Labor Productivity in Hotel Service: Empirical Evidence from Vietnam
Main Article Content
Abstract
Service industries in emerging economies are facing the problem of underrated labor productivity due to difficulties in precise measurement and effective management. Therefore, it is necessary to find solutions to such issues. This study concentrates on popular hotel services in Vietnam which are also encountering challenges in labor productivity management. The data is obtained from the General Statistics Office of Vietnam national census in 2018 on the performance of 1,400 enterprises operating in Vietnam hotel services and presents findings on the determinants of labor productivity. Specifically, labor cost, total capital, before-tax profit, number of rooms, number of room days, and accommodation revenue are among the most-affecting factors. These findings pave the way for further studies to represent a brand-new and more advance measurement for labor productivity, not only for hotel service but also for the service sector in general.
Keywords:
Labor productivity, hotel service, hotel efficiency, hotels, Vietnam.
References
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[2] Peng, M. W., Lebedev, S., Vlas, C. O., Wang, J. C., & Shay, J. S., “The Growth of the Firm in (and out of) Emerging Economies,” Asia Pacific Journal of Management, 35 (4) (2018) 829-857. https://doi.org/10.1007/s10490-018-9599-3.
[3] Hoskisson, R. E., Eden, L., Lau, C. M., & Wright, M., “Strategy in Emerging Economies,” Academy of Management Journal, 43 (3) (2000) 249-267. https://doi.org/10.5465/1556394.
[4] Luthra, S., & Mangla, S. K., “Evaluating Challenges to Industry 4.0 Initiatives for Supply Chain Sustainability in Emerging Economies,” Process Safety and Environmental Protection, 117 (2018) 168-179. https://doi.org/10.1016/j.psep.2018.04.018.
[5] Keh, H. T., & Lee, Y. H., “Do Reward Programs Build Loyalty for Services: The Moderating Effect of Satisfaction on Type and Timing of Rewards,” Journal of Retailing, 82 (2) (2006) 127-136. https://doi.org/10.1016/j.jretai.2006.02.004.
[6] Baumohl, E., Iwasaki, I., & Kocenda, E., “Institutions and Determinants of Firm Survival in European Emerging Markets,” Journal of Corporate Finance, 58 (2019) 431-453. https://doi.org/10.1016/j.jcorpfin.2019.05.008.
[7] Sheng, J., Amankwah, A. J., & Wang, X., “A Multidisciplinary Perspective of Big Data in Management Research,” International Journal of Production Economics, 191 (2017) 97-112. https://doi.org/10.1016/j.ijpe.2017.06.006.
[8] Zhang, D., Tu, J., Zhou, L., & Yu, Z., “Higher Tourism Specialization, Better Hotel Industry Efficiency?,” International Journal of Hospitality Management, 87 (2020) 102509. https://doi.org/10.1016/j.ijhm.2020.102509.
[9] Poldrugovac, K., Tekavcic, M., & Jankovic, S., “Efficiency in the Hotel Industry: An Empirical Examination of the Most Influential Factors,” Economic Research - Ekonomska Istrazivanja, 29 (1) (2016) 583-597. https://doi.org/10.1080/1331677X.2016.1177464.
[10] Gronroos, C., & Ojasalo, K., “Service Productivity: Towards a Conceptualization of the Transformation of Inputs into Economic Results in Services,” Journal of Business Research, 57 (4) (2004) 414-423. https://doi.org/10.1016/S0148-2963(02)00275-8.
[11] Ma, Y., Zhang, Q., & Yin, H., “Environmental Management and Labor Productivity: The Moderating Role of Quality Management,” Journal of Environmental Management, 255 (2020) 109795. https://doi.org/10.1016/j.jenvman.2019.109795.
[12] Vu, H. D., “Technical Efficiency of FDI Firms in the Vietnamese Manufacturing Sector,” Review of Economic Perspectives, 16 (3) (2016) 205-230. https://doi.org/10.1515/revecp-2016-0013.
[13] Barros, C. P., “Measuring Efficiency in the Hotel Sector,” Annals of Tourism Research, 32 (2) (2005) 456-477. https://doi.org/10.1016/j.annals.2004.07.011.
[14] Assaf, A. G., & Tsionas, M., “The Estimation and Decomposition of Tourism Productivity,” Tourism Management, 65 (2018) 131-142. https://doi.org/10.1016/j.tourman.2017.09.004.
[15] Le, N. H., Duy, L. V. Q., & Ngoc, B. H., “Effects of Foreign Direct Investment and Human Capital on Labour Productivity: Evidence from Vietnam,” The Journal of Asian Finance, Economics, and Business, 6 (3) (2019) 123-130. https://doi.org/10.13106/jafeb.2019.vol6.no3.123.
[16] Sigala, M., Jones, P., Lockwood, A., & Airey, D., “Productivity in Hotels: A Stepwise Data Envelopment Analysis of Hotels’ Rooms Division Processes,” The Service Industries Journal, 25 (1) (2005) 61-81. https://doi.org/10.1080/0264206042000302414.
[17] Song, L., & AbouRizk, S. M., “Measuring and Modeling Labor Productivity Using Historical Data,” Journal of Construction Engineering and Management, 134 (10) (2008) 786-794. https://doi.org/10.1061/(ASCE)0733-9364(2008)134:10(786).
[18] Hu, B. A., & Cai, L. A., “Hotel Labor Productivity Assessment: A Data Envelopment Analysis,” Journal of Travel & Tourism Marketing, 16 (2-3) (2004) 27-38. https://doi.org/10.1300/J073v16n02_03.
[19] Hsieh, L. F., & Lin, L. H., “A Performance Evaluation Model for International Tourist Hotels in Taiwan - An Application of the Rational Network DEA,” International Journal of Hospitality Management, 29 (1) (2010) 14-24. https://doi.org/10.1016/j.ijhm.2009.04.004.
[20] Jorge, D. J., & Suarez, C., “Productivity, Efficiency and Its Determinant Factors in Hotels,” The Service Industries Journal, 34 (4) (2014) 354-372. https://doi.org/10.1080/02642069.2013.778977.
[21] Joppe, M., & Li, X. P., “Productivity Measurement in Tourism: The Need for Better Tools,” Journal of Travel Research, 55 (2) 2014, 139-149. https://doi.org/10.1177/0047287514546227.
[22] Cobbold, T., A Comparison of Gross Output and Value-Added Methods of Productivity Estimation, Productivity Commission Research Memorandum, 2003.
[23] Vietnam National Productivity Institute, Vietnam Productivity Report, 2019.
[24] Vietnam National Administration of Tourism, Human Resource Development in Vietnamese Tourism Industry, 2020.
[25] Cordero, J. M., & Tzeremes, N. G., “Evaluating Hotel Productivity Growth in Balearic and Canary Islands,” Tourism Economics, 23 (5) (2017) 1146-1154. https://doi.org/10.1177/1354816616683051.
[26] Rubio, S, R., & Diaz, A. B., “Analyzing Hotel Efficiency from a Regional Perspective: The Role of Environmental Determinants,” International Journal of Hospitality Management, 75 (2018) 75-85. https://doi.org/10.1016/j.ijhm.2018.03.015.
[27] Manasakis, C., Apostolakis, A., & Datseris, G., “Using Data Envelopment Analysis to Measure Hotel Efficiency in Crete,” International Journal of Contemporary Hospitality Management, 25 (4) (2013) 510-535. https://doi.org/10.1108/09596111311322907.
[28] Nguyen, H.T & Ho, T.T.M, “Challenges for Vietnamese business leaders in the era of international economic integration and industrial revolution 4.0,” International Journal of Commerce and Management Research, 5 (2019) 19-24.
[29] Simpao, K. J. S., “Labour Productivity Measurement and Control Standards for Hotel,” Journal of Service Science Research, 10 (1) (2018) 25-76. https://doi.org/10.1007/s12927-018-0002-1.
[30] Pham, T. D., “Tourism Productivity Theory and Measurement for Policy Implications: The Case of Australia,” Journal of Travel Research, 59 (2) (2020) 247-266. https://doi.org/10.1177/0047287519835972.
[31] Yang, Z., & Cai, J., “Do Regional Factors Matter? Determinants of Hotel Industry Performance in China,” Tourism Management, 52 (2016) 242-253. https://doi.org/10.1016/j.tourman.2015.06.024.
[32] General Statistics of Vietnam, National Economic Census, 2018.