Dynamic capabilities and high performance organization of hotel business: empirical investigation into world class tourism destination

Abstract

Purpose – The fact that Thailand has been a popular destination among global tourists has created challenges for hotel businesses to achieve high performance with excellent services that are responsive to the needs of global travelers. This article aims to provide empirical evidence on the causal relationships among the effects of the dynamic capabilities, high-performance organization and organizational performance of hotel businesses in a world-class tourism destination. Design – Theoretical views on management were gathered to create a conceptual framework that is the source of different performance results and that has 2 main factors: (1) dynamic capabilities and (2) the high-performance organization. Methodology – This paper is quantitative research, using questionnaires to collect data from 109 hotel businesses located on Samui Island, Thailand. The data were first analyzed using descriptive statistics and were then compared by groups of hotel characteristics using t-tests and ANOVA. Finally, confirmatory factor analysis and structural equation modeling were conducted. Findings – This study shows that hotel characteristics differently affected dynamic capabilities, the high-performance organization and performance. The results also indicate that the highperformance organization not only has a direct positive effect on performance but it also completely meditates the relationship between dynamic capabilities and performance. Originality of the research – The findings should be useful for hotel managers who aim to improve their hotels’ dynamic capabilities to enhance the high-performance organization and firm performance.