Organizational Performance Of Hotels In Malaysia Marketing Essay

Organizational Performance Of Hotels In Malaysia Marketing EssayABSTRACTThis reputation investigates the relationship between agonistic dodge and market penchant on organisational performance of hotels in Malaysia. This paper pass ons an overview of the research in terms of background of the understand, problem statement, questions and objectives of the study. Additionally, this paper presents the theoretical textile and hypotheses development. Finally, this paper discusses about the significances, limitations and conclusion.Keywords personify leadership, Differentiation, Customer orientation, Competitor orientation and Organizational performanceBackground of the studyIn the present billet environment, Malaysian hospitality industry has achieved more attention. In line with, Malaysian governments policies to convert the Malaysian economical perspective from production based to knowledge based, has made the service sector became one of the pillars for the national economic g rowth. Based on Productivity Report 2010/2011, the service sector contri fur in that locationd almost 48.45 percent of the rude Domestic Product (GDP) and 4.74 percent of productivity growth in the year 2010. Additionally, the statistic by Department of Statistic Malaysia shows that service sector remained as a major driver of the Malaysian economy by recording 7 percent growth in Third Quarter of 2011. One of the crucial components of the service sector is hospitality industry.The hospitality industry consists of the accommodation, transportation, restaurant and entertainment sector which veneering tremendous competition. In Malaysia, the hotel industry is a one of potential industry. The contribution of the hotel industry to the national economy is plentiful. The hotel industry is not only contributed to a phase of economic sectors but also a labour intensive industry with the capacity to create job opportunities. The Ministry of Tourism of Malaysia is encouraging development of hotel industry in Malaysia by planning and implementing various valuable events and policies. Based on Malaysian Tourism Industry Outlook, tourism is the second largest contributor to Malaysian economic development. Additionally, Malaysia has a strong tourism position as the 9th most visited country in the world and gain RM 1 billion receipts per week from the foreign tourist.A total of 24.6 million tourists were arriving in Malaysia and spent RM 56.5 billion in 2010 compared to previous years, the number of tourist arrivals was 23.6 million and spent RM 53.4 billion. Furthermore, the World Tourism Ranking by United Nations World Tourism Organization shows that Malaysia is a second largest tourist arrival destination in Asia Pacific in 2010. Additionally, the domestic tourism also gained revenue of RM 25.98 billion in 2009. By 2011, the Malaysian Tourism Ministry is forecasting 25 million tourist arrivals and earn RM 60 billion in tourism receipts. By 2020, the Malaysian governm ent under National Key Economic Area (NKEA) expecting the tourism industry get out contribute RM 103.6 billion in Gross Nation Incomes (GNI) by increasing the number of tourist arrivals from 24.6 million to 36 million.Based on the report by Malaysian Association of Hotel (MAH), in November 2011 in that location are 888 one star to fiver star hotels around Malaysia. The MAH report shows that there were 264 three to five star hotels in Peninsular Malaysia, 102 three to five star hotels in Sabah and Sarawak and 77 three to five star hotels in federal territories. Thus, currently there were 443 three to five star hotels in Malaysia. This embark shows growing of hotel industry in Malaysia.Problem statementNotwithstanding the rapid growth, the hospitality industry is facing various challenges from external and internal factors in a business environment which affect the organizational performance. This terrific combative business environment required the organization to adopt the fine st competitive strategy and market orientation which can be best strategic fit for the organizational strategic direction and practices in order to achieve greater organizational performance and competitive advantage (Kumar, Subramanian Stradholm, 2011 Parnell, 2011 Zhou, Brown Dev, 2009 Abdullah, Mohamed, Othman Uli, 2009 Allen Helms, 2006 Prajogo, 2006 Javalgi, Whipple Ghosh, 2005 Vazquez, Santos Alvarez, 2001). In fact, the above two factors have the potential to establish the competitiveness take and organizational performance (Nandakumar, Ghobadian Regan, 2011 Ainrafas, Irabkha Isabba, 2011 Bordean, Borza, Nistor Mitra, 2010 Fierro, Mur, Hart Redondo, 2010 Bordean, Borza, Plescan Mitra, 2010 Seedee, Sulaiman Ismail, 2009 Vazquez, Santos Alvarez, 2001 Porter, 1980, 1985).Even so, a very limited empirical study has been conducted in examining the relationship between these combinations of variables which highlighted by this study. The framework proposed in this stud y considers the generic competitive strategy as business level strategies and allow be the independent variable and the marketing orientation considers as functional level strategy and apply as a mediating variable and their effects on organizational performance as a dependent variable. The previous literature reviews revealed that researchers have been use financial and non- financial manner to measure the organizational performances. The financial measures such as Return on Assets, Return on Sales, Return on Equity, profitability, market share which using instruments of Ramanujam Vengkataraman, Dess Robinson and downwind Miller (Nandakumar, Ghobadian Regan, 2011 Seedee, Sulaiman Ismail, 2009 Allen Helms, 2006).On the other hand, some researchers used financial and non- financial instruments to measure the organizational performance (Bordean, Borza, Nistor Mitra, 2010 Abdullah, Mohamed, Othman Uli, 2009). Evans (2005) used the Balanced card (BSC) method in order to mea sure the performances of service industry. The Balanced Scorecard method found by Kaplan Norton (1992) is a useful tool of performance measurement for the hotel industry. This balanced Scorecard equipped with four dimensions namely financial perspective, customer perspective, internal process perspective and learning growth perspective. Actually, there were very limited studies have been conducted using the Balanced Scorecard to measure organizational performance of hotels in Malaysia. (Razalli, Dahlan T.Ramayah, 2007 Jusoh Parnell, 2008).Thus, this study will use the BSC method to measure the organizational performance of hotels. Indeed, it has been very usual practice to study the integrating issues from a wide range of perspectives. However, conducting a research involving various strategic issues in one particular theoretical framework is still considered as unusual and latest (Yang Huang, 2000). In short, the previous literatures show that the researchers have conducted v arious studies on these above mention variables independently. Hence, this could be the key inadequacy in prior researches where each study conducted on a particular basis. Even though, the past studies contributing valuable information to the existing knowledge but it is still insufficient studies which integrating these three constructs in one theoretical framework. Thus, in order to address this inadequacy and bridge the existing gap this study will investigate the importance of the relationship between competitive strategy and market orientation and the consequences on organizational performance of hotels in Malaysia. This study will quiz the context of research more holistically from the strategic management perspective for the best finish reservation process in order to achieve sterling(prenominal) organizational performance among hotels in Malaysia.Research QuestionsBased on the problem statement, the following questions will be used as a fundamental management to condu ct this study which stated belowRQ 1 Is there a relationship between competitive strategy and market orientation?RQ 2 Is there any mediation effect of market orientation on competitive strategy and organizational performance?Research ObjectivesThe general objectives of the study are to examine the influence of competitive strategy and market orientation on organizational performance. The specific objectives are as followsRO 1 To investigate the relationship between competitive strategy and market orientation.RO 2 To investigate the influence of market orientation as mediating variable in the relationship between competitive strategy and organizational performance.Overview of Theoretical FrameworkBased on the research gaps identified from the prior literature, this study will investigate constructs in the context of competition among the hotels in Malaysia. write in code 1.1 illustrates the theoretical framework and hypotheses relationship in an endeavour to address the research obj ectives as mentioned before.Figure 1.1 Relationship of Competitive Strategy and Market Orientation on Organizational Performance.Organizational performanceMarket orientationCompetitive strategyCompetitor orientationCost leadershipCustomer orientationDifferentiation venture development of studyBased on the theoretical framework, this study formulates eight hypotheses to examine the relationship. The hypotheses are as followsH1 There is a relationship between live leadership and competitor orientation.H2 There is a relationship between differentiation and customer orientation.H3 There is a relationship between cost leadership and organizational performance.H4 There is a relationship between differentiation and organizational performance.H5 There is a relationship between competitor orientation and organizational performance.H6 There is a relationship between customer orientation and organizational performance.H7 Hotel pursuing cost leadership mediating by competitor orientation produ ce better performance.H8 Hotel pursuing differentiations mediating by customer orientation produce better performance.Significance of studyThis study emphasizes the importance of competitive strategy and market orientation and their relationships towards organizational performance. Specifically, it is predicted that the adaptability of these combined factors will contribute major impact to the organizational performance. This significance of study can be viewed from two perspectives practical and theoretical significance. Below a brief shade on how this study able to contribute to the body of knowledge from the strategic management perspectives specifically on the process of decision making.Practical significance This study will determine some imperative issues and the gaps in the literature related to the strategic relationship between competitive strategy and market orientation on organizational performance, especially in hotels of Malaysia. These analyses will shed some lights t o the hotel industrys competitiveness. The findings of this study shall formulate better strategic management choices and strategic decision making in order to gain competitive advantage. In order for that, this study will generate a framework which shall enhance the confidence and potential of top executives and managers for making very concrete decisions.Theoretical significance This study will contribute to the competitiveness theory development and it is envisaged to be further input to the process of decision making. The new framework which proposed would expand the existing body of knowledge.Limitations of studyThe only focus of this study is on the strategic relationship between competitive strategy and market orientation on the organizational performance of hotels in Malaysia. For that reason, the scope of the study is on the hotel industry in Malaysia only, with a particular focus on three to five star rated hotels in Malaysia. Finally, other aspects or factors excludes fro m the scope of the study. It is undeniable, contribution from other factors or issues may perhaps affect or provide valuable information for the managerial decision making process, so if such situation occurs that will consider as limitations of the study as well.ConclusionIn conclusion, it is predicted that the findings of this study will give a strong message to top management regarding the decision making of business level strategy and functional level strategy for the hotel industry. In other word, the top management should carefully derive best strategic choice for the hotel by making alignment between business level, functional level and operational level strategies. If all the hotels in Malaysia continuously strive towards giving importance to strategic decision making of the above mentioned factors, therefore there is no doubt the Malaysian hotel industry will generate superior organizational performance and competitive advantage which lead our hotel industry to be position ed in world class hospitality business.