IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v69y2016i11p5235-5240.html
   My bibliography  Save this article

Foreign direct investment patterns of global hotel chains

Author

Listed:
  • Santos, Maria
  • Brochado, Ana
  • Esperança, José

Abstract

The hotel industry is a key sector in the twenty-first century. Even in the context of a global financial crisis, the hotel industry is consolidating global brands, expanding geographically, and diversifying its services offer. American and French traditional powerhouses have consolidated their position, although emerging economies in Asia and Latin America have also enabled the creation of powerful hotel chains. This study focuses on the largest hotel chain worldwide to shed new light on foreign direct investment (FDI) decisions (i.e., location choices), namely the choice of location according to the customer. This study uses the fuzzy set qualitative comparative analysis method, drawing on Miles and Snow's (1978, 2003) typology, to examine statistical data on countries, tourists' nationality, and customers of Accor global hotel group. The present study analyzes the configurations of countries' economic development and geographical and cultural distance that lead to FDI decisions in the recent expansion of global hotel chains, thereby extending the application of gravitational theories to multinational enterprises' FDI decisions.

Suggested Citation

  • Santos, Maria & Brochado, Ana & Esperança, José, 2016. "Foreign direct investment patterns of global hotel chains," Journal of Business Research, Elsevier, vol. 69(11), pages 5235-5240.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:11:p:5235-5240
    DOI: 10.1016/j.jbusres.2016.04.118
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296316302983
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2016.04.118?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Oh, Chang Hoon & Travis Selmier, W. & Lien, Donald, 2011. "International trade, foreign direct investment, and transaction costs in languages," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 732-735.
    2. Jeffrey A. Frankel & Andrew K. Rose, 2000. "Estimating the Effect of Currency Unions on Trade and Output," NBER Working Papers 7857, National Bureau of Economic Research, Inc.
    3. Quer, Diego & Claver, Enrique & Andreu, Rosario, 2007. "Foreign market entry mode in the hotel industry: The impact of country- and firm-specific factors," International Business Review, Elsevier, vol. 16(3), pages 362-376, June.
    4. Kundu, Sumit K. & Contractor, Farok J., 1999. "Country location choices of service multinationals: An empirical study of the international hotel sector," Journal of International Management, Elsevier, vol. 5(4), pages 299-317.
    5. Falk, Martin, 2016. "A gravity model of foreign direct investment in the hospitality industry," Tourism Management, Elsevier, vol. 55(C), pages 225-237.
    6. Vern Terpstra & Chwo-Ming Yu, 1988. "Determinants of Foreign Investment of U.S. Advertising Agencies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 33-46, March.
    7. Diana Barrowclough, 2007. "Foreign Investment in Tourism and Small Island Developing States," Tourism Economics, , vol. 13(4), pages 615-638, December.
    8. Melitz, Jacques, 2008. "Language and foreign trade," European Economic Review, Elsevier, vol. 52(4), pages 667-699, May.
    9. Goldberg, Lawrence G. & Johnson, Denise, 1990. "The determinants of US banking activity abroad," Journal of International Money and Finance, Elsevier, vol. 9(2), pages 123-137, June.
    10. Peter J. Buckley & Mark Casson, 2010. "Analysing Foreign Market Entry Strategies: Extending the Internalisation Approach," Palgrave Macmillan Books, in: The Multinational Enterprise Revisited, chapter 8, pages 177-204, Palgrave Macmillan.
    11. Martin, Drew & Isozaki, Mark, 2013. "Hotel marketing strategies in turbulent times: Path analysis of strategic decisions," Journal of Business Research, Elsevier, vol. 66(9), pages 1544-1549.
    12. Assaf, A. George & Josiassen, Alexander & Agbola, Frank W., 2015. "Attracting international hotels: Locational factors that matter most," Tourism Management, Elsevier, vol. 47(C), pages 329-340.
    13. Felício, José Augusto & Duarte, Margarida & Rodrigues, Ricardo, 2016. "Global mindset and SME internationalization: A fuzzy-set QCA approach," Journal of Business Research, Elsevier, vol. 69(4), pages 1372-1378.
    14. Frankel, Jeffrey & Rose, Andrew, 2000. "An Estimate of the Effect of Currency Unions on Trade and Output," CEPR Discussion Papers 2631, C.E.P.R. Discussion Papers.
    15. Liu, Wei & Denizci Guillet, Basak & Xiao, Qu & Law, Rob, 2014. "Globalization or localization of consumer preferences: The case of hotel room booking," Tourism Management, Elsevier, vol. 41(C), pages 148-157.
    16. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    17. Dunning, John H., 2000. "The eclectic paradigm as an envelope for economic and business theories of MNE activity," International Business Review, Elsevier, vol. 9(2), pages 163-190, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brochado, Ana & Santos, Maria & Oliveira, Fernando & Esperança, José, 2018. "Gambling behavior: Instant versus traditional lotteries," Journal of Business Research, Elsevier, vol. 88(C), pages 560-567.
    2. Wai Hong Kan Tsui & Faruk Balli & David Tat Wei Tan & Oscar Lau & Mudassar Hasan, 2018. "New Zealand business tourism," Tourism Economics, , vol. 24(4), pages 386-417, June.
    3. Walheer, Barnabé & Zhang, Linjia & Luo, Yingchan, 2020. "Bidirectional technological spillover in the Chinese star-rated hotel sector: An empirical investigation," Economic Modelling, Elsevier, vol. 86(C), pages 210-226.
    4. Sun, Yang & Garrett, Tony C. & Phau, Ian & Zheng, Bing, 2020. "Case-based models of customer-perceived sustainable marketing and its effect on perceived customer equity," Journal of Business Research, Elsevier, vol. 117(C), pages 615-622.
    5. Almenar-Llongo, Vicent & Muñoz de Prat, Javier & Orero-Blat, Maria, 2021. "Qualitative analysis for joint ventures as an entry mode in foreign direct investment," Journal of Business Research, Elsevier, vol. 123(C), pages 324-332.
    6. Ricardo Correia & Jorge Lengler, 2017. "Competences and Managerial Profile as Drivers of Hotel Internationalization: Implications on Firm´s Internationalization Strategy Pattern," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 181-193, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Falk, Martin, 2016. "A gravity model of foreign direct investment in the hospitality industry," Tourism Management, Elsevier, vol. 55(C), pages 225-237.
    2. Reinhold Decker & Xuemin Zhao, 2004. "SMEs' Choice of Foreign Market Entry Mode: A Normative Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 3(3), pages 181-200, December.
    3. Wrona, Thomas & Trąpczyński, Piotr, 2012. "Re-explaining international entry modes – Interaction and moderating effects on entry modes of pharmaceutical companies into transition economies," European Management Journal, Elsevier, vol. 30(4), pages 295-315.
    4. Bartels, Frank L. & Napolitano, Francesco & Tissi, Nicola E., 2014. "FDI in Sub-Saharan Africa: A longitudinal perspective on location-specific factors (2003–2010)," International Business Review, Elsevier, vol. 23(3), pages 516-529.
    5. Buckley, Peter J. & Hashai, Niron, 2005. "Firm configuration and internationalisation: A model," International Business Review, Elsevier, vol. 14(6), pages 655-675, December.
    6. Noémie Dominguez, 2018. "Promotion agencies and SMEs’ internationalization process: A blessing or a curse? [Agences de promotion et processus internationalisation des PME: bénédiction ou malédiction?]," Journal of International Entrepreneurship, Springer, vol. 16(1), pages 58-81, March.
    7. Fang-Yi Lo & Yu-Ching Chiao & Chwo-Ming Joseph Yu, 2016. "Network and Institutional Effects on SMEs’ Entry Strategies," Management International Review, Springer, vol. 56(4), pages 531-563, August.
    8. Strange, Roger, 2018. "Corporate ownership and the theory of the multinational enterprise," International Business Review, Elsevier, vol. 27(6), pages 1229-1237.
    9. Emmanuelle Chevassus-Lozza & Danielle Galliano, 2009. "Intra-firm trade in the context of European integration: evidence from the French multinational agribusiness," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 128-143.
    10. Liedong, Tahiru Azaaviele & Peprah, Augustine Awuah & Amartey, Abednego Okoe & Rajwani, Tazeeb, 2020. "Institutional voids and firms' resource commitment in emerging markets: A review and future research agenda," Journal of International Management, Elsevier, vol. 26(3).
    11. Cher-Hung Tseng, 2015. "Determinants of MNC’s Knowledge Inflows to Subsidiaries: A Perspective on Internalization Advantages," Management International Review, Springer, vol. 55(1), pages 119-150, February.
    12. Guercini, Simone & Runfola, Andrea, 2016. "How western marketers respond to the new middle class in emerging market cities: The case of Italian fashion marketers," International Business Review, Elsevier, vol. 25(3), pages 691-702.
    13. Ivanov, Stanislav & Ivanova, Maya, 2016. "Market penetration of hotel chains: Does culture matter?," Annals of Tourism Research, Elsevier, vol. 57(C), pages 259-264.
    14. Cesaroni, Fabrizio & Giarratana, Marco S. & Martínez-Ros, Ester, 2012. "Technological capabilities and cost efficiency as antecedents of foreign market entry," MERIT Working Papers 2012-049, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. A. George Assaf & Alexander Josiassen & Haemoon Oh, 2016. "Internationalization and hotel performance," Tourism Economics, , vol. 22(3), pages 572-592, June.
    16. Dilip K. Das, 2008. "South Asia's Integration with the Rest of Asia: a survey," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 22(1), pages 25-40, May.
    17. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    18. Marian Gorynia & Jan Nowak & Radoslaw Wolniak, 2007. "Motives and modes of FDI in Poland - An exploratory qualitative study," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 12(2), pages 132-151.
    19. Liang Chen & Wanli Li, 2022. "Language acquisition and regional innovation: Evidence from English proficiency in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 178-191, January.
    20. Antonio Di Paolo & Aysit Tansel, 2015. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 407-421, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:69:y:2016:i:11:p:5235-5240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.