Confirmatory Factor Analysis for the Strategic Management Model of the Recovery of Smes Hotel Businesses During the COVID-19 Situation

Abstract

Objective: To examine the determinants of confirmatory factor analysis of business recovery strategy factors that affect expected business outcome after being affected by the COVID-19 situation of medium and small hotels. Theoretical Framework: This study uses a Turnaround Theory, especially the theory of Crisis Management. Method: This research uses a quantitative approach with a questionnaire as the tool to collect the data design using a sample of 298 with the Purposive Sampling technique. The data analysis technique used is Structural equation modeling (SEM); with the AMOS device to test the statistics of the goodness of fit of the measurement model with the empirical data. Result: From examining the statistics of the goodness of fit of the measurement model with the empirical data, it was found that the business recovery strategy model that affects expected business outcomes had been consistent with the empirical data. This met the criteria for considering the harmony between the measurement model and the empirical data. Moreover, each question had demonstrated a statistical significance level of 0.01. The results of testing the influence of all 6 paths found that all the paths had had a positive influence, and the predictive power of the expected business outcome had been 67.1 percent. Implications: The COVID-19 outbreak has had an impact on hotel operations and revenue. As a result, demand and service activities contracted significantly. Therefore, to alleviate this negative impact and business recovery. Originality/Value: After reviewing the literature, it was found that. It was found that various strategies were used in response to this crisis. The researcher therefore analysis on strategies for business recovery So that it can be used as a model for restoring businesses after being affected by crisis situations.