Type of Submission
Refereed Article
Abstract
The plural form refers to the adoption of a multiple- distribution strategy: franchise, management, and full ownership. This study aims to help hotel owners, operators, and researchers to understand better the superiority of the plural form over a single form and the impacts of franchising and management on a firm’s overall risk and various performance variables. This study proves the plural form to be better than a single form at improving performance and lowering risk. The findings also suggest that a higher franchise percent within the mix of franchise, management, and ownership is likely to reduce further a firm’s risk. A higher management percent can increase some performance measures, but it does not reduce a firm’s risk. This study also suggests that the optimal proportion of franchising varies according to a firm’s emphasis on a particular performance. Lodging firms could utilize the findings of this study in making strategic choices about different business forms, before expanding their number of units in the market.
Recommended Citation
chung, yeasun and Yoon, Nada
(2013)
"PLURAL FORM,RISK AND PERFORMANCE IN THE HOTEL INDUSTRY,"
Journal of Hospitality Financial Management: Vol. 21:
Iss.
1, Article 4.
Available at:
https://scholarworks.umass.edu/jhfm/vol21/iss1/4