‘Knowledge and Human Resources Management Practices – Performance Links in the Cyprus Hotel Industry’

Abstract

thesis builds on the resource-based theory (RBT) to establish empirically the extent to which specific knowledge (KM) and Human Resource (HR) management practices impact hotel performance (HP). Given the role of top management executives and their support, the main research question and their complementary ones focus on the effects of these practices, individually but also in bundles, on the performance of hotels. To provide an empirical answer to the above question(s), a survey of 153 three-to-five-star hotels located in Cyprus was undertaken with a response rate of 58% that yielded 90 useable questionnaires in addition to 8 semi-structured interviews to support the findings further. The impacts of internal, financial, and customer groups of key performance indicators (KPIs) were examined over three years. The multiple regression analysis of the primary data involved 12 control variables and 23 main effect variables. These were tested against various measures of performance for each group of KPIs: profitability (PRF), growth of sales (GOS), customer satisfaction (CUSFC) and market share (MKTS). Seven (7) models have been tested successfully, establishing a statistically significant causal relation between KM and HR practices with HP. The findings strengthen the theoretical base of the RBT as they make the case for a more robust separation of KM and HR practices, but at the same time, the inclusion of exploratory and exploitative innovative practices in strategic human resources management (SHRM). Implications for implementing these practices and the limitations and areas of further research are discussed.