HOW BUSINESS ENVIRONMENT HOTELS COMPETE IN TURKEY?



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EJTHR Research Tourism www.ejthr.com 2015 Polytechnic Institute of Leiria. All rights reserved Printed in Portugal HOW BUSINESS ENVIRONMENT HOTELS COMPETE IN TURKEY? AN EVALUATION FROM MANAGERS PERSPECTIVES Yunus Emre Tasgit Düzce University, Turkey Ercan Ergün Gebze High Technology Institute, Turkey Mehmet Selami Yıldız Düzce University, Turkey ABSTRACT: central theme of great importance in management literature. However, there are few researches related to the empirical measurement of its dimensions in the Hospitality Industry. This study - - to test the model using the data from 310 survey returns. The results indicate that the hotels tels. Keywords: Business Environment, Turkey Hospitality Industry, Hotels, Competition. INTRODUCTION - - Yunus Emre Tasgit Ercan Ergün: 117

BUSINESS ENVIRONMENT OF HOTELS - As a result of these changes, environmental uncertainty is increasing - - hand, in these conditions, a major challenge for senior managers and creative and innovative strategies to deal effectively with these chang- In the last 20 years, Turkey's hospitality industry, with the impact of - uct and service oriented innovations have increased. The industry has - and demands have changed. Despite these positive developments, the - environment for hotels, it is necessary to determine the dimensions of

- - - ness environments. - tion and sample, survey procedure and data collection, the conceptual - - academic researchers and industrial practitioners. LITERATURE REVIEW interact with the environment continuously and successfully to survive - - and remains, a central theme of great importance in management and - -

120 BUSINESS ENVIRONMENT OF HOTELS - - - - - market, government regulations, technology, activists, local communities, trade associations, investors, and customers with very different - Business environment, in terms of the level of relationship with the - general or macro environment consists of components such as govern- in social development, technological developments and the natural en- ers, competitors, new market entries and the like, and directly affects the - - - - -

121 The static-dynamic type is viewed as the degree of environmental - - - - future and greater uncertainty surrounding relationships with the en- geneity in environmental factors and the concentration-dispersion of - sional structures, with numerous and differentiated effects on various -

122 BUSINESS ENVIRONMENT OF HOTELS accurately the environmental situations, due to a lack of information - - - - changes in product and process technologies, consumer demand and to develop a clear and comprehensive understanding of their environ- In high uncer- - - A variety of analysis methods are discussed in the literature for un- - deterministic logics and Top managers, having deterministic logics, perceive environments as

123 of 3, 4, and 5-star hotel companies in Turkey. According to the data - tuting the population of the research, is 1567. - - Survey Procedure and Data Collection - rangement, wording accuracy, and relevance. This helped to make the structure and content of the questionnaire. Finally, the questionnaire consisted of two parts. Part 1 was designed for soliciting the respondents demographic information. Part 2 included 17 propositions sum- As the principal method of data collection, posting the survey was the one selected. Firstly, the structured questionnaire with closed-ended in strategic management or otherwise someone familiar with these is- Among the 1567 hotel managers, 401 managers were returned posi- -

124 BUSINESS ENVIRONMENT OF HOTELS phone calls on the last month. At the end of the data collection process, a total of 356 questionnaires were reached. 235 of these questionnaires through face to face interviews, 25 of them through the post, were inadequate in terms of internal consistency, therefore they were removed from the data set. The resulting data set consisted of 310 sur- - literature for an industry survey, there is no generally accepted minimum response rate and it really depends on the survey topics and in- environment in several ways and through multiple dimensions. Re- - - - hostility. On the other hand, there are researchers who advocate that a Montes, - - of questions was 16. The name and content of hostility dimension has

125 academics and the hotel managers in the survey preparation process. - - of the environment, and the rate of change in customer needs and have to struggle in the industry. The key issues are discussed as the - - - - - - Chi, tive assessment on a continuum and are commonly used for collect- depending on their grade of agreement or disagreement with the argu- ment in the industry. In order to measure Environmental Dynamism, -

126 BUSINESS ENVIRONMENT OF HOTELS - - - - Data analysis - of LISREL program, and the measurement model was created. Measurements The criteria for the measurement of the constructs In statistical analysis, all statistical tests assume some assumptions. Violation of these assumptions changes the conclusion of the research. In the study, the measurement properties of the constructs were as- - empirical studies. - theory. When a researcher measures the construct from other meas- ity, measured items should come under one dimension. The following most common method to measure the unidimensionality. The value of In factor analysis, for unidimensionality, the cutoff value of the factor - - -

127 - Convergent validity is one of the important ways to assess the construct validity of a measurement procedure. Convergent validity tests related if the instrument were valid. Discriminant validity tests whether - - determines how well the proposed the- İ the Chi-square statistic, recommendations range from as high as 5.0 - - authorities in this area, an RMSEA in the range of 0.05 to 0.10 was

BUSINESS ENVIRONMENT OF HOTELS -. - - are a group of indices that do not use the Chi-square in its raw form 2 value of the model to the - - - are also known as information criteria indices. - when comparing non-nested or non-hierarchical models estimated with the same data and indicates to the researcher which of the models is Factor analyses - tical approaches used to investigate the theoretical constructs, or fac- EFA is appropriate in the early stages of research, prior to further

ferred where measurement models have a well-developed underlying is recommended using EFA to identify measurement models and CFA to test the full model. - - until all requirements were met. According to the results of descriptive analyses, most of the ho- Mediterranean, Aegean, and Marmara regions. As the status, most of them are the individual hotels. In terms of activity time, they are the dition, most of them are men and university graduates. On the other hand, the factor analysis results, carried out to investigate - -

130 BUSINESS ENVIRONMENT OF HOTELS Table 1: Results of Exploratory Factor Analysis Factors Explained Variance Eigenvalue Variables Factor Loadings Dynamism Pressure 2,175 Diversity 12,646 1,172 Dyn2 Dyn1 Dyn4 0,776 Dyn6 0,760 Dyn5 0,712 Prs1 0,762 Prs2 Prs3 0,676 Prs4 0,614 Prs5 0,606 Com1 Com3 0,773 Com2 - - the factor loadings of items is very low. The factor loadings of items in - - hotels. In Figure 1, the results of second order factor analysis are shown.

131 PRS1 0.37 PRS2 0.56 PRS3 0.31 0.57 0.30 PRS4 0.47 Pressure 0.43 PRS5 0.57 1.00 Environm 0.70 0.20 Diversit Dynamism 0.41 0.47 0.42 0.67 0.57 0.61 0.66 0.66 0.63 DIV1 DIV2 DIV3 COM1 COM2 COM3 D D 0.21 0.16 0.26 0.34 0.35 0.22 0.63 D 0.31 0.62 D 0.26 D ness environment features of hotels, consists of four dimensions -

132 BUSINESS ENVIRONMENT OF HOTELS - - DISCUSSION AND CONCLUSION - - - ment where the change speed of the environmental factors is too high, the change in customer needs is constant, and the competitive strategy havior reduces the directional tendencies of the hotels in taking risks world, reactive attitude toward change often results in failure and poor rect. In such a sector, for customer needs are changing very quickly, - - - -

133 ness environment. In such an environment, making an accurate predic- - - lations management, and to use proactive competitor analysis methods. is diversity. In such an environment, hotels appeal to different custom- - ties, and technological learning levels. - - - techniques such as scenario planning, environmental scanning, competitor analysis, etc. REFERENCES - tion. Englewood Methodologies. Production and

134 BUSINESS ENVIRONMENT OF HOTELS Psychologi cal Bulletin, scape. Strategic Management Journal Management Strategies. Integration. economic performance in volatile environments. ment Journal, - Studies, Strategic Man agement Journal, United States of America, Harvard Business School Press. Management Decision, - The - Or ganization Studies, as interpretive systems. The Free Press. - Strategic Manage ment Journal, Strategic Manage ment Journal,

135 environments. Administrative Science Quarterly, Canada. John Wiley and Sons Inc. - populations. Public Relations Review, ments and Perceived Environmental Uncertainty. Administrative Science Quarterly, ior. Strategic Management Journal, - Human Relations, logical research. Psychological Methods, Management Studies, - Omega, performance. Strategic Management Journal, environment as a determining factor of purchasing and supply strat- Production Economics, - ity of tests and items. Strategic South- Western. Thomson Corporation.

136 BUSINESS ENVIRONMENT OF HOTELS - The Electronic - egy and auditing paradigm. Accounting Forum, Management Review, ity, construct validation, and scale construction. In eds. - of an uncertain country environment upon leadership and strategic planning practices. Strategic Change, ceptual issues. dation in communication research. 22 - mental uncertainty. Simulation Modelling Practice and Theory, Management, Colum- tions. Business Horizons, Business in China. - ture Modeling. Psychological Methods, Thou- - Management De cision, Journal

137 - Strategic Management Journal, agement Review, Englewood Cliffs, NJ. Prentice-Hall. Management Decision, - Strategic Management Journal, - - Technovation, - - Sekaran, U. 2003. - - pirical Test. Strategic Management Journal, - amining the interrelationships among perceived environmental change,

BUSINESS ENVIRONMENT OF HOTELS formance. sition. Strategic Management Journal, Administrative Theory environments. - always necessary? The effectiveness of customer, competitor and soci- keting, search, uncertainty. Strategic Management Journal, Sociological Meth odology, strategic choice. Case of Small Enterprises in China. Asian Social Science, rd st th