•While the sharing economy is hugely popular among entrepreneurs and consumers because of its lower costs and transaction fees, critics have begun to question the price advantage of the sharing ...economy following Uber’s sudden revenue loss. However, Airbnb’s triumphs in 2016 suggested that the sharing economy does not translate to a cheaper provision of goods or services. A factor beyond pricing advantages must be examined. In service management and marketing theories, the sharing economy is represented by service providers who offer an innovative experience for consumers. This service experience is co-created through the interactions of suppliers and consumers. This value co-creation echoes the concept of collaborative consumption. Therefore, this study broadens the scope of study on sharing economy and crafts the relations among value co-creation, customer experience, and pricing under the umbrella of the sharing economy business model.•Specifically, this study investigates the role of value co-creation in sharing economy with an examination of consumers’ willingness to pay premium prices. The objectives are (1) to determine the values that customers perceive through co-creation activities in a sharing economy and (2) to assess the various impacts of the co-created values on consumers’ willingness to pay (WTP) a premium price for the sharing economy experiences in pre-/mid-/post-consumption stages.•This study discussed the value co-creation activities in the sharing economy business patterns in three distinct service stages—pre-consumption, mid-consumption, and post-consumption. Further, this study examined and compared the co-created values across three consumption stages by using multi-group structural equation modeling technique. Due to the nascent nature of sharing economy and value co-creation, the study findings generated many theoretical and practical implications.
The growing phenomenon of the sharing economy facilitates collaborative production and consumption, which highlights the concept of value co-creation. The current study aims to investigate the role of value co-creation in a sharing economy with an examination of consumers’ willingness to pay a premium price. Three types of functional, social, and emotional co-created values were explored through an online survey that focused on the pre-consumption, mid-consumption, and post-consumption stages. Four hundred and ninety-nine valid surveys were collected. The results showed that activities that involve functional and social values in the pre-consumption stage are stimulators of paying a premium price. In the mid-consumption stage, emotional value is also important for customers. However, in the post-consumption stage, only social-value-based activities are associated with willingness to pay a premium price.
The purpose of this study is to examine the financial and operational factors that explain acquisition decisions in restaurant firms. We analyze the effects of franchising, dividends, leverage, ...Tobin’s Q, total assets, sales growth, and cash flows on restaurant firms’ acquisition decisions. The findings show that firms with high growth prospects and excess cash flows (i.e. small firms and franchising restaurant firms) are more likely to make acquisitions than their counterparts. Furthermore, firms with higher dividend payouts are less likely to engage in acquisition deals due to lack of cash. Shareholders perceive acquisitions to be value-decreasing only if large restaurant firms (not necessarily franchising) make acquisitions, while shareholders perceive acquisitions to be value-increasing when franchising firms make acquisitions. The findings provide partial support for the postulations of overinvestment and underinvestment theories. Theoretical and practical implications are discussed.
Purpose
– This paper aims to seek answers to a primary question: “How much do divergent leverage factors account for fluctuations in time-varying financial leverage in leading hospitality sub-sectors ...decomposed by four exclusive sub-portfolios?” In the path of seeking answers, this paper investigated the effects of both firm-specific and macroeconomic indicators to firms’ varying financial leverage in those primary sub-sectors overtime.
Design/methodology/approach
– In each sub-sector portfolios, firms were sorted based on market-to-book values (Mktbk
it
) with median breakpoint percentiles. For hypothesis testing, this paper constructed panel regression models with firm fixed-effects to layout fluctuant financial leverage phenomenon engaged with a set of 11 leverage factors in each Mktbk
it
sorted sub-sector portfolios.
Findings
– Results exhibited assorted evidences. The bottom line was: firms with different market capitalization rates in each portfolio acted differently in regard to the magnitude of financial leverage across time.
Research limitations/implications
– The final sample of 415 firms in four sub-sector portfolios sufficiently embraced financial leverage composition in the hospitality industry across time. However, by reason of lack of data in the other intra-hospitality industries, such as gaming and/or cruise lines, findings did not represent the firms operated in those sub-industries.
Originality/value
– This paper departed from the established context of the previous literature in the manner that it expects to add to the literature by demonstrating the core drivers causing the deviations in financial structure in four exclusive, hospitality industry sub-sector portfolios with varying leverage proxies overtime.
Purpose
This study aims to critically review the emerging technological developments and digitalization efforts in the hospitality and tourism (HT) industry and discuss the implications of ...digitalization on various stakeholders (e.g. consumers, employees, companies and operators) with reference to value creation.
Design/methodology/approach
This paper is a conceptual, critical reflection paper. Thus, the study reflects the authors’ assessment and reflection of the current digitalization efforts in the HT industry with a particular interest in value creation.
Findings
The study suggests that digitalization is still in its infancy state in terms of adoption and value creation in the HT industry. Yet, there are various opportunities for all stakeholders to benefit from existing and emerging digitalization applications.
Practical implications
This study can be used by industry professionals and scholarly researchers as a reflection of past and current digitalization efforts in the HT industry. Moreover, the study offers directions regarding the future digitalization movement in the HT industry and how such a movement might create important value propositions for various stakeholders.
Originality/value
The study is uniquely positioned as a critical reflection paper on the digitalization effort of the HT industry and offers new practical insights regarding how digitalization could create value for industry stakeholders as it finds more application areas. In this regard, it differs from prior review studies that focused solely on the use of new and emerging technologies in HT operations.
•This study employed a breakeven (BC) analysis to examine the pandemic's opportunity cost and the financial resilience efforts that SLEs should undertake to bounce back or bounce forward.•This study ...analyzes the financial impact of the COVID-19 pandemic on SLEs and draws an authentic and rigorous outlook in terms of the SLEs financial and operational performance.•One of the most striking results is that all four small hotel subgroups enjoyed a relatively high ADR.•The relatively high ADR suggests that this small hotel category engages with a price inelastic customers' niche, enjoying the intimacy of an ecosystem's exclusivity in such a hotel environment.
The COVID-19 pandemic foiled the hospitality industry offering no clear insight as to what to expect regarding the emergence of possible new industry standards as likely corollaries of the pandemic. The accommodation sector is one of the most affected sectors in the hospitality industry, especially small lodging establishments incurring the most dramatic brunt of the pandemic’s long-tail effects. This study employed a breakeven (BC) analysis to examine the pandemic's opportunity cost and the financial resilience efforts that SLEs should undertake to bounce back or bounce forward. The case study centers on the Superior Small Lodgings (SSL) of Florida, USA. The results suggest that the opportunity cost varies depending on the SLE profiles, and hence resilience approaches should consider heterogeneous business responses.
Purpose
This paper aims to examine consumers’ adoption of mobile technology to facilitate their banking services and activities, and to investigate the factors influencing their adoption and ...engagement.
Design/methodology/approach
An online survey is used to test proposed relationships between factors and consumers’ mobile banking adoption. Structural equation modeling is performed to analyze consumers’ intentions toward mobile banking.
Findings
Traditional technology acceptance model factors – perceived usefulness and perceived ease of use – are identified as effective factors in influencing consumers to adopt mobile technology for facilitating banking services. Moreover, technology safety concerns, including reliability and privacy factors, are found to play an important role in motivating consumers to embrace mobile banking. The “fun” feature of the technology and consumers’ innovativeness characteristics are considered important in influencing mobile banking adoption. Trust in the banks has its predominant role in mobile technology adoption for banking services.
Practical implications
A bank gaining trust from its clients is key to active adoption of mobile banking technology. Bankers are advised to pay more attention to reliability and privacy features when designing and promoting mobile banking technology to consumers. Moreover, advertisements to bank clients should stress the “fun” aspects of the mobile banking apps to attract them to the use of mobile banking technology.
Originality/value
This paper investigates the factors influencing bank consumers to adopting mobile banking apps to facilitate their banking services. Nine key factors in the technology adoption area are examined to provide a comprehensive understanding of bank clients’ use of mobile banking apps, which advances the understanding of mobile technology applied in the banking industry in the literature.
•We aim to extend and advance the approach of previous methodologies by using the six corporate governance provisions.•We contend that neither a single provision nor the adoption of all governance ...provisions is sufficient to hurt firms’ financial structure, operations, and performance.•We use set-theoretic methods such as a Qualitative Comparative Analysis (QCA), which focuses on cases (i.e., firms) instead of variables.•The presence of all six E-index provisions was attributable to poor performance in all solutions.•Restaurant companies should include poison pill in their governance provision structures as a key ingredient to achieve high financial performance and allow the presence of classified board provisions, since these two provisions emerged as core conditions in all three paths.
This study defends the view that the adoption of corporate governance provisions should not be seen as a detriment to firms’ financial performance. On the contrary, we contend that some combinations of corporate governance provisions may indeed lead to higher firm performance among U.S. restaurant firms. Using a set-theoretic method, such as the Qualitative Comparative Analysis (QCA), our findings revealed that there are three configurations of governance provisions that lead to superior financial performance. The presence of poison pills appeared as a core condition in all solutions. Negated analysis indicates that the inappropriate bundling of governance provisions leads to poor firm performance.
We present new stylized facts on the underlying reasons of US hospitality and tourism firms’ fluctuating levels of financial leverage during the period 1990–2015 using comprehensive micro- and ...macro-level accounting data overtime. To characterize this puzzling phenomenon, we quantified firm-specific and macroeconomic parameters and a diverse set of leverage proxies at various time frames with various structures. We further took account of the recent economic upheaval in our analyses so that we can compare firms’ leverage behavior as “before” and “after” the major economic turmoil in 2007–2009 periods. The primary themes of our arguments were that firm-specific leverage factors significantly influenced short-term leverage, while long-term leverage was mostly determined by macroeconomic indicators. Beyond that, book leverage was more favorable across firms than market leverage. Last, hospitality and tourism firms substantially extended their borrowing capacities, aggressively grew their leverage ratios, and dramatically increased collateral values leading to lower cost of borrowing due to relaxed lending standards in the aftermath of the recent upheaval. Our article complements previous work by examining whether leverage factors demonstrate discrepancies from the prior findings and by proposing rigorous industry-specific outlook and solution for the financial leverage literature.
Purpose The present research sought to analyze the effects of customer delight on both internal and external financial structures of publicly traded, service firms. Design/methodology/approach ...Primary (i.e. survey) and secondary (i.e. financial records) data sources were gathered. A total of 685 participants responded to one questionnaire focusing on hotels and another one focused on restaurants, both of which measured levels of customer delight and satisfaction. Financial data were gathered from Center for Research in Security Prices, CRSP/COMPUSTAT. Findings Results of MANOVA revealed that there was a significant difference in the net profit margin (NPM) based on customer delight. Canonical correlation results exposed a significant correlation between satisfaction and delight combined and the financial performance measures (net profit margin, cash flow margin, return on assets and b-beta) combined. Practical implications By delighting their customers, managers will achieve higher profit margins. However, these are not likely to result in improved cash flow margin or return on assets. The effects of COVID-19 can alter yearly returns; thus, longitudinal research is needed to continue testing for the effects on delight on financial performance. Originality/value The relationship between delight and financial measures had not been previously determined (notwithstanding a few studies using substitute measures for financial performance). The present study uses actual data from the financial filings to empirically test their relationship to customer delight.
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