The Strategic Decision to Internationalize Within Soft Services: The Context of Hotels

Abstract

This chapter explores the strategic motives behind the decision of hotels to internationalize. It approaches the subject from the perspective of the soft-service sector and aims to develop an understanding of this phenomenon. The literature covers several different factors that stimulate the decision to expand operations abroad. The process requires a trigger that will initiate the process and control the assignment until completion. Eight semi-structured interviews were conducted with international hotel chains to develop an understanding of the process. The findings reveal factors that can be distinguished between proactive and reactive and also be categorized under the four major motives behind internationalization: seeking natural resources, markets, efficiency and strategic assets or capabilities. The international strategy of hotel chains provides a roadmap for expansion and often acts as a trigger. The findings also reveal the significant role of vice presidents (VPs) of international development, development directors, agents and networks in initiating the process of internationalization and stimulating the chains towards specific parts of the world. One of the main differences between manufacturing and soft services is the wide variety of entry modes that are at the disposal of services. The findings are consistent with the literature published and provide an insight into the initial steps towards internationalization by hotel chains, in the post-COVID era.

Research question: What are the strategic motives behind the decision of hotels to internationalize?

Citation

Papaioannou, M. (2022), "The Strategic Decision to Internationalize Within Soft Services: The Context of Hotels", Tabari, S. and Chen, W. (Ed.) Global Strategic Management in the Service Industry: A Perspective of the New Era, Emerald Publishing Limited, Leeds, pp. 57-80. https://doi.org/10.1108/978-1-80117-081-920221005