The impact of hotel management contracting on IHRM practices

Judie M Gannon · Angela Roper · Liz Doherty

43 citations0/0 files storedInternational Journal of Contemporary Hospitality Management

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International Business and FDI Human Resource and Talent Management Franchising Strategies and Performance

Abstract

Purpose The international hotel industry's growth has been achieved via the simultaneous divestment of real estate portfolios and adoption of low risk or “asset light” market entry modes such as management contracting. The management implications of these market entry mode decisions have however been poorly explored in the literature and the purpose of this paper is to address these omissions. Design/methodology/approach Research was undertaken with senior human resource executives and their teams across eight international hotel companies (IHCs). Data were collected by means of semi‐structured interviews, observations and the collection of company documentation. Findings The findings demonstrate that management contracts as “asset light” options for international market entry not only provide valuable equity and strategic opportunities but also limit IHCs' chances of developing and sustaining human resource competitive advantage. Only where companies leverage their specific market entry expertise and develop mutually supportive relationships with their property‐owning partners can the challenges of managing human resources in these complex and diversely owned arrangements be surmounted. Research limitations/implications A limitation of this paper is the focus on the human resource specialists' perspectives of the impact of internationalization through asset light market entry modes. Originality/value This paper presents important insights into the tensions, practices and implications of management contracts as market entry modes which create complex inter‐organisational relationships subsequently shaping international human resource management strategies, practices and competitive advantage.

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References

1994Qualitative Data Analysis: An Expanded Sourcebook 2003Research Methods for Business Students 2022Business Research Methods 1999Doing Qualitative Research: A Practical Handbook 2016Strategy and Human Resource Management 1989Exploring Corporate Strategy: Text and Cases 1997Strategic Choice in the Analysis of Action, Structure, Organizations and Environment: Retrospect and Prospect 2007Managing the human resources

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