The Effect of Dunning's Ownership Advantage on the Performance of Hotels and Similar Accommodation: The Case of OECD Countries

Abstract

Purpose – The purpose of this study is to measure the effect of the Eclectic Paradigm, one of the internationalization theories, and the ownership advantage (OLI Model), one of the elements of thisparadigm, on the performance of companies operating in OECD hotels and similar accommodation (NACE= 5510).

Design/methodology/approach – The method of the study is to examine data of 105 hotels and similarhotels in OECD countries using the panel data method with established model. The model operates as thecompany's 10-year data for 73 OECD countries (2010-2019) and then examined again by adding a model inTurkey examined four years (2015-2018) of data and results are disclosed separately.

Findings – As a result of the study, firstly, the effect of ownership advantage of hotels and similaraccommodation places operating in OECD countries on firm performance was examined. The results of theanalysis revealed that firm size has no effect on performance in both models for these companies, while theeffect of intangible fixed assets on performance is revealed. While the relationship between performance onturnover per employee was found to be insignificant in the first model, this variable was found to besignificant in the second model. Again for these companies, in the first model, it has been observed that theinternational partnership share affects the firm performance between 10% and 50%. In the second model established, this variable was found to be meaningless and was excluded from the model.

Discussion – The results of the research provide evidence that the established model can be furtherexpanded. Data limitation is the main problem here. The established model does not provide information about the other elements of the eclectic paradigm, although it measures the ownership advantage. In futurestudies, the model can be reconstructed in this direction and it can be expected to contribute to the literature.