Perceived Risk and Firm Performance for Chain Hotels in Thailand: Moderating Roles of Work Roles
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Published
Nov 7, 2019
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Abstract
Research on the effect of perceived risk on firm financial performance has grown more important. This study aims to investigate the effect of the perceived risk of chain hotel staffs on their hotel’s financial performance and the moderating role of the work roles of hotel staffs. One hundred and ten chain hotels in Thailand were represented by 400 respondents who are chain hotel staff. A questionnaire survey and financial database were collected in this study. Results from Ordinary Least Squares (OLS) regression found a significantly positive relationship between perceived risk and firm financial performance, including profitability, growth, and market value. In addition, the different work roles of the hotel staff influenced their perceptions of risk and firm financial performance. In terms of organizational implications, our findings would suggest that enhancing perceived risk policies within an organization would enhance firm financial performance. However, collaborating and balancing the work roles of hotel staff should be considered and the relationships between perceived risk and staff work behavior should be conducted in further research.
Keywords: Chain Hotels, Firm Financial Performance, Perceived Risk, Work Roles of Hotel Staff
References
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Aryee, S., Sun, L.-Y., Chen, Z. X. G., & Debrah, Y. A. (2008). Abusive Supervision and Contextual Performance: The Mediating Role of Emotional Exhaustion and the Moderating Role of Work Unit Structure. Management and Organization Review, 4(3), 393-411. https://doi.org/10.1111/j.1740-8784.2008.00118.x
Baum, T., & Odgers, P. (2001). Benchmarking Best Practice in Hotel Front Office: The Western European Experience. Journal of Quality Assurance in Hospitality & Tourism, 2(3-4), 93-109. https://doi.org/10.
1300/J162v02n03_06
Beaton, J. (2014). Perceiving Professional Risk in Five Stories. Qualitative Inquiry, 20(8), 1033-1044. https://doi.org/10.1177/1077800413513731
Berman, S. L., Wicks, A. C., Kotha, S., & Jones, T. M. (1999). Does Stakeholder Orientation Matter?
The Relationship between Stakeholder Management Models and Firm Financial Performance. The Academy of Management Journal, 42(5), 488-506. DOI: 10.2307/256972
Blum, S. C., Silver, R. C., & Poulin, M. J. (2014). Perceiving Risk in a Dangerous World: Associations between Life Experiences and Risk Perceptions. Social Cognition, 32(3), 297-314. Retrieved from https://
pdfs.semanticscholar.org/08c8/628f6e83e20620e7a64b9933c33adfa030aa.pdf
Boermans, M., & Willebrands, D. (2017). Entrepreneurship, Risk Perception and Firm Performance. (U.S.E. Discussion Paper Series nr: 17-04). Utrecht University School of Economics, The Netherlands.
Campbell, K., & Mínguez-Vera, A. (2007). Gender Diversity in the Boardroom and Firm Financial Performance. Journal of Business Ethics, 83(3), 435-451. DOI 10.1007/s10551-007-9630-y
Carr, J. C., Boyar, S. L., & Gregory, B. T. (2008). The Moderating Effect of Work—Family Centrality on Work—Family Conflict, Organizational Attitudes, and Turnover Behavior. Journal of Management, 34(2), 244-262. https://doi.org/10.1177/0149206307309262
Davis, P. S., Desai, A. B., & Francis, J. D. (2000). Mode of International Entry: An Isomorphism Perspective. Journal of International Business Studies, 31(2), 239-258.
de Souza, S. V. C., & Junqueira, R. G. (2005). A Procedure to Assess Linearity by Ordinary Least Squares Method. Analytica Chimica Acta, 552(1-2), 25-35. https://doi.org/10.1016/j.aca.2005.07.043
Dierdorff, E. C., Rubin, R. S., & Bachrach, D. G. (2012). Role Expectations as Antecedents of Citizenship and the Moderating Effects of Work Context. Journal of Management, 38(2), 573-598. DOI: 10.1177/
0149206309359199
Erhardt, N. L., Werbel, J. D., & Shrader, C. B. (2003). Board of Director Diversity and Firm Financial Performance. Corporate Governance: An International Review, 11(2), 102-111. Retrieved from https://lib.dr.
iastate.edu/cgi/viewcontent.cgi?article=1005&context=management_pubs
Forlani, D., & Mullins, J. W. (2000). Perceived Risks and Choices in Entrepreneurs' New Venture Decisions. Journal of Business Venturing, 15(4), 305-322. https://doi.org/10.1016/S0883-9026(98)00017-2
Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18(3), 382-388. DOI: 10.2307/3150980
Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. Cambridge, UK: Cambridge University Press.
Golikova, V., & Kuznetsov, B. (2017). Perception of Risks Associated with Economic Sanctions: The Case of Russian Manufacturing. Post-Soviet Affairs, 33(1), 49-62. https://doi.org/10.1080/1060586X.2016.
1195094
Gordini, N., & Rancati, E. (2017). Gender Diversity in the Italian Boardroom and Firm Financial Performance. Management Research Review, 40(1), 75-94. https://doi.org/10.1108/MRR-02-2016-0039
Gregory, R., & Mendelsohn, R. (1993). Perceived Risk, Dread, and Benefits. Risk Analysis, 13(3),
259-264. Retrieved from http://www.geo.mtu.edu/rs4hazards/links/Social-KateG/Attachments%20Used/
PerceivedRiskDreadBenefits.pdf
Grove, S. J., & Fisk, R. P. (1992). The Service Experience as Theater. In J. F. Sherry, Jr., & B. Sternthal (Eds.), NA-Advances in Consumer Research Volume 19 (pp. 455-461). Provo, UT: Association for Consumer Research.
Harzing, A.-W. (2002). Acquisitions versus Greenfield Investments: International Strategy and Management of Entry Modes. Strategic Management Journal, 23(3), 211-227. DOI: 10.1002/smj.218
Horwath HTL. (2017). Asia Pacific Chains & Hotels Report 2018. Retrieved from https://www.
hospitalitynet.org/file/152008555.pdf
Isidro, H., & Sobral, M. (2015). The Effects of Women on Corporate Boards on Firm Value, Financial Performance, and Ethical and Social Compliance. Journal of Business Ethics, 132(1), 1-19.
Ivanova, M., & Ivanov, S. (2014). Hotel Chains' Entry Mode in Bulgaria. Anatolia, 25(1), 131-135.
Jafari, J., & Way, W. (1994). Multicultural Strategies in Tourism. The Cornell Hotel and Restaurant Administration Quarterly, 35(6), 72-79. https://doi.org/10.1016/0010-8804(95)91832-Z
Joffe, H. (2003). Risk: From Perception to Social Representation. British Journal of Social Psychology, 42(1), 55-73. https://doi.org/10.1348/014466603763276126
Johnston, R., & Clark, G. (2008). Service Operations Management: Improving Service Delivery (3rd ed.). USA.: Pearson Education.
Krungsri Research. (2017). Thailand Industry Outlook 2018-20 Hotel Industry. Retrieved from https://www.krungsri.com/bank/getmedia/5de62d20-1706-48c1-9573-65359fdbc76c/IO_Hotel_2017_EN.aspx
Lafferty, G., & van Fossen, A. (2001). Integrating the Tourism Industry: Problems and Strategies. Tourism Management, 22(1), 11-19. https://doi.org/10.1016/S0261-5177(00)00021-2
Lifshitz, R., Nimrod, G., & Bachner, Y. G. (2016). Measuring Risk Perception in Later Life: The Perceived Risk Scale. Journal of the American Psychiatric Nurses Association, 22(6), 469-474. DOI: 10.1177/10783
90316659910
Lub, X., Bijvank, M. N., Bal, P. M., Blomme, R., & Schalk, R. (2012). Different or Alike? Exploring the Psychological Contract and Commitment of Different Generations of Hospitality Workers. International Journal of Contemporary Hospitality Management, 24(4), 553-573. https://doi.org/10.1108/09596111211226824
Mcguire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate Social Responsibility and Firm Financial Performance. Academy of Management Journal, 31(4), 854-872. DOI: 10.2307/256342
Middlemist, R. D., & Hitt, M. A. (1981). Technology as a Moderator of the Relationship between Perceived Work Environment and Subunit Effectiveness. Human Relations, 34(6), 517-532. https://doi.org/10.1177/
001872678103400607
Petter, S., Straub, D. W., & Rai, A. (2007). Specifying Formative Constructs in Information Systems Research. MIS Quarterly, 31(4), 657-679. Retrieved from https://scholarworks.gsu.edu/cgi/viewcontent.cgi?article
=1041&context=cis_facpub
Pine, R., & Qi, P. (2004). Barriers to Hotel Chain Development in China. International Journal of Contemporary Hospitality Management, 16(1), 37-44. https://doi.org/10.1108/09596110410516543
Purda, L. D. (2008). Risk Perception and the Financial System. Journal of International Business Studies, 39(7), 1178-1196.
Ralston, P. M., Blackhurst, J., Cantor, D. E., & Crum, M. R. (2015). A Structure–Conduct–Performance Perspective of How Strategic Supply Chain Integration Affects Firm Performance. Journal of Supply Chain Management, 51(2), 47-64. https://doi.org/10.1111/jscm.12064
Sanz-Vergel, A. I., Demerouti, E., Bakker, A. B., & Moreno-Jiménez, B. (2011). Daily Detachment from Work and Home: The Moderating Effect of Role Salience. Human Relations, 64(6), 775-799. DOI: 10.1177
/0018726710393368
Sirikhan, S., & Prapphal, K. (2011). Assessing Pragmatic Ability of Thai Hotel Management and Tourism Students in the Context of Hotel Front Office. Asian EFL Journal, 53, 72-94. Retrieved from http://70.40.
196.162/PTA/Volume-53-ss.pdf
Sitkin, S. B., & Weingart, L. R. (1995). Determinants of Risky Decision-Making Behavior: A Test of the Mediating Role of Risk Perceptions and Propensity. The Academy of Management Journal, 38(6), 1573-1592. DOI: 10.2307/256844
Sjöberg, L. (2000). Factors in Risk Perception. Risk Analysis, 20(1), 1-12. https://doi.org/10.1111/
0272-4332.00001
Sprigg, C. A., Stride, C. B., Wall, T. D., Holman, D. J., & Smith, P. R. (2007). Work Characteristics, Musculoskeletal Disorders, and the Mediating Role of Psychological Strain: A Study of Call Center Employees. Journal of Applied Psychology, 92(5), 1456-1466.
Tromp, D. M., & Blomme, R. J. (2012). The Effect of Effort Expenditure, Job Control and Work-Home Arrangements on Negative Work-Home Interference in the Hospitality Industry. International Journal of Hospitality Management, 31(4), 1213-1221. https://doi.org/10.1016/j.ijhm.2012.02.011
Var, I. (1998). Multivariate Data Analysis. Vectors, 8(2), 125-136.
Voydanoff, P. (1988). Work Role Characteristics, Family Structure Demands, and Work/Family Conflict. Journal of Marriage and Family, 50(3), 749-761.
Walia, N., & Kiran, R. (2009). An Analysis of Investor’s Risk Perception towards Mutual Funds Services. International Journal of Business and Management, 4(5), 106-120. DOI:10.5539/ijbm.v4n5p106
Weber, E. U., Blais, A.-R., & Betz, N. E. (2002). A Domain‐Specific Risk‐Attitude Scale: Measuring Risk Perceptions and Risk Behaviors. Journal of Behavioral Decision Making, 15(4), 263-290. Retrieved from http://decisionsciences.columbia.edu/uploads/File/Articles/WeberBlaisBetz.pdf
Willebrands, D., Lammers, J., & Hartog, J. (2012). A Successful Businessman is not a Gambler. Risk Attitude and Business Performance among Small Enterprises in Nigeria. Journal of Economic Psychology, 33(2),
342-354. https://doi.org/10.1016/j.joep.2011.03.006
Yamane, T. (1973). Statistics: An Introductory Analysis (3rd ed.). New York: Harper and Row.
Aryee, S., Sun, L.-Y., Chen, Z. X. G., & Debrah, Y. A. (2008). Abusive Supervision and Contextual Performance: The Mediating Role of Emotional Exhaustion and the Moderating Role of Work Unit Structure. Management and Organization Review, 4(3), 393-411. https://doi.org/10.1111/j.1740-8784.2008.00118.x
Baum, T., & Odgers, P. (2001). Benchmarking Best Practice in Hotel Front Office: The Western European Experience. Journal of Quality Assurance in Hospitality & Tourism, 2(3-4), 93-109. https://doi.org/10.
1300/J162v02n03_06
Beaton, J. (2014). Perceiving Professional Risk in Five Stories. Qualitative Inquiry, 20(8), 1033-1044. https://doi.org/10.1177/1077800413513731
Berman, S. L., Wicks, A. C., Kotha, S., & Jones, T. M. (1999). Does Stakeholder Orientation Matter?
The Relationship between Stakeholder Management Models and Firm Financial Performance. The Academy of Management Journal, 42(5), 488-506. DOI: 10.2307/256972
Blum, S. C., Silver, R. C., & Poulin, M. J. (2014). Perceiving Risk in a Dangerous World: Associations between Life Experiences and Risk Perceptions. Social Cognition, 32(3), 297-314. Retrieved from https://
pdfs.semanticscholar.org/08c8/628f6e83e20620e7a64b9933c33adfa030aa.pdf
Boermans, M., & Willebrands, D. (2017). Entrepreneurship, Risk Perception and Firm Performance. (U.S.E. Discussion Paper Series nr: 17-04). Utrecht University School of Economics, The Netherlands.
Campbell, K., & Mínguez-Vera, A. (2007). Gender Diversity in the Boardroom and Firm Financial Performance. Journal of Business Ethics, 83(3), 435-451. DOI 10.1007/s10551-007-9630-y
Carr, J. C., Boyar, S. L., & Gregory, B. T. (2008). The Moderating Effect of Work—Family Centrality on Work—Family Conflict, Organizational Attitudes, and Turnover Behavior. Journal of Management, 34(2), 244-262. https://doi.org/10.1177/0149206307309262
Davis, P. S., Desai, A. B., & Francis, J. D. (2000). Mode of International Entry: An Isomorphism Perspective. Journal of International Business Studies, 31(2), 239-258.
de Souza, S. V. C., & Junqueira, R. G. (2005). A Procedure to Assess Linearity by Ordinary Least Squares Method. Analytica Chimica Acta, 552(1-2), 25-35. https://doi.org/10.1016/j.aca.2005.07.043
Dierdorff, E. C., Rubin, R. S., & Bachrach, D. G. (2012). Role Expectations as Antecedents of Citizenship and the Moderating Effects of Work Context. Journal of Management, 38(2), 573-598. DOI: 10.1177/
0149206309359199
Erhardt, N. L., Werbel, J. D., & Shrader, C. B. (2003). Board of Director Diversity and Firm Financial Performance. Corporate Governance: An International Review, 11(2), 102-111. Retrieved from https://lib.dr.
iastate.edu/cgi/viewcontent.cgi?article=1005&context=management_pubs
Forlani, D., & Mullins, J. W. (2000). Perceived Risks and Choices in Entrepreneurs' New Venture Decisions. Journal of Business Venturing, 15(4), 305-322. https://doi.org/10.1016/S0883-9026(98)00017-2
Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18(3), 382-388. DOI: 10.2307/3150980
Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. Cambridge, UK: Cambridge University Press.
Golikova, V., & Kuznetsov, B. (2017). Perception of Risks Associated with Economic Sanctions: The Case of Russian Manufacturing. Post-Soviet Affairs, 33(1), 49-62. https://doi.org/10.1080/1060586X.2016.
1195094
Gordini, N., & Rancati, E. (2017). Gender Diversity in the Italian Boardroom and Firm Financial Performance. Management Research Review, 40(1), 75-94. https://doi.org/10.1108/MRR-02-2016-0039
Gregory, R., & Mendelsohn, R. (1993). Perceived Risk, Dread, and Benefits. Risk Analysis, 13(3),
259-264. Retrieved from http://www.geo.mtu.edu/rs4hazards/links/Social-KateG/Attachments%20Used/
PerceivedRiskDreadBenefits.pdf
Grove, S. J., & Fisk, R. P. (1992). The Service Experience as Theater. In J. F. Sherry, Jr., & B. Sternthal (Eds.), NA-Advances in Consumer Research Volume 19 (pp. 455-461). Provo, UT: Association for Consumer Research.
Harzing, A.-W. (2002). Acquisitions versus Greenfield Investments: International Strategy and Management of Entry Modes. Strategic Management Journal, 23(3), 211-227. DOI: 10.1002/smj.218
Horwath HTL. (2017). Asia Pacific Chains & Hotels Report 2018. Retrieved from https://www.
hospitalitynet.org/file/152008555.pdf
Isidro, H., & Sobral, M. (2015). The Effects of Women on Corporate Boards on Firm Value, Financial Performance, and Ethical and Social Compliance. Journal of Business Ethics, 132(1), 1-19.
Ivanova, M., & Ivanov, S. (2014). Hotel Chains' Entry Mode in Bulgaria. Anatolia, 25(1), 131-135.
Jafari, J., & Way, W. (1994). Multicultural Strategies in Tourism. The Cornell Hotel and Restaurant Administration Quarterly, 35(6), 72-79. https://doi.org/10.1016/0010-8804(95)91832-Z
Joffe, H. (2003). Risk: From Perception to Social Representation. British Journal of Social Psychology, 42(1), 55-73. https://doi.org/10.1348/014466603763276126
Johnston, R., & Clark, G. (2008). Service Operations Management: Improving Service Delivery (3rd ed.). USA.: Pearson Education.
Krungsri Research. (2017). Thailand Industry Outlook 2018-20 Hotel Industry. Retrieved from https://www.krungsri.com/bank/getmedia/5de62d20-1706-48c1-9573-65359fdbc76c/IO_Hotel_2017_EN.aspx
Lafferty, G., & van Fossen, A. (2001). Integrating the Tourism Industry: Problems and Strategies. Tourism Management, 22(1), 11-19. https://doi.org/10.1016/S0261-5177(00)00021-2
Lifshitz, R., Nimrod, G., & Bachner, Y. G. (2016). Measuring Risk Perception in Later Life: The Perceived Risk Scale. Journal of the American Psychiatric Nurses Association, 22(6), 469-474. DOI: 10.1177/10783
90316659910
Lub, X., Bijvank, M. N., Bal, P. M., Blomme, R., & Schalk, R. (2012). Different or Alike? Exploring the Psychological Contract and Commitment of Different Generations of Hospitality Workers. International Journal of Contemporary Hospitality Management, 24(4), 553-573. https://doi.org/10.1108/09596111211226824
Mcguire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate Social Responsibility and Firm Financial Performance. Academy of Management Journal, 31(4), 854-872. DOI: 10.2307/256342
Middlemist, R. D., & Hitt, M. A. (1981). Technology as a Moderator of the Relationship between Perceived Work Environment and Subunit Effectiveness. Human Relations, 34(6), 517-532. https://doi.org/10.1177/
001872678103400607
Petter, S., Straub, D. W., & Rai, A. (2007). Specifying Formative Constructs in Information Systems Research. MIS Quarterly, 31(4), 657-679. Retrieved from https://scholarworks.gsu.edu/cgi/viewcontent.cgi?article
=1041&context=cis_facpub
Pine, R., & Qi, P. (2004). Barriers to Hotel Chain Development in China. International Journal of Contemporary Hospitality Management, 16(1), 37-44. https://doi.org/10.1108/09596110410516543
Purda, L. D. (2008). Risk Perception and the Financial System. Journal of International Business Studies, 39(7), 1178-1196.
Ralston, P. M., Blackhurst, J., Cantor, D. E., & Crum, M. R. (2015). A Structure–Conduct–Performance Perspective of How Strategic Supply Chain Integration Affects Firm Performance. Journal of Supply Chain Management, 51(2), 47-64. https://doi.org/10.1111/jscm.12064
Sanz-Vergel, A. I., Demerouti, E., Bakker, A. B., & Moreno-Jiménez, B. (2011). Daily Detachment from Work and Home: The Moderating Effect of Role Salience. Human Relations, 64(6), 775-799. DOI: 10.1177
/0018726710393368
Sirikhan, S., & Prapphal, K. (2011). Assessing Pragmatic Ability of Thai Hotel Management and Tourism Students in the Context of Hotel Front Office. Asian EFL Journal, 53, 72-94. Retrieved from http://70.40.
196.162/PTA/Volume-53-ss.pdf
Sitkin, S. B., & Weingart, L. R. (1995). Determinants of Risky Decision-Making Behavior: A Test of the Mediating Role of Risk Perceptions and Propensity. The Academy of Management Journal, 38(6), 1573-1592. DOI: 10.2307/256844
Sjöberg, L. (2000). Factors in Risk Perception. Risk Analysis, 20(1), 1-12. https://doi.org/10.1111/
0272-4332.00001
Sprigg, C. A., Stride, C. B., Wall, T. D., Holman, D. J., & Smith, P. R. (2007). Work Characteristics, Musculoskeletal Disorders, and the Mediating Role of Psychological Strain: A Study of Call Center Employees. Journal of Applied Psychology, 92(5), 1456-1466.
Tromp, D. M., & Blomme, R. J. (2012). The Effect of Effort Expenditure, Job Control and Work-Home Arrangements on Negative Work-Home Interference in the Hospitality Industry. International Journal of Hospitality Management, 31(4), 1213-1221. https://doi.org/10.1016/j.ijhm.2012.02.011
Var, I. (1998). Multivariate Data Analysis. Vectors, 8(2), 125-136.
Voydanoff, P. (1988). Work Role Characteristics, Family Structure Demands, and Work/Family Conflict. Journal of Marriage and Family, 50(3), 749-761.
Walia, N., & Kiran, R. (2009). An Analysis of Investor’s Risk Perception towards Mutual Funds Services. International Journal of Business and Management, 4(5), 106-120. DOI:10.5539/ijbm.v4n5p106
Weber, E. U., Blais, A.-R., & Betz, N. E. (2002). A Domain‐Specific Risk‐Attitude Scale: Measuring Risk Perceptions and Risk Behaviors. Journal of Behavioral Decision Making, 15(4), 263-290. Retrieved from http://decisionsciences.columbia.edu/uploads/File/Articles/WeberBlaisBetz.pdf
Willebrands, D., Lammers, J., & Hartog, J. (2012). A Successful Businessman is not a Gambler. Risk Attitude and Business Performance among Small Enterprises in Nigeria. Journal of Economic Psychology, 33(2),
342-354. https://doi.org/10.1016/j.joep.2011.03.006
Yamane, T. (1973). Statistics: An Introductory Analysis (3rd ed.). New York: Harper and Row.
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Research Articles
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How to Cite
THAOTHAMPITAK, Wipada; WONGSUWATT, Sippavit.
Perceived Risk and Firm Performance for Chain Hotels in Thailand: Moderating Roles of Work Roles.
Journal of Community Development Research (Humanities and Social Sciences), [S.l.], v. 12, n. 4, p. 25-36, nov. 2019.
ISSN 2985-0231.
Available at: <https://www.journal.nu.ac.th/JCDR/article/view/Vol-12-No-4-2019-25-36>. Date accessed: 25 apr. 2024.
doi: https://doi.org/10.14456/jcdr-hs.2019.33.