Determinants of small accommodation business size

Abstract

PurposeThis paper aims to model and empirically test the determinants of small accommodation business (SAB) size.Design/methodology/approachThis study distinguishes among three aspects of SAB size (accommodation scale, investment and employment) and between two modes of growth (managerial and entrepreneurial growth). A conceptual framework was developed based on business growth theory, whereby three econometric models were constructed and estimated to predict size variations. Data were collected through a survey on 200 SABs in North Zhejiang Province of China. Effects of the determinants were contrasted between different size indicators.FindingsThe SAB size can be affected by personal factors (employed working experience, education level, industry-specific know-how), interpersonal factor (relative ties to other SABs) and environmental factor (association support). The interpersonal and environmental factors tend to contribute to managerial growth, while the personal factors are usually conducive to entrepreneurial growth.Research limitations/implicationsThis study addresses the questions of “why some SABs grow larger in size than others” and “why different SABs grow in different ways”. But more contexts and business types should be examined so as to ensure generalizability through future studies.Practical implicationsThe research findings can provide guidelines for local tourism administration to encourage or regulate SAB development.Originality/valueThis study is among the first endeavors to examine the multidimensionality and determinants of business size in tourism and hospitality; it contributes to literature by expanding tourism entrepreneurship research into a/the “growth paradigm”.