Browsing by Author "Schmelzer, Claire D."

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    A case study investigation of strategy implementation in three multi-unit restaurant firms
    Schmelzer, Claire D. (Virginia Tech, 1992)
    The primary objective of this study was to conduct an exploratory investigation of the process of strategy implementation in multi-unit restaurant firms. A model comprised of five context variables and five process variables was developed on the basis of a review of the theoretical literature about the restaurant industry, strategy implementation, and organization theory. Qualitative research methods, specifically case study design, concept mapping, and matrix analysis were used to collect and analyze the data from three firms. The findings from this investigation included 14 propositions that explain the associations between the variables and other factors found to affect implementation in the three companies, which were investigated. A new framework was developed from the propositions that further delineates the strategy implementation process. The framework introduces four additional variables found to be involved in the implementation process: life cycle stage of the firm, size and geographic dispersion of the firm, manager demographics, and training. Three primary context variables, organizational culture, organizational structure, and perceived environmental uncertainty; and three primary process variables, information processing, planning and control, and resource allocation were found to have a major effect on strategy implementation. The results obtained provide a basis for further study of the implementation process.
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    An Empirical Investigation of Corporate Entrepreneurship Intensity within the Casual Dining Restaurant Segment
    Brizek, Michael George (Virginia Tech, 2003-03-29)
    The purpose of this study was to identify the perception and relationships between corporate entrepreneurship (CE) practices and management performance. The use of Morris and Kuratko's (2002) Corporate Entrepreneurship Assessment Instrument (CEAI) was used as the survey instrument for this study. A sample size of 1,200 unit managers, middle managers, and top management teams (TMTs) within nine casual dining restaurant organizations were surveyed with a response of 522 subjects at a rate of 44%. Responses of the CEAI results were studied using regression analysis and conclusions were drawn to support four out of the six hypothesis originally proposed in determining CE activity and management reinforcement. A post test analysis was also conducted in order to reinforce the previous results of the original study. This study concluded with the determination through an empirical analysis that forms of CE activity and enforcement are currently present within the casual dining restaurant segment.
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    An Exploratory Study of Strategic Human Resource Management High Performance Work Practices for Unit Level Managers, in the Casual Segment of the Us Restaurant
    Murphy, Kevin S. (Virginia Tech, 2006-04-24)
    The previous chapters described in detail the literature, theory and research on Co-alignment, RBV and SHRM that was the basis for the development of a construct for the conceptualization of HPWP in the casual theme restaurant sector of the US hospitality industry for management. Firms able to implement such HPWP systems possessing universality, i.e. complementary internal fit, have been shown to increase the intangible value of their human capital (employees) and create greater economic value (Delery, 1998). This study used the co-alignment principle in conjunction with concepts in SHRM and RBV to develop a theory for a HPWP system for casual theme restaurants in the US, which is named a High Performance People System (HPPS). The co-alignment model for hospitality organizations which is the foundation of the theoretical model for this research (Olsen, West, and Tse;1998) describes the relationship between four key constructs, i.e. the environment, strategy choice, firm structure, and firm performance. Briefly, the four constructs in the model must be in alignment with each other in order for the firm to produce the greatest value for its stakeholders. Co-alignment theory purports that, "if the firm is able to identify the opportunities that exist in the forces driving change, invest in competitive methods that take advantage of these opportunities, and allocate resources to those that create the greatest value, the financial results desired by owners and investors have a much better chance of being achieved" (Olsen et al. 1998, p.2). SHRM researchers have been advocates of the theory that supports the causal relationship between HRM practices, sustainable competitive advantage (SCA) and firm performance. Several strategic human resource management researchers such as, Cappelli & Singh (1992),Wright & McMahan (1992), Pfeffer (1994), Lado & Wison (1995), Huselid (1995), Jackson & Schuler (1995),Becker & Gerhart (1996), Delany & Huselid (1996), Boxall (1998), Pfeffer (1998), Schuler & Jackson (2000), Ulrich & Beatty (2001), Lepak & Snell (2002), Hartog (2004) and others have directly or indirectly made attempts to theorize the effects of single or multiple human resource management variables on firm performance. These efforts have led to the incremental development of the strategic human resource management literature that stresses the relationships between the HRM practices, SCA and firm performance. There is an emergent body of evidence demonstrating that "the methods used by an organization to manage its human resources can have a substantial impact on many organizationally relevant outcomes" (Delery, 1998, p. 1). Convoluting the research on HPWP is incongruity among researchers on the micro HRM practices which are included in the SHRM system; there is little concurrence among scholars with respect to specifically which human resource practices should be incorporated (Becker & Gerhart, 1996; Rogers & Wright, 1998; Chadwick & Cappelli, 1999). RBV is one of the ten schools of thought in the field of management theory (Mintzberg, 2000) and is predicated on the concept that in order to create a sustainable competitive advantage and produce value for the firm, individual policies or practices produce the greatest results when they operate in a complex system that is not easily imitated (Barney, 1995). Resources are the "physical things a firm buys, leases or produces for its own use or the people hired on terms that make them effectively part of the firm" (Penrose, 1959: 67). Wernerfelt (1984) defines a firm's resources as "tangible or intangible assets which are tied semi-permanently to the firm" (p. 172). Barney (1991) further suggested that resources which can be used to create a SCA must have value, rareness, inimitability and substitutability The research focused on the discovery of the components of a HPWP system construct in the US casual theme restaurant segment for operating managers and the performance metrics used to judge their effectiveness. An exploratory study, in part using the Delphi method, serves as the overall research approach. A cross section of restaurant industry experts including company executives, consultants, academics and investors/owners contributed to the study. The outcome is a list of HRM work practices that are common to the casual theme restaurant industry and performance metrics. Based on prior empirical work the study started with 14 HRM work practice dimensions (See Table 3.1) and 3 performance measurements of productivity, turnover and financial performance (Huselid, 1995; Huselid & Becker, 1995; Delery & Doty, 1996; Becker & Huselid, 1996; Huselid & Becker, 1997; Hartog, 2004). These dimensions and performance metrics were presented to the panel of expert's making up the pilot study group as a starting point in the development of the HPWP system construct for the casual themed restaurant industry. After compiling the results of the pilot study and pretesting the survey instrument, the first Delphi survey (see Appendix 3) and a subsequent reminder were sent out electronically to the preselected Delphi participants for the study. A consensus on the research questions was not reached from the first-round survey according to the protocol Therefore, the second round was administered which provide opportunity for participants to change their position to help the group reach a consensus. Since consensus was reached according to the protocol (see tables 4.9, 4.12 & 4.13), the Delphi was concluded at this point. In summary, figure 1.1 put forth a conceptual model to clarify the relationships between the above mentioned schools of thought and firm performance. Figure 1.2 presented a working theoretical model which expounds on the relationships between the key concepts in the conceptual model and firm performance. Finally, figure 5.1 displays the results and the relationships of the study which methodically confirms the components of a HPPS for unit level managers, and identifies appropriate evaluation criteria for determining the performance of HPPS in the US casual restaurant market.
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    Investigating the Process of Valuing Investments in Intangibles: A Case Study in Safety and Security in the Multinational Hotel Industry
    Punpugdee, Nuttapon (Virginia Tech, 2005-06-29)
    Safety and security have emerged as a major force driving change in the multinational hotel industry. As a problem area not well-developed in the literature but considered a crucial force influencing hotel firms' value by the multinational hotel community, safety and security provide an excellent opportunity for industry professionals and academic researchers to improve the value creation of multinational hotel firms. A research need is more urgent in the upscale sector of the industry, and thus, an upscale brand of multinational hotel firm was selected for this study. This case study investigated how a multinational hotel firm developed a process of valuing its investments in safety and security for its properties under an upscale brand. This European hotel firm operates in twenty countries with a variety of business climates. The differences in the remote environments, namely the political, economic, socio-cultural, technological, and ecological environments, presented a great opportunity to gather different views regarding safety and security investments from hotel managers. The dimensions of hotel safety and security were identified by management teams running the firm's hotels to provide scope for decision-making. With this scope, the management teams continued to develop a framework for assessing the value generated from investments in safety and security by identifying the components of an investment decision-making model. A framework as a result of this exploratory study is suggested for future research where causality can be specified and a descriptive decision-making model can be built.
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    An Investigation into Considerations for the Design of IS to Improve the Utility of the Use of the Co-alignment Model: An Integration of Strategy and IT as A Coordination Strategy Framework - A Case Study of Virginia Beach
    Chang, Yao-Jen (Virginia Tech, 2004-07-20)
    As competition has changed and made the environment more dynamic and complex for the hospitality and tourism industry, the concept of strategic management has become more important. However, under the force driving change of technology innovation, information has gone digital and electronic for business development and management. Adopting information technology (IT) for strategic management becomes an important issue for an organization. The co-alignment model is believed to be one of the effective models for the purposes of strategic management in the field of hospitality and tourism. The primary objective of this study was to investigate important considerations for the design of an information system (IS) to improve the utility of the model. Once the important considerations are taken into account for constructing the system, such an IS is expected to facilitate the information flows associated with the co-alignment model and further work in concert with the model to strengthen the processes of strategy formulation and implementation. Together, the co-alignment model and the IS can be viewed as a Coordination Strategy Framework which also has theoretical underpinning from the review of the literature of strategy, hospitality and tourism, management information system (MIS), computer science (CS), and information science. Because this research topic or its similar kind has not been studied in the field of hospitality and tourism, this study is exploratory in nature. A qualitative research approach adopting a single-case study method was used. Using the co-alignment model as one of its theoretical supports along with other techniques to collect and test the interview data, the study achieved reliability and validity of the research findings. As a major part of the conclusions of this study, the findings are the important considerations for the design of the future IS. They included the seven key issues in five dimensions, eleven recommendations, and ten propositions that explained the relationships among the managerial aspects implicated in the framework implementation, especially the interactions between the future IS and the co-alignment model. Furthermore, as the framework is an integration of a strategy model and an IT application, it also gives a new perspective to the term "strategic IT" that denotes the strategic use of IT.
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    Underlying Risk Dimensions in the Restaurant Industry: A Strategic Finance Approach
    Madanoglu, Melih (Virginia Tech, 2005-12-14)
    One of the keys for restaurant managers in conducting a proper assessment of their business opportunities is through understanding the level of risk these opportunities bear. This can be achieved by analyzing the causal relationships between external environmental forces and internal capabilities of the firm, and then make a strategic choice in what opportunities to invest. The purpose of this study was to investigate the concept of risk and its underlying dimensions that influence the restaurant industry's cash flows and stock returns. This study proposed a contemporary framework that enables restaurant industry executives to develop a better understanding of the risk factors (macroeconomic and industry) that influence their firms' cash flows and stock returns. The primary unit of analysis was at industry (portfolio) level. In addition, as a second step, three restaurant firms were selected to demonstrate the practical application of the model. Exploratory factor analysis indicated that the restaurant industry risk is represented by three dimensions: "Output," "PPI Meats," and "IP Restaurants." The macroeconomic risk construct was represented by the five variables of Arbitrage Pricing Theory of Chen et al. (1986). Time series-analysis regression of the portfolio of 75 restaurant firms, for the 1993-2004 period, revealed that macroeconomic variables explained a significant portion of restaurant stock returns. On the other hand, both macroeconomic and industry models explained a significant level of variation in operating cash flows. The addition of September 11 "dummy" variable improved the explained variation in stock returns for both equations (macroeconomic and industry). At a firm level, the industry model accounted for a significant variation in internal value drivers (operating cash flows, food cost, and labor cost) for all three restaurant companies. The industry risk model survived after controlling for the effect of macroeconomic variables on operating cash flows. The results indicate that the industry model provides a parsimonious solution in estimating variation in operating cash flows by capturing macroeconomic effects.