Abstract
Crisis management is vital for hotels to survive in the present competitive business climate in Jordan. Previous research into leadership and crisis management produced inconclusive results. Therefore, the influence of a leader’s experience on the relationship between leadership styles and crisis management needed to be further investigated and analyzed. A quantitative study involving a self-administered questionnaire was carried out using respondents in management roles at 3 to 5-star hotels operating in Jordan. The Smart-PLS 3.0 was used to analyze the survey data. Results show that transformational and transactional leadership has a positive and significant relationship with crisis management practice. Furthermore, a leader’s experience plays an important role in improving the relationship between a transformational leadership style and crisis management. However, the results show that although, leadership style is important, a leader’s experience can be of even greater value if they possess a transformational leadership style. From the perspective of contingency theory, when managing a crisis, the style of leadership is contingent on situational factors and a leader with experience may have an extra advantage in influencing his/her subordinates to practice crisis management.
Highlights
The hotel sector is reputed to be among the fastest growing sectors in the global economy
5.2 Measurement Model Cronbach’s alpha, composite reliability (CR), average variance extracted (AVE), convergent validity and discriminant validity were examined. 5.2.1 Reliability and Convergent Validity Table represents the result of reliability and convergent validity for the measurement model
The findings from this study reveal that the effect of transformational leadership and transactional leadership as independent variables of crisis management was statistically significant
Summary
The hotel sector is reputed to be among the fastest growing sectors in the global economy. It is considered to be among the top job generating industries due to its labour intensive nature as well as the significant multiplier impact it has on employment in other related sectors. In Jordan, hotels are significantly dependent on tourist arrivals tourism is a principal export sector. The hotel industry is a major player in the tourism sector which has been directly linked to significant foreign exchange earnings (MOTA, 2003). As reported by the Central Bank of Jordan, the tourism sector contributes approximately 10.50 % to the country's gross domestic product (MOTA, 2016). 2010-2016 could be considered as a time of crisis for Jordanian tourism with different indicators of sector performance showing a clear decline when compared to the period prior to 2010. By referring to the statistical reports of the Jordanian Ministry of Tourism & Antiquities for the years 2010-2016, Table 1 shows some of the main indicators relating to Jordanian tourism for 2010-2016
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