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External Environmental Factors
International Journal of Hospitality Management 31 (2012) 119–129

Contents lists available at ScienceDirect

International Journal of Hospitality Management journal homepage: www.elsevier.com/locate/ijhosman

Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors
Cheng-Hua Wang a , Kuan-Yu Chen b , Shiu-Chun Chen a,∗ a b

Graduate School of Business and Operations Management, Chang Jung Christian University, Taiwan, ROC Department of Recreation Sport and Health Promotion, National Pingtung University of Science and Technology, Taiwan, ROC

a r t i c l e

i n f o

a b s t r a c t
With the market competition of hotel industry being heated, it is critical that hotels have a breadth of resource and more flexible forms to meet the needs of a changing marketplace. In the past, the relation of total quality management (TQM), market orientation, and performance are equivocal. These mixed results may be due to some factors or not to include the environmental factors. This study adopts the InputProcessing-Output (IPO) concept model to construct all variables research model. The research surveyed samples of 588 and used Structural Equation Model and discriminate analysis for analysis and testing. The results show that TQM positively affects hotel performance. Market orientation positively affects hotel performance. Market orientation has the mediating effect between TQM and hotel performance. External environment factors truly play a moderator between TQM, market orientation and hotel performance, especially when external environment factors greater changes are going to help to build relationship with customer, to enhance hotel performance and further to gain chance of hotel’s survival. Crown Copyright © 2011 Published by Elsevier Ltd. All rights reserved.

Keywords: Total quality management Market orientation Hotel performance External environmental factors Structural Equation Model



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    105–111. Ruekert, R. W. (1992), “Developing a Market Orientation: An Organizational Strategy Perspective,” International Journal of Research in Marketing, 9(3), pp. 225–245. Schaffer, R. H. and H. A. Thomson (1992), “Successful Change Programs Begin with Results,” Harvard Business Review, 70(1), pp. 80–89. Schein, E. H. (1983), “The Role of the Founder in Creating Organizational Culture,” Organizational Dynamics, 12, Summer, pp. 13–28. Senge, P. M. (1990), “The Leader’s New Work: Building Learning Organizations,” Sloan Management Review, 32(1), pp. 7–23. Sinkula, J. M. (1994), “Market Information Processing and Organizational Learning,” Journal of Marketing, 58(1), pp. 35–45. Slater, S. F. (1995), “Learning to Change,” Business Horizons, 38(6), pp. 13–20. Slater, S. F. and J. C. Narver (1994), “Does Competitive Environment Moderate the Market Orientation-Performance Relationship?” Journal of Marketing, 58(1), pp. 46–55. Slater, S. F. and J. C. Narver (1995), “Market Orientation and the Learning Organization,” Journal of Marketing, 59(3), pp. 63–74. Stata, R. (1989), “Organizational Learning—The Key to Management Innovation,” Sloan Management Review, 30(3), pp. 163–175. Treacy, M. and F. Wiersema (1995), The Discipline of Market Leaders, New York: Addison-Wesley. Trice, H. M. and S. M. Beyer (1993), The Cultures of Work Organizations, Englewood Cliffs, NJ: Prentice Hall. Webster, F. E., Jr. (1981), “Top Management’s Concerns About Marketing: Issues for the 1980’s,” Journal of Marketing, 45(3), pp. 9–16. Webster, F. E., Jr. (1988), “The Rediscovery of the Marketing Concept,” Business Horizons, 31(3), pp. 29–39. Webster, F. E., Jr. (1994), Market-Driven Management, New York: John Wiley & Sons, Inc. John Narver is a professor of marketing, University of Washington. His current research interests are the behavior and creation of a market orientation, organizational learning, and competitive strategy. He has published three books and numerous articles including five in the Journal of marketing, has won a “Best Paper” award from the Marketing Science Institute, and has been selected U.W. MBA professor of the year. He has been a Fulbright professor in Israel and a visiting professor in Norway, Finland, Turkey, and the Federal Trade Commission. He reviews for several journals. His PhD is from the University of California, Berkeley. Stanley Slater is a professor and the Director of the Business Administration Program at the University of…

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