Internal Environment, Organizational form, and Their Impact on Financial Performance of Hotel Chains

ABSTRACT

The primary objective of this study was to investigate the relationship between internal environment, organizational form, and financial performance in hotel chains. Using a contingency framework, this study investigated the match between internal environmental factors—such as capital scarcity, monitoring cost, and asset specificity, and organizational form, such as company-owned, franchised, or combination of both in an attempt to distinguish between and high and low performing hotel chains.