Synergistic effect of responsive, proactive market orientation and organization culture and its impact on hotel overall business performance in Thailand

This study attempts to examine the impact of responsive and proactive market orientations on hotel overall business performance in Thailand based on resource based view theory. The study also aims at determining the moderating effect of organizational culture on the relationship between responsive market orientation, proactive market orientation and hotel overall business performance. Hotel overall business performance was measured by subjective performance in terms of financial and non-financial performance. The research framework was developed and twelve hypotheses were posited and tested. This research employs quantitative method through questionnaire survey. The population of this study consists of four and five star hotels in Thailand. The data for the study were obtained from survey responses of 265 top managers of four and five star hotels with the response rate of 49 percent. The data were analysed using the Statistical Package for Social Science. Linear and hierarchical regression analyses were used as appropriate statistical tools to test the hypotheses. The results show that there is positive significant relationship between the responsive and the proactive market orientation on the hotel overall business performance. The finding of this study also reveals that there is significant moderating effect of the organizational culture on the relationship between the responsive market orientation and the hotel overall business performance. The moderating effect of the organizational culture on the relationship between the proactive market orientation and the hotel overall business performance of this study is also found significant. This study indicated that organization focusing on customer latent and express needs with organizational culture form business strategies would increase their performance. Overall, the findings of the present study provide partial support of the resource base view theory. Theoretical implication and practical implication of the study as well as suggestions for future research are also discussed in this study.