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Full Length Research Paper
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The market
structure, conduct and performance paradigm re-applied to
the international tourist hotel industry
Gu-Shin Tung1*, Ching-Yi
Lin2 and Chih-Yuan
Wang3
1Department
of Leisure Business Management, National Pingtung Institute
of Commerce, Pingtung, Taiwan.
2Department
of International Trade, National Pingtung Institute of
Commerce, Pingtung, Taiwan.
3Department
of Management, Ming Chuan University, Taipei, Taiwan.
*Corresponding
author. E-mail:
gushin@mail.npic.edu.tw,
b4135@ms45.hinet.net.
Tel: 886-926-327-463.
Accepted 12 May, 2010 |
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Abstract |
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This paper presents a market structure, conduct, performance
model (SCP) of industrial economics to estimate causes and
effects among the international tourist hotel industry. Previous
literature could not confirm the causality of the hotel
industry, therefore, this paper develops a comprehensive model,
based on realistic data of hotels, which allows the analysis of
the system through three simultaneous equations, market share,
advertising, and profitability. In a sample of 360 Taiwanese
international tourist hotels, from 1995-2006, three-stage least
squares results indicate that: (1) two-way causes and effects
exist between the market structure and strategic behavior, which
is detected from the incentive pattern of the SCP model; (2) a
brand positive effect shows on the market share; (3) a firms’
profitability is positively, and significantly, impacted by
market share, but is affected negatively by total operating
costs and capital intensity, which confirms hotel industry
issues regarding capital.
Key words:
Hotels, market structure, conduct, performance. |
