Improving strategic orientations for promoting hotel services using an integrated rough MAGDM model
Abstract
This study aims to assist decision makers to improve hotel service performance by developing strategic orientations. Strategic orientations are imprecise and subjective: they vary according to domain experts’ opinions and practical experience. This study develops an integrated rough multiple attribute group decision-making (MAGDM) model that supports decision makers to acquire a systematic view of strategic methods for improving performance to the desired level. The model incorporates three methods. First, we use the rough number approach to determine group opinions from the practical experience of domain experts. We then apply the rough decision making trial and evaluation laboratory (DEMATEL)-based analytic network process to develop a rough influential network relation map (RINRM). The rough influential weights based on strategic orientations and their corresponding attributes are calculated. Finally, we use the modified complex proportional assessment of alternatives with gray relations (mCOPRAS-G) and the influential weights to calculate the relationship ratio between performance and aspiration level. Our model flexibly assesses the vagueness involved in decision-making, enabling more objective expert estimation of attributes in subjective surroundings than traditional multiple attributes decision-making models. We use the Taiwanese hotel industry as an empirical case study. Our study provides useful information on how to enhance hotel services and achieve optimal performance based upon expert judgments and the RINRM. The results show that customer orientation is the optimal strategy for hotel service promotion.
Keyword : strategic orientation, hotel service performance, multiple attribute group decision making (MAGDM), rough number, rough DEMATEL-based analytic network process (RDANP), modified complex proportional assessment of alternatives with gray relations (mCOPRAS-G)
How to Cite
Liou, J. J. H., Kaklauskas, A., Lu, M.-T., & Chuang, Y.-C. (2019). Improving strategic orientations for promoting hotel services using an integrated rough MAGDM model. Technological and Economic Development of Economy, 25(2), 188-218. https://doi.org/10.3846/tede.2019.8419
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Lu, M. T., Tzeng, G. H., & Tang, L. L. (2013). Environmental strategic orientations for improving green innovation performance in fuzzy environment- Using new fuzzy hybrid MCDM model. International Journal of Fuzzy Systems, 15(3), 297-316.
Lu, M. T., Hsu, C. C., Liou, J. J. H., & Lo, H. W. (2018). A hybrid MCDM and sustainability-balanced scorecard model to establish sustainable performance evaluation for international airports. Journal of Air Transport Management, 71, 9-19. https://doi.org/10.1016/j.jairtraman.2018.05.008
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Chen, Y. C., Li, P. C., & Kenneth, R. E. (2012). Effects of interaction and entrepreneurial orientation on organizational performance: Insights into market driven and market driving. Industrial Marketing Management, 41(6), 1019-1034. https://doi.org/10.1016/j.indmarman.2012.01.017
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Deng, J. L. (1982). Control problems of grey system. Systems and Control Letters, 1(5), 288-294. https://doi.org/10.1016/S0167-6911(82)80025-X
Fernández-Mesa, A., & Alegre, J. (2015). Entrepreneurial orientation and export intensity: Examining the interplay of organizational learning and innovation. International Business Review, 24(1), 148-156. https://doi.org/10.1016/j.ibusrev.2014.07.004
García-Villaverde, P. M., Elche, D., & Martínez-Pérez, Á. (2017). Determinants of radical innovation in clustered firms of the hospitality and tourism industry. International Journal of Hospitality Management, 61, 45-58. https://doi.org/10.1016/j.ijhm.2016.11.002
Hartman, S., & Lundberg, O. (1995). Information processing techniques in planning: An investigation of preferences of executive planners. Journal of Business Research, 33(1), 13-24. https://doi.org/10.1016/0148-2963(94)00002-V
Hashemkhani Zolfani, S., Chen, I. S., Rezaeiniya, N., & Tamošaitienė, J. (2012). A hybrid MCDM model encompassing AHP and COPRAS-G methods for selecting company supplier in Iran. Technological and Economic Development of Economy, 18(3), 529-543. https://doi.org/10.3846/20294913.2012.709472
Hu, K. H., Jianguo, W., & Tzeng, G. H. (2018). Improving China’s regional financial center modernization development using a new hybrid MADM model. Technological and Economic Development of Economy, 24(2), 429-466. https://doi.org/10.3846/20294913.2016.1213195
Hult, G. T. M., & Ketchen, D. J. (2001). Does market orientation matter? A test of the relationship between positional advantage and performance. Strategic Management Journal, 22(9), 899-906. https://doi.org/10.1002/smj.197
Jiang, X., Liu, H., Fey, C., & Jiang, F. (2018). Entrepreneurial orientation, network resource acquisition, and firm performance: A network approach. Journal of Business Research, 87, 46-57. https://doi.org/10.1016/j.jbusres.2018.02.021
Jiang, Y., & Kim, Y. (2015). Developing multi-dimensional green value: extending social exchange theory to explore customers’ purchase intention in green hotels – evidence from Korea. International Journal of Contemporary Hospitality Management, 27(2), 308-334. https://doi.org/10.1108/IJCHM-08-2013-0383
Jorgensen, B. (2004). Individual and organizational learning: A model for reform for public organizations. Foresight − The Journal of Future Studies, Strategic Thinking and Policy, 6(2), 91-103.
Ketchen, D. J., Thomas, J. B., & McDaniel, R. R. (1996). Process, content and context: synergistic effects on organizational performance. Journal of Management, 22(2), 231-257. https://doi.org/10.1177/014920639602200203
Kraus, S. (2013). The role of entrepreneurial orientation in service firms: empirical evidence from Austria. The Service Industries Journal, 33(5), 427-444. https://doi.org/10.1080/02642069.2011.622373
Koch, J. V., & Cebula, R. J. (2002). Price, quality and service on the Internet: sense and nonsense. Contemporary Economic Policy, 20(1), 25-37. https://doi.org/10.1093/cep/20.1.25
Kumar, V., & Ramani, G. (2006). Interaction orientation: The new marketing competency in Does Marketing Need Reform. In. J. N. Sheth, & R. S. Sisodia (Eds.), Armonk (pp. 109-118). NY: M.E Sharpe, Inc.
Liou, J. J. H., Tamosaitiene, J., Zavadskas, E. K., & Tzeng, G. H. (2016). New hybrid COPRAS-G MADM Model for improving and selecting suppliers in green supply chain management. International Journal of Production Research, 54(1), 114-134. https://doi.org/10.1080/00207543.2015.1010747
Lu, M. T., Lin, S. W., & Tzeng, G. H. (2013). Improving RFID adoption in Taiwan’s healthcare industry based on a DEMATEL technique with a hybrid MCDM model. Decision Support System, 56, 259-269. https://doi.org/10.1016/j.dss.2013.06.006
Lu, M. T., Tzeng, G. H., & Tang, L. L. (2013). Environmental strategic orientations for improving green innovation performance in fuzzy environment- Using new fuzzy hybrid MCDM model. International Journal of Fuzzy Systems, 15(3), 297-316.
Lu, M. T., Hsu, C. C., Liou, J. J. H., & Lo, H. W. (2018). A hybrid MCDM and sustainability-balanced scorecard model to establish sustainable performance evaluation for international airports. Journal of Air Transport Management, 71, 9-19. https://doi.org/10.1016/j.jairtraman.2018.05.008
Lu, M. T., Hu, S. K., Huang, L. H., & Tzeng, G. H. (2015). Evaluating the implementation of business-to-business m-commerce by SMEs based on a new hybrid MADM model. Management Decision, 53(2), 290-317. https://doi.org/10.1108/MD-01-2014-0012
Lukas, B. A., & Maignan, I. (1996). Striving for quality: the key role of internal and external customers. Journal of Market-Focused Management, 1(2), 175-187. https://doi.org/10.1007/BF00128689
Matsuno, K., Mentzer, J. T., & Ozsomer, A. (2002). The effects of entrepreneurial proclivity and market orientation on business performance. Journal of Marketing, 66(3), 18-32. https://doi.org/10.1509/jmkg.66.3.18.18507
Miller, G. A. (2003). Consumerism in sustainable tourism: a survey of UK consumers. Journal of Sustainable Tourism, 11(1), 17-39. https://doi.org/10.1080/09669580308667191
Mintzberg, H. A., & Lampel, B. J. (1998). Strategy safari: a guided tour through the wilds of strategic management. New York: Free Press.
Noble, C. H., Sinha, R. K., & Kumar, A. (2002). Market orientation and alternative strategic orientations: a longitudinal assessment of performance implications. Journal of Marketing, 66(4), 25-39. https://doi.org/10.1509/jmkg.66.4.25.18513
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20-35. https://doi.org/10.1177/002224299005400403
Naman, J. L., & Slevin, D. P. (1993). Entrepreneurship and the concept of fit: A model and empirical tests. Strategic Management Journal, 14(2), 137-153. https://doi.org/10.1002/smj.4250140205
OCDE. (2003). Facteurs exogenes recents (guerre, terrorisme, SRAS) ayant un impact significatif sur le tourisme, mesures prises pour y faire face et consequences structurelles. Session speciale du Comite du tourisme de l’OCDE, 10 July. OECD, Paris.
Pawlak, Z. (1982). Rough sets. International Journal of Computer and Information Science, 11(5), 341-356. https://doi.org/10.1007/BF01001956
Peng, M. W. (2003). Institutional transitions and strategic choices. Academy of Management Review, 28, 275-296. https://doi.org/10.5465/amr.2003.9416341
Qu, R., & Zhang, Z. (2015). Market orientation and business performance in MNC foreign subsidiaries- Moderating effects of integration and responsiveness. Journal of Business Research, 68(5), 919-924. https://doi.org/10.1016/j.jbusres.2014.09.018
Ramani, G., & Kumar, V. (2008). Interaction orientation and firm performance. Journal of Marketing, 72(1), 27-45. https://doi.org/10.1509/jmkg.72.1.027
Rauch, A., Wiklund, J., Lumpkin, G., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship: Theory & Practice, 33(3), 761-787. https://doi.org/10.1111/j.1540-6520.2009.00308.x
Rowley, J. (2004). Online branding. Online Information Review, 28(2), 131-138. https://doi.org/10.1108/14684520410531637
Shen, K. Y., Hu, S. K., & Tzeng, G. H. (2017). Financial modelling and improvement planning for the life insurance industry by using a rough knowledge based hybrid MCDM model. Information Sciences, 375, 296-313. https://doi.org/10.1016/j.ins.2016.09.055
Slater, S. F., & Narver, J. C. (1995). Market orientation and the learning organization. Journal of Marketing, 59(3), 63-74. https://doi.org/10.1177/002224299505900306
Skogland, I., & Siguaw, J. A. (2004). Are your satisfied customers loyal? Cornell Hotel and Restaurant Administration Quarterly, 45(3), 221-234. https://doi.org/10.1177/0010880404265231
Slater, S. F., & Narver, J. C. (1994). Market orientation, customer value, and superior performance. Business Horizons, 37(2), 22-28. https://doi.org/10.1016/0007-6813(94)90029-9
Song, W., Ming, X., & Liu, H. C. (2017a). Identifying critical risk factors of sustainable supply chain management: A rough strength-relation analysis method. Journal of Cleaner Production, 143, 100-115. https://doi.org/10.1016/j.jclepro.2016.12.145
Song, W., Ming, X., & Wu, Z. (2013). An integrated rough number-based approach to design concept evaluation under subjective environments. Journal of Engineering Design, 24(5), 320-341. https://doi.org/10.1080/09544828.2012.732994
Song, W., Xu, Z., & Liu, H. C. (2017b). Developing sustainable supplier selection criteria for solar airconditioner manufacturer: An integrated approach. Renewable and Sustainable Energy Reviews, 79, 1461-1471. https://doi.org/10.1016/j.rser.2017.05.081
Srivastava, R. K., Shervani, T. A., & Fahey, L. (1999). Marketing, business processes and shareholder value: an organizationally embedded view of marketing activities. Journal of Marketing, 63, 168-179. https://doi.org/10.1177/00222429990634s116
Su, C. M., Horng, D. J., Tseng, M. L., Chiu, A. S. F., Wu, K. J., & Chen, H. P. (2016). Improving sustainable supply chain management using a novel hierarchical grey-DEMATEL approach. Journal of Cleaner Production, 134, 469-481. https://doi.org/10.1016/j.jclepro.2015.05.080
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