External Environmental Factors

International Journal of Hospitality Management 31 (2012) 119–129

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International Journal of Hospitality Management journal homepage: www.elsevier.com/locate/ijhosman

Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors
Cheng-Hua Wang a , Kuan-Yu Chen b , Shiu-Chun Chen a,∗ a b

Graduate School of Business and Operations Management, Chang Jung Christian University, Taiwan, ROC Department of Recreation Sport and Health Promotion, National Pingtung University of Science and Technology, Taiwan, ROC

a r t i c l e

i n f o

a b s t r a c t
With the market competition of hotel industry being heated, it is critical that hotels have a breadth of resource and more flexible forms to meet the needs of a changing marketplace. In the past, the relation of total quality management (TQM), market orientation, and performance are equivocal. These mixed results may be due to some factors or not to include the environmental factors. This study adopts the InputProcessing-Output (IPO) concept model to construct all variables research model. The research surveyed samples of 588 and used Structural Equation Model and discriminate analysis for analysis and testing. The results show that TQM positively affects hotel performance. Market orientation positively affects hotel performance. Market orientation has the mediating effect between TQM and hotel performance. External environment factors truly play a moderator between TQM, market orientation and hotel performance, especially when external environment factors greater changes are going to help to build relationship with customer, to enhance hotel performance and further to gain chance of hotel’s survival. Crown Copyright © 2011 Published by Elsevier Ltd. All rights reserved.

Keywords: Total quality management Market orientation Hotel performance External environmental factors Structural Equation Model

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