Strategic Objectives and Control: Optimizing Strategic Success in the Hospitality Setting through Transformational Leadership
Abstract
The aim of the study is to assess the impact of strategic and control objectives on strategic success. Furthermore, it seeks to examine how transformational leadership affects the relationship between goal implementation/commitment and strategic success. Using a quantitative approach, the study collects data through convenience sampling. It is particularly relevant in the hospitality industry in Saudi Arabia. The 378 collected responses are analyzed using partial least squares structural equation modeling technique. The findings confirm all hypotheses of the study except the expected role of transformational leadership in mediating the link between implementation goals and strategic success. The study confirms that strategic and strategic objectives have a significant and positive impact on strategic success. Furthermore, transformational leadership is known to play a facilitating role in the relationship between strategic management and strategic success. This study provides valuable insights and recommendations for practitioners and scholars in the hotel industry in Saudi Arabia.
References
[2] Ajay. 2023. Strategic management is a vital element in achieving success within the corporate sector. International Journal of Advanced Academic Studies, 5(7). DOI: 10.33545/27068919.2023.v5.i7a.1005
[3] Akilo, A., and Olaosebikan, T. W. 2021. Effect of strategic orientation on employee performance in private universities in Nigeria. Social Science Research Network SSRN. DOI: https://doi.org/10.2139/ssrn.3836569
[4] Alabachee, A.S. 2023. The Trade-Off between strategic orientation options to achieving sustainable tourism development: an analytical study on a sample of workers in first-class hotels in Baghdad governorate. International Academic Journal of Accounting and Financial Management, 10(1): 72-88. DOI:10.9756/iajafm/v10i1/iajafm1009
[5] Alao, D.O., and Alao, E. M. 2013. Strategic control and revenue generation: A critical success factor in local government using the balanced scorecard. Nigerian Chapter of Arabian Journal of Business and Management Review, 1(10): 24–35. DOI: https://doi.org/10.12816/0003696
[6] Aldehayyat, J. S., and Anchor, J. R. 2008. Strategic planning tools and techniques in Jordan: awareness and use. Strategic Change, 17(7–8): 281–293. DOI: https://doi.org/10.1002/JSC.833
[7] Alharbi, I. B. 2024. Strategic management: A comprehensive review paper. International Journal of Professional Business Review, 9(3). DOI: https://doi.org/10.26668/businessreview/2024.v9i3.4373
[8] Alharbi, I.B., Elnagar, A.K., Abotaleb, S., and Elzoghbi, H.M. 2022. Reality of Using Blackboard Learning System at Applied College in Saudi Arabia. Journal of Applied Science, Engineering, Technology, and Education, 4(2): 246-258. DOI: 10.35877/454RI.asci1471
[9] Alharbi, I.B., Rossilah J, Nik Hasnaa, N.M., and Awaluddin, M.S. 2020. Transformational leadership’s impact on organizational innovation: The mediating role of management control system. Global Business Review 24(6): 1418–33. DOI: https://doi.org/10.1177/0972150920934640
[10] Allio, M. K. 2005. A short, practical guide to implementing strategy. Journal of business strategy, 26(4): 12-21. DOI: 10.1108/02756660510608512
[11] Ball, R. 2001. Infrastructure requirements for an economically efficient system of public financial reporting and disclosure. Brookings-Wharton Papers on Financial Services, (1). DOI: 10.1353/pfs.2001.0002
[12] Bass, B. M., and Bass Bernard, M. 1985. Leadership and performance beyond expectations. Human Resources Management. DOI: https://doi.org/10.1002/hrm.3930250310
[13] Becker, J. M., Rai, A., Ringle, C. M., and Völckner, F. 2013. Discovering unobserved heterogeneity in structural equation models to avert validity threats. MIS quarterly, 665-694.
[14] Blau, P. 2017. Exchange and power in social life. Routledge.
[15] Buhalis, D., and Costa, C. 2006. Tourism management dynamics: trends, management and tools. Routledge.
[16] Caligiuri, P., Cieri, H., Minbaeva, D., Verbeke, A., & Zimmermann, A. 2020. International HRM insights for navigating the COVID-19 pandemic: Implications for future research and practice. Journal of International Business Studies, 51(5): 697–713. DOI: https://doi.org/10.1057/s41267-020-00335-9
[17] Carless, S. A., Wearing, A. J., and Mann, L. 2000. A short measure of transformational leadership. Journal of business and psychology, (14): 389-405. DOI: https://doi.org/10.1023/A:1022991115523
[18] Chesbrough, H. W. 2003. Open Innovation: The new imperative for creating and profiting from technology. In Google Books. Harvard Business Press. DOI: 10.1108/14601060410565074
[19] David, F.R. 2011.Strategic management: concepts and cases, Global Edition. 13th Edition, Pearson Education, Inc., Upper Saddle River, 235-240.
[20] Demirtas, Ö., Bickes, D. M., Yener, S. and Karaca, M. 2020. The influence of transformational leadership in organizations: the mediating role of meaningful work. Journal of Economy Culture and Society, (61). DOI:https://doi.org/10.26650/JECS2019-0028
[21] Dinh, J. E., Lord, R. G., Gardner, W. L., Meuser, J. D., Liden, R. C., and Hu, J. 2014. Leadership theory and research in the new millennium: Current theoretical trends and changing perspectives. The leadership quarterly, 25(1): 36-62. DOI: https://doi.org/10.1016/j.leaqua.2013.11.005
[22] Elnagar, A.K., Elzoghbi, H.M., Abotaleb, S., and Alharbi, I.B. 2022. The Nexus between succession planning process and administrative leaders’ performance: An empirical study. Journal of Tourism, Hotels and Heritage (JTHH), 5(1): 184-199. DOI: 10.21608/sis.2022.178594.1126
[23] Emamgholizadeh, S., Matin, H. Z., and Razavi, H. R. 2011. Is participation in decision making related to employees’ empowerment? African Journal of Business Management, 5(9). DOI: 10.5897/AJBM10.985
[24] Enz, C. A. 2009. Hospitality strategic management: Concepts and cases. John Wiley and Sons.
[25] Faraj, T. K., Tarawneh, Q. Y. and Oroud. I. M. 2023. The Applicability of the Tourism Climate Index in a Hot Arid Environment: Saudi Arabia as a Case Study. International Journal of Environmental Science and Technology, 20(4): 3849–60.
[26] Fornell, C., and Larcker, D. F. 1981. Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(3): 382–388. DOI:https://doi.org/10.1177/002224378101800313
[27] Franklin, U. E., and Al-Kassem, A. H. 2011. The effect of strategic orientation on market performance of hotels: empirical evidence from The Saudi Arabia hospitality industry. Indian Journal of Marketing, (42).
[28] García-Morales, V. J., Lloréns-Montes, F. J., and Verdú-Jover, A. J. 2018. The Effects of transformational leadership on organizational performance through knowledge and innovation. British Journal of Management, 19(4): 299–319. DOI: https://doi.org/10.1111/j.1467-8551.2007.00547.x
[29] Gillespie, N. A., and Mann, L. 2004. Transformational leadership and shared values: The building blocks of trust. Journal of managerial psychology, 19(6): 588-607. DOI: https://doi.org/10.1108/02683940410551507
[30] Hair, J. F., Black, W. C., Babin, B. y J., and Anderson, R. E. 2019. Multivariate data analysis. Cengage.
[31] Hair, J.F., Ringle, C.M. and Sarstedt, M. 2011. PLS-SEM: Indeed, a Silver Bullet’. Journal of Marketing Theory and Practice, 19(2): 139–152. DOI:10.2753/MTP1069-6679190202.
[32] Harland, C. M. 1996. Supply Chain Management: Relationships, Chains and Networks. British Journal of Management, 7(s1): S63–S80. DOI: https://doi.org/10.1111/j.1467-8551.1996.tb00148.x
[33] Hartmann, F., Naranjo-Gil, D., and Perego, P. 2010. The effects of leadership styles and use of performance measures on managerial work-related attitudes. European accounting review, 19(2): 275-310.
[34] House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., and Gupta, V. 2004. Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies. Thousand Oaks, CA: Sage Publications.
[35] Howell, J. M., and Avolio, B. J. 1993. Transformational leadership, transactional leadership, locus of control, and support for innovation: Key predictors of consolidated-business-unit performance. Journal of Applied Psychology, 78(6): 891–902. DOI: https://doi.org/10.1037/0021-9010.78.6.891
[36] Idrees, I. A., Vasconcelos, A. C., & Ellis, D. 2018. Clique and elite: inter-organizational knowledge sharing across five-star hotels in the Saudi Arabian religious tourism and hospitality industry. Journal of Knowledge Management, 22(6): 1358
[37] Jarzabkowski, P., and Balogun, J. 2009. The practice and process of delivering integration through strategic planning. Journal of Management Studies, 46(8): 1255-1288. DOI: https://doi.org/10.1111/j.1467-6486.2009.00853.x
[38] Jung, D. I., and Sosik, J. J. 2002. Transformational leadership in work groups: the role of empowerment, cohesiveness, and collective efficacy on perceived group performance. Small Group Research, 33(3): 313–336. DOI: https://doi.org/10.1177/10496402033003002
[39] Karshiyev, A. 2023. Organizational methods of setting strategic goals in the development of tourism in the regions. Economics and Innovative Technologies, 11(2). DOI: https://doi.org/10.55439/EIT/vol11_iss2/i46
[40] Kerzner, H. 2019. Using the project management maturity model: strategic planning for project management. In Google Books. John Wiley & Sons.
[41] Ketchen, D. J., Hult, G. T. M. & Slater, S. F. 2007. Toward greater understanding of market orientation and the resource-based view. Strategic Management Journal, 28(9): 961-4. DOI: https://doi.org/10.1002/smj.620
[42] Khan, S. A., and Varshney, D. 2013. Transformational Leadership in the Saudi Arabian Cultural Context: Prospects and Challenges. In J. Rajasekar & L.-S. Beh (Eds.), Culture and Gender in Leadership (200–227). Palgrave Macmillan UK. DOI: https://doi.org/10.1057/9781137311573_11
[43] Kim, S. 2022. Critical success factors evaluation by multi-criteria decision-making: a strategic information system planning and strategy-as-practice perspective. Inf., 13, 270. DOI:10.3390/info13060270
[44] Kumako, S. K., and Asumeng, M. A. 2013. Transformational leadership as a moderator of the relationship between psychological safety and learning behaviour in work teams in Ghana. SA Journal of Industrial Psychology, 39(1): 1-9.
[45] Langfield-Smith, K. 1997. Management control systems and strategy: A critical review. Accounting, Organizations and Society, 22(2): 207–232. DOI: https://doi.org/10.1016/s0361-3682(95)00040-2
[46] Li, H., Sajjad, N., Wang, Q., Muhammad Ali, A., Khaqan, Z., and Amina, S. 2019. Influence of transformational leadership on employees’ innovative work behaviour in sustainable organizations: Test of mediation and moderation processes. Sustainability, 11(6): 1594. DOI: https://doi.org/10.3390/su11061594
[47] Li, W., Zhan, J., and Lu, Y. 2016. A study of transformational leadership, strategic flexibility, and firm performance: The moderating role of environmental dynamism. Journal of Global Business Insights, 1(2): 73-84. DOI: 10.5038/2640-6489.1.2.1009
[48] Malik, I., and Farooqi, Y. A. 2013. Investigating the effect of transformational leadership as a moderator, between employee’s psychological empowerment and employee’s job satisfaction relationship. International Journal of Multidisciplinary Science and Engineering, 4(7): 37-42.
[49] McAdam, D., Zald, M. and Scott, W. R. 2009. Organizations and movements. In Social Movements and Organization Theory. New York: Cambridge University Press
[50] Menguc, B., Auh, S., and Shih, E. 2007. Transformational leadership and market orientation: Implications for the implementation of competitive strategies and business unit performance. Journal of Business Research, 60(4): 314–321. DOI: https://doi.org/10.1016/j.jbusres.2006.12.008
[51] Moses Akilo, A., Wale Olaosebikan, T., Iyiade Adewa, T., and Julius Adegbuaro, A. 2023. Strategic Control Practices and Employee Performance in Private Universities in Nigeria. AKSU Journal of Administration and Corporate Governance, 3.
[52] Niven, P. R. 2002. Balanced scorecard step-by-step: Maximizing performance and maintaining results. John Wiley & Sons.
[53] Nowak, R. 2020. Does employee understand of strategic objectives matter? Effects on culture and performance. Journal of Strategy and Management, 13(4). DOI: https://doi.org/10.1108/JSMA-02-2020-0027
[54] Okumus, F., Altinay, L., Chathoth, P., and KöseogluM. A. 2019. Strategic management for hospitality and tourism. Routledge. DOI: https://doi.org/10.4324/9781351188517
[55] Olowe, O. O. 2017. Strategic control practices and employee performance in Nigeria Manufacturing Company. Journal of Management Sciences, 6(7): 89-102.
[56] Owolabi, S. A., and Makinde, O. G. 2012. The effects of strategic planning on corporate performance in university education: A study of Babcock University. Kuwait Chapter of Arabian Journal of business and management Review, 2(4): 1-18.
[57] Pinkow, F., and Iversen, J. 2020. Strategic Objectives of Corporate Venture Capital as a Tool for Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(4): 157.
[58] Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., and Fetter, R. 1990. Transformational leader behaviors and their effects on followers' trust in leader, satisfaction, and organizational citizenship behaviors. The leadership quarterly, 1(2): 107-142. DOI: https://doi.org/10.1016/1048-9843(90)90009-7
[59] Pooya, A., and Bazrgari, M. 2014. The effect of organizational citizenship behaviors on the success of Enterprise Resource Planning (ERP) information systems. Iranian Journal of Information Processing and Management, 29(2): 399-424. DOI: https://doi.org/10.35050/JIPM010.2014.040
[60] Purcell, J. 2014. The impact of corporate strategy on human resource management. In New Perspectives on Human Resource Management (Routledge Revivals): 67-91.
[61] Ravangard, R., Karimi, S., Farhadi, P., Sajjadnia, Z., and Shokrpour, N. 2016. The effects of transformational leadership and mediating factors on the organizational success using structural equation modeling: A case study. The health care manager, 35(1): 58-71. DOI: 10.1097/HCM.0000000000000090
[62] Ringle, C. M., Sarstedt, M., and Straub, D. W. 2012. Editor's comments: a critical look at the use of PLS-SEM in" MIS Quarterly". MIS quarterly, iii-xiv.
[63] Ringle, C. M., Wende, S., and Becker, J.-M. 2015. SmartPLS 3 (Version 3). SmartPLS GmbH.
[64] Sarstedt, M., Hair Jr, J. F., Cheah, J.-H., Becker, J.-M., and Ringle, C. M. 2019. How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal (AMJ), 27(3): 197–211.
[65] Saylı, H., and Tüfekçi, A. 2008. The role of a transformational leader in making a successful organizational change. Erciyes University. Journal of Economics and Administrative Sciences Faculty, 30(1): 193-210. DOI:10.11648/j.jhrm.20190701.13
[66] Shamir, B., House, R. J., and Arthur, M. B. 1993. The motivational effects of charismatic leadership: A self-concept-based theory. Organization Science, 4(4): 577–594. DOI: https://doi.org/10.1287/orsc.4.4.577
[67] Simons, R. 2019. The role of management control systems in creating competitive advantage: new perspectives. In Management Control Theory (173-194). Routledge.
[68] Syrek, C. J., Apostel, E., and Antoni, C. H. 2013. Stress in highly demanding IT jobs: Transformational leadership moderates the impact of time pressure on exhaustion and work–life balance. Journal of occupational health psychology, 18(3): 252.
[69] Tawse, A., and Tabesh, P. 2020. Strategy implementation: A review and an introductory framework. European Management Journal, 39(1): 22-33. DOI: 10.1016/j.emj.2020.09.005
[70] Tayal, R., Kumar Upadhya, R., Yadav, M., Rangnekar, S., and Singh, R. 2018. The impact of transformational leadership on employees’ acceptance to change: Mediating effects of innovative behaviour and moderating effect of the use of information technology. VINE Journal of Information and Knowledge Management Systems, 48(4): 559-578. DOI: 10.1108/VJIKMS-05-2018-0039
[71] Ugboro, I.O., Obeng, K., and Spann, O. 2011. Strategic Planning as an Effective tool of strategic management in public sector organizations. Administration & Society, 43. DOI: 10.1177/0095399710386315
[72] Valentine, S.R., Godkin, L. and Fleischman, G. (2024). The Impact of Ethical Forms of Organizational Leadership and Ethical Employment Contexts on Employee Job Satisfaction in Nigerian Hospitality and Recreation Firms. Employ Respons Rights J, 36: 41–62. DOI: https://doi.org/10.1007/s10672-022-09434-1
[73] Wolf, C., and Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven agenda. Journal of management, 43(6): 1754-1788. DOI: https://doi.org/10.1177/0149206313478185
[74] Yangailo, T. 2023. Assessing the influence of transformational leadership on competitive advantage through important innovations and quality results: Case of railway industry. Management Science Letters, 13(1).
[75] Zadoia, V., and Charkina, T.Y. 2023. Strategic management in tourism: key aspects. Review of Transport Economics and Management, (8(24): 72–80. DOI: https://doi.org/10.15802/rtem2022/277124
[76] Zhang, S., Sun, W., Ji, H. and Jia, J. 2021. The antecedents and outcomes of transformational leadership: leader's self-transcendent value, follower's environmental commitment and behaviour. Leadership & Organization Development Journal, 42(7): 1037-1052. DOI: https://doi.org/10.1108/LODJ-10-2020-0471
[77] WTTC. 2022. Saudi Arabia’s Travel and Tourism to Have Fastest Growth in the Middle East over the next Decade. News Article | World Travel & Tourism Council (WTTC). Available at: https://wttc.org/news-article/saudi-arabias-travel-and-tourism-to-have-fastest-growth-in-the-middle-east-over-the-next-decade
Copyright© 2024 The Author(s). Published by ASERS Publishing 2024. This is an open access article distributed under the terms of CC-BY 4.0 license.