Deploying popular culture for international expansion: Effect of operational strategies on hotel firms’ performance

Abstract

The global hospitality industry is increasingly linked with popular culture, yet its financial impact on hotel firms remains underexplored. This study examines how culturally symbolic events influence the market value of foreign hotel companies operating in the origin country of such culture. Drawing on associative memory theory, congruence theory, strategic flexibility theory, and dynamic capabilities theory, we analyze the effect of major South Korean cultural events on the market value of U.S. hotel companies operating in the South Korea. We find that popular culture events significantly boost hotel market value. Furthermore, franchised hotels outperform managed ones, suggesting that operational flexibility enhances responsiveness to cultural trends. These findings offer the first empirical evidence linking popular culture to foreign hotel firm performance and highlight the strategic importance of adaptable organizational models. The study contributes a novel cross-disciplinary framework and provides managerial insights for optimizing international expansion in culturally dynamic markets.