title: Managers' Perception of Market Competition, Transformational Leadership, Use of MAS Information and Performance: A Cross-Cultural Study in Hotels
Creators: name: Patiar, Anoop Kumar
Publisher: name: Griffith University
Year: 2005
Subjects: subject: Market competition
subject: transformational leadership
subject: MAS information
subject: globalisation
subject: customer satisfaction
subject: hotel industry

description: Increasing market competition, globalisation, technological advancements and customers' awareness of service quality has contributed to environmental uncertainty within the hotel industry (Atkinson &amp; Brander Brown, 2001; Brander Brown &amp; Atkinson, 2001; Harris &amp; Mongiello, 2001; Sanchez, 1997). Several researchers argue that managers' perceived uncertainty can be better managed if the general manager practises a transformational leadership style (i.e., the superior shares the organisational vision with subordinates and genuinely motivates them) (Hinkin &amp; Tracey, 1994; Lockwood &amp; Jones, 1989; Tracey &amp; Hinkin, 1996; Zetie, Sparrow, Woodfield &amp; Kilmartin, 1994; Zohar, 1994). Furthermore, the use of broad scope MAS (management accounting systems) information helps to reduce uncertainty and complexity, thereby improving decision-making (Biema &amp; Greenwald, 1997; Chen, 1996; Chenhall &amp; Morris, 1986; Gordon &amp; Narayanan, 1984; Mia &amp; Clarke, 1999; Sanchez, 1997). This study examined the relationship between hotel department managers' perception of the intensity of market competition, their general manager's (i.e., the superior's) transformational leadership style and the use of broad scope MAS information, and its effect on departmental performance (i.e., financial, non-financial and overall change in performance). In addition, this study investigated the moderating effect of national culture on the above relationship using Hofstede's (1980) theoretical framework including power distance and individualism dimensions, and undertaking the study in the Australian and Indian hotel industry. A cross-sectional design was used to present a snapshot of the relationship mentioned in the previous paragraph. In particular, two research methods-a self-administered postal survey questionnaire and face-to-face interviews-were used to improve the generalisation of the results. In total, 82 four and five star hotels (66 hotels in Australia and the remaining 16 in India) with more than 160 bedrooms returned completed and usable questionnaires. From each of the hotels and resorts, food and beverage as well as the room's department managers participated in the study. The data was gathered with the help of well-established instruments that were adapted for the hotel environment. For example, Gupta and Govindrajan's (1984) departmental performance scale; Khandwalla's (1972) market competition scale; Bass and Avolio's (1997) MLQ-5X transformational leadership scale; Chenhall and Morris's (1986) broad scope MAS information scale and Hofstede's (1980) national culture scale. In addition, major issues covered in the survey questionnaire were further discussed in face-to-face interviews with selected hotel department managers. While the quantitative data was analysed using standard descriptive statistics as well as inferential statistics (i.e., t-test and hierarchical multiple regression techniques), qualitative data was analysed using summary tables. The quantitative and qualitative analysis resulting from the survey questionnaire and face-to-face interviews with hotel department managers provided support for the two sets of findings. Firstly, the basic performance model revealed a significant and positive three-way interaction between market competition, transformational leadership style, broad scope MAS information use and departmental performance consisting of financial performance, overall change in departmental performance as well as change in departmental revenue in the past two years prior to the study. Further analysis confirmed that improvement in departmental performance was apparent when general managers practised high, rather than low transformational leadership style, with no change in the level of market competition and broad scope MAS information use. While a significant and positive direct effect of transformational leadership and broad scope MAS information use on departmental performance was evident, a significant and negative direct effect of market competition on departmental performance was also found. Secondly, Australian and Indian department managers exhibited, a significant difference in national culture, transformational leadership, market competition and MAS use, but no significant difference in departmental performance was evident. The moderating effect of national culture on the basic performance model showed that in India, culture had no effect on the three-way interaction. However, in Australia, a significant and positive three-way interaction was only evident for overall changes in departmental revenue. Perhaps this long-term favourable outcome in Australia is due to the high transformational leadership style of hotel general managers, department managers' perception of high market competition and their increased use of broad scope MAS information. The theoretical and managerial implications of the study's results, limitations and future research directions are also discussed in the thesis.