Causal Relationship of Certified Hotels’ Performance in Thailand

Abstract Aim/Purpose: This study examined the causal relationship between corporate entrepreneurship, business network, adaptability, and performance in Safety and Health Administration (SHA) Extra Plus-certified hotels in Thailand. The research aimed to understand how various entrepreneurial and operational factors have contributed to the resilience and recovery of the hospitality sector in the post-COVID-19 era. Introduction/Background: The COVID-19 pandemic significantly disrupted the global tourism industry, including Thailand's hotel sector. The SHA Extra Plus certification, which entailed collaboration between hotels and health authorities to ensure safety protocols, has emerged as a critical factor for recovery. This study investigated the relationships between key business practices and the operational performance of SHA Extra Plus hotels. Methodology: A quantitative research methodology was employed for this investigation, utilizing structural equation modeling (SEM) to analyze the relationships between corporate entrepreneurship, business network, adaptability, and performance in SHA Extra Plus-certified hotels. A sample of 339 hotels was selected through stratified random sampling across six geographic regions in Thailand. The survey respondents comprised hotel executives and managers, specifically those responsible for operational and strategic decisions within these establishments. A questionnaire was developed to collect data on key constructs: corporate entrepreneurship, business network, adaptability, and performance. The data were analyzed to assess relationships between these constructs, employing a 5-point Likert scale to evaluate the perceived importance and impact of each factor. Descriptive and inferential statistics, including correlation analysis and path analysis through SEM, were applied to test the hypotheses and examine the strength of relationships among the variables. Findings: The study’s findings indicated that corporate entrepreneurship plays a significant role in enhancing both business networks and adaptability, which subsequently positively impact hotel performance. Specifically, corporate entrepreneurship was found to have a direct, positive influence on business networks (β = .826) and adaptability (β = .501), demonstrating that proactive leadership and innovation in hotel management can foster internal and external networks while promoting organizational flexibility. Business networks were found to significantly influence adaptability (β = .267) and performance (β = .279), emphasizing the importance of robust, collaborative partnerships in navigating the challenges of the post-pandemic tourism market. Adaptability also emerged as a critical driver of performance (β = .281), highlighting that hotels capable of adjusting rapidly to changes in market demand, health protocols, and customer expectations are more likely to succeed in the current volatile environment. The overall model demonstrated a high level of fit, with key fit indices such as RMSEA (.021), CFI (.995), and GFI (.941) indicating that the proposed model accurately represented the relationships between these factors. Contribution/Impact on Society: This research contributes to the body of knowledge on the recovery and resilience of the hospitality industry by providing empirical evidence on the significance of corporate entrepreneurship, business networks, and adaptability in improving hotel performance. The study highlights the interconnectedness of these factors and offers valuable insights for hotel operators, policymakers, and industry practitioners seeking to navigate the complexities of post-pandemic recovery. In particular, the findings suggest that hotels which embrace innovation, foster strong networks, and maintain organizational flexibility are better positioned to overcome crises and thrive in the long term. This research also contributes to the theoretical understanding of how dynamic capabilities, such as adaptability and entrepreneurial orientation, influence performance in the hospitality industry, offering a framework for future research and practice. Recommendations: Based on these findings, it was recommended that hotel managers focus on enhancing corporate entrepreneurship by fostering a culture of innovation, risk-taking, and proactive problem-solving. Strengthening business networks through collaboration with external partners, such as healthcare providers and local businesses, is crucial for building resilience and facilitating rapid adaptation to shifting market conditions. Additionally, hotel operators should prioritize adaptability by encouraging continuous learning, empowering employees, and adopting flexible operational strategies that can be quickly adjusted in response to shifts in demand or external disruptions. These strategies are critical not only for short-term recovery, but also for ensuring long-term sustainability and competitiveness in an increasingly dynamic and uncertain global tourism market. Research Limitation: The study was limited by its focus on SHA Extra Plus-certified hotels in Thailand, which may not fully represent the broader hospitality industry, especially those outside of the certification framework. The sample size, while adequate, was limited to a single country, and future studies could include a wider range of hotel types and geographic locations to increase the generalizability of the findings. Additionally, the research primarily relied on self-reported data from hotel managers, which may introduce biases or limit the depth of insights into operational challenges faced by staff members or customers. Future Research: Future research could expand the scope of this study by examining the role of technology in enhancing adaptability and business networks in the hotel sector, particularly in the context of digital transformation and online customer engagement. Comparative studies between small, medium, and large hotels could also provide further insights into how organizational size and resources influence entrepreneurial behavior, adaptability, and performance. Additionally, researchers could explore the impact of external factors, such as government policies and international tourism trends, on the recovery and performance of SHA Extra Plus-certified hotels.