Title page for ETD etd-042299-032935


Type of Document Dissertation
Author Kwock, Yongsub
Author's Email Address ykwock@vt.edu
URN etd-042299-032935
Title A Theoretical Integration and Empirical Test of Strategic Management: Environment, Strategy, Structure, Implementation, and Performance in the Hospitality Industry
Degree PhD
Department Hospitality and Tourism Management
Advisory Committee
Advisor Name Title
Tse, Eliza C. Committee Chair
Huang, Philip Y. Committee Member
Huo, Yang-Hwae Committee Member
Murrmann, Suzanne K. Committee Member
Weaver, Pamela A. Committee Member
Keywords
  • Strategic Management
  • Environment
  • Strategy
  • Structure
  • Implementation
  • Performance
  • Hospitality Industry
  • Structural Equation Modeling
Date of Defense 1999-04-14
Availability restricted
Abstract
The main purposes of this study were to investigate the causality, congruence, and relationships among the constructs in the strategic management process. Perceived environmental certainty, organizational structure, types of strategy, types of strategy implementation, and satisfaction level with performance were selected as relevant constructs for this study.

A total of 184 responses to a survey given to top management in the hospitality industry, including restaurant and lodging firms, were analyzed. The various relationships among the constructs were hypothesized and tested by utilizing exploratory factor, confirmatory factor, and structural equation modeling analyses. The exploratory factor analysis revealed several dimensions of both strategy and strategy implementation constructs. The reliabilities, validities, and model fits of each construct and of all constructs together were assessed by utilizing confirmatory factor analysis. Finally, the various structural relationships among the constructs were tested by structural equation modeling.

Results revealed the existence of causality in the model. Results also indicated a positive relationship between perceived environmental certainty and the defender type of strategy. A negative effect of the defender type of strategy and a positive effect of the prospector type of strategy on organic organizational structure were revealed. Perceived environmental certainty had a positive effect on the collaborator type of strategy implementation. An organic organizational structure had a positive effect on the commander type of strategy implementation. A positive effect of the defender type of strategy on the commander type of strategy implementation, and the positive effect of the prospector type of strategy on the collaborator type of strategy implementation were identified. There were positive effects of the prospector type of strategy and the collaborator type of strategy implementation on the satisfaction level with performance. Finally, a positive effect of the congruence between the prospector type of strategy and the collaborator type of strategy implementation on the satisfaction level with performance was revealed.

Several hypothesized relationships were not supported: a negative effect of perceived environmental certainty on the prospector type of strategy, a negative effect of perceived environmental certainty on organic organizational structure, a positive effect of perceived environmental certainty on the commander type of strategy implementation, a positive effect of an organic organizational structure on the collaborator type of strategy implementation, a positive effect of the defender type of strategy on the satisfaction level with performance, and a positive effect of the commander type of strategy implementation on the satisfaction level with performance.

The results of statistical analysis implied that top management in the hospitality industry did not perceive the environment as an important factor contributing to a firm’s performance. In addition, top management was reluctant to change organizational structure. Also, many firms in the industry still practice a defensive strategy and strategy implementation with the traditional pyramid type of organizational structure, which does not contribute positively to a satisfaction level with performance. Finally, the prospector type of strategy and the collaborator type of strategy implementation were important contributors to the satisfaction level with performance.

In spite of some limitations, including the problems associated with generalizability, the advantages that could have been gained by a longitudinal study, the lack of some relevant variables, and subjective nature of the data, the findings of this study contribute to a better understanding of the strategic management process in the hospitality industry by revealing various relationships among the constructs in the strategic management process.

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