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The importance of the firm and destination effects to explain firm performance

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  • Molina-Azorin, José F.
  • Pereira-Moliner, Jorge
  • Claver-Cortés, Enrique

Abstract

An interesting question in tourism management is why tourist firms obtain different performance levels. Firm performance in the tourism industry depends mainly on the destination where the company operates (location or destination effect), and on firm internal resources and characteristics (firm effect). The purpose of this paper is to determine the relative importance of the firm and destination effects using a multilevel approach and hierarchical linear models. The findings show that both effects impact significantly on firm performance, and also that the firm effect is more important than the destination effect. We equally provide some insights about the relationships between these two levels with the aim of building bridges between them.

Suggested Citation

  • Molina-Azorin, José F. & Pereira-Moliner, Jorge & Claver-Cortés, Enrique, 2010. "The importance of the firm and destination effects to explain firm performance," Tourism Management, Elsevier, vol. 31(1), pages 22-28.
    • Handle: RePEc:eee:touman:v:31:y:2010:i:1:p:22-28
    DOI: 10.1016/j.tourman.2009.02.009
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    References listed on IDEAS

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    Cited by:

    1. Emil Juvan, 2011. "Development of Regional Tourism Organizations: Conditions, Expectations and Contradictions," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 4(1), pages 73-82.
    2. Hang T. T. Nguyen & Hanh Song Thi Pham & Susan Freeman, 2023. "Dynamic capabilities in tourism businesses: antecedents and outcomes," Review of Managerial Science, Springer, vol. 17(5), pages 1645-1680, July.
    3. Baggio, Rodolfo, 2020. "Tourism destinations: A universality conjecture based on network science," Annals of Tourism Research, Elsevier, vol. 82(C).
    4. Camisón, César & Forés, Beatriz, 2015. "Is tourism firm competitiveness driven by different internal or external specific factors?: New empirical evidence from Spain," Tourism Management, Elsevier, vol. 48(C), pages 477-499.
    5. Wenbin Luo, 2018. "Evaluating Tourist Destination Performance: Expanding the Sustainability Concept," Sustainability, MDPI, vol. 10(2), pages 1-16, February.
    6. Roberto Gabriele & Enrico Tundis, 2015. "the effect of longitudinal multiple subsidies on firm performance in the presence of neighbour interactions," ERSA conference papers ersa15p1368, European Regional Science Association.
    7. Nguyen Thanh Long & Thanh-Lam Nguyen, 2018. "Sustainable Development of Rural Tourism in An Giang Province, Vietnam," Sustainability, MDPI, vol. 10(4), pages 1-20, March.
    8. Marco Corsino & Enrico Zaninotto, 2012. "Revealing the influence of managerial practices and entrepreneurs' characteristics on hotel efficiency," DISA Working Papers 2012/03, Department of Computer and Management Sciences, University of Trento, Italy, revised May 2012.
    9. Pike, Steven & Page, Stephen J., 2014. "Destination Marketing Organizations and destination marketing: A narrative analysis of the literature," Tourism Management, Elsevier, vol. 41(C), pages 202-227.
    10. Zouaghi, Ferdaous & Hirsch, Stefan & Garcia, Mercedes Sanchez, 2016. "What Drives Firm Profitability? A Multilevel Approach To The Spanish Agri-Food Sector," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244762, German Association of Agricultural Economists (GEWISOLA).
    11. Paola M. A. Paniccia & Luna Leoni & Silvia Baiocco, 2017. "Interpreting Sustainability through Co-Evolution: Evidence from Religious Accommodations in Rome," Sustainability, MDPI, vol. 9(12), pages 1-19, December.
    12. Afonso Victor & Calisto Maria de Lurdes, 2023. "Covid-19 and the Portuguese accommodation sector," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 13(1), pages 49-55, December.
    13. Sainaghi, Ruggero & Phillips, Paul & Zavarrone, Emma, 2017. "Performance measurement in tourism firms: A content analytical meta-approach," Tourism Management, Elsevier, vol. 59(C), pages 36-56.
    14. Saeed Samiee & Leonidas C. Leonidou & Constantine S. Katsikeas & Bilge Aykol, 2024. "Research on country-of-origin perceptions: review, critical assessment, and the path forward," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(3), pages 285-302, April.

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