DON’T BE A PASSING FAD: THE SUSTAINED COMPETITIVE ADVANTAGE OF HOTELS’ THEMING STRATEGY IN CHINESE MARKET
저자
Lee, Wen-Yin ; Wang, Kuo-Ching ; Wu, Ben ; Chuang, Wan-Hua ; Hsiao, Chia-Lin
발행기관
학술지명
권호사항
발행연도
2018
작성언어
English
주제어
KDC
325
등재정보
01
자료형태
학술저널
수록면
1293-1298(6쪽)
제공처
Theming has become a powerful strategy in hospitality industry to enhance customer engagement and to serve as a competitive advantage in a saturated market. Based on the resource-based theory (RBT) of sustained competitive advantage (SCA), this qualitative study is an exploratory attempt to investigate 10 hotels in Mainland China and Taiwan that have adopted the theming strategy.
Introduction
As hospitality industry is facing the increasingly intense competition and saturated markets, theming is continuously gaining importance of hotels strategy to survival and growth. In addition, strategy planning determines the future of firms and discover the method to achieve success (Yong & Oh, 2004). Holjevac (2003) predicted that at the beginning of the 21st century, hotels with themed strategy which characterized by a synthesis of esthetics, quality and functionality would become the future trend. Theming has created the differentiation in hospitality market, using the creation of experience-centric service. Pine & Gilmore (1999) once pointed out that the shaping of experience stems from simple and powerful thematic transmission. Moreover, experience marketing can bring preference to the product and service of the enterprise, which in turn leads to a positive value experience (Milman, 2013). The results of theming strategy will positively influence the satisfaction and return rate (Wu, M. Li, & T. Li, 2018). Theming strategy with the advantage of pursuing innovation and uniqueness was extensively used to firms in the competitive hospitality market, like hotels in Las Vegas and Macao. However, some scholars concerned about the sustainability for the strategy due to the high-capitalized cost and the customers sensitive taste (Wassler, Li, & Hung, 2015). Although hotels with themed strategy has flourished in Chinese market more than decade, market research has lagged behind to support the industry’s growth. Researchers still adopted a rather normative paradigm by either identifying the superficial issue focused on experiential market concept or pointing out problems without providing more sustainability related solutions (Zou & Peng, 2008; Xiao, Zhang, & Huang, 2013). Barney (2007) indicated that internal resources could lead to the competitive. Therefore, this study aims at understanding the factors that lead theming strategy to be sustainable in hotels, based on the resource-based theory of sustained competitive advantage. The article has the following structure. The first section establishes a theoretical foundation through a review of strategy literature on theming. The second section proposes a conceptualization of theming strategy’s sustained competitive advantage (SCA) consisting of firms intrinsic resources based on resource-based theory (RBT), also, describe the assessment of key sustainable factors of theming strategy through interview the superior manager of 10 hotels in Mainland China and Taiwan that have adopted the theming strategy. The final section discusses the study’s findings, implication, and suggests directions for future research. As this research is one of the first studies in the hospitality field that identifies the resources and capabilities of the hotels’ theming strategy from the inside viewpoint, the contribution of this study will, and can conceptualize and discover the key factors to sustain the competitive advantage of themed hotel managing strategy
Literature review
Theming strategy for hotels
Theming is a complete and ubiquitous way of impressing consumers and improving brand awareness (Olson, 2004). From theme parks, casinos, department stores, aviation, restaurants to hotels, thematic construction has the dominant influence on most customer engagement (Mu?oz, Wood, & Solomon, 2006). Hotel theming strategy, based on the theme of cultural material (history, city story, etc.) either from surrounding area or develop within hotel, display the core value of theme from physical resources, as buildings and facilities, to invisible resources, as atmosphere and service, which would, in the end, create a valuable and unforgettable customer stay experience(Zins, 1998). Xiao, Zhang, & Huang (2013) noted that the distinctive consumer experience at the theme hotel can impress customers, and, ultimately enhances brand recognition, customer engagement and repurchase intention. On the other hand, Wassler, Li, and Hung (2015) has indicated the pros and cons for the China themed hotels, which are the uniqueness to create competitive advantages that are difficult to imitate. On the contrary, the gaining of customers’ sense of demand can lead to the difficulties to fulfill customers’ taste and the ingrained capital with the narrow development is hard to recapitalize once invested.
Importance of sustainability for theming strategy.
Due to the strong specific image of the themed hotels, some cases developed as a passing fad in the hospitality field. Although prior study has indicated the importance of theme selection for themed hotels (Xiao et al., 2013), seldom literature focus on the overall implementation and application within hotels’ ins and outs, also the SCA issue of hotels management. Xiao & O'Neill (2010) pointed out that the analysis of internal resource is enable manger to realize and build sources of competitive advantage, which is emanated from the resource-based view of strategy. In Resource Based Theory (RBT), scholars thought that resources and capabilities from firms could bring lasting competitive advantage to the organization, and companies that have SCA (Wernerfelt, 1984). Organization have SCAs can reach outstanding performance by constantly creating and delivering the core value through price, trust, aesthetics and functionality to its target markets (Barney, 1991). Thus, in order to observe the SCAs for themed hotels management, this research will employ on internal resource view based on RBT to explore the SCAs from the internal aspect of themed hotels.
Methodology
We illustrate the key factors and analyze the importance of internal resources for the SCA of hotels’ theming strategy by means of a qualitative study in which 10 hotels applied theming strategy in Mainland China and Taiwan were surveyed using semistructured interviews. For the research question, a qualitative approach offers the advantage to allow an adequate, in depth analysis of the complex relations between internal recourses and SCA of theming strategy. These 10 hotels adapted theming strategy are chosen by non-probability snowball sampling method, below Fig.1 is the hotels list for 10 interviews in Taiwan and Mainland China. In addition, because China with a vast territory is limited to cover all area, the research focuses on Zhejiang province and Shanghai city, which have well-developed economy and rich tourist resources. All interviewees of the hotels will be the superior manager who decides the core value and leads the hotel’s future. The interview will be three part to proceed. First, in warm-up period, interviewer will frame an informal and trust environment, first step is to confirm interviewees’ background. The second part will be identify period; there will be a questionnaire, which adopted Chuang (2000), whose survey to prioritize the 5 dimension of internal resources that essential to hotel theming strategy management. Finally, we will confirm the competency, competitive advantage, and the strategy to achieve the sustainability for hotels theming strategy. We present conclusions for research and practice, as well as deriving practical recommendations for hotels’ theming strategy in Chinese market based on our findings.
Preliminary findings
The preliminary findings of the research will base on the key themes that emerge from in-depth interview to understand perceptions of hotel managers regarding theming. The result will be presented and discussed in three period. First, based on the questionnaire result from the interviewees, we will recognize that what the priority degree about the five dimension of internal resources is regarding perception of theming in hotel strategy. Second, 10 interviews will transcribe from voice recordings to pages of text, then the text will go through the coding technique, in which the raw and efforts data will be identified as the themes and subthemes. All the analyzed process will be carried by expert triangulation. Finally, through the experts examining on the links of themes and quotations, we will create a view of framework that would explore the relationships between theming strategy and SCA, the result will find the formula for hotels adapted theming strategy to possess competitive advantage of being sustainable. Although space limitations of the conference preclude the detailed explanation of this research work, the authors believe this study will broaden the theoretical domains used in understanding internal resources and competency of hotels’ theming strategy and practical information can be observed from the findings.
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