The purpose of this study is to explore the management of expansion strategy in the hotel industry using the control approach as presented in the literature of organizational theory. This integration illustrates that the management of risk in expansion strategy is intertwined with control.
The question “How does control intervene in the management of risk in expansion strategy?” was the operationalization of the overarching question of strategy and structure. The answers to this question are summarized in a framework and four propositions.
The contribution of this work to academia is threefold. First, this work provides a detailed, theories-driven documentation about how expansion strategies are conducted in the international hotel context. Second, this research integrates three different fields of research and directs to multiple new research tracks in both fields of strategic management and organization theory. Third, this study offers a new approach to measure the alignment between strategy and structure. From a managerial standpoint, this research offers guidance for the comprehension of the determinants of risk in the expansion strategy for international hotel chains.
