A Principal-Agent View on International Hotel Branding

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review

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Detail(s)

Original languageEnglish
Title of host publicationProceedings of the 59th Annual Meeting of the Academy of International Business
EditorsSarianna Lundan, Tunga Kiyak
PublisherAcademy of International Business
Pages101
Publication statusPublished - Jul 2017

Publication series

NameProceedings of the Annual Meeting of the Academy of International Business
PublisherAcademy of International Business
ISSN (Electronic)2078-0435

Conference

Title59th Annual Meeting of the Academy of International Business, AIB 2017
PlaceUnited Arab Emirates
CityDubai
Period2 - 5 July 2017

Abstract

The establishment of an international hotel to serve travelers requires the joint inputs of a foreign manager and a local developer, in that the focal hotel may carry the brand of the foreign manager, the brand of the local developer, or the brands of both specialists. An international hotel can even bear the name of an integrated chain that covers hotel management and hotel development. In the study, we argue that the branding status of the focal hotel dictates the principal-agent relationship in the manager-developer dyad, where the brander/principal claims the gains in hotel reputation by paying a fee to buy out the contribution of the nonbrander/agent. Naturally, the brander must incur a cost to monitor shirking by the non-brander in building and protecting hotel reputation, a special type of agency issue called branding agency. The right to brand an international hotel can be reallocated between the parties to support their cooperation in multiple markets. Integration of hotel management and hotel development under the hierarchy is necessary only when agency costs are too high in all market interfaces. This branding-governance connection contributes to two seemingly unrelated literatures on organizational economics and branding.

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Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Citation Format(s)

A Principal-Agent View on International Hotel Branding. / Chen, Shih-Fen S.; Liaw, Chya-Yi (Emily).

Proceedings of the 59th Annual Meeting of the Academy of International Business. ed. / Sarianna Lundan; Tunga Kiyak. Academy of International Business, 2017. p. 101 (Proceedings of the Annual Meeting of the Academy of International Business).

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review