The information needs of finance executives in the hospitality industry

Abstract

This exploratory and descriptive study examined the information needs, sources and uses of Chief Financial Officers in the Hospitality Industry, for strategic capital investment decision making. The amount of environmental scanning currently being conducted for use in the strategic capital investment decision making process was also investigated.

A survey questionnaire was used to gather information from 200 Chief Financial Officers. 46 questionnaires were returned, resulting in a response rate of 23.00%. Content analysis and statistical analysis were used to analyze the the data collected.

Content analysis of publications cited was used to identify which areas of the environment were emphasized as most important to Chief Financial Officers for strategic capital investment decision making. The economic sector clearly dominated the literature, though there does appear to be a need for more adequate information concerning all segments of the external environment (Social, Technological, Political, and Economic).

Finance executives were found to rely much more on external documentary sources of strategic information, than on internal or personal sources. Newspapers and trade journals were perceived to be the most important sources of external strategic information, and were also the most frequently cited sources.

Based on the results of the statistical analysis conducted, there is a relationship between the size and complexity of an organization, and the amount of information needed by decision makers in the organization. In organizations without an environmental scanning function, it was found that the marketing and research & development functions were more involved in environmental scanning; and in organizations with neither an environmental scanning nor a research & development function, the accounting function was more involved in environmental scanning.