In spite of the prevalence and strategic importance of diversification for US hospitality firms, research on the effects of diversification has been insufficient in the hospitality literature. Especially, examination of the moderating effect of product or brand diversification on the relationship between geographic diversification and performance of US hospitality firms has been lacking in the hospitality field thus far. This study aims to investigate the effect of each diversification strategy on firm performance for US casino, restaurant, and lodging industries. Further, to investigate effects of diversification comprehensively by incorporating interactions between different diversification strategies, this study attempts to examine the moderating effect of product diversification on the relationship between geographic diversification and performance of US casino firms, and the moderating effect of brand diversification on the relationship between geographic diversification and performance of US restaurant and lodging firms. To accomplish study purposes, this study employs fixed effects and fixed effects instrumental variable regressions analyses, which strictly address the endogeneity problem, thereby enhancing causality between diversification and firm performance. The sample of this study consists of 336 observations of 43 casino firms, 176 observations of 36 lodging firms, and 952 observations of 132 restaurant firms over the period 1993-2010. The study's results indicate a positive and significant effect of geographic diversification on firm performance in the US casino and lodging industry, but an insignificant effect of geographic diversification in the US restaurant industry. For the effect of product and brand diversification, the study's analyses show no significant effect of product diversification on firm performance in the US casino industry, a negative and significant effect of brand diversification in the US restaurant industry, and an insignificant effect of brand diversification in the US lodging industry. Regarding moderating effects, while this study finds an insignificant moderating effect of product diversification on the relationship between geographic diversification and firm performance in the US casino industry, the analyses show a negative and significant moderating effect of brand diversification in the US restaurant industry and a positive and significant moderating effect of brand diversification in the US lodging industry. Findings of this study recommend more prudent decision-making for diversification strategies for US casino firms, brand concentration strategies for US restaurant firms, and acceleration of both geographic and brand diversification for US lodging industry. This study fills a research gap in the hospitality literature by exhaustively examining the effect of diversification strategies on firm performance in the hospitality field by providing evidence for the moderating effects of product and brand diversification on the geographic diversification-firm performance relationship in three US hospitality industries. Further, this study enriches the whole body of diversification theory and literature by providing context-specific empirical findings for diversification's effects and investing the moderating role of brand diversification in the diversification strategy context. / Tourism and Sport
| Identifer | oai:union.ndltd.org:TEMPLE/oai:scholarshare.temple.edu:20.500.12613/1571 |
| Date | January 2011 |
| Creators | Kang, Kyung Ho |
| Contributors | Lee, Seoki, Roehl, Wesley S., Plehn-Dujowich, Jose M., Aaronson, William Edson |
| Publisher | Temple University. Libraries |
| Source Sets | Temple University |
| Language | English |
| Detected Language | English |
| Type | Thesis/Dissertation, Text |
| Format | 181 pages |
| Rights | IN COPYRIGHT- This Rights Statement can be used for an Item that is in copyright. Using this statement implies that the organization making this Item available has determined that the Item is in copyright and either is the rights-holder, has obtained permission from the rights-holder(s) to make their Work(s) available, or makes the Item available under an exception or limitation to copyright (including Fair Use) that entitles it to make the Item available., http://rightsstatements.org/vocab/InC/1.0/ |
| Relation | http://dx.doi.org/10.34944/dspace/1553, Theses and Dissertations |
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