Influence of leadership competency and organizational culture on responsiveness and performance of firms

Abstract

Purpose – The purpose of this paper is to investigate the operations strategy of service firms (hotels) in order to determine whether the infrastructural aspects of their operational practices, i.e. leadership competency and organizational culture, would affect their responsiveness (as a cumulative capability) to their employees and customers and eventually their performance (increase in revenue).Design/methodology/approach – The approach takes the form of an empirical analysis of data (using structural equation modeling) obtained via a questionnaire survey involving 88 hotels of various ratings in Malaysia.Findings – The findings indicate that leadership competency and organizational culture have positive relationships with responsiveness. In addition, responsiveness has a positive relationship with hotel revenue. These findings imply that leadership competency and organizational culture are important factors for hotels to be responsive to their customers, and in turn responsiveness to customers would im...