<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The unprecedented effects of COVID-19 have been problematic for hotels. Therefore, implementing a performance measurement system (PMS) has become critical for hotel organisations. This study thus examined how the balanced scorecard (BSC) as a strategic PMS has a function in revealing hotel performance. Two contextual factors of hotels—external environmental uncertainty (EEU) and decentralised decision-making—were also investigated to understand their effects on the use of the BSC, which, in turn, determines hotel performance. A survey was conducted involving 145 four- and five-star hotels in Turkey. Partial least squares structural equation modelling was used to test the hypotheses. It was found that EEU is significantly related to decentralised decision-making but not to the BSC. Meanwhile, the BSC does not have an indirect effect on the relationship between EEU and hotel performance; however, it was found to act as a mediator between the decentralisation of decision-making and hotel performance. Finally, decentralised decision-making was found to act as a mediator between EEU and the BSC.</p>
</abstract>

The unprecedented effects of COVID-19 have been problematic for hotels. Therefore, implementing a performance measurement system (PMS) has become critical for hotel organisations. This study thus examined how the balanced scorecard (BSC) as a strategic PMS has a function in revealing hotel performance. Two contextual factors of hotels—external environmental uncertainty (EEU) and decentralised decision-making—were also investigated to understand their effects on the use of the BSC, which, in turn, determines hotel performance. A survey was conducted involving 145 four- and five-star hotels in Turkey. Partial least squares structural equation modelling was used to test the hypotheses. It was found that EEU is significantly related to decentralised decision-making but not to the BSC. Meanwhile, the BSC does not have an indirect effect on the relationship between EEU and hotel performance; however, it was found to act as a mediator between the decentralisation of decision-making and hotel performance. Finally, decentralised decision-making was found to act as a mediator between EEU and the BSC.

The Strategic Performance Measurement System and Organisational Performance Through the Lenses of Contextual Factors: Empirical Evidence from the Hotel Industry

Department of Business, Law, Economics, and Consumer Behaviour

European Journal of Tourism, Hospitality and Recreation

This work is licensed under the Creative Commons Attribution 4.0 International License.

The unprecedented effects of COVID-19 have been problematic for hotels. Therefore, implementing a performance measurement system (PMS) has become critical for...

The Strategic Performance Measurement System and Organisational Performance Through the Lenses of Contextual Factors: Empirical Evidence from the Hotel Industry

Article Category: Research Article

Published Online: Nov 18, 2023

Page range: 1 - 13

Received: Jan 25, 2022

Accepted: Dec 09, 2022

DOI: https://doi.org/10.2478/ejthr-2023-0001

Keywords
Performance measurement system, COVID-19, balanced scorecard, external environmental uncertainty, decentralised decision-making, hotel performance

© 2023 Cihan Alphun et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The Strategic Performance Measurement System and Organisational Performance Through the Lenses of Contextual Factors: Empirical Evidence from the Hotel Industry

Article Category: Research Article

Published Online: Nov 18, 2023

Page range: 1 - 13

Received: Jan 25, 2022

Accepted: Dec 09, 2022

DOI: https://doi.org/10.2478/ejthr-2023-0001

KeywordsPerformance measurement system, COVID-19, balanced scorecard, external environmental uncertainty, decentralised decision-making, hotel performance

© 2023 Cihan Alphun et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Performance measurement system, COVID-19, balanced scorecard, external environmental uncertainty, decentralised decision-making, hotel performance