Abstract
This paper examines the choice of affiliation or no affiliation to a large hotel chain from the viewpoint of luxury
hotel property owners in Germany. Grounded in transaction cost theory, this study identifies how uncertainty
and frequency influence the owners’ choice of unaffiliated operation and affiliation. The study augments the
traditional governance literature in the field of the hotel by shedding light on the market/hierarchy decision of
property owners rather than on the market entry strategies of international hotels firm. Through a multiple
regression analysis on a sample of 122 existing five-star hotels in Germany, this study provides new empirical
evidence that a frequent contract conclusion with the same hotel chain and a “hotel unrelated” background of
the owner increases the likelihood of affiliation. In contrast to what transaction cost theory traditionally
predicts, our results reveal that uncertainty is not influencing the owners’ market/hierarchy decision.
Lingua originale | English |
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pagine (da-a) | 1-16 |
Numero di pagine | 16 |
Rivista | TOURISM & HOSPITALITY RESEARCH |
DOI | |
Stato di pubblicazione | Pubblicato - 2019 |
Keywords
- Germany
- affiliation
- transaction costs