The phenomenon of business failure has attracted research interest in finance literature partly because of its impact on the U.S economy. Whereas an impressive body of knowledge has been accumulated on this subject thus far, the hospitality literature has lacked empirical studies that seek to explain the nature of this phenomenon in the hospitality industry. The restaurant industry has consistently had the most business failures of any single segment within the retail trade sector in the eighties. Therefore, there were three purposes in this study: 1) to develop a model for predicting business failure which can be a useful tool in helping researchers and industry practitioners to identify warning signs of business failure in the restaurant industry, 2) to determine whether the financial variables of a predictive model for business failure in the restaurant industry are the same as in the hotel industry, and 3) to determine whether the financial variables that are associated with reorganization are different from those that are associated with liquidation in the restaurant industry. The sample consisted of 23 failed and 23 non-failed restaurant firms, and 15 failed and 15 non-failed hotel firms within the period of 1982-1993. The predictive business failure models were developed through logistic regression analysis employing 8 financial variables based on one year prior to business failure. The models were tested at two and three years prior to business failure. The empirical evidence illustrated that the business failure model developed for the restaurant industry is capable of predicting business failure, and even bankruptcy with high classification accuracy. The relationship between reorganization and liquidation was investigated through logistic regression analysis employing two sets of indicators for capital structure and profitability. The sample consisted of 14 reorganizers and 10 liquidators from the restaurant industry. The empirical evidence showed that reorganization and liquidation are not dependent on each other, that is, reorganization and liquidation cannot be determined by both Capital structure and profitability in the restaurant a failed [end of author-provided abstract]. / Ph. D.

Performance improvement is at the heart of all strategic management. Thus, the principal objectives of this study were to develop an industry-specific instrument to measure lodging strategy, identify a set of strategic dimensions underlying such strategy, and relate performance differences among lodging units to varying strategic dimensions emphasized by such units. The study adopted the individual hotel as the unit of analysis, and realized strategy was measured as opposed to the intended. Five hundred and seventy nine hotels, which are part of the franchise systems of two industry-leading chains contributed information for this research. Following a comparative approach to the measurement of the strategy construct, this study developed a lOS-item lodging industry-specific strategy measurement scale, capturing a comprehensive set of strategic characteristics from the business strategy (porter, 1980) and service management (Gronroos, 1990; Zeithaml, Parasuraman, and Berry, 1990) literatures. Through factor analysis, a parsimonious set of seven strategic dimensions, Service Quality Leadership, Technological Leadership, Push, Cost Control, Pull, Group Channels, and Cross-Training, underlying this lOS-item scale was delineated. Using Yield Per Room, Market Share Index, and Return on Sales as the performance measures, the study indicated that strategies followed by high and low performing hotels were different. The empirical evidence showed that, in general, the Push, Service Quality Leadership, and Technological Leadership strategic dimensions tended to be associated with high performance. The evidence also indicated that strategies emphasized by high and low performing hotels differed by the four control variables studied: Location, (Service) Segment, (Ownership-Management) Affiliation, and Size. Additionally, similar differences were also obtained when the hotels studied were classified by the performance measure most used by them to evaluate themselves, and the age of the properties. Preliminary indications were also obtained to confirm the existence of a strategic time lag effect. The results from this study should be valuable not only for extending hospitality strategy research, but also for their normative implications. / Ph. D.

The phenomenon of acquisitions has attracted research interest in the finance literature partly because of its impact on the u.s economy during the decade of the eighties. Whereas an impressive body of knowledge has been accumulated on this subject thus far, the hospitality literature has no empirical studies that seek to explain the nature of this phenomenon in the hospitality industry. Of particular interest in this study was the impact of acquisitions on the shareholder wealth of target hotel and restaurant shareholders. Therefore, there were three purposes in this study: 1) to determine whether stockholders of target hotel and restaurant companies involved in acquisitions earned significant additional wealth, 2) to determine whether there is a difference in the average size of additional wealth created in acquisitions involving hospitality companies versus those involving non-hospitality companies, and 3) to determine whether there is a difference in the average size of additional shareholder wealth accruing to hotel versus restaurant shareholders. The sample consisted of 39 restaurant and 18 hotel target companies acquired between 1980 and 1990. The datasource was the University of Chicago's Center for Research in Securities Prices (CRSP) database. The market model was used to predict stock returns for the target companies thirty days before and after the announcement of the acquisition. The difference between the predicted returns and actual returns for each trading day during this period constituted the abnormal return. The average abnormal returns for all the companies per trading day were cumulated and their significance determined. The results showed that the size of the additional shareholder wealth created when the restaurant companies were acquired was 8.86%, hotels was 29.86%, while the combined sample was 15.47%. These results provided evidence that hotel and restaurant shareholders earn significant abnormal returns during an acquisition, and that there is a significant difference in the size of additional shareholder wealth accruing to hospitality companies versus non-hospitality ones. Furthermore, there was a difference in the average size of abnormal returns earned by hotel shareholders versus restaurant shareholders. / Ph. D.

International workers are a vulnerable population within the hospitality industry. Their challenges, and needs have an impact on productivity, loyalty and satisfaction of international workers towards the organizations that employ them. The social and cultural impacts of labor migration are felt in their new environment by both domestic and immigrant populations. It is important to understand international workers’ acculturation process in order to provide them with tools necessary to succeed; it is also important to create responsible practices that translate into positive migration outcomes for both domestic and foreign populations. This study collected data on the motivations, processes, challenges, and alternatives experienced by international workers when relocating to the United States. It documents the cultural adaptation process followed by international workers laboring in the hospitality industry, and based on the data collected from interviewers’ responses, it creates new constructs intended to assist hospitality organizations in their operations. By providing tools to support international workers in the acculturation process, and by providing new understandings of the cultural adaptation process undertaken by international workers when relocating, it is plausible to convert a challenge and limitation into an opportunity for hospitality organizations to create value out of their international human capital.