Faculty & Research
Intellectual Capital: A Key Driver of Hotel Performance
Vol 6 No 10
By: Linda Canina Ph.D., Cathy A. Enz Ph.D., and Kate Walsh Ph.D.
Executive Summary: Investments in various forms of intellectual capital improve operating performance, according to the results of a study of 563 United States hotels. Using the hotels' operating income as a measure of profitability, the study found that investments in certain forms of intellectual capital have a greater impact on profitability than others do. Controlling for the market value of the physical assets, occupancy, and the cost of living, the study analyzed the influence of expenditures on the following two forms of external intellectual capital: brand and operating company; and the following three forms of property-level human capital: service employees, support employees, and professional employees.
Although the sample was divided into full-service hotels and limited-service properties, the results for both segments were similar for most forms of intellectual capital. First, the greater the expense incurred-or investment made-on an operating company and brand affiliation, the higher the profitability for both limited-service and full-service hotels. In addition, when either type of hotel spends more money on its service employees it realizes higher profitability. However, regardless of whether the hotel is full-service or limited-service, investing in professional employees did not significantly influence profitability. Not only that but expanded expenditures in support employees had a negative influence on profitability for limited-service hotels and no influence for full-service properties.
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- Intellectual Capital: A Key Driver of Hotel Performance By: Linda Canina Ph.D., Cathy A. Enz Ph.D., and Kate Walsh Ph.D.
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Other Reports or Articles You May Find of Interest
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- Development and Use of a Web-based Tool to Measure the Costs of Employee Turnover: Preliminary Findings, by Timothy R. Hinkin, Ph.D., and J. Bruce Tracey, Ph.D.
About Cathy A. Enz Ph.D.
Cathy A. Enz is the Lewis G. Schaeneman Jr. Professor of Innovation and Dynamic Management and a full professor in strategy. She recently served as Associate Dean for Industry Research and Affairs, and served as the Executive Director of the school’s Center for Hospitality Research from 2000-2003. Dr. Enz has published over eighty journal articles, book chapters, and three books in the area of strategic management. Her research has been published in a wide variety of prestigious academic and hospitality journals such as The Administrative Science Quarterly, The Academy of Management Journal, The Journal of Service Research, and The Cornell Hospitality Administration Quarterly. Dr. Enz teaches courses in innovation and strategic management. In addition, she developed The Hospitality Change Simulation, a learning tool for the introduction of effective change, which is available as an online education program of e-Cornell. Three additional courses in hospitality strategic management will be available through e-Cornell in 2008. Dr. Enz also presents numerous executive programs around the world, consults extensively in North America, and serves on the Board of Directors of two privately owned hotel companies. Prior to her academic activities, Dr. Enz held several industry positions including strategy development analyst in the office of corporate research for a large insurance organization, and operations manager responsible for Midwestern United States customer service and logistics in the dietary food service division of a large U.S. health care corporation. Dr. Enz received her Ph.D. from the Fisher College of Business at Ohio State University, and taught on the faculty of the Kelley School of Business at Indiana University prior to arriving at Cornell in 1990.
For more information visit http://www.hotelschool.cornell.edu/research/facultybios/faculty.html?id=27
About Kate Walsh Ph.D.
Kate Walsh is an Associate Professor of Management at the School of Hotel Administration. She received her Ph.D. from the Carroll School of Management at Boston College and her M.P.S. degree from Cornell University’s School of Hotel Administration. She holds a Bachelor of Science degree in Accounting from Fairfield University. Dr. Walsh’s primary research is in the area of services management. She also conducts research examining the role of strategic human resource initiatives on organizational performance. In addition to contributing to numerous books, her articles are appearing or have appeared in such outlets as Journal of Management, Journal of Service Research, Journal of Vocational Behavior, Human Resource Management Review, Organization Science, Trends in Organizational Behavior, Research in Management Consulting, Journal of Applied Behavioral Science, The Learning Organization, International Journal of Hospitality Management and the Cornell Hospitality Quarterly. Dr. Walsh’s pervious work experience includes the Director of Training and Development for Nikko Hotels International, Corporate Training Manager for the former Bristol Hotels and Senior Auditor for Loews Corp. Dr. Walsh is also a Certified Public Accountant.
For more information visit http://www.hotelschool.cornell.edu/research/facultybios/faculty.html?id=95
