The power of e-commerce: Does e-commerce enhance the impact of loyalty programs on hotel operating performance?. Issue 4 (11th April 2019)

• Record Type: Journal Article
• Authors: Hua, Nan; Hight, Stephen; Wei, Wei; Ozturk, Ahmet Bulent; Zhao, Xinyuan (Roy); Nusair, Khaldoon; DeFranco, Agnes
• Is Part Of: International journal of contemporary hospitality management. Volume 31:Issue 4(2019)
• Page Start: 1906
• Page End: 1923
• Publication Date: 2019-04-11
• Subjects: Information technology -- Hotels -- E-commerce -- Operating performance -- Loyalty program; Hospitality industry -- Management -- Periodicals; 647.94068
• DOI: 10.1108/IJCHM-02-2018-0168
• Languages: English
• ISSNs: 0959-6119

Abstract

Abstract : Purpose: This paper aims to offer empirical insights on how investing in e-commerce capabilities affects the relationship between loyalty programs and hotel operating performance so as to aid in identifying proper resource allocation strategies. Design/methodology/approach: This study extended the model in Hua et al. (2015 ) by testing the interaction of e-commerce and loyalty programs. Findings: The findings illustrate that proper allocation of company financial resources to e-commerce initiatives can help improve the impact of loyalty programs on hotel operating performance. Practical implications: The results of this study illustrate that hotel performance can be improved by the synergy between loyalty program and e-commerce initiatives. Thus, hotel managers and owners can use results from this study to improve the efficiency of their asset allocation strategies, with five practical implications offered. Originality/value: Theoretically, this study adapted and extended an integrative model of hotel operating performance ( Hua et al ., 2015 ) by identifying critical factors that elucidate the variance in firm performance. In addition, the moderating role of e-commerce provides a new conceptualization of information technology. Practically, this study makes several important contributions as well.