Corporate governance, market orientation and performance of Iran’s upscale hotels

Abstract

Market orientation has been known as an efficient managerial tool to assist in sustaining the performance of organisations. Market orientation has three dimensions, namely customer orientation, competitor orientation and inter-function coordination. This paper evaluates how corporate governance influences the three dimensions of market orientation within Iran's upscale hotels. The impacts of the three dimensions of market orientation on the hotels' social and financial performance are also examined to determine if market orientation mediates the relationships between corporate governance and performance. Partial least squares structural equation modelling (PLS-SEM) is used to analyse the survey data collected from the executives of four- and five-star hotels in Mashhad, Iran. Results show that corporate governance positively influences the three dimensions of market orientation, while overall market orientation influences financial and social performance. Specifically, customer orientation and inter-function coordination significantly reinforce such mediation, whereas the influence of competitor orientation is limited to financial performance.

Nexus between environmental sustainability, good governance, financial inclusion, and tourism development in Bangladesh: Evidence from symmetric and asymmetric investigation

“…Furthermore, asymmetric assessment established that asymmetric shocks of good governance are positively tied to long-term and short-term tourism development. Our findings align with the existing literature (Kazemian et al, 2021;Khanna and Sharma, 2021;Mishra et al, 2021;Li and Qamruzzaman, 2022a). A country's ability to attract visitors and generate tourism revenue affects its government's standards.…”

Assessing the link between market orientation and hotel performance: the mediating role of value-based marketing innovation

“…According to the study's analyses, MO has a direct positive effect on hotel performance. This finding supports earlier empirical studies on the subject (Campo et al , 2014; Hinson et al , 2017; Kazemian et al , 2021; Otysna and Kamewor, 2022; Sampaio et al , 2019a, b, 2021). Following the definition of MO by Narver and Slater (1990), it is conceivable to assert that MO results in superior customer value, resulting in a continuous increase in business performance.…”

“…According to a survey of top managers at fourstar hotels in Spain, MO directly affects performance (Campo et al, 2014). The same result was obtained from a study of executives of luxury hotels in Ghana (Hinson et al, 2017); Portuguese hotel managers (Sampaio et al, 2019a); hotel directors, owners or CEOs, marketing directors, or sales directors in six Western European countries (the United Kingdom, Spain, Portugal, Italy, Ireland and France) (Sampaio et al, 2019b); hotel managers in Spain and Portugal; and hotel executives in Iran (Kazemian et al, 2021). Accordingly, as a precursor to business performance, it is widely known that MO positively impacts the business performance of hotels.…”

“…The connection between MO and hotel performance has been proven in numerous studies. Some research discovered a direct positive association (Campo et al , 2014; Hinson et al , 2017; Kazemian et al , 2021; Otysna and Kamewor, 2022; Sampaio et al , 2019a, b, 2021), while others found no significant effect (Alnawas and Hemsley-Brown, 2019; Phan et al , 2021; Qu, 2014). The most plausible reason for these contradictory outcomes is that MO is insufficient to increase hotel performance.…”

“…This research provides substantial contributions to the current knowledge base. To begin, prior studies on the association between MO and hotel performance mostly did not clearly mention the theory adopted for their research (Campo et al, 2014;Hinson et al, 2017;Sampaio et al, 2019bSampaio et al, , 2021 and few of them limited to the stakeholder theory (Kazemian et al, 2021), market orientation (MO) theory (Phan et al, 2021), the resource-based view (Alnawas and Hemsley-Brown, 2019;Sampaio et al, 2019a) and institutional theory (Qu, 2014). Therefore, this research focuses on unifying MO and resource-based view into a cohesive approach to understanding the MO's effect on hotel performance and identifying the critical role of value-based marketing innovation as the mediator to rectify the research gap in this relationship.…”