Hotels in Destination An Social - senshu-u.ac.jp
Transcript of Hotels in Destination An Social - senshu-u.ac.jp
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Are Hotels in Destination Competitive or Cooperative?:
An Empirical Application of Social Network Analysis
Masayuki KanaiSenshu University, Japan
[email protected]‐u.ac.jp
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The Fifth Joint Japan‐North America Mathematical Sociology ConferenceAugust 16, 2012, Denver CO, USA
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Organization of the Presentation
• Puzzle: Competitive or cooperative?:Inter‐firm relations in tourist destinations
• Theoretical argument: Centrality indices on inter‐firm network
• Data and methods• Findings: Cooperative rather than competitive• Conclusions
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Visit Japan! Visit Hot Springs!
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1980 1985 1990 1995 2000 2005 2010
2000
6000
Visitor Arrivals in Japan (1980-2011)
Year
Vis
itor A
rriv
als
(Tho
usan
d)
Source: Japan National Tourism Organization,the Ministry of Justice
Source: Japan Travel Bureau Foundations (2007)
2007 The enactment of the Tourism Nation Promotion Basic Law2008 The establishment of Japan Tourism Agency
1317
8611
Hot springs Nature Food History Seashore Theme park
Favorite Type of Tourism (Multiple Answer)
Per
cent
010
2030
4050
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1998 2000 2002 2004 2006 2008 2010
500
600
700
800
900
1000
Number of Rooms in Hotels (1997-2010)
Year
Roo
ms
(thou
sand
)
Hotel styleJapaneseWestern
Stay at RYOKAN?
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A hotel in the style of traditional Japan(Ginzan hot springs, Yamagata)
Source: the Ministry of Health, Labour and Welfare
Decline of Japanese style hotels in hot springs destinations
982,228
764,316
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Inter‐firm Relations in Destinations
• Competition– Share visitors to the destination
• Cooperation– Collaborative network to attract more tourists for the destination
– To win the nation‐wide or global competition among destinations
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A Puzzle: Competition or Cooperation?
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Centrality on Inter‐firm Network
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betweenness centrality degree centrality
competitive cooperative
If inter‐firm networks are…
… will bring more profits to each hotel.Because of…
power to control information flow within inter‐firm network
deep involvement in collaborative network for promotion
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Data
• Questionnaire Surveyfor Hotels in Hot Springs Destinations– Population: Purposively selected 4 prefectures which have various types of hot springs destinations
– Target: ALL Hotels in ALL hot springs destinations in the 4 prefectures
– Reliable responses were 779 (51.4%).– Mail survey conducted in 2007.
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Variables and Methods• Unit: Hotel (N=779)• Dependent Variable:
– Profit change compared to five years ago• Independent Variables:
– Betweenness centrality (normalized within destination)– Degree centrality (normalized within destination)
• Control Variables:– Room rate (high or low; dummy variable)– Management efforts
• Method– OLS regression
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Centrality Indices (1)
• Specify the whole inter‐hotel network structure in each destination
• Derived from participations in the events for promotion held during the last year
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EventHotel E1 E2 E3 E4 E5H1 1 0 1 0 1H2 1 1 1 0 0H3 1 0 0 0 1H4 1 0 0 0 1H5 1 1 1 1 1H6 1 0 1 0 0H7 1 0 1 0 1H8 0 0 0 0 0
HotelHotel H1 H2 H3 H4 H5 H6 H7 H8H1 3 2 2 2 3 2 3 0H2 2 3 1 1 3 2 2 0H3 2 1 2 2 2 1 2 0H4 2 1 2 2 2 1 2 0H5 3 3 2 2 5 2 3 0H6 2 2 1 1 2 2 2 0H7 3 2 2 2 3 2 3 0H8 0 0 0 0 0 0 0 0
Incidence Matrix Adjacency Matrix
Note: 1 = participated in, 0 = not participated in
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Centrality Indices (2)
• Calculate betweenness and degree centrality for each hotel
• Normalize indices within each destination
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Before NormalizationCentrality
Hotel Betweenness DegreeH1 1.33 6H2 0 4H3 0 4H4 0 4H5 1.33 6H6 0 4H7 1.33 6H8 0 0
CentralityHotel Betweenness DegreeH1 1.21 0.88H2 ‐0.72 ‐0.13H3 ‐0.72 ‐0.13H4 ‐0.72 ‐0.13H5 1.21 0.88H6 ‐0.72 ‐0.13H7 1.21 0.88H8 ‐0.72 2.14
After Normalization
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Descriptive Statistics
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-3 -2 -1 0 1 2 3
Profit Change (N = 757)
Prop
ortio
n (%
)
05
1525
0 1 2 3 4 5 6 7 8
Management Effort (N = 765)
Prop
ortio
n (%
)
05
1020
Betweenness Centrality (N=575)
Prop
ortio
n (%
)
-1 0 1 2 3 4
010
2030
Degree Centrality (N=738)
Prop
ortio
n (%
)
-4 -3 -2 -1 0 1 2
010
2030
40
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Profit Betweenness Degree EffortsProfit 1.000Betweenness 0.087* 1.000Degree 0.102** 0.647*** 1.000Efforts 0.252*** 0.162*** 0.157*** 1.000
Correlation Coefficient Matrix
• Significantly positive simple correlation– between Profit and Betweenness centrality– between Profit and Degree centrality
• High simple correlation between Betweenness and Degree centrality (‐> multicollinearity)
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Note: * < .05, ** < .01, *** < .001.
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OLS Regression
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Note: Dependent variable is Profit Change. “Rate” means higher rate dummy.+ < .10, *** < .001.
• Betweenness centrality is NOT significant.• Degree centrality is significant.
HypothesisCompetition Cooperation
Coef. S.E. Coef. S.E.Betweenness .034 .051Degree .079 + .044Rate .502 *** .102 .482 *** .088Efforts .138 *** .035 .127 *** .030Constant ‐1.639 *** .115 ‐1.670 *** .097adj. R2 .095 * .101 *N 538 690
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Findings
• Score of betweenness centrality does not have a significant effect on profit change.– Competition hypothesis was rejected.
• Score of degree centrality has a significant effect on profit change– Cooperation hypothesis was accepted.
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Conclusions
• Inter‐firm relations in tourist destinations are cooperative rather than competitive.
• Active involvement in the collaborative network for destination development is beneficial for the management performance of each hotel.
• An example of empirical application of social network analysis.
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Thanks!
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Your Comments are Welcomed!
This work was supported by MEXT/JSPS KAKENHI Grant Number 23614020.
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Interaction betweenDegree Centrality and Price
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Model 1 Model 2Coef. S.E. Coef. S.E.
Degree centrality .079 + .044 .175 ** .059Rate .482 *** .088 .486 *** .088Degree x Rate ‐.212 * .088Efforts .127 *** .030 .132 *** .030Constant ‐1.670 *** .098 ‐1.673 *** .097adj. R2 .101* .108 *AIC 2075.6 2072.1
Degree Centrality
Prif
it C
hang
e
-2
-1.5
-1
-0.5
-3 -2 -1 0 1
: highprice.c low
-3 -2 -1 0 1
: highprice.c highNote: Dependent variable is Profit Change.N = 690. + < .10, * < .05, ** < .01, *** < .001.
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Centrality Indices:Weight Transformation of Ties
• In each adjacency matrix of destination, • Ties with weights greater than median were remained but with weight value 1,
• Ties with weights less than median were deleted.
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Before Transformation After Transformation
Note: Median of weight in this network is 2.
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Population Prefectures
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Yamagata
Niigata
NaganoGunma
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Sampling Design
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PrefectureNumber ofDestinations
Number ofHotels
ReliableResponses
ResponseRate
Nagano 21 597 312 52.3%Yamagata 12 224 117 52.2%Gunma 9 329 169 51.4%Niigata 14 365 181 49.6%Total 56 1,515 779 51.4%Note: Mail Survey conducted on January to February 2007.
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Descriptive Statistics
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Variables Values MeanStandardDeviation N
Profit change comparedto 5 year ago
‐3 ~ 3 ‐1.017 1.151 757
Betweenness centrality ‐1.339 ~ 3.693 0.000 0.970 575
Degree centrality ‐3.615 ~ 1.529 0.000 0.966 738
Room rate 0(low), 1(high) 0.519 0.500 756
Efforts 0 ~ 8 3.030 1.487 765
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Profit Change
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Profit Change
%
0
10
20
30
40
-2 0 2
low price
-2 0 2
high price
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Betweenness Centrality
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Betweenness Centrality
%
0
10
20
30
-1 0 1 2 3 4
low price
-1 0 1 2 3 4
high price
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Degree Centrality
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Degree Centrality
%
0
10
20
30
40
50
-4 -3 -2 -1 0 1
low price
-4 -3 -2 -1 0 1
high price
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Management Efforts
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Management Efforts
%
0
10
20
30
0 2 4 6 8
low price
0 2 4 6 8
high price
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Scatterplot Matrix
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Profit-1 1 3 0 2 4 6 8
-3-1
13
-11
3 Between
Degree
-3-1
1
-3 -1 1 3
02
46
8
-3 -1 1
Effort