Research Article
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A Strategic Performance Management Framework: A Hypothetical Hotel Case

Year 2018, Volume: 2 Issue: 2, 92 - 110, 24.12.2018
https://doi.org/10.30625/ijctr.489927

Abstract

Tourism industry with its unique and different
characteristics requires new or adopted performance management models and
frameworks for better managed hospitality companies. Thus, this paper offers a framework
that can be used by hospitality companies when they configure out performance
management system for their businesses. This paper reviews the articles on
strategic management, operation management, and performance management from
tourism and hospitality and mainstream literature and proposes a framework
developed with the notions of system approach. A conceptual framework is
provided which shows the relationships of three systems, namely strategic
management system (SMS), operation management system (OMS), and performance
measurement system (PMS). Being a conceptual framework, it needs to be applied
in different type of hospitality companies to display the usefulness of it. Suggested framework may help managers of
tourism and hospitality businesses in their efforts of building strategic,
operation, and performance management systems that work in congruence. Although
there are studies related to each three main systems separately, no attempt
seen in the literature to study the relationships of three systems either
holistically or partially with their sub-systems. Researchers could use this
framework as a template for further studies.

References

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  • Chen, D., (2005), “Enterprise-control system integration: an international Standard”, International Journal of Production Research, Vol. 43 No. 20, pp. 4335–4357.
  • Cho, S., Woods, R.H., Jang, S.C., and Erdem, M. (2006), “Measuring the impact of human resource management practices on hospitality firms' performances”, International Journal of Hospitality Management, Vol. 25 No. 2, pp. 262-277.
  • Cortés, E.C., Azorín, J. F. M., Moliner, J.P. and Gamero, M. D.L. (2007), “Environmental Strategies and Their Impact on Hotel Performance”, Journal of Sustainable Tourism, Vol.15 No.6, pp.663-679
  • Cross, K.F. and Lynch, R.L. (1988), “The SMART way to define and sustain success”, National Productivity Review, Vol. 8 No. 1, pp. 23-33.
  • Dwyer, L. and Edwards, D. (2009), “Tourism Product and Service Innovation to Avoid ‘Strategic Drift”, International Journal of Tourism Research, Vol. 11, pp. 321-335.
  • EFQM (1998), Self-assessment Guidelines for Companies, European Foundation for Quality Management, Brussels, Belgium.
  • Epstein, M.J., Kumar, P.,and Westbrook, R.A., (2000), “The drivers of customer and corporate profitability: modeling, measuring, and managing the causal relationships”, Advances Management Accounting, Vol. 9 No. 1, pp. 43–72.
  • Essawy, M., (2016), “Job Stressors, Emotional Exhaustion And Service Recovery In Independent Quick Service Restaurants in Egypt: An Empirical Investigation” Advances in Hospitality and Tourism Research (AHTR) An International Journal of Akdeniz University Tourism Faculty, Vol. 4 No.1, pp.1-16.
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  • Harris, P.J. (1992), “Hospitality profit planning in the practical environment: Integrating cost-volume-profit analysis with spreadsheet management”, International Journal of Contemporary Hospitality Management Vol. 4 No. 4, pp. 24-32.
  • Harris, P., Mongiello, M. (2001), “Key performance indicators in European hotel properties: general managers' choices and company profiles”, International Journal of Contemporary Hospitality Management, Vol. 13 No. 3, pp. 20-127.
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  • Huang, L. (2008), “Strategic orientation and performance measurement model in Taiwan's travel agencies”, The Service Industries Journal, Vol.28 No.10, pp.1357-1383
  • Huang, H.C., Chu, W. and Wang, W.K. (2007), “Strategic Performance Measurement and Value Drivers: Evidence from International Tourist Hotels in an Emerging Economy”, The Service Industries Journal, Vol.27 No.8, pp.1111–1128.
  • Huff, A., Jenkins, M. (2003), Mapping Strategic Knowledge, Sage Publications, Thousand Oaks, CA.
  • Hwang, L.J.J. and Lockwood, A. (2006), “Understanding the challenges of implementing best practices in hospitality and tourism SMEs”, Benchmarking: An International Journal Vol. 13 No. 3, pp. 337-354.
  • Ittner , C.D., Larcker, D.F. (1998), “Innovations in performance measurement: trends and research implications”, Journal of Management Accounting Research, Vol.10, pp. 205–238.
  • Johnson, G., and Scholes, K. (1999). Exploring corporate strategy. Hemel Hempstead: Prentice Hall International.
  • Kaplan R S and Norton D P (1996), The Balanced Scorecard - Translating Strategy into Action, Harvard Business School Press Boston, MA, USA.
  • Kaplan, R.S. and Norton, D.P. (2001), The strategy focused organization-how balanced scorecard companies thrive in the business environment, Harvard Business School Press, Boston, MA
  • Kirk, D., Pine, R. (1998), “Research in hospitality systems and technology”, Hospitality Management, Vol. 17, pp. 203-217.
  • Köseoğlu, M.A., Topaloğlu, C., Parnell, J.A. and Lester, D.L. (2013), “Linkages among business strategy, uncertainty and performance in the hospitality industry: Evidence from an emerging economy”, International Journal of Hospitality Management,Vol.34, pp.81-91.
  • Laws, E. (1997), Managing Packaged Tourism, International Thomson Business Press, London.
  • Libby, T.S., Salterio, S., Webb, A. (2004), “The balanced scorecard: the effects of assurance and process accountability on managerial judgement”, The Accounting Review, Vol. 79 No. 4, pp. 1075-1094.
  • Lima, E.P., Costa, S.E.G., Faria, A.R. (2009), “Taking operations strategy into practice: Developing a process for defining priorities and performance measures”, International Journal of Production Economics, Vol. 122, pp. 403–418.
  • Luft, J. and Shields, M. D. (2002), “Zimmerman's contentious conjectures: Describing the present and prescribing the future of empirical management accounting research”, The European Accounting Review, Vol. 11 No.4, pp. 795-803.
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  • McNair, C. J. and Masconi, W. (1987), "Measuring Performance in Advanced Manufacturing Environment", Management Accounting, July, pp. 28-31.
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  • Myung, E., McClaren, A., Li, L. (2012), “Environmentally related research in scholarly hospitality journals: Current statusand future opportunities”, International Journal of Hospitality Management Vol. 3, pp.1264– 1275.
  • Neely, A. and Adams, C. (2001), “The performance prism perspective”, Journal of Cost Management, Vol. 15 No.1, pp. 7-15.
  • Neely, A.D., Gregory, M.J., and Platts, K.W. (2005), “Performance measurement system design: a literature review and research agenda”, International Journal of Operation and Production Management, Vol. 25 No.12, pp. 1228-1263.
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  • Okumuş,F. (2002), “Can hospitality researchers contribute to the strategic management literature?”, International Journal of Hospitality Management, Vol. 21, pp.105–110.
  • Olhager, J., Selldin, E., (2007), “Manufacturing planning and control approaches: market alignment and performance”, International Journal of Production Research Vol. 45 No. 6, pp. 1469–1484.
  • Olsen, M.D. (2003), “Literature in strategic management in the hospitality industry”, International Journal of Hospitality Management Vol. 23, pp. 411–424.
  • Olsen, M.D.and Roper, A. (1998), “Research in strategic management in the hospitality industry”, Hospitality Management, Vol. 17, pp. 111-124.
  • Pearce, D. and Schott, C. (2005), “Tourism Distribution Channels: The Visitors’ Perspective”, Journal of Travel Research, Vol. 44, pp. 50-63.
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  • Phillips, P.A. (1999), “Performance measurement systems and hotels: a new conceptual framework”, International Journal of Hospitality Management, Vol.18, pp.171-182.
  • Phillips, P. and Louvieris, P. (2005), “Performance Measurement Systems in Tourism, Hospitality, and Leisure Small medium-Sized Enterprises: A Balanced Scorecard Perspective”, Journal of Travel Research, Vol. 44, November, pp.201-211.
  • Phillips, P. and Moutinho, L. (2014), “Critical review of strategic planning research in hospitality and tourism” Annals of Tourism Research, Vol. 48, pp. 96-120.
  • Pikkemaat, B. and Zehrer, A., (2016) "Innovation and service experiences in small tourism family firms", International Journal of Culture, Tourism and Hospitality Research, Vol. 10 Issue: 4, pp.343-360, doi: 10.1108/IJCTHR-06-2016-0064
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Year 2018, Volume: 2 Issue: 2, 92 - 110, 24.12.2018
https://doi.org/10.30625/ijctr.489927

Abstract

References

  • Aguta, S, Graub, R. and Peir, J.M. (2003), “Competency needs among managers from Spanish hotels and restaurants and their training demands”, International Journal of Hospitality Management, Vol. 22, pp. 281–295.
  • Avci, U., Madanoglu, M. and Okumus, F. (2011), “Strategic orientation and performance of tourism firms: Evidence from a developing country”, Tourism Management, Vol. 32, pp. 147–157.
  • Baker, D.A.and Crompton, J.L. (2000), “Quality, satisfaction and behavioural intentions”, Annals of Tourism Research, Vol. 27 No. 3, pp.785-804.
  • Bhimani, A. (1993), “Indeterminacy and the specificity of accounting change: Renault 1898–1938”, Accounting, Organizations and Society, Vol. 18 No. 1, pp. 1-39.
  • Bititci, U.S., Carrie, A.S., McDevitt L. (1997), “Integrated performance measurement systems: an audit and development guide”, The TQM Magazine, Vol. 9 No. 1, pp. 46-53.
  • Bourne M, Mills J, Wilcox M, Neely A., Platts K (2000), “ Designing, Implementing and Updating Performance Measurement Systems”, International Journal of Operations and Production Managament, Vol. 20 No. 7, pp. 1-13.
  • Brown, S. and Fai, F. (2006), “Strategic resonance between technological and organisational capabilities in the innovation process within firms”, Technovation, Vol. 26, pp. 60–75.
  • Chen, D., (2005), “Enterprise-control system integration: an international Standard”, International Journal of Production Research, Vol. 43 No. 20, pp. 4335–4357.
  • Cho, S., Woods, R.H., Jang, S.C., and Erdem, M. (2006), “Measuring the impact of human resource management practices on hospitality firms' performances”, International Journal of Hospitality Management, Vol. 25 No. 2, pp. 262-277.
  • Cortés, E.C., Azorín, J. F. M., Moliner, J.P. and Gamero, M. D.L. (2007), “Environmental Strategies and Their Impact on Hotel Performance”, Journal of Sustainable Tourism, Vol.15 No.6, pp.663-679
  • Cross, K.F. and Lynch, R.L. (1988), “The SMART way to define and sustain success”, National Productivity Review, Vol. 8 No. 1, pp. 23-33.
  • Dwyer, L. and Edwards, D. (2009), “Tourism Product and Service Innovation to Avoid ‘Strategic Drift”, International Journal of Tourism Research, Vol. 11, pp. 321-335.
  • EFQM (1998), Self-assessment Guidelines for Companies, European Foundation for Quality Management, Brussels, Belgium.
  • Epstein, M.J., Kumar, P.,and Westbrook, R.A., (2000), “The drivers of customer and corporate profitability: modeling, measuring, and managing the causal relationships”, Advances Management Accounting, Vol. 9 No. 1, pp. 43–72.
  • Essawy, M., (2016), “Job Stressors, Emotional Exhaustion And Service Recovery In Independent Quick Service Restaurants in Egypt: An Empirical Investigation” Advances in Hospitality and Tourism Research (AHTR) An International Journal of Akdeniz University Tourism Faculty, Vol. 4 No.1, pp.1-16.
  • Evans, N., Campbell, D., and Stonehouse, G. (2003), Strategic Management for Travel and Tourism, Butterworth-Heinemann, UK.
  • FitzPatrick, M., Davey, J., Muller, L., and Davey, H. (2013), “Value-creating assets in tourism management: Applying marketing’s service-dominant logic in the hotel industry”, Tourism Management, Vol. 36, pp. 86-98.
  • Foggia, G.D. and Lazzarotti, V. (2014), “Assessing the link between revenue management and performance: insights from the Italian tourism industry”, Measuring Business Excellence, Vol. 18 No. 1, pp. 55-65.
  • Font, X. (2002), “Environmental certification in tourism and hospitality: progress, process and prospects”, Tourism Management, Vol. 23, pp. 197–205.
  • Fraji E., Matute, J. and Melero, I. (2015) “Environmental strategies and organizational competitiveness in the hotel industry: The role of learning and innovation as determinants of environmental success”, Tourism Management, Vol.46, pp.30-42.
  • Ghalayani, A.M., Noble, J.S. (1996), “The changing basis of performance measurement”, International Journal of Operations and Production Management, Vol.16, No.8, pp.63-80.
  • Globerson, S.(1985), Performance Criteria and Incentive Systems, Elsevier, Amsterdam.
  • Gomes, C.F. and Yasin M.M. (2007), “The effectiveness of hospitality service operations: measurement and implementation concerns”, International Journal of Contemporary Hospitality Management Vol. 19 No. 7, pp. 560-573.
  • Grady, M.W. (1991), “Performance measurement: implementing strategy”, ManagementAccounting, June, pp.49-53.
  • Grosse, R. (1996), “International technology transfer in services”, Journal of International Business Studies, Vol. 27 No. 4, pp. 781-800
  • Halloway, J.C. (1998), The Business of Tourism, Addison Wesley Longman Limited, Harlow.
  • Harrington, R.J. and Ottenbacher, M.C. (2011), “Strategic management An analysis of its representation and focus in recent hospitality research”, International Journal of Contemporary Hospitality Management, Vol. 23 No. 4, pp. 439-462.
  • Harris, P.J. (1992), “Hospitality profit planning in the practical environment: Integrating cost-volume-profit analysis with spreadsheet management”, International Journal of Contemporary Hospitality Management Vol. 4 No. 4, pp. 24-32.
  • Harris, P., Mongiello, M. (2001), “Key performance indicators in European hotel properties: general managers' choices and company profiles”, International Journal of Contemporary Hospitality Management, Vol. 13 No. 3, pp. 20-127.
  • Hu, C., Chen, M. and McCain, S.C. (2004), “Forecasting in Short-Term Planning and Management for a Casino Buffet Restaurant”, Journal of Travel and Tourism Marketing, Vol. 16 No. 2-3, pp.79-98.
  • Huang, L. (2008), “Strategic orientation and performance measurement model in Taiwan's travel agencies”, The Service Industries Journal, Vol.28 No.10, pp.1357-1383
  • Huang, H.C., Chu, W. and Wang, W.K. (2007), “Strategic Performance Measurement and Value Drivers: Evidence from International Tourist Hotels in an Emerging Economy”, The Service Industries Journal, Vol.27 No.8, pp.1111–1128.
  • Huff, A., Jenkins, M. (2003), Mapping Strategic Knowledge, Sage Publications, Thousand Oaks, CA.
  • Hwang, L.J.J. and Lockwood, A. (2006), “Understanding the challenges of implementing best practices in hospitality and tourism SMEs”, Benchmarking: An International Journal Vol. 13 No. 3, pp. 337-354.
  • Ittner , C.D., Larcker, D.F. (1998), “Innovations in performance measurement: trends and research implications”, Journal of Management Accounting Research, Vol.10, pp. 205–238.
  • Johnson, G., and Scholes, K. (1999). Exploring corporate strategy. Hemel Hempstead: Prentice Hall International.
  • Kaplan R S and Norton D P (1996), The Balanced Scorecard - Translating Strategy into Action, Harvard Business School Press Boston, MA, USA.
  • Kaplan, R.S. and Norton, D.P. (2001), The strategy focused organization-how balanced scorecard companies thrive in the business environment, Harvard Business School Press, Boston, MA
  • Kirk, D., Pine, R. (1998), “Research in hospitality systems and technology”, Hospitality Management, Vol. 17, pp. 203-217.
  • Köseoğlu, M.A., Topaloğlu, C., Parnell, J.A. and Lester, D.L. (2013), “Linkages among business strategy, uncertainty and performance in the hospitality industry: Evidence from an emerging economy”, International Journal of Hospitality Management,Vol.34, pp.81-91.
  • Laws, E. (1997), Managing Packaged Tourism, International Thomson Business Press, London.
  • Libby, T.S., Salterio, S., Webb, A. (2004), “The balanced scorecard: the effects of assurance and process accountability on managerial judgement”, The Accounting Review, Vol. 79 No. 4, pp. 1075-1094.
  • Lima, E.P., Costa, S.E.G., Faria, A.R. (2009), “Taking operations strategy into practice: Developing a process for defining priorities and performance measures”, International Journal of Production Economics, Vol. 122, pp. 403–418.
  • Luft, J. and Shields, M. D. (2002), “Zimmerman's contentious conjectures: Describing the present and prescribing the future of empirical management accounting research”, The European Accounting Review, Vol. 11 No.4, pp. 795-803.
  • Lynch, R.L., Cross, K.F. (1991), Measure Up!- Yardsticks for Continuos Improvement, Blackwell, Cambridge.
  • Maskel, B. (1989), “Performance measures for world class manufacturing”, Management Accounting, Vol. 15 No.4, pp. 80-116.
  • McMann, P. and Nanni, A.J. (1994), “Is your company really measuring performance”, Management Accounting, November, pp.55-58.
  • McNair, C. J. and Masconi, W. (1987), "Measuring Performance in Advanced Manufacturing Environment", Management Accounting, July, pp. 28-31.
  • Middleton, V.T. and Clark, J. (2001), Marketing in Travel and Tourism, Butterworth-Heinemann, Oxford.
  • Mill, R.C. and Morrison, A.M. (2002), The Tourism System, Kendall/Hunt Publishing, Dubuque, IA.
  • Myung, E., McClaren, A., Li, L. (2012), “Environmentally related research in scholarly hospitality journals: Current statusand future opportunities”, International Journal of Hospitality Management Vol. 3, pp.1264– 1275.
  • Neely, A. and Adams, C. (2001), “The performance prism perspective”, Journal of Cost Management, Vol. 15 No.1, pp. 7-15.
  • Neely, A.D., Gregory, M.J., and Platts, K.W. (2005), “Performance measurement system design: a literature review and research agenda”, International Journal of Operation and Production Management, Vol. 25 No.12, pp. 1228-1263.
  • O’Cass, A. and Sok, P. (2015), “An exploratory study into managing value creation in tourism service firms: Understanding value creation phases at the intersection of the tourism service firm and their customers”, Tourism Management, Vol.51, pp.186-200.
  • Okumus, F. (2001), “Towards a strategy implementation framework”, International Journal of Contemporary Hospitality Management, Vol. 13 No. 7, pp. 327–338.
  • Okumuş,F. (2002), “Can hospitality researchers contribute to the strategic management literature?”, International Journal of Hospitality Management, Vol. 21, pp.105–110.
  • Olhager, J., Selldin, E., (2007), “Manufacturing planning and control approaches: market alignment and performance”, International Journal of Production Research Vol. 45 No. 6, pp. 1469–1484.
  • Olsen, M.D. (2003), “Literature in strategic management in the hospitality industry”, International Journal of Hospitality Management Vol. 23, pp. 411–424.
  • Olsen, M.D.and Roper, A. (1998), “Research in strategic management in the hospitality industry”, Hospitality Management, Vol. 17, pp. 111-124.
  • Pearce, D. and Schott, C. (2005), “Tourism Distribution Channels: The Visitors’ Perspective”, Journal of Travel Research, Vol. 44, pp. 50-63.
  • Pechlaner, H. and Sauerwein, E. (2002), “Strategy implementation in the Alpine tourism industry”, International Journal of Contemporary Hospitality Management, Vol. 14 No.4, pp. 157–168.
  • Peslak, A.R. (2006), “Enterprise resource planning success An exploratory study of the financial executive perspective”, Industrial Management and DataSystems, Vol. 106 No. 9, pp. 1288-1303.
  • Phillips, P.A. (1999), “Performance measurement systems and hotels: a new conceptual framework”, International Journal of Hospitality Management, Vol.18, pp.171-182.
  • Phillips, P. and Louvieris, P. (2005), “Performance Measurement Systems in Tourism, Hospitality, and Leisure Small medium-Sized Enterprises: A Balanced Scorecard Perspective”, Journal of Travel Research, Vol. 44, November, pp.201-211.
  • Phillips, P. and Moutinho, L. (2014), “Critical review of strategic planning research in hospitality and tourism” Annals of Tourism Research, Vol. 48, pp. 96-120.
  • Pikkemaat, B. and Zehrer, A., (2016) "Innovation and service experiences in small tourism family firms", International Journal of Culture, Tourism and Hospitality Research, Vol. 10 Issue: 4, pp.343-360, doi: 10.1108/IJCTHR-06-2016-0064
  • Reinartz, W., Krafft, M. and Hoyer, W.D. (2004), “The Customer Relationship Management Process: Its Measurement and Impact on Performance”, Journal of Marketing Research, Vol. 41No. 3, pp. 293-305.
  • Santori, P. S. and Anderson, A.D.. (1987), “Manufacturing performance in the 1990's: Measuring for excellence”, Journal of Accountancy, November, pp.143-148.
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There are 83 citations in total.

Details

Primary Language English
Subjects Tourism (Other)
Journal Section Original Scientific Article
Authors

Yıldırım Yılmaz 0000-0002-6537-7111

Publication Date December 24, 2018
Submission Date November 29, 2018
Published in Issue Year 2018 Volume: 2 Issue: 2

Cite

APA Yılmaz, Y. (2018). A Strategic Performance Management Framework: A Hypothetical Hotel Case. International Journal of Contemporary Tourism Research, 2(2), 92-110. https://doi.org/10.30625/ijctr.489927