2004). Thus, within the scope of this study, the author selects Belén's (2004) view to examine TQM as an organization's commitment to quality management principles, understanding of the importance of quality and readiness for decision making and implementation, based on the quality orientation. 2.3 Market orientation Market orientation is considered as a cultural perspective that focuses on organizational norms and values that encourage behaviors that are consistent with market orientation (Narver & Slater, 1990) or behavioral perspective that concentrates on organizational activities that are related to the generation and dissemination of and responsiveness to market intelligence (Kohli & Jaworski, 1990). Wang et al (2012) defined market orientation as a combination of some factor such as: generating, disseminating, sharing information, and responding appropriately to changing market needs to achieve organizational goals and satisfy customer needs and wants whilst simultaneously considering the interests of all company stakehold- ers. Adapting perspective of Kohli et al (1990), this research define market orientation as a series of market information management activities that include generation and disseminating information, shared information interpretation, organization responsiveness. According to Walker et al (2006), market-oriented companies are typical for success and maintain a strong competitive position in the market. Thus, market orientation is a unique competence that can create a value proposition for the company and provide competitiveness in a fierce business environment (Wang & ctg, 2012). 2.4 Service climate Schneider (1998) defined service climate as employee perceptions concerning the practices, procedures, and kind of behaviors that get supported, and rewarded in content of customer service and service quality. According to Johnson (1996), the service climate is an important part of the organizational culture involving employees sharing common perceptions of what is important and necessary for their organization. In many recent empirical studies, service climate has been proven to have significant impacts on: employee satisfaction (Way & ctg, 2010), employee commitment (Rogg & ctg, 2001), the employees performance (Chuang & Liao, 2010), service quality (Jong & ctg, 2005; Ehrhart & ctg, 2011), customer satisfaction and customer loyalty (Chuang, 2004; McKay & ctg, 2011; Raub & Liao, 2012). Given this importance, this research examines service climate as a oraganizational compentence and builts a conceptual model that explains for organizational performance. 2.5 Organizational performance According to Waal and Coevert (2007), organizational performance is a continuous process of achieving both financial and non-financial goals; develop skills, capacity of staff; improve customer service and quality processes. Because of the diversity of organizations
forms, each organizational performance is gathered from different sectors under different levels of importance. Thus, adapting of multi-oder construct scales is thought to be most appropriate for reaching the above concept most accurately (Belén, 2004). According to Reichel and Haber (2005), performance metrics of hotel should be consisted of both objective and perceptual estimate because of the intangible nature of service industry. Therefore, in order to limit the complexity in measuring the hotel performance while still ensuring the accuracy required, the measurement method of Belén (2004) was adapted in this research whereby organizational performance is examinated as and secon order construct consits of three components: customer result, employee result and key business result. 2.6 Conceptual model building Determinant of research gap The gap in this study is based on Youseff's TQM Framework (1996). Youseff (1994c) defines TQM as a general philosophy with the goal of achieving and surpassing the needs of internal and external customer by creating an organizational culture in which all employees, departments and leaders are committed to quality and understand clearly the strategically importance of quality. Youseff used IPO theory (Input, Process and Output) desmontrate TQM integtration in organization. Figure 2.1: Conceptual Model The vertical view of this framework implies that quality, as the existing TQM literature suggests, should be the business of everyone in the organization. At the top of the organizational hierarchy, top management must be committed to quality, set the vision of where the organization will be in the future, develop strategies that reflect this vision and most importantly be a role model to the rest of the organization in appreciation of the TQM philosophy. The horiziontal view of this framework adaption IPO theory implies the
transformation process from resources and inputs such as people, equipment, technology, materials to organizational outputs such as: product, service, quality, and stakeholder relationships through a transformation process. Wang et al (2012) had proven that the result of integration of supliers and customers into operation management was an organizational competence namely market orientation. Examination the horizontal of theoretical framework of Youseff (1996) has been successfully explored by Wang et al. (2012), however the vertical dimension of this framework is still a fuzzy issue that should be investigated. For the result of vertical TQM integration, we propose that it could be a positive culture or working enviroment such as service climate. Thus, to complement the research gap in integrating the theoretical framework of Yousell (1996) and Wang et al (2012), this thesis adds the concept of service climate to the modeling of the competitiveness of the organization. The conceptual theoretical framwork was depicted in figure 1. Research hypotheses Some studies have shown that TQM-enforcing organizations will achieve better competitiveness than non-applicants (Brah & ctg, 2002; Powell, 1995). Some evidence from empirical studies by Dow et al. (1999), Samson and Terziovski (1999) or Zhang (2000) also demonstrate the direct impact of TQM adoption to organizational performance. This study proposes that hotel adoption of TQM may improve hotel performance. Therefore: H1: TQM positively affects hotel performance. Many scholars have demonstrated good market orientation as a result of the effective application of TQM (Jackson, 1998; Yam & ctg, 2005; Santos & González, 2009) and it will impact organizational performance (Santos-Vijande & GCG, 2005; Menguc & Auh, 2006). Some key components of TQM such as employee commitment and leadership support, employee empowerment are also shown to influence the market orientation of the organization an empirical research by Jaworski and Kohli (1993). The positive impact of market orientation on business performance is also demonstrated by many scholars such as Grunet et al (2005), Li et al (2008), Zhou et al. (2005), Samat et al (2006). Therefore, to examine the mediating role of market orientation on the effect of TQM to organizational performance, this proposal proposes two research hypotheses: H2: TQM positively affects market oritentation of hotel. H3: Market orientation affects hotel performance. Salanova et al (2005) showed that some of the key components of TQM such as empowerment, training and technology supporting enhance service climate. The relationship between several other components of TQM and the service climate has also been demonstrated by many scholars: leadership (Salvaggio & ctg, 2007); training and learning (Rogg & ctg, 2001), managerial support (Ostroff & ctg, 2002), proposed service improvements (Merlo & GCT, 2001) and leader’s motivation (Lenka & ctg, 2010). Thus, the hypothesis is stated as follows:
H4: TQM positively affects service climate. Service climate is the result of the organization's business strategy and customer orientation, directly affecting the organization's performance, helping the organization achieve operational goals such as: Customer satisfaction, building long-term relationships with customers to enhance their loyalty (Berry & Parasuraman, 1991; Czepiel, 1990), building a professional working culture and employee commitment (He & ctg, 2011), followed by growth in service quality (Boshoff & Tait, 1996), revenue and profit (Farh & ctg, 1998). The service climate has also been shown by many scholars to have a direct impact on team performance (Way & ctg, 2010), financial results (Yavas & ctg, 2010), sales (Wang, 2009) and corporate income (Towler & GCG, 2011). From here, the final hypothesis is stated as follows: H5: Service climate positively affects hotel performance.
CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research process This empirical research is using both qualitative and quantitative methods. The study was divided into two phases: preliminary research and official research. Preliminary research includes preliminary qualitative research and preliminary qualitative research. Preliminary qualitative research was conducted using discussion techniques to explore, adjust, and supplement the scale of the research model. Preliminary qualitative research had been conducted by direct interviewing middle managers of some hotels in Da Lat through questionnaire to assess the scale reliability before official study was implemented. The official study was conducted using questionnaire survey method to understand the relationship between the four constructs: TQM, service climate, martket orientation and organizational performance. Data was analyszed through SPSS 22 and AMOS 21 software with the following steps: Scale Reliability Test, EFA Discovery Factor Analysis, and CFA Assay Factor Analysis. Test the theoretical model of the study using the SEM model. Figure 3.1: Research process
3.2 Research methods 3.2.1 Measurement All measurement items were adapted from prior studies although some terms were changed a little bit to accommodate the social media context. TQM scale was adapted from Grandzol (1998). Service climate measurements were adapted from Salanova (2005). Market orientation measurements were adapted from Wang et al (2012). All variables were measured on five-point Likert-style scales ranging from strongly disagree (1) to strongly agree (5). The questionnaire was first drafted in English and then translated into Vietnamese by two academic domain experts in business administration. Then, ten professionals in hotel management were interviewed for suggestions to validate the questionnaire. We also conducted a pre-test with 60 samples to check for reliability of scale and none item was dropped in this step. After that, the official study was launched. Appendix 1 contains the final pool of items. 3.2.2 Data collection Data of official research was collected from May 2016 to December 2016. During the data collection period, 300 hotel directors answered the online questionnaire. After removing those responses with excessive missing information, 256 valid survey responses were obtained. There are 30.4% of 1-star hotels, 32.4% of 2-stars hotels, 13.5% of 3-stars hotels and 7.5% of 4-5 stars hotels. Thus, more than 60% of the hotels surveyed were 1-2 stars. 3.2.3 Data analyses The reliability of the scale is evaluated through the coefficient of Cronbach Alpha and the corrected-item total correlation. The validity of the scale is evaluated through the exploratory factor analysis (EFA). Convergent validity measures the correlation between two observed variables used to measure the same construct and is expected when the estimated pattern coefficient on the under- lying construct factor of the estimated pattern of each coefficient is significant. Items that have factor loadings exceeding 0.45 are approval. Discriminate validity was assessed using the approach suggested by Fornell and Larcker (1981). In this study, AMOS version 21 was used to perform structural equation modeling on the data.Two-step approach was adopted to perform SEM analysis. First step involved identifying the fit of the measurement model through confirmatory factor analysis (CFA). In the second step, hypothesized relationships among constructs were tested using the structural model.
CHAPTER 4: RESEARCH RESULTS 4.1 Reliability of scale Every factor in the research model has the Cronbach's Alpha greater than 0.6; If any of the observed variables are dropped, the Alpha was decrease, and the coefficient correlation is greater than 0.3, so all observations are retained. The scale of shared interpretation is the lowest with Cronbach's Alpha 0.696 and the highest Cronbach's Alpha is 52.6% belongs to process management scale. Testing EFA all variable: The scale is accepted when the total variance is equal or greater than 50%. The EFA results show that there are sixteen factors of the model were extracted. The total variance was achieved at 60.1% (> 50%). The results show that the coefficients of sixteen official factors were achieved the coefficient above 0.5. Therefore, all the scale of the research model is achieved valuable convergence. 4.2 Confirm Factors Analysis The confirmatory factor analysis for the measurement models relied on AMOS 21 because it was deemed appropriate for assessing the theories during the early developmental stages (Fornell and Bookstein, 1981). Measurement model fit was assessed, and results reveal that the measurement model fit the data well as its fit indices met all their threshold values such as: Cmin/df = 1,253 (0,9); RMSEA = 0,031 (0,8) (Hair et al, 2010). Table 4.1: Realiability and convergent validity coefficients Construct CR AVE Indicators Loading Lead 0,645 Emfu 0,701 Learn 0,697 InCo 0,724 TQM 0,888 0,46 OutCo 0,756 Imp 0,607 Cusfo 0,686 Proma 0,598 Igene 0,879 Ishare 0,676 Market orientation 0,797 0,53 Idis 0,651 Oresp 0,684 Cresul 0,575 Organizational performance 0,748 0,446 Ereusl 0,69 Kresul 0,73 To validate the measurement model, convergent validity and discriminant validity were evaluated. To determine the convergent validity, composite reliability and average variance extracted (AVE) were calculated (Hair et al, 1998). In the studies involving AMOS analysis,
0.7 is the minimum recommended level of reliability (Chin. 1998) and 0.4 is the minimum acceptable level of the AVE (Fornell and Larcker, 1981). In this study, the composite reliabilities ranged from 0.748 to 0.888 and the AVE values were 0.446 to 0.53 exceeding the threshold values for satisfactory convergent validity (see Table 1). In addition, the factor loadings of the indicators are all above 0.6 and significant (p ≤ 0.01), ranging from 0.643 to 0.8671 which also reveals the presence of construct validity. Discriminant validity is acceptable based on the rule that square of correlation between any two distinct constructs is lower than AVE from these constructs (Fornell and Larcker, 1981). In Table 2, for each variable, the square root of the AVE value was larger than the correlation coefficient values with any other variable, thereby verifying the discriminant validity of this study. Table 4.2: Discriminate validity coefficients Correlation SE CR P-value Square correlation Sercli TQM 0,459 0,069 7,822 0,000 0,211 Sercli Perfo 0,51 0,067 7,317 0,000 0,26 MO Perfo 0,542 0,065 7,001 0,000 0,294 TQM Perfo 0,475 0,069 7,663 0,000 0,226 Sercli MO 0,427 0,07 8,14 0,000 0,182 TQM MO 0,603 0,062 6,392 0,000 0,364 4.3 Hypotheses testing: structural equation modeling Figure 4.1: Results for research model
The structure model is analyzed using structural equation modeling (SEM) conducted in AMOS 21. The results for the main effects are shown in Figure 4. The results suggest that hypothesized structural model appears to fit the date well: Cmin/df = 1,256 (0,9); CFI = 0,941 (>0,9); p = 0,000 (
that TQM would be the foundation of organizational competency, it integrates quality philosophy into all operating process, enhance service climate and market orientation, and result in performance increases. These three factors, with direct and indirect impacts, account for 39.2% of variation in performance. As a result, the research model has partly explained the hotel performance, and the rest will be determined by other factors such as the facilities and business location of the hotel, or elements of the government policies. CHAPTER 5: CONCLUSIONS AND IMPLICATIONS 5.1 Conclusion Result of measurement model In terms of research methodology, this research contributes to the characterization of the comprehensive quality management scale and organizational performance in the in Vietnam hotel industry. The subject has been in-depth, analyzing very specific results of the organization, expressed in second-oder structure reflected by three aspects: customer results, employee results and key business results. In addition, the measurement model shows that quality management is a secondary concept reflected in eight components: customer focus, internal co-operation, external co-operation, learning, process management, leadership, continuous improvement and employee fullfillment. The result of the measurement model again confirms that quality management is indeed a philosophy that can be integrated in all operational activities, so it can be applied by all large, medium or small businesses. These scales may be adapted by subsequent studies on the organizational performance or quality management of enterprises in Vietnam. Result testing of theoretical model In terms of academics, the author outlines the theories of competitiveness and exploits the relationship between the capabilities, resources and competence of the organization. By illustrating theories of total quality management, market orientation and service climate, the author has demonstrated that these three factors are the competing competences of enterprises. The theoretical model of the thesis added to the predictions of TQM's role in Tena et al. (2001), Youseff's (1996) vertical and horizontal integration TQM framework. Accordingly, the thesis has proved that the service climate and market-oriented is the result of commitment and integration of quality management into all aspects of the organization, thereby promoting organizational performance and help them create competitiveness. Quality management and orientation are ideologycal or operational philosophy or a profound competence that indirectly impacts performance by enhancing the organization's service climate and market orientation. 5.2 Implications In terms of practicality aspect, the results of the study are a reference for business managers in the hotel industry and for service organizations in general to recognize the importance of quality management. The service climate and market orientation are the basis competences for developing appropriate management strategies to help organizations achieve their goals. Firstly, in order to have a long-term and sustainable development goal, organizations need to have clear planning about their goals. This study shows that the organizational performance in the hotel industry is not merely measured by financial performance, revenue
or profit margins but it must also be evaluated by customer and employee results. According to this study’s results, three types of performance components will have different benefits. The employee results are the most basic, by developing a staff of skilled and wholeheartedly with the work, hotels could create valuable human resource that help them gain competitiveness. Especially in services industry, focusing on interaction and contact between customers and employees is a key factor in determining the quality of service organization. Followed that, customer results decide whether the organization has the satisfaction and loyalty of customers? Customer results will bring long term benefits such as loyalty, positive word of mounth or implus consumption behavior. Secondly, as a result of the research model, to enhance all three performance components as above, organizations may be interested in three types of competences: market orientation, service climate, and TQM. Each of these competences will have its own methods and strategies for improvement. The service climate is the foundation of engagement and commitment of employees in the workplace and it motivates employee performance and service quality. In order to build a service climate for the organization, the leader first needs to have an idea of the quality or quality oritentation. They need to be aware of the importance of quality, the nature of the service, and the ingenuity of the transmission these values to all employees through TQM integration tools such as: leadership, employee responsiveness, customer focus, internal collaboration, external collaboration, leadership-member exchange, service-oriented leadership. In order to enhance market orientation, organizations can adopt integrating TQM approaches such as process management, learning, continuous improvement, external collaboration, etc., to facilitate the process of information generation, dissemination and responsiveness. All sources of information from relevant parties could bring value and opportunity for organization, such as external market, government policy, information on the supply of the organization, customer demand, the status of staff activities ... When the information generation and dissemination quickly and in a timely manner, information processing and response will require a lot of organization from the leader and tight cooperation of staff at all levels. From there, the organization will be able to develop appropriate strategies and tactics to adapt to market changes and gain competitiveness. 5.3 Limitations and future scope Firstly, the scope of the study is rather geographycally limited. The study focused only on hotels in Dalat City, with the distribution among the different survey groups of hotel is uneven. Thus, the study was not able to perform a separate group analysis between small and medium-sized (1-3 stars) hotels and large large (4 and 5 stars) hotels to examine differences manitude of impacts of hotel competences on the performance. So, in the future, much larger research is needed, with large sample size and similar size groups to be able to clarify this issue. Secondly, the research model only accounted for 39.2% of the variation in organizational performance. Thus, besides three competences proposed in the theoretical model, there could be many other potential factors coud explain for organizational performance. Therefore, future research could add more antecedents and control variables to better explain this issue.
Lastly, because the service climate reflects the beliefs of all employees from every department in the organization, precise measurement of this factor requires feedback from all sides sush as: leaders, middle managers, employees, and customers. However, this thesis can only approach a single measurement angle, which is the response from top leaders. Therefore, further studies should approach the second order factor measurement with multiple responses from different sides to give the most accurate measurement of this theoretical concept. Appendix 1: Constructs and items Total Quality Management (Grandzol, 1998) Customer focus (Cusfo) 1 Our activities are centered on satisfying our customers. 2 Satisfying our customers, and meeting their expectations, is the most important thing we do. 3 Senior executives behave in ways that focus on the importance of customers. 4 We actively and regularly seek customer inputs to identify their needs and expectations. 5 We have an effective process for resolving customers’ complaints. Internal cooperation (InCoop) Managers, supervisors, and employees from different departments work independently to achieve 6 their own department’s goals. 7 In the hotel, teamwork is commonplace -the expected way of doing business. Employees are hesitant to voice their opinions, make suggestions, or inquire about any of the 8 actives of the hotel. 9 In the hotel, everyone participates in improving our products, services, and processes. External cooperation (OutCoop) Managers emphasize activities that lead to a lack of cooperation between our hotel and our 10 suppliers. 11 The hotel establishes good relations with the travel company. 12 The hotel establishes good relationships with local residents 13 The hotel establishes good relationships with competitors. Continuous improvement (Imp) Employees usually do not get an opportunity to suggest changes or modifications to existing 14 processes. The hotel encourages continual study and improvement of all its products, services and 15 processes. The hotel has received recent compliments and recognition for improving its 16 products/services/processes. Leadership: Lãnh đạo (Lead) 17 Senior executives share similar beliefs about the future direction of this organization. 18 Activities and investments that have long-term benefits receive little support from management. 19 Managers and supervisors rarely allow employees to take necessary action on their own. 20 Senior executives anticipate change and make plans to accommodate it. Employee fulfillment (Emfu) My work duties and responsibilities contribute little to satisfying my need to create quality 21 products/services. 22 I like my job because I’m doing what I want to do.
23 Employees in the hotel are dedicated to their jobs. 24 Employees are able to handle the situation and take responsibility themselves Learning (Learn) Managers and supervisors ensure that all employees receive training that helps them understand 25 how and why the hotel does what it does. 26 All employees in the hotel understand the basic processes used to create our products/services. 27 Many employees in the hotel possess sufficient knowledge about the basics of our industry Managers and supervisors participate in specialized training on how to conduct business, 28 whether dealing with employees or external customers. Process management: (Proma) 29 Preventing defective products/services from occurring is a strong attitude in the hotel. 30 The processes used in the hotel do not include in-process measures of quality. 31 The processes for designing new products/service in the hotel ensure quality. 32 Explaining the variation in processes is rarely used as an analysis technique in the hotel. 33 Managers and supervisors understand how to motivate and encourage employees 34 We strive to establish long-term relationships with suppliers. 35 We have clear, standardized and documented process instructions Service climate (Secli) (Salanova et al, 2005) Employees in our organization have knowledge of the job and the skills to deliver superior 36 quality work and service. 37 Employees receive recognition and rewards for the delivery of superior work and service. 38 The overall quality of service provided by our organization to customers is excellent. Employees are provided with tools, technology, and other resources to support the delivery of 39 quality work and service. Market orientation (MO) (Wang et al, 2012) Information generation (Igene) 40 We are fast to detect changes in our customers’ product preferences. 41 We are fast to detect fundamental shifts in our industry (e.g., competition, technology). 42 We quickly learn form our comptitors. Information dissemination (Idis) 43 When something important happens to major customers, the whole hotel knows about it shortly. 44 When one unit finds out something important about competitors, it is fast to alert other units. Shared interpretation (Ishare) 45 We develop a shared understanding in our hotel of the available market information. 46 We develop a shared understanding in our hotel of the implications of a marketing activity. Organization responsiveness (Oresp) 47 It takes us a short time to decide how to respond to our competitor’s price changes. 48 We are fast to respond to changes in our customer’s product or service needs. 49 If competitor launched a campaign to our customers, we implement response immediately. Organization performance (Perf) (Bou-Llusar et al, 2009) Customer result(Cresul) 50 Customer satisfaction has improved 51 Communication with customers has improved 52 Customer complaints have decreased
Employee result (Eresul) 54 Employees identify and provide solutions to work problems 55 Employees share organizational values 56 Employee turnover has decreased Key Results (Kresul) 57 Profit levels have improved 58 Supplier management has improved 59 Process efficiency has improved