Academic journal article Academy of Entrepreneurship Journal

Enhancing Hotel Industry Performance through Service Based Resources and Strategic Enterpreneurship (Case Study at Hotel Industries in Indonesia)

Academic journal article Academy of Entrepreneurship Journal

Enhancing Hotel Industry Performance through Service Based Resources and Strategic Enterpreneurship (Case Study at Hotel Industries in Indonesia)

Article excerpt


Improvement of hotel performance is considered as the main purpose of hotel business success, which is driven by internal resource management factor (Hoskisson, 1999; Porter, 1979; 1985, 2008; Wernerfelt, 1984), and manager ability factor to encourage the emergence of strategic entrepreneurial atmosphere in the company (Hitt et al., 2001; Ireland et al., 2007). This is in line with previous research that addresses the role of internal and external factors of the manufacturing industry towards improving firm performance (Schmalansee, 1985; Rumelt, 1991; Powell, 1992a; McGahan & Porter, 1997, Mauri & Michaels,1998; Hawawini, Subramanian & Verdin, 2002; Weerawardena, O'Cass & Julian; 2006; Lieu & Chi, 2006; Galbreath & Galvin, 2008; Birkinshaw, 2005; O'Cass, 2012; Du Toit, 2016).

The results of Lieu & Ching study (2006), taking an industrial case study in Taiwan, concluded that the internal role is more important for the company than external forces. The results of research Galbreath & Galvin (2008) on 285 companies found that corporate resource factors are more important for the progress of the company. The results of Birkinshaw, et al. (2005) studies conclude that start-up firms typically focus on the internal, and over time when it has advanced they focus on the external side.

Service resources and strategic entrepreneurship are expected to improve the competitiveness and performance of the hotel, which is in line with research results from Ray, Muhanna, & Barney (2004); Tavitiyaman, et al. (2010). The hotel as a service business puts its potential profit on service, hence the Hotel with the ability to provide higher value-added for customers who will be the winner in the competition in this industry (Yon & Oh, 2004).

Service resources are an initial strategy management concept that focuses on the company's internal side. Beginning with Wernerfelt's (1984) work on Resource-Based Theorynow known as Resources-Based View (RBV) and followed by other academics who think that the maximum utilization of existing resources and the mastery of potential new resources will become a more sustainable source of corporate strategic performance or even a superior source of income (Barney, 1991; Peteraf, 1993).

Hotels with a strategic entrepreneurial spirit will be evident in innovative employee behavior, risk-taking behavior, and employee proactive attitudes (Calisto, 2014), able to use simultaneous and applicable opportunities (Ireland et al., 2003; Hitt et al., 2001 ). Hotels that are capable of developing an environment that supports the process of creativity in providing services to customers will impact on hotel performance (Ireland & Webb, 2007; Miller & Friesen, 1983).

Therefore, because of the difference of the above research results, the researcher is interested to further review the role of hotel internal resources to the performance through research on the hotel industry in Indonesia, with problem formulation that has a much direct influence of service resources and strategic entrepreneur to increase hotel company.


Service Resources

Service-based resource variables, with reference to research results from Ray, Barney and Muhanna (2004), applying the RBV concept to insurance services, have characteristics that are better explain the atmosphere in the service industry than in the manufacturing industry. To measure RBV, they developed three indicators: managerial IT knowledge, service climate, and technology resources.

To measure Service Climate, Schneider (2002), had formed four dimensions as a measurement scale: (1) Customer Orientation as an organization's effort to meet customer needs and expectations, (2) Managerial Practices as manager behavior in support and reward service delivery processes, (3) Customer Feedback as a level where the service business unit seeks to collect and maximize customer feedback on service quality, (4) Global Service Climate as a summary size (not a composite measure but a collection of summaries) of the service climate. …

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