Hotel revenue management is an activity domain that is uniquely technical, complex, and dynamic, and as such, it is often outsourced. This study explores the motivation of hotels to outsource their revenue management function to an outside entity. The major theoretical contribution is in being first to suggest, and empirically test, the notion that in complex environments, such as revenue management, the firm’s capabilities are moderating the impact of assets specificity on managers’ inclination to outsource. From a practical perspective, this study is the first to empirically explore the contextual determinants of the decision to outsource in the hotel-specific domain of revenue management.
AltinM. (2017). A taxonomy of hotel revenue management implementation strategies. Journal of Revenue and Pricing Management, 16(3), 246-264. doi:10.1057/s41272-017-0077-1
2.
Alvarez-SuescunE. (2010). Combining transaction cost and resource-based insights to explain IT implementation outsourcing. Information Systems Frontiers, 12, 631-645.
3.
AndersonJ. C.GerbingD. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103, 411-423.
4.
AubertB. A.RivardS.PatryM. (1996). A transaction cost approach to outsourcing behavior: Some empirical evidence. Information & Management, 30, 51-64.
5.
AubertB. A.RivardS.PatryM. (2004). A transaction cost model of IT outsourcing. Information & Management, 41, 921-932.
6.
AvciU.MadanogluM.OkumusF. (2011). Strategic orientation and performance of tourism firms: Evidence from a developing country. Tourism Management, 32, 147-157.
7.
BarneyJ. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120.
8.
BarneyJ. (1999). How a firm’s capabilities affect boundary decisions. Sloan Management Review, 40, 137-145.
9.
BauerR. A. (1960). Consumer behavior as risk taking. In RobertS. (Ed.), Dynamic marketing for a changing world (pp. 389-398). Hancock, Chicago: American Marketing Association.
10.
BauerR. (1967). Consumer behavior as risk taking. In CoxD. (Ed.), Risk taking and information handling in consumer behavior (pp. 21-33). Cambridge, MA: Harvard University Press.
11.
BenamatiJ.RajkumarT. (2003, December). An empirical study of the applicability of the technology acceptance model to application development outsourcing decisions. AMCIS 2003 Proceedings, Tampa, FL.
12.
BolatT.YilmazÖ. (2009). The relationship between outsourcing and organizational performance: Is it myth or reality for the hotel sector?International Journal of Contemporary Hospitality Management, 21, 7-23.
13.
BoydA. (1998, October). Airline Alliance Revenue Management: Global alliances within the airline industry add complexity to the yield management problem. ORMS TODAY, 25, 28-31.
14.
CoaseR. H. (1937). The nature of the firm. Economica, 4, 386-405.
15.
CohenJ.CohenP.WestS. G.AikenL. S. (2013). Applied multiple regression/correlation analysis for the behavioral sciences. New York, NY: Routledge.
16.
CrossR. G. (1997). Launching the revenue rocket. Cornell Hotel and Restaurant Administration Quarterly, 38, 32-43.
17.
CrossR. G.HigbieJ. A.CrossZ. N. (2011). Milestones in the application of analytical pricing and revenue management. Journal of Revenue and Pricing Management, 10, 8-18.
18.
DawsonJ. F. (2014). Moderation in management research: What, why, when, and how. Journal of Business and Psychology, 29, 1-19.
19.
De VitaG.TekayaA. (2015). Hotel outsourcing under asset specificity: “The good, the bad and the ugly.”Tourism Management, 47, 97-106.
20.
DibbernJ. (2003). The sourcing of application software development and maintenance. Berlin, Germany: Springer.
21.
EaglyA.ChaikenS. (1998). Attitude structure and function. In GilbertS.FiskT.LindseyG. (Eds.), Handbook of social psychology (pp. 269-322). New York, NY: McGowan Hill.
22.
Espino-RodríguezT. F.Chun-LaiP.Gil-PadillaA. M. (2017). Does outsourcing moderate the effects of asset specificity on performance? An application in Taiwanese hotels. Journal of Hospitality and Tourism Management, 31, 13-27.
23.
Espino-RodríguezT. F.Gil-PadillaA. (2005). Determinants of information systems outsourcing in hotels from the resource based view: An empirical study. International Journal of Tourism Research, 7, 35-47.
24.
Espino-RodríguezT. F.Padrón-RobainaV. (2006). A review of outsourcing from the resource-based view of the firm. International Journal of Management Reviews, 8, 49-70.
25.
Espino-RodríguezT. F.Pei-ChunL.BaumT. (2008). Asset specificity in make or buy decisions for service operations. International Journal of Service Industry Management, 19, 111-133. doi:10.1108/09564230810855734
26.
Espino-RodríguezT. F.Rodríguez-DíazM. (2017). Make or buy in the hotel marketing department: Transaction costs, financial and relational performance. Tourism & Management Studies, 13, 7-17.
GeraghtyM. K.JohnsonE. (1997). Revenue management saves national car rental. Interfaces, 27, 107-127.
29.
GewaldH.WüllenweberK.WeitzelT. (2006). The influence of perceived risks on banking managers’ intention to outsource business processes: A study of the german banking and finance industry. Journal of Electronic Commerce Research, 7(2), 78-96.
30.
GuptaU. G.GuptaA. (1992). Outsourcing the IS function: Is it necessary for your organization?Information Systems Management, 9(3), 44-47.
31.
HairJ.BlackW.BabinB.AndersonR. (2010). Multivariate data analysis (7th ed.). Upper Saddle River, NJ: Pearson Education.
32.
HallD. C. (2012). Essays on sourcing decisions: A behavioral perspective. Clemson, SC: Clemson University.
33.
HelfatC. E.PeterafM. A. (2003). The dynamic resource-based view: Capability lifecycles. Strategic Management Journal, 24, 997-1010.
34.
HolcombT. R.HittM. A. (2007). Toward a model of strategic outsourcing. Journal of Operations Management, 25, 464-481.
35.
JacobidesM. G.WinterS. G. (2005). The co-evolution of capabilities and transaction costs: Explaining the institutional structure of production. Strategic Management Journal, 26, 395-413.
36.
JainA.ThietartR.-A. (2013). Capabilities as shift parameters for the outsourcing decision. Strategic Management Journal, 35, 1881-1890.
LahiriS.KediaB. L.MukherjeeD. (2012). The impact of management capability on the resource–performance linkage: Examining Indian outsourcing providers. Journal of World Business, 47, 145-155.
LamminmakiD. (2005). Why do hotels outsource? An investigation using asset specificity. International Journal of Contemporary Hospitality Management, 17, 516-528. doi:10.1108/09596110510612158
42.
LamminmakiD. (2011). An examination of factors motivating hotel outsourcing. International Journal of Hospitality Management, 30, 963-973. doi:10.1016/j.ijhm.2010.10.010
43.
LeblebiciH.SalancikG. R. (1981). Effects of environmental uncertainty on information and decision processes in banks. Administrative Science Quarterly, 26, 578-596.
44.
LeibleinM. J.MillerD. J. (2003). An empirical examination of transaction- and firm-level influences on the vertical boundaries of the firm. Strategic Management Journal, 24, 839-859.
45.
MathienL. D. (2013). An empirical investigation of the antecedents and validity of five theory bases of logistics outsourcing decisions (Doctoral dissertation, State University of New York at Buffalo). Available from ProQuest Dissertations & Theses Full Text database. (UMI No. 3554476)
46.
MayerK. J.SalomonR. M. (2006). Capabilities, contractual hazards, and governance: Integrating resource-based and transaction cost perspectives. Academy of Management Journal, 49, 942-959.
47.
McIvorR. (2009). How the transaction cost and resource-based theories of the firm inform outsourcing evaluation. Journal of Operations Management, 27, 45-63.
OrkinE. B. (1988). Boosting your bottom line with yield management. Cornell Hotel and Restaurant Administration Quarterly, 28, 52-56.
50.
PechlanerH.SauerweinE. (2002). Strategy implementation in the Alpine tourism industry. International Journal of Contemporary Hospitality Management, 14, 157-168.
51.
Peris BonetF. J.Peris-OrtizM.Gil-PechuanI. (2010). Integrating transaction cost economics and the resource-based view in services and innovation. Service Industries Journal, 30, 701-712. doi:10.1080/02642060802382543
52.
PoppoL.ZengerT. (2002). Do formal contracts and relational governance function as substitutes or complements?Strategic Management Journal, 23, 707-725.
53.
PromsivapallopP.JonesP.RoperA. (2015). Factors influencing hotel outsourcing decisions in Thailand. Journal of Hospitality & Tourism Research, 39, 32-56. doi:10.1177/1096348012461546
RindfleischA.HeideJ. B. (1997). Transaction cost analysis: Past, present, and future applications. The Journal of Marketing, 61, 30-54.
56.
SaaksjarviM.MorelK. (2010). The development of a scale to measure consumer doubt toward new products. European Journal of Innovation Management, 13, 272-293.
57.
SchwartzZ.AltinM.SingalM. (2017). Performance measures for strategic revenue management: RevPAR versus GOPPAR. Journal of Revenue and Pricing Management, 16(4), 357-375.
58.
SchwartzZ.UysalM.WebbT.AltinM. (2016). Hotel daily occupancy forecasting with competitive sets: A recursive algorithm. International Journal of Contemporary Hospitality Management, 28(2), 267-285. doi:10.1108/IJCHM-10-2014-0507
59.
SethiV.KingW. R. (1994). Development of measures to assess the extent to which an information technology application provides competitive advantage. Management Science, 40, 1601-1627.
SilvermanB. S. (1999). Technological resources and the direction of corporate diversification: Toward an integration of the resource-based view and transaction cost economics. Management Science, 45, 1109-1124.
62.
SternB. L.BushR. F.HairJ. F. (1977). The self-image/store image matching process: An empirical test. The Journal of Business, 50, 63-69.
63.
StonerJ. A. F. (1961). A comparison of individual and group decisions involving risk (Master’s thesis). Massachusetts Institute of Technology, Cambridge.
64.
VenkateshV.DavisF. D. (2000). A theoretical extension of the technology acceptance model: Four longitudinal field studies. Management Science, 46, 186-204.
65.
VerwaalE.CommandeurH.VerbekeW. (2009). Value creation and value claiming in strategic outsourcing decisions: A resource contingency perspective. Journal of Management, 35, 420-444.
66.
WatjatrakulB. (2005). Determinants of IS sourcing decisions: A comparative study of transaction cost theory versus the resource-based view. The Journal of Strategic Information Systems, 14, 389-415.
67.
WilliamsonO. E. (1975). Markets and hierarchies. New York, NY: Free Press.
68.
WilliamsonO. E. (1979). Transaction-cost economics: The governance of contractual relations. Journal of Law and Economics, 22, 233-261.
69.
WilliamsonO. E. (1981). The economics of organization: The transaction cost approach. American Journal of Sociology, 548-577.
70.
WilliamsonO. E. (1985). The economic institutions of capitalism: Firms, markets, relational Contracting. New York, NY: The Free Press.
71.
WüllenweberK.WeitzelT. (2007). An empirical exploration of how process standardization reduces outsourcing risks. Paper presented at the System Sciences, 2007 HICSS 2007 40th Annual Hawaii International Conference, Hawaii, USA.
72.
YatesJ. (1992). Risk-taking behavior. New York, NY: John Wiley.
73.
ZhuangB. (2012). Antecedents and consequences of logistics outsourcing: An empirical investigation in China (Doctoral dissertation, The Chinese University of Hong Kong). Available from ProQuest Dissertations & Theses Full Text database.
