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Collusive behaviour, risk and performance of tourism firms

Author

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  • Vu Quang Trinh
  • Neelu Seetaram
  • Kiet Tuan Duong
  • Xuan Vinh Vo

Abstract

This paper aims to enrich social network and managerial powers theories by examining the effects of board-CEO friendship ties in tourism firms. Specifically, we focus on the association between the board-CEO social network ties (e.g. serving external boards together or sharing memberships at social organisations) and performance and risk-taking behaviour among tourism firms. The findings show that friendship ties between CEO and board members result in higher risk-taking, lower profitability and market values. In addition, professional ties (i.e. current and past employment) significantly impact tourism firms’ outcomes, whereas non-professional ties (i.e. education and other social organisations) do not. The findings prevail after controlling for the Covid-19 pandemic. However, friendship ties lead to better information sharing, resulting in more effective decision-making by board members.

Suggested Citation

  • Vu Quang Trinh & Neelu Seetaram & Kiet Tuan Duong & Xuan Vinh Vo, 2023. "Collusive behaviour, risk and performance of tourism firms," Tourism Economics, , vol. 29(8), pages 2103-2128, December.
    • Handle: RePEc:sae:toueco:v:29:y:2023:i:8:p:2103-2128
    DOI: 10.1177/13548166221125988
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    References listed on IDEAS

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