Corporate governance, market orientation and performance of Iran’s upscale hotels

• Published in: Tourism and Hospitality Research
• Main Author: Kazemian S.; Djajadikerta H.G.; Said J.; Roni S.M.; Trireksani T.; Alam M.M.
• Format: Article
• Language: English
• Published: SAGE Publications Inc. 2021
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85104827776&doi=10.1177%2f14673584211003644&partnerID=40&md5=fc0f8cb46b8491835cc3fee5bec84ec3

Market orientation has been known as an efficient managerial tool to assist in sustaining the performance of organisations. Market orientation has three dimensions, namely customer orientation, competitor orientation and inter-function coordination. This paper evaluates how corporate governance influences the three dimensions of market orientation within Iran's upscale hotels. The impacts of the three dimensions of market orientation on the hotels' social and financial performance are also examined to determine if market orientation mediates the relationships between corporate governance and performance. Partial least squares structural equation modelling (PLS-SEM) is used to analyse the survey data collected from the executives of four- and five-star hotels in Mashhad, Iran. Results show that corporate governance positively influences the three dimensions of market orientation, while overall market orientation influences financial and social performance. Specifically, customer orientation and inter-function coordination significantly reinforce such mediation, whereas the influence of competitor orientation is limited to financial performance. © The Author(s) 2021.