Abstract:
This research aimed to study causal relationships between firm performances and various factors of 3-star hotel business in Thailand. First, we surveyed levels of firm performances and four factors: safety and health administration standards, management processes, entrepreneurship characteristics, and competitive advantages. Then, we analyzed causal relationships between firm performances and the factors. Lastly, we inspected factor consistency and antecedents affecting firm performances with the empirical data. We deployed a quantitative research method using questionnaires and then conducted data analysis using structural equation modeling. The sample group consisted of 271 employees who were managers, supervisors or higher, working in 3-star hotels in Thailand. Our study showed that the average opinion scores on entrepreneurship characteristics and firm performances are high, while the average opinion scores on safety and health administration standards, management processes, and competitive advantages are very high. The structural equation model was consistent with the empirical data, with the following variables: Chi-Square = 230.15, df = 107, Relative Chi-Square = 2.151, GFI = 0.907, NFI = 0.924, TLI = 0.946, CFI = 0.958, RMSEA = 0.065, and RMR = 0.015. The hypothesis testing revealed that firm performances were directly influenced by all four factors, namely safety and health administration standards, management processes, entrepreneurship characteristics, and competitive advantages. Moreover, firm performances were also indirectly influenced by three factors, namely safety and health administration standards, management processes, and entrepreneurship characteristics, via competitive advantages.