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Do quality and Environmental Management Systems help Hotels to Achieve their Financial Goals? :Evidences from the Egyptian Hotel Industry

Author Affiliations

  • 1 Department of Hotel Studies, Faculty of Tourism and Hotels, Menoufiya University, EGYPT

Res. J. Management Sci., Volume 2, Issue (5), Pages 6-13, May,6 (2013)

Abstract

The relationship between quality and environmental management systems and corporate financial performance has always been an important topic in the management literature. However, only few studies have mutually analyzed these two management systems. Most of these studies have focused on the industrial and business sectors (such as banks and insurance companies), but these studies have ignored the hotel and tourism sector, with a few exceptions. Therefore, the purpose of this study is to determine the level of commitment of Egyptian 4 and 5-star hotels to implement quality and environmental management systems and to evaluate the impact of this commitment on the financial performance of these hotels. The study grouped hotels according to their commitment to quality and environmental systems, and a two-stage cluster analysis was used to identify the significant differences between groups of hotels. Then, ANOVA and regression analysis were used to test the relationship between the commitment levels and hotel financial performance. The results determined three levels of quality and environmental commitment. These three levels have been classified as proactive, committed, and reactive. Moreover, the results indicated that 5-star hotels can increase their investments in quality and environmental management systems to enhance both short-term and long-term financial performance. For 4-star hotels, however, results showed that quality and environmental management systems have no simultaneous or particular effect on their financial performance. This supports the findings related to this issue in other literature on quality management in the hotel industry.

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