Internationalization and hotel performance : agglomeration-related moderators

Abstract

This study provides a comprehensive analysis of the impact of internationalization on hotel performance. We focus on two distinct facets of internationalization (i.e., international intensity and international diversity), and analyze the impact of internationalization within the context of two interesting moderating variables (positive differentiation within the cluster and location of the cluster). The reasoning behind investigating these moderators relies on arguments from both agglomeration and internationalization theories. The results support distinct relationship patterns between internationalization and hotel performance. In particular, we show how international hotels face different kinds of costs and benefits at different levels of international intensity and diversity. Further, the selection of new international locations needs to be carefully aligned with the type of internationalization strategy.