مقاله انگلیسی رایگان در مورد نحوه شکل دهی جریانات ارزش گردشگری به وجود آمده توسط نوآوری – الزویر ۲۰۲۴

Abstract

The upper echelons theory postulates that the cognitive frameworks of top executives shape organizational decisions and behaviors. Based on this theory, this study contributes to the literature by analyzing the effects of the chief executive officer’s (CEO) political ideology and political climate on variations in the market value of tourism firms resulting from their innovation activities. An empirical application was conducted on major U.S. hotel companies that have traded on the stock market for the last 25 years (1998–۲۰۲۲) and made innovation-related announcements. This application shows that, although the implementation of innovative activities positively affects a firm’s market value, both the CEO’s political ideology and the political climate influence the degree of change in the said market value. This study has fundamental theoretical implications for upper echelons theory by improving the understanding of how cognitive diversity derived from political ideology influences decision-making and its outcomes.

Introduction

Do the values of chief executive officers (CEOs) of publicly traded tourism companies influence their behavior? To what extent can these personal beliefs influence the effect of innovation on the market value of the companies they lead? Does the national political climate affect stock profitability when tourism organizations undertake innovative actions?

Innovation has been widely recognized as a critical element for tourism and hospitality companies and emerges as an indispensable strategic factor for their long-term success and growth (Gao & Zhang, 2023; Martínez-Ros & Orfila-Sintes, 2009; Pikkemaat et al., 2019; Sundbo et al., 2007; Vu & Hartley, 2022). Tourism literature has highlighted multiple benefits associated with innovation: it enables the tourism sector to be more resilient, productive, and adaptable (Zenker & Kock, 2020); it helps cope with an increasingly competitive and uncertain environment (Gao & Zhang, 2023; Martínez-Ros & Orfila-Sintes, 2009; Vu & Hartley, 2022); it facilitates the creation of new products and tourist experiences (or improves the quality and efficiency of existing processes and services) that contribute to stimulating demand and increasing business performance (Hall & Williams, 2019; Hjalager, 2010; Nicolau & Santa-María, 2013a, 2013b; Raad et al., 2023; Sharma et al., 2021; Zach et al., 2020); and it helps tourism companies grow (Love et al., 2011) and remain competitive (Aldebert et al., 2011; Martín-Rios & Ciobanu, 2019; Pikkemaat et al., 2019). In the context of hotel management, Chen (2011) states that “innovation appears to be the only means for an organization to convert change into opportunities and thus succeed [in the market]” (p. 64).

Conclusions

This study has assessed the potential effects of a CEO’s political ideology on the abnormal returns resulting from hotels’ innovations investments. In particular, the empirical application looks into the major U.S. hotel companies that have traded on the stock market for the last 25 years (1998–۲۰۲۲) and made innovation-related announcements. The results show that, although the implementation of innovation activities positively affects the market value of hotels, a CEO’s political ideology affects the level of reaction on the part of shareholders. Specifically, the implementation of innovation activities by hotel companies led by liberal CEOs (compared with those led by conservative CEOs) results in low abnormal returns. Moreover, when a liberal party has greater control over the governing bodies than a conservative party, the implementation of innovation activities leads to high positive effects on a hotel’s market value.

These results have relevant theoretical implications. First, this study represents a significant advancement in the literature related to tourism innovation, as it strengthens the connection between the hospitality industry and political ideology. While existing literature has highlighted that political decisions profoundly impact the development of tourism activities (including innovation), this study goes a step further by revealing that hotels must consider the ideology of their CEOs as a critical factor when evaluating and implementing tourism innovations. The political beliefs of these top executives significantly influence the ability of hotels to generate positive abnormal returns through the announcement of any innovative initiative. This approach not only optimizes the positive impact associated with innovations in the stock market but also provides a pathway for companies in the sector to increase their market value in an increasingly dynamic and complex competitive environment.